To boost textile and apparel manufacturing in Togo, the International Finance Corporation (IFC) has unveiled a financing package for Star Garments Group Limited. This initiative will support the establishment of Togo’s first large-scale, export-oriented apparel manufacturing center, anticipated to create thousands of local jobs.
The IFC’s $15 mn loan will enable Star Garments, a leading Sri Lanka-based apparel manufacturer and a wholly owned subsidiary of U.S.-based global apparel leader Charles Komar & Sons, to construct a Greenfield clothing factory in Togo. This facility is expected to generate 4,520 direct and indirect jobs, particularly benefiting women, and significantly enhance export value by 2030. This venture marks the first entry into Africa for Charles Komar & Sons and Star Garments.
The factory will be constructed under the Leadership in Energy and Environmental Design (LEED) standard, an environmentally focused building certification program that aims to enhance the performance of building and construction projects in various environmental and human health areas.
The IFC’s loan comprises a $7.5 mn loan from its own account and a $7.5 mn loan supported by the International Development Association Private Sector Window Blended Finance Facility.
“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.”
“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,” added Charlie Komar, President and CEO of Charles Komar & Sons.
“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,” stated 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.”
