Burkina Faso is set to take full ownership of its main cotton company, Société Burkinabè des Fibres Textiles (Sofitex), in a deal valued at about $607 million, as part of a broader push to expand state control over key economic sectors. The decision, approved by the Council of Ministers on April 16, 2026, will see the government buy out all remaining private shareholders and become the sole owner of the firm, as reported by Ecofin Agency.
The takeover comes amid mounting challenges within the cotton sector, including rising debt levels, declining productivity, and operational inefficiencies at Sofitex, which accounts for roughly 80% of Burkina Faso’s cotton output. Production has fallen sharply in recent years, dropping about 24% to under 300,000 metric tons in the 2024–2025 season, prompting authorities to intervene and stabilize the industry.
Business Insider Africa says full nationalisation will allow tighter financial control, improved governance, and a restructuring of operations to restore efficiency and boost output. The move is also aligned with new bylaws and reforms aimed at reviving the cotton sector, with production targets set to recover toward 550,000 metric tons in the near term.
The decision mirrors Burkina Faso’s recent actions in the gold sector, where the government has increased its stake in mining projects to capture more value from natural resources. Together, these moves signal a clear policy direction toward greater state participation in strategic industries, positioning the country to strengthen revenue control and economic sovereignty in a shifting global commodities landscape.
