Swedish Fund DBL Group To Set Up $100M Garment Factory In Ethiopia – AFKInsider

Ethiopian garment industry thrives   Photo: Reuters Video   Reuters.comEthiopian garment industry thrives Photo: Reuters Video Reuters.com

From The Daily Star

DBL Group, a leading apparel exporter, is investing $100 million to set up a garment factory in Ethiopia, encouraged by duty benefits for exports from the African nation to US markets, a top official of the company said yesterday.

“The new factory will go into production in February next year. We expect to employ 3,500 workers. Of them, 150 will be employed as executives — all from Bangladesh,” the official said.

The integrated textile and garment factory to be built in the Tigray region of Ethiopia will add immense value to the Ethiopian economy and strengthen exports, according to news agency Bernama.

“We are going to Ethiopia as this African nation enjoys zero-duty benefits from the United States on exports. The benefits will continue for a long time as Ethiopia is a member of the least developed countries,” the official said.

The US government last year renewed the African Growth and Opportunity Act or AGOA for the African LDCs for the next 10 years to provide zero duty benefits on export.

Bangladesh, despite being an LDC, does not enjoy a duty benefit from the US as the American government suspended its generalised system of preferences in June 2013. Garment products were not included under the GSP scheme to the US market when it used to enjoy the GSP.

For construction of the factory in Ethiopia, DBL obtained $15 million in loans from the Swedish government’s development fund Swedfund at an interest rate of 6 percent and $55 million from the Ethiopian Development Bank at nearly 7 percent.

Read more at The Daily Star

Sign up for the AFKInsider newsletter — the most compelling business news you need to know from Africa and the African diaspora, delivered straight to your inbox.

Source link

Related Posts Plugin for WordPress, Blogger...

Add Comment