The Institute for State Assets and Participations Management (IGAPE) has terminated the exploitation and management contract for the Comandante Bula textile factory (formerly Satec) with Baobab Cotton, a Zimbabwean company.
The agreement had stipulated that Baobab Cotton would pay the State a fixed annual fee of 311 million kwanzas over a 15-year period, along with variable payments of 5% of annual revenues. The contract also included a purchase option for Baobab Cotton after 10 years and up to the end of the contract term, with the factory’s value estimated at over 100 billion kwanzas, minus payments already made by the time the purchase option was exercised.
According to IGAPE, the termination of the concession contract for the factory, located in Kuanza Norte province, aims to protect the public interest and ensure the continuity of industrial activity.
The IGAPE statement does not detail the reasons behind the termination nor the next steps for the factory, although it does confirm that management responsibility now falls to the State, with the expectation of a new private operator being brought in eventually.
Speaking to the press following the formal termination of the contract, Álvaro Fernão, Chairman of IGAPE, clarified that the factory is returning to State control after having been privatized in 2022. He explained that the decision was based on contractual clauses, particularly those related to operations, production, and the volume of expected output.
“We want to optimize it—these are State assets that were privatized to increase production,” he emphasized, adding that the government aims to ensure this goal is met in the near future.
Since being handed over to the Zimbabwean group, Baobab Cotton, the factory has faced several constraints, especially due to a lack of raw materials. The initial goal of cotton production within Angola was never realized, and the company also faced difficulties importing cotton.
With the exit from the Comandante Bula (ex-Satec) facility, Baobab Cotton now only retains management of the África Têxtil factory, located in Benguela.
Source: Expansão
