The OPEC Fund for International Development (OPEC Fund) has committed €26 million to support Burkina Faso’s vital cotton sector as part of a €100 million trade finance facility led by the International Islamic Trade Finance Corporation (ITFC).
The funding will help Société Burkinabè des Fibres Textiles (SOFITEX), Burkina Faso’s largest cotton company, purchase seasonal seed cotton directly from local farmers at harvest. This initiative ensures timely payments, financial security for smallholder farmers, and stability within the sector.
OPEC Fund President Abdulhamid Alkhalifa emphasized the significance of this investment, stating: “The OPEC Fund is dedicated to strengthening Burkina Faso’s cotton industry, which serves as a crucial economic pillar for millions. By facilitating prompt cotton purchases from smallholder farmers, this financing not only uplifts rural communities but also enhances economic resilience and reinforces Burkina Faso’s role in global cotton markets.”
Cotton is the backbone of Burkina Faso’s rural economy, generating 5 percent of GDP and providing income for millions. As Africa’s third-largest producer the country exports the vast majority of its cotton, making it a key driver of foreign exchange earnings and economic growth. The sector supports livelihoods from smallholder farmers to workers across the supply chain. Often referred to as “white gold,” cotton remains essential to Burkina Faso’s economic resilience and rural development.
The OPEC Fund has a long-standing partnership with SOFITEX dating back to 2009. Since the inception of this partnership, the OPEC Fund has approved 11 operations to support cotton export financing for a combined net amount of US$373 million.
The OPEC Fund’s recent financing is aligned with the institution’s commitment to sustainable economic growth and trade finance in Africa. Over four decades the OPEC Fund has supported Burkina Faso’s economic development, financing projects in agriculture, energy, and infrastructure with over US$800 million financing across public and private sector loans and trade finance.
