Ethiopian RMG sector to receive boost with establishment of textile factory

One of the most prioritized industrial sectors of Ethiopia – the ready-made garment sector will receive a boost with the establishment of a textile factory in the country by the development financier Swedfund and the industry group DBL.

Anna Ryott, Managing Director at Swedfund said that they have managed to form a unique partnership in Ethiopia with deep professional knowledge in every part of the process in order to fulfill the high sustainability requirements.

The project will provide job opportunities for 4,000 people. H&M supports with expert knowledge from sustainable textile production and also by buying products from this factory.

Anna added that the project is a great example of how to work to achieve efficient job creation, and in this project it is particularly focused on women. Job creation is crucial to help people find their way out of poverty and the cooperation with such a great partners like H&M and DBL will make this a role model for other similar projects.

Helena Helmersson, Global Head of Production at H&M said that H&M is pleased that Swedfund is co-financing a project with DBL Group. H&M wants to contribute to a long-term sustainable textile industry in Ethiopia taking social as well as environmental dimensions into consideration. It is important to them that both DBL and Swedfund are putting such questions on top of their agenda when doing investments.

Decent working conditions, job creation for women and environmental considerations are some of the most important goals with the collaboration project, pushing one of Ethiopia’s prioritized industry sectors forward.

The requirements on this individual factory are in line with the strict standard requirements H&M’s suppliers always have to follow. Local and international partners will also be involved in the collaboration in order to enhance the know-how around sustainable production of ready-made garments in Ethiopia.