Burkina Faso is moving to fully nationalize Sofitex, the country’s main cotton company, as part of a wider push to increase state control over key sectors.
The decision was approved by the Council of Ministers on April 16. Under the plan, the government will buy out remaining private shareholders and become the sole owner of the company.
Sofitex is valued at 338.14 billion CFA francs, about $607 million. The private stake is valued at just over 75 billion CFA francs.
Officials said the takeover was driven by rising debt, falling production and operational problems at the company.
Sofitex accounts for about 80% of Burkina Faso’s cotton production. Cotton output fell to 292,660 metric tons in the 2024-25 season, marking a third straight annual decline.
The move follows similar state interventions in Burkina Faso’s gold sector, where the government has pushed for greater control over mines and increased public revenue from natural resources.