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

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search