H&M and Swedfund come join to develop responsible Ethiopian Textile Industry

H&M has entered into partnership with Swedfund to create a unique cooperation in Ethiopia which aims to contribute to the development of a responsible Ethiopian textile industry characterized by both high social and environmental standards.

The cooperation sees opportunity to get involved in Ethiopia’s growing textile industry at an early stage and to contribute to more jobs. They have for many years worked in existing manufacturing countries to improve working conditions and the environment. This experience is included with the establishment of cooperation with Ethiopian suppliers,

To create jobs in Ethiopia it is crucial to build a strong domestic industry. Investing in production ensures that added value from the textile industry will to a larger extent remain in the country. In this cooperation H&M will contribute with expertise and knowledge of the textile market as well as purchase of products from suppliers that Swedfund will invest in. Swedfund will provide local market expertise and expansion investments in suppliers to H&M. The cooperation will also involve both parties setting standards for sustainable production and following up indicators such as water use and wages.

According to Anna Ryott, CEO of Swedfund, this unique partnership with H&M, their goal is to contribute to developing the textile industry in Ethiopia, thus creating jobs with good working conditions that lift people out of poverty, especially women.

Through Swedfund’s role as investor, H&M:s purchase of products and each parties respective knowledge and expertise, a strong and viable textile industry can be developed that will be able to operate and thrive with financial strength and on a sustainable basis.

Swedfund, owned by the Swedish state, since 1979 has been engaged in providing risk capital, expertise and financial support for investments in the emerging markets of Africa, Asia, Latin America and Eastern Europe. Their mission is to reduce poverty through sustainable business, contributing to economic and environmental development as well as a positive impact to society.

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