The facility will allow SOFITEX to buy cotton from its producers, gin, it and convey it to the Abidjan, Cotonou and Lome ports, from where it will be exported to international markets.
Manager, Agribusiness, Sub Saharan Africa, IFC, Samuel Dzotefe said ''Our partnership with SOFITEX, Societe Generale and BNP Paribas is important to encouraging agricultural production in Burkina Faso.
The facility will allow SOFITEX to buy cotton from its producers, gin, it and convey it to the Abidjan, Cotonou and Lom ports, from where it will be exported to international markets.
IFC has been providing similar financing to SOFITEX since 2015.
Wilfried Yameogo, CEO, SOFITEX
, representing Burkina's Minister of Economy, Finance and Development.
Burkina's cotton parastatal, the Societe Burkinabe des Fibres Textiles (Sofitex
) buys, transports and gins cotton grains, supplies inputs (fertilisers and seeds) to farmers, offers support services and promotes textile production.
"For a producer who needs money, shop keepers don't loan money, but when a cotton farmer needs money, they can get credit," Sofitex
's Kara says.
Component 2 (US$3,100,000) OBA subsidies to support acquisition of irrigation technology by cotton farmers in the SOFITEX
IFC Regional Financial Institutions Group Head for Sub-Saharan Africa Aliou Maiga said, "IFC's partnership with SOFITEX
demonstrates our confidence in Burkina Faso's cotton sector and our commitment to support the economic revival of the country following a difficult period.
The 70 million facility will allow SOFITEX
to purchase raw cotton for processing from more than 160,000 Burkinabe farmers and export the production to international markets.
In the previous season, the domestic banks contributed 70 billion CFA francs to SOFITEX
Roger Dah-Achinanon, Managing Director of Ecobank Transnational Inc s Burkinabe unit, which was also among the banks that extended the loan said that the amount to be taken on credit this season by Sofitex
is a 7% rise over the loans secured during last season.