Mozambique: UEM professor awarded 'Best Doctoral Thesis' in Brazil
Plexus is staying in Cabo Delgado – Cotton Association of Mozambique | Carta
1:38 CAT | 08 Jul 2022
FILE - For illustration purposes only. [File photo: Twitter / @PlexusCotton]
The Cotton Association of Mozambique (Associação Algodoeira de Moçambique – AMM), says that British company Plexus’ position is to stay in Cabo Delgado, although on 28 June it expressed its intention to leave the region, allegedly because of insecurity in the province. Plexus also faces economic and financial problems.
READ: Mozambique: British cotton company pulling out of Cabo Delgado – AIM report
In email correspondence with ‘Carta’, the president of AAM, Francisco dos Santos, said that the association had seen the news published a few days ago, but that, “with regard to AAM, Plexus’ official position to date remains the same, that is, to find a solution to the economic and financial problem it is experiencing”.
Dos Santos said that Plexus had been in contact with the relevant public entities regarding attempts to solve its problems.
“As AAM, we are following the matter closely and carefully, firstly for the families affected, and secondly because it is a very important area for the subsector. We will do everything in our power to see that the situation in the region can be definitively remedied,” dos Santos said.
Plexus, the only cotton concessionaire in Cabo Delgado, is in financial trouble and has, at least once, been bailed out by the government. In February, 2020, its 100 workers went on strike demanding four months back-pay, and Plexus owes money to 48,000 unpaid cotton farmers. In all, Plexus says it is US$1.5 million in debt.
In February, 2020, Minister of Agriculture and Rural Development Celso Correia promised that he would find a solution within two weeks, and a few weeks later, the government gave Plexus over US$2 million to pay the producers and get back up and running.
Cotton is the most important source of income for thousands of smallholders in the southern districts of Cabo Delgado, particularly Montepuez, Balama, Namuno and Chiure
READ: Cotton: Plexus workers on strike, Montepuez-based company needs US$10 million to overcome crisis
Source: Carta de Moçambique
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.