SODECOTON Records Over FCFA 8 Billion Profit

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SODECOTON Records Over FCFA 8 Billion Profit

13 sept. 2022 14:01

The sterling performance which comes after last year’s negative result is attributed to the surge in cotton prices in the world market and recovery reforms implemented in the company

Cameroon’s Cotton Development Corporation (SODECOTON) with plantations and factories located in North Region, has recorded a net benefit of FCFA 8.47 billion during the 2021-2022 season. This follows a negative result of FCFA 4.7 billion obtained the previous year. The 2021-2022 result is presented as the company’s best performance over at least the past six seasons. The cotton industry in Cameroon seems to be reviving gradually after a sluggish period marked by the Covid-19 pandemic. Before the loss in 2020-21, the performance has been on an upward trend for three successive seasons (2017-2018, 2018-2019, and 2019-2020) following a cumulative loss of FCFA 36.5 billion during the 2014-2015, 2015-2016, and 2016- 2017 seasons. The management of the cotton corporation attributes the impressive performance in 2021- 2022 season to the favourable international situation marked by an increase in cotton prices. The performance is also due to the recovery measures implemented in late 2016. “This recovery was achieved through the restoration of the company’s industrial capacity, the improvement of the processing capacity from 50 to 90 per cent as well as the capacity of the oil mills from 62 to 95 per cent, between 2018 and 2021,” an official of the company is quoted to have said. Other structural measures to boost production were taken by the management which includes the acquisition of 15 electrical generators to overcome the issue of power shortage by the electricity supply company. The company also invested huge sums of money to acquired 90 trucks for the transportation of cotton seeds, 80 of which were purchased by the company and 10 donated by the Ministry of Agriculture and Rural Development, un...