H&M and Swedfund have joined hands to contribute to the development of a responsible Ethiopian textile industry characterised by both high social and environmental standards. The partnership is said to start this autumn.

According The Guardian, the first step of this collaboration happened when the two held talks. It then grew further when they jointly paid a visit to Ethiopia this year and examined factories together.

Commenting on this, CEO of H&M, Karl-Johan Persson, said; “We see the cooperation as an opportunity to get involved in Ethiopia’s growing textile industry at an early stage and to contribute to more jobs”. “We have for many years worked in existing manufacturing countries to improve working conditions and the environment,” he furthered.

It is crucial for Ethiopia to build a strong domestic industry in order to create jobs. Investing in production ensures that added value from the textile industry will to a larger extent remain in the country.

The plan is Swedfund will invest on Ethiopian suppliers and provide local market expertise. H&M on the other hand, will purchase products from suppliers Swedfund invested on. In addition to this, it will contribute expertise and textile market knowledge.

It is said this partnership will involve both parties setting standards for sustainable production and monitoring indicators such as water use and wages.

Managing Director of Swedfund, Anna Ryott, on his part noted “Through this unique partnership with H&M, our 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”.

The partnership gives Swedfund being the role investor and entitles H&M the power to buy products. They will both invest theur respective knowledge and expertise. The cumulative of these factors, is said to develop a strong and viable textile industry that will operate and
thrive with financial strength and on a sustainable basis.

Swedfund is owned by the Swedish State and it provides risk capital, expertise and financial support for investments in the emerging markets of Africa, Asia, Latin America and Eastern Europe.

Source: The Guardian