SOFITEX

Stock performance

History

The Société Burkinabè des Fibres Textiles (SOFITEX) was created in 1979 to take over the development of the cotton sector from a French state company. It has organized cotton production in western Burkina Faso ever since, and in the late 2000s it led the country's adoption of genetically modified Bt cotton, which was abandoned in 2016 after problems with fiber quality.

Business model

SOFITEX supplies inputs and technical advice to cotton farmers, buys their seed cotton at prices agreed with producer organizations, gins it, and sells the fiber on world markets.

Market position

SOFITEX is the dominant cotton company in Burkina Faso, which has at times been Africa's largest cotton producer.

Country impact

Cotton is one of Burkina Faso's main exports after gold and a vital source of cash income for rural households, so SOFITEX's purchase prices and the cotton harvest have a direct effect on rural livelihoods.