The Africa Finance Corporation (AFC) has secured a €108.3 million sovereign-backed financing facility for the Government of Togo to modernise the country’s agricultural sector, a move expected to improve food security, create jobs and strengthen rural livelihoods.
The financing, arranged by AFC as Co-Mandated Lead Arranger and joint financier, marks the institution’s first sovereign investment in Togo and signals growing confidence in the country’s agricultural transformation agenda. The 10-year facility will support the government’s Programme de Modernisation de l’Agriculture Togolaise (ProMAT), which seeks to increase farm productivity and expand commercial agriculture.
The investment is expected to ease one of the biggest challenges facing the sector for thousands of farmers across Togo, which is limited access to modern farming equipment. The programme will finance the acquisition, assembly and distribution of 2,126 tractor and trailer sets, 1,020 seeding and harvesting machines, 930 irrigation units and 95 water supply systems.
Apart from supplying machinery, the initiative is expected to improve harvests, reduce post-harvest losses and enable more farmers to cultivate larger areas efficiently. Better irrigation systems will also help communities withstand changing weather patterns and prolonged dry spells, making food production more reliable throughout the year.
The impact is likely to transcend farms. As agricultural production increases, rural businesses, equipment service providers, transport operators, agro-processors and local markets are expected to benefit from stronger value chains and increased commercial activity. The programme is also projected to generate employment opportunities for young people and women, who make up a significant share of the agricultural workforce.
Agriculture remains the backbone of Togo’s economy, employing about 60 per cent of the labour force and contributing roughly 40 percent of the country’s Gross Domestic Product (GDP). Nonetheless, productivity has remained low due to limited mechanisation, inadequate irrigation and restricted access to improved farming inputs. Currently, less than 1 percent of agricultural land is irrigated, while only 37 percent of farming households use fertilizers and just 8 percent have access to improved seeds.
These constraints have limited the country’s food production and commercial potential, with only about one-fifth of agricultural output reaching formal markets. By addressing these gaps, the AFC-backed programme is expected to help farmers produce more, earn higher incomes and improve the availability of locally produced food.
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