The $15m loan from the IFC to Star Garments will be used to build a greenfield clothing factory in Togo that is expected to create 4,520 direct and indirect jobs, especially for women, and generate significant export-oriented value addition by 2030.
It marks the Charles Komar & Sons and its subsidiary Star Garments' first venture into Africa.
The cut-make-trim factory will cut, assemble, and finish a range of 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.
The factory will be built under the Leadership in Energy and Environmental Design (LEED) standard, an environmentally oriented building certification programme that aims to improve building and construction project performance across several environmental and human health areas.
IFC's loan comprises a $7.5m loan from its own account and a $7.5m loan supported by the International Development Association Private Sector Window Blended Finance Facility.
This project is a result of IFC's Cotton-to-textiles Value Chain Study in West Africa, which focused on developing manufacturing capabilities and building an integrated regional textiles value chain across multiple countries in West Africa.
IFC's strategic priorities for Togo focus on supporting agriculture, transport, logistics, access to finance, energy, digital, housing, and health. As of June 2024, IFC had an active investment portfolio of $131m in Togo that is supporting these key sectors.
"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, added: "Star Garments is a pivotal part of Komar's future growth and 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."
Josiane Kwenda, IFC country manager for Togo, commented: "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 centres in the United States and Europe. IFC is proud to support Star Garments to help support job creation, drive exports, and spur higher value manufacturing for Togo."
