Angola: India’s Exim Bank funds recovery of África Têxtil

25 March 2008

Luanda, Angola, 25 March – The Export Import Bank of India has granted a US$45 million loan to the Angolan government for the reconstruction of the Lukala industrial hub (Kwanza-Norte province) and the recovery of the África Têxtil company, in Benguela, according to Angolan newspaper Jornal de Angola.

The paper cited the Angolan deputy Industry minister, Abraão Gourgel, who said that the funding had been under negotiation for some time, with the support of INdian group Angelique International, a partner in the project to relaunch África Textil.

In an initial phase, the factory, which will require investment of US$15 million, will carry out cotton ginning and spinning.

Cotton production in Kwanza Sul is currently being re-launched by the Agriculture Ministry in partnership with South Korea’s Samsung, which will be essential for the África Textil project.

According to the deputy minister, África Textil will be just the start of a number of activities that aim to turn the country into an exporter of thread and other cotton products to neighbouring markets, at a time when cloth production for the domestic market requires some prudence.

However, the industry does not discount the possibility of production of clothing for the State sectors with greatest consumption levels, such as Education, Health and the Armed Forces.

In its turn the Lukala hub will be just one of several that the government plans to set up in several regions of the country, namely Caála (Huambo), Bié, Uíje, Cahama (Cunene), Kwanza Sul and Soyo (Zaire province).

The loan from the Indian Exim Bank is not part of the projects estimated to costs some US$200 million presented by the Angolan delegation that took part in the Conclave on Development Partnerships between India and Africa in New Delhi. (macauhub)