WT/CFMC/W/62  
15 October 2015  
(15-5415)  Page: 1/2  
 Original: French  
 
  DIRECTOR GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON 
COTTON PROJECT 
Communication from Benin 
The following communication, dated 17 September 2015,  is being circulated at the request of the 
delegation of Benin.  
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  The permanent Mission of the Republic of Benin is  submitting the project below, prepared by the 
Government of Benin, with a view to receiving technical and financial assistance from the 
cotton sector development partners in the framework of Director General's Consultative Framework Mechanism on Cotton. 
 
1  PROJECT TO REHABILITATE THE COMPLE XE TEXTILE DU BÉNIN (COTEB SA) 
1.1  History of COTEB 
1.1.  In 1971, the State of Dahomey created a company called the Industrie Dahoméenne de 
Textile (IDATEX) with a Franco-German group (VOYER-ALBA TEX), capitalized at CFAF 600 million. It was a semi-public company, 52% of whose shares were owned by the Franco-German group headed by Renard Simon. 
1.2.  The factory had a processing capacity of 3000 tonnes of cotton fibre per year, almost all of 
which was exported, in particular to the European market (France, Germany and Poland). 
1.3.  In 1977, following the nationalization of priv ate companies in the wake of revolution of 
26 October 1972 and the change in the country's  name on 14 April 1977, IBETEX (Industrie 
Béninoise de Textile) rose out of the ashes of ID ATEX with an equity capital of CFAF 800 million 
this time, 100% in the hands of the Beninese State. 
1.4.  In 1988 a Belgian group, UCO Engineering, took over the company, renaming it Complexe 
Textile du Bénin, Société anonyme de droit privé (COTEB SA). 
1.5.  From 1988 to 1990, in connection with the minimalist upgrading of the factory, 
UCO supplemented the IBETEX equipment, which it stopped renovating, with machines which, 
though more efficient than the equipment hith erto in use, dated back to 1956, 1960 and 1970. 
1.6.  In 1995, domestic economic operators (notably SONAPRA) and financial institutions such as 
the West African Development Bank (BOAD) and local banks (BOA, ECOBANK) adopted a plan to 
restructure the company through recapitalization by BOAD, BOA and ECOBANK and cash 
contributions by certain private shareholders , bringing the company's equity capital to 
CFAF 2 billion. This debt-to-equity conversion further weakened the company's cash flow, just 
when it needed new money to build up sufficient working capital to pursue its activities. 
Accordingly, the State stepped in as the majority  shareholder, with 54% of the shares, through 
SONAPRA (State company) which, in the meantime , had supplied COTEB with a large quantity of 
cotton fibre on credit. The remaining 46% went to private shareholders, of which there were 378. WT/CFMC/W/62 
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  It should be noted that SONAPRA's planned share was 35%, or CFAF 700 million; it had 
shared ownership to the tune of 37,931 shares owing to the withdrawal of the now defunct 
village groups (GV). 
1.7.  The final report of this audit was tran smitted to COTEB SA on 27 December 2005. 
1.8.  Starting in early 2006, it became very difficult for the Complexe Textile du Bénin to pursue its 
activities. This was predictable, in that the basic problem of the lack of working capital had not been solved, let alone the problem of obsolete equipment. 
1.2  State of the technical equipment 
a. The equipment dating back to 1970 is 80% obsolete and fully depreciated, limiting 
performance to 30%, well below the acceptable level of 75%. 
b. Spare parts are either unavailable or cannot be purchased owing to the lack of working 
capital. 
c. This situation has a negative impact on the quality of finished goods, which are steadily 
losing value. 
1.9.  The conclusions of an audit commissioned by the Council of Ministers, contained in a report 
submitted to the Ministry of Industry, Co mmerce, and Small and Medium Enterprises 
on 19 December 2014, are set forth below. 
1.3  The wisdom of rehabilitating the company 
1.10.  COTEB has many strengths that would warrant its rehabilitation. It is located in the Bénin 
cotton-growing basin, close to two ginning plants. 
1.11.  Thus, raw materials are not a problem: the enterprise merely needs to be restored. 
The space is still available. 
1.4  Cost of rehabilitation 
1.12.  The audit provided two options: 
a. replace the obsolete equipment, at an esti mated cost of CFAF 12 billion, or 18 billion 
taking account of debt repayments; or 
b. renovate the entire factory, at an estimated cost of CFAF 20 billion, or 26 billion taking 
account of debt repayments. 
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