Burkina Faso is set to fully nationalise its main cotton company, Société burkinabè des fibres textiles (Sofitex), in a move that will transfer complete ownership of the $607 million firm to the state.
The decision was approved by the Council of Ministers on April 16, 2026, according to Business Insider Africa. It involves the government buying out all remaining private shareholders, making the state the sole owner of Sofitex.
A 2025 government valuation puts the company’s total worth at 338.14 billion CFA francs (about $607 million). The private shareholding, made up of 976,400 shares, is valued at just over 75 billion CFA francs.
Authorities said the takeover is in the public interest and reflects a wider policy shift to increase state control in sectors that generate national revenue. The decision also comes as the company faces rising debt, falling productivity, and operational inefficiencies.
Sofitex plays a central role in Burkina Faso’s cotton industry, accounting for about 80% of national output. The sector has been under pressure, with production dropping to 292,660 metric tons in the 2024/2025 season, a fall of about 24%, marking a third straight year of decline since 2021/2022. The government is targeting a recovery of 550,000 metric tons.
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Before the full takeover, Sofitex already operated with majority state ownership and a minority private stake.
The nationalisation also reflects Burkina Faso’s broader push to strengthen control over strategic sectors, especially after similar moves in mining.
Gold, which accounts for more than 70% of export earnings, has been a key focus of state intervention through revised mining rules and increased government participation in projects.
The shift is also visible in ongoing discussions with West African Resources Limited, where the government has signalled plans to raise its stake in the Kiaka gold mine to 40%, up from 15%. Earlier proposals had suggested an increase to as much as 50%.
Across the region, similar policies have been seen in countries such as Mali, Guinea, and Tanzania, where governments have increased state participation in mining and resource projects.
Officials say full state ownership of Sofitex will improve financial control, strengthen governance, and support restructuring to boost efficiency. New company bylaws are expected to guide internal reforms and stabilise operations.
What this means for Africa
This move shows a growing trend in some African countries to increase state control over key industries like agriculture and mining. Governments are trying to secure a larger share of national income from major sectors that drive exports and jobs.
For Africa, this can mean stronger government control over strategic resources, but it also comes with pressure to improve efficiency and fix struggling state-linked companies. The outcome will depend on how well these reforms improve productivity and support long-term economic stability.
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Image Credit: Business Insider Africa
