$6 million GWFP investment to support cotton farmers in Mali
Despite Mali’s recent economic and political woes, the landlocked country is one of the leaders in cotton productivity across the world. Cotton, which employs more than 3 million farmers, remains the main cash crop in Mali, producing 450,000 tons in 2013 and placing Mali as the largest producer of cotton in Sub-Saharan Africa, and the 7thlargest in the world.
IFC and GAFSP have extended a one year facility to Compagnie Malienne pour le Development du Textile (CMDT), a state owned company and the sole cotton exporter in Mali. Under GWFP, the facility will be used to finance the repayment of pre-harvest loans, to purchase seed cotton from farmers, and meet other working capital needs related to the cotton campaign in Mali. GWFP’s investment of EUR 6 million will be 50% counter guaranteed by GAFSP. In addition to the investment, CMDT will benefit from IFC’s advisory services in productivity improvement and weather insurance solutions through the comprehensive Better Cotton Initiative.
With GAFSP lending, over 296,000 cotton farmers in Mali will gain access to post harvest financing.
The GAFSP Public Sector Window is also funding the Food and Nutrition Security Enhancement Project in Mali.