itma 2027

Kabwe Textile Revival: Zambia-China Mulungushi Joint Venture on Track

The long-awaited revival of the Zambia-China Mulungushi Textiles Joint Venture (ZCMT-JV) is steadily progressing, offering renewed hope for Zambia’s textile industry. The historic Kabwe-based textile complex, which ceased operations over 15 years ago, is undergoing extensive rehabilitation, backed by a US$100 million investment from the Zambian government and Chinese partners.

A Legacy of Challenges and Revival Efforts

The Zambia-China Mulungushi Textiles Joint Venture has long been a symbol of Zambia-China diplomatic relations, originating from Mulungushi Textiles Limited (MTL), which thrived in the 1980s before facing financial struggles. By 1993, China extended an interest-free loan of US$1.5 million to sustain operations, and in 1997, Qingdao General Textiles Corporation injected US$15 million to create ZCMT-JV, with China holding a 66% stake and Zambia 34% through the Ministry of Defence.

Despite its past dominance in Zambia’s textile industry, ZCMT-JV halted production in 2007, citing under-capitalization, outdated equipment, and competition from textile imports. Successive governments made attempts to reopen the firm, but these efforts largely failed. Today, about 80% of the company’s equipment is obsolete, necessitating a complete overhaul.

New Investments and Infrastructure Development

Under the New Dawn administration, President Hakainde Hichilema has reaffirmed his commitment to revitalizing ZCMT-JV, with 400 trucks carrying modern textile machinery expected to arrive in Zambia. According to General Manager Emmanuel Sementi, 15 truckloads of equipment have already been delivered, and processing factory construction is underway. However, transportation delays from Mozambique have hindered the timely arrival of the remaining equipment.

To ensure sustainable operations, the revival project includes:

  • Installation of modern, digitalized machinery
  • A cotton out-grower scheme benefiting local farmers
  • A solar power plant to address energy challenges
  • Job creation with 500 direct and indirect employment opportunities

Timeline and Future Prospects

Kabwe District Commissioner Lennox Shimwambwa has provided an updated timeline, stating that processing operations, initially scheduled to commence by February 2025, have been delayed until June due to logistical setbacks. Phase two will focus on reopening the weaving and spinning factories.

“This is serious business… Zambia Mulungushi Textiles is going to transform lives and create jobs for the people,” Mr. Shimwambwa emphasized, affirming President Hichilema’s dedication to restoring ZCMT-JV as a key player in Zambia’s textile sector.

The revival of ZCMT-JV is expected to boost local textile production, reduce reliance on imports, and contribute significantly to Zambia’s economic growth. With the government and investors determined to see this project succeed, ZCMT-JV is poised for a new era of industrial excellence.

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