Burkina Faso is widening its state-led economic strategy beyond mining into agriculture, with authorities moving to fully nationalise Société burkinabè des fibres textiles (Sofitex), the country’s leading cotton enterprise.
The decision, endorsed by the Council of Ministers on April 16, 2026, will see government acquire all remaining private shares, making the state the sole owner of Sofitex.
Officials justified the acquisition on public interest grounds, aligning it with a broader policy direction that seeks greater state involvement in key revenue-generating industries.
A 2025 government valuation pegs Sofitex at 338.14 billion CFA francs (around $607 million), while the private stake covering 976,400 shares is valued at just over 75 billion CFA francs.
Increasing debt levels at the company, coupled with falling productivity and operational challenges, were cited as major reasons behind the full takeover.
State control push expands beyond gold
The move to take full ownership of Sofitex reflects earlier efforts by Burkina Faso to tighten control over its mining industry, particularly gold, which contributes over 70% of export earnings.
Over the past few years, authorities have overhauled mining regulations, increased state equity in new ventures, and adopted a tougher negotiating stance with foreign firms in a bid to secure more value from strategic resources.
This approach is also visible in discussions with West African Resources Limited, where the government is seeking to raise its stake in the Kiaka gold mine to 40%, up from 15%.
Earlier plans announced in August 2025 suggested an ambition to increase state ownership to as much as 50%, following a previous rise from 10% to 15% at no cost.
The developments come as the company forecasts significant production growth in the region, reinforcing Burkina Faso’s growing influence over major mining assets.
Taken together, these actions point to a consistent policy shift toward expanding state ownership in both mining and agriculture, with the Sofitex takeover reinforcing efforts to secure a larger share of national economic output.
This trend mirrors broader patterns across resource-rich African countries.
In Mali, transitional authorities revised mining laws in 2023 to allow the state up to 30% participation in strategic projects.
Likewise, Guinea has pushed for stronger government stakes in bauxite and iron ore operations, while Tanzania has previously increased state ownership in gold mining ventures and renegotiated contracts to boost public revenue shares.
Cotton sector faces mounting pressure
Burkina Faso’s increased focus on agriculture comes amid weakening cotton production. Output for the 2024/2025 season dropped to 292,660 metric tons, a decline of about 24%, marking the third straight annual fall since 2021/2022.
The government is aiming for a rebound to 550,000 metric tons, with Sofitex responsible for roughly 80% of national cotton production expected to play a central role in the recovery plan.
Before full nationalisation, Sofitex operated under a mixed ownership structure, where the state already held a controlling majority while private investors retained a minority stake worth around 75 billion CFA francs.
Rising debt, reduced output, and inefficiencies pushed authorities—already expanding their influence in mining through increased equity in gold projects to approve complete nationalisation on April 16, 2026, based on the 2025 valuation of 338.14 billion CFA francs.
The objective is to stabilise a sector that contributes about four-fifths of Burkina Faso’s cotton output, following a production drop of roughly 24–26% to below 300,000 metric tons in the 2024/2025 cycle.
Officials argue that full state ownership will strengthen financial discipline, improve governance, and support restructuring efforts aimed at boosting efficiency. Updated internal regulations are expected to guide reforms and restore financial stability.
Overall, the Sofitex nationalisation underscores a clear policy trajectory: deeper state control across both extractive and agricultural sectors, as Burkina Faso seeks to retain more value from its key industries and reduce exposure to external economic shocks.