(Ecofin Agency) - Benin has been focusing on processing its cotton output in recent years. A new project, backed by four major banks, (87.17 billion FCFA) will help the country boost its processing capacity.

Société des Textiles du Bénin (STB) has secured 52.3 billion FCFA (around $86 million) from a consortium of banks, including BIIC, CBAO Bénin, BGFI Bank, and BOAD. The agreement, signed in Cotonou at the end of June, aims to transform Beninese cotton into finished products for export to European and American markets.

According to the Banque Internationale pour l’Investissement et le Commerce (BIIC), the funds will cover 60% of an 87.17 billion FCFA transformation project by STB, which will contribute the remaining 40%. BIIC will provide 21.3 billion FCFA, BGFI Bank 10 billion FCFA, with 11 billion FCFA from CBAO Bénin and 10 billion FCFA from BOAD.

The project involves constructing ten textile factories, each with an annual capacity to process 10,000 tons of raw cotton. The finished products will include clothing, household linens, and sports items. "We are proud to participate in this transformative project that positions Benin as a leader in sustainable industrialization in Africa and globally," said Arsène M. Dansou, CEO of BIIC.

STB stated that the project would create 7,000 direct jobs and 10,000 indirect jobs. They have already received orders from clients like the Fédération Internationale de Football Association (FIFA).

This initiative is part of Benin's agro-industrial strategy to increase the value added by the cotton sector. Over the past five years, Benin has attracted several private investments in the Glo Djigbé Industrial Zone (GDIZ), 45 km from Cotonou, which have enabled the export of "made in Benin" garments. The latest shipment, dated June 14, included 80,000 children's leggings produced in GDIZ for the French fashion retailer KIABI.

Benin ended the 2022/2023 season as Africa's top cotton producer, with a harvest of 587,656 tons of seed cotton, surpassing Burkina Faso (411,969 tons) and Mali (390,000 tons).