Star Garments, a subsidiary of Charles Komar & Sons, has secured a $15 million loan from the International Finance Corporation (IFC) to establish a new garment factory in Togo, marking their first venture into Africa. This factory, to be built in the Plateforme Industrielle d’Adétikopé near Lomé, will adhere to Leadership in Energy and Environmental Design (LEED) standards, promoting environmental sustainability. The project is expected to create 4,520 direct and indirect jobs, particularly for women, and aims to significantly boost export-oriented value addition by 2030.
The IFC loan includes $7.5 million from its own account and $7.5 million supported by the International Development Association Private Sector Window Blended Finance Facility. This investment follows IFC’s Cotton-to-textiles Value Chain Study in West Africa, aimed at developing manufacturing capabilities and integrating regional textiles value chains across multiple countries.
A. Sukumaran, Managing Director of Star Garments Group, emphasized the benefits of diversifying their manufacturing base, while Charlie Komar, President and CEO of Charles Komar & Sons, highlighted the strategic importance of expanding into Africa for future growth. Josiane Kwenda, IFC Country Manager for Togo, pointed out West Africa’s potential as a textile and apparel powerhouse due to its substantial workforce, cotton availability, and proximity to major apparel demand centers in the United States and Europe.
The International Finance Corporation (IFC) is part of the World Bank Group, focusing on private sector development in developing countries. It provides investment, advice, and asset management to foster private sector growth and reduce poverty.
IFC works closely with global financial institutions like the United Nations (UN), World Bank (WB), and International Monetary Fund (IMF). While the World Bank and IMF primarily assist governments with financial and policy support, IFC targets private enterprises to drive economic growth. This coordinated approach ensures a comprehensive strategy for sustainable development and poverty alleviation worldwide.
