(Ecofin Agency) - Burkina Faso's cotton industry is one of the most organized in West Africa. In that industry which provides income for the majority of households, operations such as buying and ginning are managed by the private sector.
In Burkina Faso the government decided on Wednesday (June 7), to renew the memorandum of understanding guiding the cooperation between private cotton companies (Sofitex, Faso Coton, and Socoma), the National Union of Cooperative Societies of Cotton Producers of Burkina and the Burkina Cotton Interprofessional Association (AICB).
This agreement, established in 2004 when the cotton sector was being liberalized, gives private companies a monopoly on cotton purchases in their areas of operation over a given period. In return, they are required to meet a number of commitments. These include the delivery of quality inputs to producer associations on credit, offering advisory support to farmers, and collecting and buying seed cotton at the floor price. According to authorities, the previous memorandum, signed on July 2, 2014, was due to expire during the 2022/2023 cotton season.
The new agreement lowers the zone concession period from 10 to five cotton seasons. It also allows the government to modify the concession area at any time, if necessary, to create new production zones.
During the 2022/2023 season, the country produced almost 412,000 tons of cotton. Though it was the second African supplier of the commodity, behind Benin, its production that season was down from the 518,545 tons posted for the previous season.