Providing tax exemptions for a “long period” is the strategy drawn up by the Mozambican government to re-launch the country’s textile industry, said  António Fernando, Mozambican Minister for Industry and Trade.

While speaking to journalists after a visit to Texlom, he highlighted the importance of attracting investors to the sector, which used to be one of the country’s most dynamic area in 1990s. Texlom, which was Mozambique’s largest company in the textile sector before closing in the 1990s is now known as Moztex. This mill  is expected 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.

In order to attract investment to the textile sector, the government is offering a package of tax incentives, including “tax exemption for long periods. 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.