TOGO – The International Finance Corporation (IFC) has announced a financing package for Star Garments Group to help the company build Togo’s first large-scale, export-focused apparel manufacturing center.
IFC’s US$15 million loan will fund Star Garments, a Sri Lanka-based apparel manufacturing company and a wholly owned subsidiary of the US-based, global apparel industry leader Charles Komar & Sons, to build a greenfield clothing factory in Togo.
IFC’s loan comprises a US$7.5 million loan from its account and a US$7.5 million loan supported by the International Development Association Private Sector Window Blended Finance Facility.
“West Africa holds the potential to be a textile and apparel powerhouse given its substantial workforce, availability of cotton, and proximity to the largest apparel demand centers in the United States and Europe,” said Josiane Kwenda, IFC country manager for Togo.
“IFC is proud to support Star Garments to help support job creation, drive exports, and spur higher value manufacturing for Togo.”
This investment marks Charles Komar & Sons and Star Garments’ first venture into Africa.
The cut-make-trim factory will cut, assemble, and finish various clothing items. It will be built in the Plateforme Industrielle d’Adétikopé, an industrial park on the outskirts of Lomé that aims to create high-value-added industrial chains in several agro-industrial sectors, including cotton, soy, sesame, and cocoa.
“We are excited at the prospect of diversifying our manufacturing base. Our facility in Togo will present a cost-competitive alternative to our customer base and help propel our growth from a Sri Lankan company to a global company,” said A. Sukumaran, managing director of Star Garments Group.
“We also see Togo and West Africa as an ideal destination to present our customers with a farm-to-product storyline that few global destinations can offer.”
Charlie Komar, president and CEO of Charles Komar & Sons, Star Garments’ parent company, said, “Star Garments is a pivotal part of Komar’s future growth. We see Star Garments’ expansion into Africa as the next step in its journey. We are excited to be part of the boom in West African manufacturing in the coming future.”
IFC’s strategic priorities in Togo include agriculture, transport, energy, and digital technology. Its current investment portfolio in the country amounts to US$131 million.
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