IFTC Provides $120M to Burkina Faso to Develop Cotton Sector As Per Mourabaha Framework
On 15 May 2025, the International Trade Finance Corporation (ITFC) approved USD 120 million financing package to the Société Burkinabé des Fibres Textiles (SOFITEX). The ITFC is a member of the Islamic Development Bank (IsDB) group focusing on impact financing, while SOFITEX is the state entity responsible for the cotton sector in Burkina Faso.
The financing envelope underscores #ITFC’s long-standing commitment to the sustainable development of Burkina Faso. It is worth noting that the cotton sector is the cornerstone of the economy of Burkina Faso as it accounts for nearly 8% of the #GDP, employs some 350,000 people, and earns the country more than half of its foreign currencies.
“ITFC’s commitment to Burkina Faso’s economic development is once again demonstrated through this renewed financing facility. We recognize the critical role of the cotton sector in the economy and its impact on employment in Burkina Faso, which has been a key focus of our interventions since 2008. This partnership with SOFITEX aligns with our ongoing efforts to drive sustainable growth in the sector while ensuring its long-term resilience and prosperity.”
ITFC COO Nazeem Noordali
The disbursement forms part of the Mourabaha Framework Agreement struck back in May 2023 for ITFC to provide impact financing up to USD 900 million to support key sectors in Burkina Faso. Through this facility, ITFC is honored to be able to contribute to the Burkinabe Government efforts to attain the UN #SDG, in particular #SDG1 to eradicate poverty through cash crops and #SDG2 to eliminate hunger by enhancing #FoodSecurity.
“We are delighted to strengthen our strategic partnership with ITFC through this facility. This financing will not only help boost cotton production but also create tangible impacts on rural livelihoods, strengthen value chains, and support the country’s sustainable economic growth. We look forward to the positive outcomes of this collaboration for Burkina Faso’s cotton sector and wider agriculture industry.”
SOFITEX CEO Bienvenu Pare
Over the years, the cumulated financing amount from ITFC to Burkina Faso has reached a total of USD 3.3 billion in support of 48 projects, covering mainly the agricultural and energy sectors as well as #SME.