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.
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.