CIDT Expansion

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The proposed investment consists of (i) up to €7.7m IFC senior corporate A loan and (ii) up to €7.7m GAFSP subordinated loan, with a 7Y tenor including 2Y of grace, to Compagnie Ivoirienne pour le Dévelopement des Textiles (CIDT or the Company).CIDT sources seed cotton from small farmers in dedicated, government-delimited agricultural zones in Central and Northern Cote d’Ivoire (CDI) and produces lint cotton for export from its 3 cotton gins. CIDT is a former state-owned cotton company, privatized in 2017. In 2020, the number of farmers supplying to CIDT amounted to 30,588, farming a total of 90,680 ha. Farms sizes vary between 2 and 30 ha in size and farmers are organized into co-operatives, with whom CIDT does business. The current supply chain is certified to a recognized, credible standard, Cotton made in Africa (CmiA). As part of this project, the company aims to expand its supply chain, targeting a total of 43,000 farmers, expected to farm a total area of 120,000 ha in size.CIDT currently operates 3 ginning plants in Cote d’Ivoire (CDI), namely in Bouaké, Mankono and Seguela and a number of owned and leased warehouses for storing baled cotton, seeds, crop protection products and other inputs destined for use in cotton production by farmers in CIDT’s supply chain. Current production levels for the three ginning plants vary between 10 and 12,000 MT per annum for Bouaké and Mankono, and 18 and 20,000 MT for Seguela. The purpose of this project is to upgrade CIDT’s existing cotton ginning facilities and install a new plant at Tiéfidougou in the sub-district of Tieningboué. The total cost is estimated at €25.6m with the balance of €10m to be financed by CIDT. Cotton ginning includes sourcing seed cotton, transporting it to a gin where it is dried, cleaned and the seed then separated from the lint; thereafter the lint is baled.