Burkina Faso: 106 million euros in strategic financing to boost the cotton sector
Cotton remains a key pillar of Burkina Faso’s economy, directly supporting the livelihoods of nearly 4 million people. It accounts for over 4% of the national GDP and generates approximately 14% of export revenues, according to a recent national report.
In this context, the Burkina Faso Textile Fiber Company (Sofitex) has secured substantial new financial support. The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) Group, has granted Sofitex a €106 million (approximately $119.4 million) financing facility. This funding is structured under a “Murabaha” agreement—a form of Islamic financing in which the institution purchases goods and resells them at a pre-agreed profit margin, without charging interest.
The main goal of this facility is to revitalize Burkina Faso’s cotton sector, a strategic area for the national economy. “This financing will not only help boost cotton production but also improve living conditions in rural areas, strengthen agricultural value chains, and support sustainable economic growth”, said Bienvenu Paré, CEO of Sofitex.
This initiative is part of a broader partnership between the ITFC and Burkina Faso. A $900 million framework agreement had already been signed in May 2023. To date, the ITFC has mobilized around $3.3 billion to support 48 operations in key sectors such as agriculture and energy in Burkina Faso.
With this new support, the country aims to strengthen its position as a leading cotton producer in West Africa, alongside Mali and Benin. The government has set an ambitious target of producing 550,000 tons of seed cotton for the 2025/2026 season—an 83% increase compared to current season projections.
