• Lottery authority Lonab to invest $5.2 million in Agricultural Bank of Faso
• Move part of capital raise to expand lending to underserved farm sector
• Lonab also investing in health and textile firms to diversify portfolio
Burkina Faso’s government has authorized the National Lottery (Lonab) to acquire a direct stake in the Agricultural Bank of Faso (BADF), investing 2.6 billion CFA francs (about $5.2 million). The decision was approved on June 4, 2025, during a Council of Ministers meeting.
While the number of shares was not disclosed, the investment is part of a capital increase for BADF, whose original capital stood at CFA14.2 billion. The goal is to strengthen the bank’s capacity to lend to farmers, cooperatives, processors, and other key actors in the agricultural sector. The move aligns with national legislation allowing state-owned enterprises to hold equity in strategic sectors.
Lonab, historically associated with lottery games, already holds a 10.51% stake in BADF. Through this new investment, it will diversify its portfolio and reinforce its role in supporting national development.
BADF, which began operations in March 2019 after regulatory approval in 2018 from the WAEMU Banking Commission, is majority-owned by the state. Government-affiliated entities—including the FBDES (63.04%), CARFO (14.01%), and Lonab—collectively hold 87.55% of shares. Private sector and rural stakeholders own 7.38%, and individual shareholders hold 5.07%.
Though it operates as a universal bank, BADF prioritizes credit for agriculture, a sector that contributes 16% of GDP and employs 84% of the active population but receives only 3.5% of total bank lending, according to the bank’s data.
In addition to its investment in BADF, Lonab will inject CFA1.4 billion into Faso-Pharma—securing a 28% stake to support its launch—and CFA2 billion into Texforces-BF, a security textile firm, for a 20% share. These moves aim to stimulate local production and job creation.
Together, the investments signal Lonab’s broader strategy to diversify into vital sectors such as agriculture, health, and industry, and reflect a shift in public enterprise policy toward funding strategic national projects.
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