Maputo, Mozambique, 13 July – Providing tax exemptions for a “long period” is the strategy drawn up by the Mozambican government to re-launch the country’s textile industry the Mozambican Minister for Industry and Trade, António Fernando said Friday in Matola.
Fernando noted the importance of attracting investors to the sector, which used to be one of the country’s most dynamic, whilst speaking to journalists after a visit to Texlom, which was Mozambique’s largest company in the textile sector before closing in the 1990s.
After a stoppage of some 15 years, Texlom, now known as Moztex, is due to start operating again at the end of August, as a result of an investment of US$2 million carried out by the Aga Khan Foundation for Development.
“We have always said that re-launching the textile industry was a priority for the Government of Mozambique, due to the high number of workers it employs, to the market potential it has an the income that it provides,” Fernando said.
In order to attract investment to the textile sector, the Government is offering a package of tax incentives, including “tax exemption for long epriods,” Fernando said.
The possibility of Mozambique textile products entering the United States’ market, within the framework of the African Growth and Opportunity Act (AGOA), approved by the US administration in favour of some poor countries, was also an attractive aspect said the minister.
The European Union (EU) via its Everything But Arms (EBA) initiative, was also an advantage, Fernando noted. (macauhub)