Olam acquires 51% of Togo's Cotton Company

Wednesday, 25 November 2020 16:30
Olam acquires 51% of Togo's Cotton Company

(Togo First) - Singapore-based agrofood group Olam acquired 51% of the Nouvelle Société Cotonnière du Togo (NSCT) for €15.3 million (around CFA10 billion). 

The deal aligns with the authorities’ plan to privatize the cotton company - a process that should be completed next month. Following the privatization, the State and the federation of cotton farmers will respectively hold 24% and 25% of the firm. 

The NSCT is in charge of all activities related to cotton in Togo, such as commitments to farmers, ginning, and sales. According to Olam, its finances are in good shape, with its working capital estimated at around €19.1 million. As the NSCT’s new majority shareholder, the Asian giant’s mission will consist of boosting Togo’s cotton output, processing it locally, and improving the yield and income of farmers. 

Regarding the cotton output in Togo, while it has exploded in recent years (+400%), driven by the NSCT, it still is far from the country’s target of 200,000t in 2022. During the past campaign, production even dwindled by 15%, from 137,000t in 2018-2019 to 116,000t in 2019-2020. 

Ayi Renaud Dossavi

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