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In March 2022, OeEB signed a EUR 1, 0 million mezzanine loan agreement with LR Ethiopia Medical Manufacturing PLC, a 100% subsidiary of the Lohmann und Rauscher (L&R) group of companies, under the African-Austrian SME Investment Facility (AAIF). At the same time, DEG is supporting this project with funds from the AfricaConnect program with a total of EUR 4.0 million.
| Project name | LR Ethiopia Medical Manufacturing PLC |
| Region | Sub-Saharan Africa |
| Sector | Financial sector/Microfinance/SME |
| Service | Investment Finance |
| Project country | Ethiopia |
| Project volume | EUR 1 million |
| International climate finance according to UNFCCC | No |
| Additionality | Financial Additionality |
| Project partner(s) | LR Ethiopia Medical Manufacturing PLC, DEG |
L&R is pursuing an ambitious expansion strategy and has subsidiaries in Australia, New Zealand, Europe, Africa and China. The company is a leading international manufacturer and supplier of high-quality, future-oriented medical products and hygiene products, such as conventional bandages to modern treatment and care systems. The L&R portfolio currently includes more than 16,000 products.
L&R is using the funds from the AAIF to build its first African manufacturing site for medical products, such as surgical clothing, at the Bole-Lemi II business park in Addis Ababa, Ethiopia. In doing so, L&R is making a contribution to strengthening and stabilizing the region. It is planned to hire around 500 workers (around 400 of them women) from the local market and train them in a targeted manner as part of employee and training programs (at the L&R Academy). Various modern production technologies will be used , such as hot-melt adhesive technology, high-frequency ultrasonic welding or thermoforming sterile packaging technology. For the implementation of the project, L&R plans to set up a clean room with an area of approx. 5,000 m².
Construction is scheduled to start soon, commissioning in the first half of 2023 and the first delivery from the new plant at the end of 2023. With this project, OeEB actively contributes to SDGs 1 – no poverty, 8 – decent work and economic growth, 9 – industry, innovation and infrastructure, 10 – reduced inequalities and 17 – partnerships for the goals.