IFC Invests $14.4 Million in Moroccan Textile Company

The International Finance Corporation (IFC) announced on Monday plans to invest $14.4 million in a Moroccan textile enterprise, Settavex.

The IFC's investment, the most important one ever conducted in Morocco, consists of a $5.4 million-loan and a $9 million equity investment.

According to the IFC, a World Bank affiliate specializing in financing private sector projects in developing countries, the investment will help the enterprises produce products with more value added and conduct its $46 million worth expansion project.

During the first stage of its expansion program, Settavex will allocate $28 million to build a finish and dyeing facility and a 3.4 megawatt power-generating plant. The enterprises will then invest $18 million in improving its spinning and weaving capacity.

The agreement was signed on Monday at IFC headquarters in Washington by the IFC's director for central Asia, the Middle East and North Africa, Mohsen Khalil and Settavex chief executive officer, Enrique Garran.

The IFC official stated that the investment would build on Morocco's competitiveness advantage in the textile sector and enable the company meet its customers' demands in an appropriate time.