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Cameroon : Sodecoton Strikes 26 billion Agreement to Boost Cotton Production

SODECOTON

This deals aims  financing the modernisation of 9 of its factories in the North and Far North regions, as well as the construction of a ginning factory.

 

The financial situation of public enterprises and establishments just released by the Technical Commission for the rehabilitation of the said structures reveals that the Société de développement de coton du Cameroun (Sodecoton) is considering signing a non-sovereign financing agreement with the French Development Agency (AFD). The agreement is for a sum of 40 million euros, or more than 26 billion CFA francs. The money requested is intended to strengthen the company’s production capacity.

It will also be used to offset the company’s low gearing capacity. Specifically, Sodecoton intends to launch the modernisation of 9 of its factories in the North and Far North regions (Maroua 2; Tchatibali; Kaele; Guider; Garoua 3; Toubouro; Mayo Galke; Ngong). It also plans to start construction of a new ginning plant in Gouna.

In 2021, the Société de développement de coton du Cameroun (Sodecoton) has a rather healthy financial situation. According to the data contained in the report of the Technical Commission for the Rehabilitation of Public Sector Enterprises (CTR), the turnover of this company, which is majority owned by the State of Cameroon, has increased by 40% compared to 2020 when it stood at 125 billion CFA francs. This increase is mainly due to “the improvement in the price of cotton fibre on the international market and sales volumes”, the document states.



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Published on 03.01.2023

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