Food security is increasingly becoming an economic issue as much as an agricultural one. In Togo, a new EUR 108.3 million financing facility arranged by Africa Finance Corporation (AFC) is expected to tackle both challenges by bringing modern machinery and irrigation systems to a sector that employs most of the country’s workforce and remains central to its growth ambitions.
The sovereign-backed financing facility, arranged by AFC as Co-Mandated Lead Arranger and joint financier, marks the institution’s inaugural sovereign investment in Togo. The funding will support the country’s Programme de Modernisation de l’Agriculture Togolaise (ProMAT), a national strategy aimed at increasing productivity, strengthening food security and accelerating the commercialisation of agricultural production.
Modernising Agriculture to Unlock Growth
The financing, which has a tenor of 10 years, will fund the purchase, assembly and distribution of critical agricultural equipment, including 2,126 tractor and trailer sets, 1,020 units of seeding and harvesting equipment, 930 irrigation units and 95 water supply systems.
The investment comes at a time when African countries are facing growing pressure from global supply chain disruptions, climate-related shocks and rising agricultural input costs. AFC President and Chief Executive Officer Samaila Zubairu said food security has become an urgent priority across the continent.
“Food security has become an increasingly urgent priority for African countries as global supply chains become more volatile and climate-related risks intensify,” he said.
Agriculture remains one of the pillars of Togo’s economy, employing about 60 percent of the workforce and contributing around 40 percent of gross domestic product. Despite its importance, the sector continues to face significant challenges. Only 37 percent of agricultural households use fertiliser, just 8 percent use improved seeds and less than 1 percent have access to irrigation. In addition, only around 20 percent of agricultural production reaches the market.
By directly addressing these gaps, the programme is expected to increase crop yields, improve market access and encourage greater commercialisation of agricultural output. It is also expected to create jobs and strengthen the resilience of the country’s agricultural economy.
Strengthening Food Systems and Economic Resilience
According to Zubairu, the financing demonstrates AFC’s ability to support governments with long-term solutions that improve productivity and strengthen economies.
“This financing demonstrates AFC’s ability to deliver sovereign financing solutions that unlock productivity, strengthen food systems and support long-term economic resilience by supporting Togo’s agricultural modernisation agenda,” he said.
The transaction further strengthens AFC’s role as a key financing partner for African governments. The corporation has recently arranged approximately US$2.5 billion in financing facilities for sovereign borrowers, including Nigeria, Angola, Côte d’Ivoire and Egypt. These transactions have supported strategic sectors and critical national institutions, including the Egyptian General Petroleum Corporation and the General Authority for Supply Commodities.
Established in 2007, AFC focuses on infrastructure and industrial investments across Africa. The institution has 48 member countries and has invested more than US$19 billion in 36 African countries, supporting projects in energy, transport, telecommunications, natural resources and heavy industry.
