Burkina Faso: The government takes full control of Biothic Industries due to unpaid debts
The Burkinabe government has decided to fully nationalize Biothic Industries, a company specializing in the extraction of essential oils from local plants. The decision was ratified by the Council of Ministers, marking the culmination of a process that has been underway for several years.
The company, based in Léo, had received significant public financial support between 2020 and 2021.
The Burkinabe Economic and Social Development Fund (FBDES) had granted it 500 million CFA francs, divided into a 400 million investment loan and 100 million as part of a shareholding mechanism, a form of temporary state participation in its capital.
Despite this substantial support, Biothic Industries failed to meet its repayment commitments.
This persistent default led the authorities to activate the shareholding mechanism to take full control of the company, an option provided for in the initial financing agreement.
This decision illustrates the Burkinabe government’s new firmness in managing public funds granted to the private sector.
It sends a clear signal to companies receiving state funding: repayment obligations cannot be evaded without consequences.
The nationalization of Biothic Industries also raises questions about the future of this organization, which specializes in promoting local plant resources.
The government will now be responsible for managing and reviving the company, with the aim of preserving jobs and ensuring the long-term viability of a sector that is strategic for the national economy.
Hadja KOUROUMA
