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IFC, StanChart invest €31mn to support cotton production in Cameroon
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Cotton is the most important agriculture crop in Northern Cameroon and Sodecoton’s mission is to organize the production and marketing of the crop.
The International Finance Corporation and Standard Chartered Bank Cameroon have signed an agreement to provide a €31 million financing package to support cotton production in Cameroon, according to a statement released on Wednesday. Under the agreement, the IFC will provide €15.5 million as part of a €31 million one-year export facility provided by Standard Chartered Bank Cameroon to the Cotton Development Corporation of Cameroon (Sodecoton).
The financing package will allow Sodeconton finance its cotton campaign – which involves the purchase of seed cotton from smallholder farmers, the ginning of the seed cotton, and the transportation of lint cotton to the Port of Douala for export to international markets.
“It is crucial for IFC to support the cotton sector in Cameroon. As you know, cotton is the largest source of employment in Northern Cameroon, providing livelihood to approximately 3 million people,” said Mehita Sylla, IFC’s Country Manager for Central African sub-region.
Sodecoton is a state-owned enterprise that purchases 100 percent of Cameroon’s seed cotton production. Cotton is the most important agriculture crop in Northern Cameroon and Sodecoton’s mission is to organize the production and marketing of the crop throughout the central African country.
In order to further strengthen the cotton value chain in Cameroon, the IFC said it will also explore the provision of advisory services to farmers in collaboration with Sodecoton.
“Such a support could potentially include financial management, good agricultural practices and soil management,” the Washington D.C.-based lender said.
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