The Technical Assistance to the Compagnie Financière Africaine Group (COFINA), one of the leading pan-African groups for MSME financing, will make it possible to launch a study on the cotton sector to subsequently promote the implementation of appropriate financing solutions for MSMEs in Burkina Faso’s agriculture sector.
In Burkina Faso, the cotton sector (cotton is the country’s second export product after gold) is once again on an upward trend: the harvest of white gold reached 464,000 tons in 2019/2020, i.e. 6.4% more than the production in 2018/2019 (436,000 tons) and production is expected to increase to 550,000 tons in 2020/2021. To make this sector more beneficial to the country’s economy, it is necessary to identify and support all the players in its value chain.
It is for this reason that PROPARCO is assisting COFINA with the launch of a study on the cotton sector in Burkina Faso. This technical assistance will consist of a detailed diagnostic of the various stakeholders in the sector and structuring a range of financial services to manage the risks and operating costs. The objective: allow COFINA to implement appropriate financing solutions and thereby contribute to the financial inclusion of MSMEs in the country’s agriculture sector.
In the medium term, once PROPARCO has finalized its operational strategy for the agriculture sector, it plans to provide support through financing and guarantees.
Fatoumata Sissoko-Sy, PROPARCO’s Regional Director for West Africa, says she is “particularly pleased with the signing of this Technical Assistance which, through the study on the value chain in the cotton sector, will allow appropriate financing solutions to be implemented to contribute to the financial inclusion of players in this key sector for the country.”
For Dramane BAZIE, Chief Executive Officer of COFINA Burkina, “The findings of this study are eagerly awaited as they will make it possible to gain a better understanding of the cotton value chain and serve a segment of this sector that is still largely underserved in terms of appropriate financial services. This approach is fully in line with COFINA’s mission to create added value for our partners and contribute to Africa’s development over the long term”.