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Global Fashion Fund (GFF) will initially invest US$10 million to finance local readymade garment (RMG) factories, especially small and medium enterprises (SMEs), to ensure sustainable production.
To this effect, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and GFF on August 25 signed a Memorandum of Understanding (MoU) aiming to support and strengthen the development and uptake of innovative sustainability solutions and particularly to improve environmental and social sustainability of the local factories, according to a statement.
BGMEA president Faruque Hassan and GFF Fund Director Bob Assenberg signed the MoU at a virtual ceremony on behalf of their respective organisations.
GFF will provide a long-term loan in addition to technical, environmental and social assistances to the manufacturers to ensure sustainable production, it added.
Launched by Laudes Foundation and Fashion for Good in 2019, Good Fashion Fund (www.goodfashionfund.com) is managed by Fund Manger FOUNT.
Through the joint efforts, GFF aims to invest US$ 10 million in readymade garment manufacturing companies in Bangladesh in the next two years out of its total targeted fund worth US$25 million.
The collaboration aims at giving the manufacturers an access to finance and help them in building a restorative and regenerative apparel supply chain that include the use of recyclable and safe materials, clean and less energy, closed-loop manufacturing and the creation of fair jobs and growth.
Talking at the event, BGMEA President Faruque Hassan said energy efficiency, renewable energy, carbon and water footprint reduction and circular economy have been the core areas of concern for BGMEA as long as sustainability and resilience are concerned.
So SMEs will have to invest in eco-friendly technologies, he added.
Expressing gratitude, he said the collaboration of the two organisations can be prolific to enhance the sustainability standard of the SMEs.
Mr Bob Assenberg said, "We are very excited about partnering with BGMEA and our joint support to apparel manufacturers in Bangladesh will become more sustainable."
They are committed to driving a positive change and good fashion practice in the apparel sector in Bangladesh and look forward to working with forward-looking SMEs in the country, he noted.
Explaining GFF vision, he said it aimed to invest in innovations that deliver both economic growth and good fashion practice for manufactures.