Malian textile company gets $54.8 mn loan

26 Apr '16

2 min read

The Malian Company for Textile Development (CMDT) has received two loans of 32,920 billion CFA Francs (about $54.8 million dollars) from the West African Development Bank (BOAD), according to a Xinhua report.

Two agreements in this regard were signed Thursday in Lome by BOAD President Christian Adovelande and CMDT director Modibo Kone.

The first agreement of 15 billion CFA Francs ($25 million approx.) will be used for partial funding of a project to extend and modernize CMDT.

The second loan of 17,920 billion CFA Francs ($30million) will be used for funding cotton farming during the 2015-2016 and 2016-2017 seasons.

BOAD president said the loans are justified given the place occupied by cotton in Mali's economy. Mali is the second largest cotton producer in Sub-Saharan Africa after Burkina Faso.

"The second export product after gold, cotton directly or indirectly supports the livelihoods of 3.3 million Malians which is 21 per cent of the country's population," he continued.

CMDT director said the first loan will enable his firm to acquire new equipments and repair three old ones.

"The second loan will enable CMDT to comfortably fund the farming season, from acquisition of farm inputs and fertilizers, to purchase and transport of the cotton as well as sale of the cotton fibre and other by-products," he added. (SH)

Fibre2Fashion News Desk - India