To help Bangladesh’s export-oriented ready-made garment (RMG) industry offset the Covid-induced losses, the International Finance Corporation (IFC) has now stepped in.
To start with, the sister organisation of the World Bank has invested 22.7 million USD in Hamza Textiles Limited (HTL), a dyeing and finishing company owned by the Dulal Brothers Ltd (DBL) Group.
The investment marks IFC’s first Covid-19 support in the RMG sector and includes financing from the International Development Association’s Private Sector Window (IDA-PSW), set up to catalyse investment in low-income and fragile countries.
According to the IFC, the financing will help the company build a new factory with advanced and resource-efficient technologies to respond to evolving demands of consumers and create more than 900 direct new jobs.
“The new factory will allow Hamza to work with new fabrics to meet increasing buyer requirements, widen its manufacturing base and highlight the effectiveness of advanced technologies to cut production costs and deliver climate benefits,” said MA Jabbar, DBL's Managing Director.
The expanded operation is also expected to contribute 8 million USD to Bangladesh's economy directly and indirectly through local supply chains by 2028, 15 million USD in expected economic activities generated by additional income of employees, and boost opportunities for micro, small, and medium enterprises along the supply chain.
HTL provides dyeing and finishing services for fabrics that are used in making RMG by its sister companies, owned by the DBL Group, which is one of Bangladesh’s largest integrated knitted apparel manufacturers and exporters.
IFC’s investment will help expand HTL’s finishing capacity by 80 tonnes per day to reach a total capacity of 103 tonnes per day at its new factory, which will also be a Leadership in Energy and Environmental Design (LEED) certified green building.