IFC and Star Garments Partner to Expand Textile and Apparel Manufacturing in Togo

Lomé, July 8, 2024 - To boost textile and apparel manufacturing in Togo, IFC today announced a financing package for Star Garments Group Limited to help the company build Togo's first large-scale, export-focused apparel manufacturing center, creating thousands of local jobs.

IFC's $15 million loan will provide Star Garments, a leading Sri Lanka-based apparel manufacturing company and a fully owned subsidiary of the U.S.-based, global apparel industry leader Charles Komar & Sons, with funding 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. This investment marks Charles Komar & Sons and 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 program that aims to improve building and construction project performance across several environmental and human health areas.

IFC's loan comprises a $7.5 million loan from its own account and a $7.5 million 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," said Charlie Komar, President and CEO of Charles Komar & Sons, Star Garments' parent company.

"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."

West Africa's textile and apparel sector remains largely underdeveloped but holds significant growth potential. West African countries boast a large and young employee pool and have been improving the conditions for the textiles and garments industry, including by building ports and establishing special economic zones, which are proving a viable model for developing domestic manufacturing.

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 US$ 131 million in Togo that is supporting these key sectors.

About IFC

IFC - a member of the World Bank Group - is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

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About Star Garments

Star Garments is a leading apparel design, sourcing, and manufacturing company headquartered in Sri Lanka. With 11 factories and 9,000 employees across Sri Lanka, the group stands out among its peers due to its versatile manufacturing, commitment to sustainability and its investments in virtual product development. With 8 LEED-certified facilities, Star Garments remains the only apparel manufacturer to have all its processes certified as carbon neutral. Star Garments is also Sri Lanka's largest digital studio, producing 600 virtual apparel renderings a month. For more information, visit www.star.lk.

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