(Ecofin Agency) - Burkina’s company for textile fibers (SOFITEX) has secured from a pool of 12 banks, a loan of CFA70 billion for the 2017/18 cotton season, Sidwaya reported. The related agreement was signed on December 8, 2017, in Ouagadougou.

The loan which comes at an interest rate of 6%, should be used to buy input and cotton seeds from producers, as well to convey the commodity to the SOFITEX’s 15 ginning factories. This was disclosed by SOFITEX’s managing director, Wilfried Yaméogo ((photo).

Burkina Faso now expects an output of 563,000 tons of cotton in 2017/18, against 650,000 tons initially; this due to insufficient rainfalls and pests invasion.

Cotton contributes to 4% of Burkina Faso’s GDP and is the second most exported product by the country, after gold. It is the main source of revenues of more than 4 million people.

Espoir Olodo