In Chad, it is a real relief for cotton producers in the southern zone. They will receive a trifle of 6 billion FCFA which represents the unpaid cotton they delivered to the national company which has been partially privatized since last year. To re-motivate the producers, the Singaporean Olam, who has become a shareholder in the company, has agreed to clean up the slate in exchange for tax credits.

It is an arrangement that allows the majority shareholder to re-motivate cotton producers. “It is up to the State to settle this debt directly with the cotton producers but by the agreement that we have signed, it is agreed that Olam, thanks to a loan obtained from the local banking system, will pay the entire debt to CotonTchad, which in turn undertakes to pay cotton growers directly, explains Ibrahim Malloum, Secretary General in charge of trade at CotonTchad. Reimbursement will be made by the State on the taxes paid by CotonTchad”.

This is good news, says Mbontar Ndoko, president of the National Union of Cotton Producers of Chad. "It's money that will come in for the families and at a time when we are in the sowing phase so it will interest people and it's a great opportunity to revive cotton production", explains- he.

Cotton production, which was close to 300,000 tons a few years ago, fell to less than 20,000 tons during the last two campaigns. To re-motivate the farmers, the new shareholder, who is aiming for more than 250,000 hectares sown this year, has been multiplying actions for several months to motivate the cotton area, which has around four million people.