Car assembly plant in Mozambique goes into bankruptcy and leaves only debt

18 September 2018

The Matchedje car-assembly project in Mozambique, inaugurated in 2014 by the former President of the Republic, Armando Guebuza, has gone bankrupt leaving the state only with debts, said the Minister of Industry and Trade.

The factory built on 20,000 square metres of land in Machava required an investment of US$ 50 million and was the result of a public-private partnership between the Mozambican state and China Tong Jian Investment.

Ragendra de Sousa, quoted by daily newspaper O País, said that the bankruptcy of Matchedje Motors left only debts for the Mozambican state, and praised the activity currently being carried out at the plant, transforming the bodies of buses into classrooms.

Matchedje Motors during the plant’s inauguration was considered to be a step forward in Mozambique’s industrialisation process, and it was announced that it would produce 500,000 vehicles a year by 2020, both for local consumption and for export.

Three years later, the plant stopped assembling vehicles and became little more than a repair shop for cars and buses, mostly owned by the municipal transport companies of Maputo and Matola. (macauhub)