Societe Cotonniere des Savanes S.A. (SOCOSA)
In its first project in Togo, MIGA is providing Banque Belgolaise and Joseph Fermon, chairman of the Continental Eagle Corporation, the world's largest cotton equipment manufacturer, guarantees totaling $7.4 million. The guarantees are against the risks of expropriation, and war and civil disturbance. They cover an equity investment and loan to a cotton concession, Sociiti Cotonniére des Savanes S.A. (SOCOSA).
The project, which is a new cotton ginning facility, seeks to promote exports from Togo under the Free Trade Zone Act, and supports the government's strategy of increasing economic growth in the north of the country. It will constitute the country's sixth cotton ginning factory and the largest agribusiness in the north. It will export all of the cotton produced and is expected to generate more than $60 million in foreign exchange earnings over the next five years. With approximately 195 employees, SOCOSA will be one of the main employers in the Dapaong area, and its operations will positively affect the livelihood of the local population. A comprehensive onsite and offsite technical training program will be implemented. The project is also expected to stimulate numerous downstream local businesses, including a cotton oil refinery.