Home / Knowledge / News / Textiles / World Bank's MIGA insures Afghan cashmere facility
World Bank's MIGA insures Afghan cashmere facility
14
Sep '13
courtesy: afghanmade.com
courtesy: afghanmade.com
The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, is insuring a cashmere scouring and disinfection facility in Heart province of Afghanistan.
 
The MIGA-supported project will boost the nascent cashmere industry in Afghanistan, create direct and indirect employment, and transfer technical know-how in a country undergoing a period of transition, a MIGA press release said.
 
MIGA’s investment guarantees of US$2 million cover equity and shareholder loan investments by Traitex International S.A. of Belgium and a shareholder loan investment by Sodintec Finances S.A. of Luxembourg to Traitex Industry in Afghanistan.
 
MIGA is insuring the project for up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance, which would help the currently underdeveloped Afghan cashmere sector.
 
Among other challenges, the high percentage of waste material in raw cashmere increases its weight—and therefore transport costs. Competition from other countries where the sector is more developed has meant that Afghan producers and traders have had to keep their prices low.
 
The Traitex facility in Herat’s Fibers and Textiles Industrial Park will process fiber for export. Traders will be able to command a higher net price for processed Afghan cashmere, stimulating greater harvesting of cashmere goats and increasing income for local herders.
 
In addition to the indirect employment of herders, the project will also create 35 permanent jobs in an area with limited opportunities and will provide training to Afghan staff.
 
“Until now Afghanistan has exported almost all of its cashmere in its raw form, as no significant processing has taken place within the country,” said Dominique Godin of Traitex International S.A. in the statement.
 
“There’s great potential for this industry going forward, and we’re pleased that MIGA’s insurance helped reduce the risk profile of this project so that it can advance,” he added.
 
MIGA’s executive vice president Keiko Honda said the project is a solid example of how MIGA’s insurance supports foreign direct investment in a fragile context like Afghanistan.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search