In Mali, cotton farmers can drink “whey”. Since their production will be entirely purchased and at the price agreed with the Malian Textile Development Company (CMDT). The cotton giant has maneuvered well to obtain the necessary amounts on time to finance the 2020-2021 campaign.
It is true that the production of this ending season was starved in the face of forecasts (147,200 tonnes out of 810,000 forecast). But the main thing for everyone involved is to sell the production and prepare the new campaign under the right conditions. In doing so, Mali would easily regain its place as the number 1 African producer of white gold. This is the signing of the financing facility for the Malian cotton producer (CMDT) arranged by the Development Bank of Mali (BDM SA) and the Franco-German bank ODDO BHF, and for which a ceremony was held. on March 22, 2021 in Bamako via videoconference.
In addition, the CMDT and the banking consortium signed a facility of 40 billion FCFA for the financing of the 2020/2021 cotton campaign of the CMDT. For this, BDM SA plays the role of global agent and coordinator of the local and regional banking consortium of West Africa, while the Franco-German financial group ODDO BHF Aktiengesellschaft has taken over the role of surety agent. offshore.
This is the 21st annual funding intended to support the activity of the CMDT, which is the production of cotton lint. Almost 98% of Malian cotton is exported. The funding is therefore also used to ensure the supply of well-known European companies. Yet cotton is a vital and strategic economic sector in Mali, contributing 15% to the country’s GDP. Its production, marketing and processing deserve sufficient support in order to provide both monetary income and food to the populations but also to contribute to the industrial development of the country, according to the actors.
Since 2016 and the creation of the Environment and Sustainable Development Department, the CMDT has strengthened its Social and Environmental Responsibility framework by engaging in sustainable and environmental development initiatives. Among the actions carried out in 2020 are measures to encourage schooling, to strengthen security in the working context of the cotton sector as well as to improve the living environment and food security in the cotton growing area.
“In total, this partnership has made it possible to mobilize to date more than 2,000 billion CFA francs in favor of the cotton sector. The level of funding this year can be explained by the drastic drop in cotton for this season. From 710,731 Tons in 2019/2020, it dropped to just 147,200 Tons in 2020/2021. However, we are hopeful about an increase in production for the 2021/2022 campaign to reach some 820,000 tonnes, “BDM Managing Director Bréhima Amadou Haïdara commented at the official signing ceremony.
In turn, Nango Dembélé, CEO of the CMDT, recalled that “the cotton sector is of strategic importance for the Malian economy, alone contributing 15% of GDP, 22% of export earnings and 12% of state revenue. This sector directly induces the development of several sectors of the national economy in particular, transport and oil mills directly or indirectly supporting 4 million people. Cotton provides producers with income for the satisfaction of their monetary needs and food security through the production of cereals, ”he said.
The CMDT is now working to bring together all the conditions for the revival of cotton cultivation through the establishment of all the factors of production, the mobilization of supervision and the sensitization of producers. The current improvement in world cotton prices, the existence of a large carry-over stock of inputs and the government’s commitment to support the CMDT and the producers are guarantees of the success of the revival of cotton cultivation and the achievement of the production target of 820,000 tons of cotton during the 2021/22 campaign added the brand new boss of the holding.