IFC as implementing entity of the IDA PSW BFF is expected to provide up to $4 million in the form of a subordinated concessional loan (“blended finance co-investment”) to support the Project. Without the support of the blended finance co-investment, the Project will not go ahead as planned due to the limited availability of security. As a result, DTRT’s Cut-Make-Trim (CMT) expansion would not be carried out at scale and the objective to create jobs, increase domestic value addition and grow exports will not be fully achieved. The subsequent benefits for the employees whose jobs will be created by the Project would not be fully realized either. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be [6.2%] of the total project cost of $10 million. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blendedfinance. IFC is open to engage with other eligible market players in the sector developing projects that seek to achieve similar impact.

4.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	4.0
Equity

* These investment figures are indicative

Economy-wide effects- The Ready-Made Garments (“RMG” sector in West Africa was badly hit during the onset of the pandemic and it is gradually recovering. Against this backdrop, the Project is expected to have various positive economy-wide effects, including i) domestic value addition and grow exports from the region through the expansion of the CMT operations and increasing product complexity (including potential production of PPE); ii) the direct creation of 2,900 formal manufacturing jobs, mostly for women, and a larger number of indirect jobs. Contribution to market creation Market Competitiveness: The Project is expected to improve the sector competitiveness through the expansion of the CMT operations to achieve scale, and therefore improve the efficiency of apparel production in the West Africa region and through backward integration (the 2nd phase of the Project). The capacity for DTRT to produce fabric for other companies in phase 2 will create an additional opportunity to serve other apparel manufacturers on the African continent, particularly those that are increasingly focused on establishing West African CMT operations and would benefit from locally produced fabrics (e.g., Ghana, Nigeria, Senegal, Cote d'Ivoire). As such, as the first mover in the Ghanaian market to integrate its operations at scale, DTRT can serve a significant demonstration effect, and case study for building the textiles sector in West Africa. This could have significant ripple effects, attracting other investors and players in the region, and permitting the West African textiles sector to follow the trajectory of other successful cases (Bangladesh and Sri Lanka) and to develop in ways that will not be possible without this type of first-mover investment.

Financial additionality- Financing Structure: (i) IFC will provide customized financing with multiple tranches to match the CMT ramp-up (in USD) with 6-year tenor (including 2-year grace period) which is not readily available to the Company in the local market; (ii) IFC will potentially provide concessional IDA PSW financing which will help de risk the project given the limited available security package. Non-Financial additionality- Knowledge Innovation and Capacity Building: (i) IFC will continue providing upstream support, to properly integrate the CMT with the upcoming fabric mill; (ii) IFC will help DTRT strengthen the workplace policies for the female workforce (i.e. gender). Standard setting- IFC can potentially enhance DTRT's E&S practices through IFC performance standards. IFC can do so during supervision by supporting the Company implement E&S action plan and recommendations.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.