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Company Profile

TEXAF

TEXAF is a Belgian investment company listed on Euronext, with diversified operations in the Democratic Republic of the Congo spanning real estate, industry, and digital sectors. With its corporate headquarters situated at Avenue Louise 130A in Brussels, TEXAF traces its origins to 14 August 1925, when it was founded in the then-Belgian Congo as Société Textile Africaine by a consortium of Belgian industrialists. The company grew rapidly, branching into sectors such as cotton cultivation, energy production, and transportation logistics, and by 1928, it held the ninth-largest market capitalization among Belgian-Congolese companies before later co-founding the Société Hydro-électrique de Sanga.

Mission
The corporate purpose of TEXAF, as stated in Article 3 of its Articles of Association: "The company's purpose is to take an interest, through equity participation, in all industrial, commercial, or civil enterprises, including providing technical, administrative, and financial assistance, and to manage such a portfolio. It may, within the limits of its corporate purpose, carry out all transactions involving movable and immovable property, as well as financial, industrial, commercial, and civil operations, both in Belgium and abroad. It may also participate, by way of contribution, transfer, merger, subscription, shareholding, financial involvement or otherwise, in any companies or operations having a similar or related purpose or that may help achieve its purpose". ==History==
History
Founding, early development, and expansion into water and electricity infrastructure The history of TEXAF dates back to 1924, when Valère Lecluse, director of the Lecluse Frères textile factories in Ronse, traveled to the Belgian Congo to establish a cotton enterprise. Recognizing the potential of processing cotton locally, Lecluse requested land from the colonial authorities for the construction of a textile plant. He was granted a provisional two-year lease on approximately 45 hectares of land, strategically located between the Gombé River, the Léo 1 and Léo 2 railway lines, the Basoko River, and the Congo River. The Lagache group held 95% of the initial 20 million franc capital, with Lecluse retaining 5%. The founding board of TEXAF included members of the Lagache family—Henri Lagache (president), Victor Lagache (vice president), Léon Lagache (managing director), and Edmond Lagache (director)—alongside Lecluse, Joseph Dieudonné Rhodius (who would later serve as managing director in Belgian Congo from 1934 to 1947 and vice president from 1947 to 1957), and cotton trader Robert Pflieger. Its portfolio came to include UTEXLÉO, the Société des Forces Hydroélectriques de Sanga, IMAFOR, and the public water utility REGIDESO. However, the collapse of Crédit Anversois in 1939 further destabilized the group, and its stake in TEXAF was taken over by SOPABEL. Due to the outbreak of World War II, the liquidation of Crédit Anversois could not proceed, and UTEXLÉO inherited a considerable debt of 106 million francs. Despite these setbacks, UTEXLÉO continued its industrial operations. In 1936, a printing workshop was added, allowing the factory to focus on printed textiles. Nevertheless, the company faced fierce competition from inexpensive Japanese indigo fabrics, whose production and import costs drastically undercut UTEXLÉO's pricing. Consequently, TEXAF's stock value plummeted from its 1928 peak of 3,845 francs to just 47 francs by the end of the decade. The onset of World War II marked a shift in priorities. Against his Board's advice, Joseph Rhodius traveled to the United States to secure machinery and technology for a major expansion project aimed at doubling the factory's capacity to meet military and civilian demand. This led to the construction of an additional 3 hectares of facilities for 78 million francs. In the post–World War II period, TEXAF entered a phase of exceptional prosperity. Between 1951 and 1960, the company distributed dividends totaling 360.2 million Belgian francs. Investment in new machinery, including 5,400 Saco-Lowell spindles and 422 second-hand Draper looms, enabled substantial production increases. Joint ventures and restructuring At the start of 2001, UTEXAFRICA—TEXAF's principal operating company—faced a critical financial challenge when IFC demanded immediate repayment of EUR 31 million in outstanding debt originating from a 1988 loan. A settlement was reached in December of the same year with the support of COBEPA, paving the way for operational continuity. Implementation of these agreements began in 2005, at a time when the DRC was emerging from conflict and preparing for national elections. By 2006, TEXAF had recovered sufficiently to resume dividend payments. In 2007, the group diversified into real estate with the acquisition of ANAGEST—owner of three apartment buildings—from the ATENOR Group. That same year, however, marked the end of textile production in the country, as Congotex was put into liquidation. With the collapse of the Congolese textile industry, UTEXAFRICA became the majority shareholder in IMMOTEX and redirected its core activities toward property development. From 2008 onward, TEXAF invested heavily in enhancing and expanding the UTEXAFRICA site, adding a restaurant, a large swimming pool, and backup generators to support high-end residential infrastructure. In 2009, TEXAF acquired the remaining 50% of CARRIGRES—its construction material business—for EUR 5.75 million. Later that year, the group let out its first high-end apartment building in the "Phase IV" complex, a EUR 12 million real estate investment that signaled the beginning of a new growth trajectory in urban development. The early 2010s saw the group further consolidate its position in real estate. In January 2011, it sold a 70% stake in the three apartment buildings acquired in 2007 for EUR 2.4 million. In July 2012, it also divested its 50% stake in MECELCO for approximately EUR 1 million. By December 2012, the "Phase IV" project had been completed, delivering 54 modern apartments. In June 2013, the first three buildings of a new residential development, "Champ de Coton" ("Cotton Field"), were let out, and a 7,236-square-meter plot was sold the following month for USD 4.1 million. In 2014, the CHA Textiles group acquired a 10% stake in TEXAF. That same year, the group spun off IMBAKIN, which held a debt claim on the Congolese government. The "Champ de Coton" project was completed in May 2015 with a total of 10 buildings and 52 apartments. In October 2016, the "Clos des Musiciens" residential project was delivered, adding 33 new apartments to the portfolio. In April 2017, the group launched its ambitious "Bois Nobles" project, which was projected to include 82 housing units. == Organizational structure ==
Organizational structure
TEXAF is organized into three main sectors: real estate, industry, and digital. Each sector encompasses multiple subsidiaries with varying levels of ownership and specialization. Real estate The sector focuses on property development and management and includes several key entities. IMMOTEX, a Congolese limited liability company founded in 2004, is 64.7% owned by TEXAF and holds major land assets in Kinshasa, including the UTEXAFRICA complex. Anagest, almost entirely (98.9%) owned by TEXAF, functions as a Belgium-based holding entity in this sector. Through Anagest, TEXAF possesses full ownership of Cotex, a firm positioned at the intersection of the industrial and property sectors. UTEXAFRICA, with 99.6% ownership, is charged with managing the UTEXAFRICA property—an integral component of TEXAF's real estate portfolio. TEXAF also holds a 95.1% interest in La Cotonnière, which manages assets historically linked to textile production. ESTAGRICO is also a fully owned subsidiary. Development strategy IMMOTEX manages two major real estate assets strategically located within the capital. • The first asset is a 141,184.19-square-meter plot located at 372 Avenue Colonel Mondjiba in the Ngaliema commune of Kinshasa. This site constitutes the core of the historic UTEXAFRICA concession and includes the buildings of the former TEXAF textile factory. A portion of these buildings has been renovated into modern office spaces, while others are used as rental warehouses and industrial units. In 2013, these properties generated gross rental income totaling 2.4 million. • The second asset under IMMOTEX is a significantly larger 1,040,788-square-meter plot located in Mont Ngafula, in the Kinsuka area along the Congo River. This land, formerly housing the CPA textile factory, remains largely undeveloped. Due to the site's challenging topography, it is estimated that only about 70% of the area is viable for future residential development. Despite currently generating no rental income, TEXAF has outlined plans for a large-scale residential project targeting Kinshasa's growing middle class. However, the land has been subject to repeated illegal occupation attempts, leading to multiple ongoing legal proceedings in both civil and criminal courts. Like all land in the Democratic Republic of the Congo, the site is held under a renewable 25-year concession granted by the state. Industry This sector includes former or current industrial operations: Carrigrès, which is wholly owned by TEXAF, is dedicated to the production of industrial or construction materials, such as those sourced from stone quarries. Another entity, Congotex, reflects TEXAF's historical involvement in the textile industry. TEXAF holds a 35% stake in Congotex through COTEX, along with an additional 8.8% held directly. Digital This sector represents TEXAF's investment in digital infrastructure and IT-related ventures in the Democratic Republic of the Congo. Central to this strategy is TEXAF Digital, a fully owned subsidiary. Through a 50/50 joint venture with Close the Gap, the company formed Close the Gap – TEXAF (RDC), which focuses on promoting digital accessibility and potentially the refurbishment of IT devices. TEXAF also holds a 49% stake in OADC – TEXAF Digital (Belgium). On the local front, OADC – TEXAF Digital (DRC), is entirely owned by TEXAF. ==Operations==
Operations
Congotex' website states that the company is the largest textile and apparel manufacturer in the DRC. Congotex produces: • Fabrics • Paramedical supplies including gauze, sterile cotton and dressings • Manufactured clothing and goods including uniforms, dresses, suits, towels, et cetera ==References==
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