Bangladesh based DBL secures $100 mln to build garment factory in Ethiopia, Mekele

Addis Ababa, May 26, 2016 (FBC) – A 15-million US dollars loan agreement was signed yesterday between the Swedfund and DBL, a Bangladesh textile and garment company.
DBL had already concluded an agreement and received 68 hectares of land to establish textile and garment company in Tigray regional state.

The firm decided to invest in Ethiopia after looking at the business and investment opportunities in the country.

And yesterday, the company signed a 15-million US dollars loan agreement with Swedfund, the Swedish Government’s development financier.

The Ethiopian Development Bank has extended additional 55 million USD loan to the Bangladesh company whose project is estimated to cost 100 million USD, it was indicated.

During the signing ceremony, Swedish Ambassador to Ethiopia Jan Sadek said “I’m happy to see Swedfund engage in Ethiopia.”

The integrated textile and garment factory to be built in Mekele, the capital of Tigray regional state, will add immense value to the Ethiopian economy and boost export, he stated.

Once it goes operational, the factory is expected to create more than 4,000 jobs.

Bangladesh’s Ambassador to Ethiopia, Monirus Islam, said “this will be a model factory as we have garment factories all over Bangladesh but no single one outside that territory.”

State Minister of Industry Taddesse Haile said the Swedish H&M for Ethiopia has been an eye opener for the textile industry.

“We are in better position in achieving our vision of being textile and garment hub in the global market,” he added.