Kabwe Textile Project

The Kabwe Textile Limited (KTL) commenced its operations in 2017 with the objective of reviving the textile industry and contribute to job creation and industrialization of the country. This project will have its own power plant so as to have a smooth operation in production. Despite the low growth rate in net profit that will be experienced in the early years of operations due to debt service and finance lease obligations, this project is highly profitable with a projection profit increment of 54% on average in the first five years of operation. This implies that revenues are expected to increase at a Compounded Annual Growth Rate (CAGR) of +68% in the first 5 years and reducing to +66% onwards. Additionally, the revenue growth in the first 5 years will mainly be driven by progressive increase in production capacity and increased demand. The total investment required for this project to operate under full capacity is USD28 million. This entails that 75% of the capital requirement will be financed through debt and 25% will be financed through equity agreement as an indicative. Thus, the effective split of this will be confirmed post engagement of equity shareholders and debt funders. This Project is located in Kabwe Multi Facility Economic Zone (KMFEZ), Central Province.

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