Togo: BOA Togo will loan XOF7 billion to the agricultural sector in 2020

Agriculture
Thursday, 06 February 2020 16:35
Togo: BOA Togo will loan XOF7 billion to the agricultural sector in 2020

(Togo First) - This year, BOA Togo intends to raise its loans to the agricultural sector, bringing it to XOF7 billion. The move falls in line with the bank’s partnership with the Incentive Mechanism for Agricultural Financing (MIFA). It was announced last month, during the 12th national forum for Togolese farmers (FNPT), held in Kara.

“We have received the authorization to spend a total of XOF7 billion of loans on agricultural machinery this year,” representatives of the banking group had said at the time.  

The sum set is 46% more than what BOA Togo loaned to the sector last year - XOF4.8 billion- BOA Togo intends to raise its loans to the agricultural sector.

Agriculture is considered a high-risk industry and thus struggles to get loans from traditional lenders. Another reason explaining the low lending to this sector is that financial institutions lack the technical specialization to assess it. 

The MIFA’s role is thus to help BOA better understand and target sub-sectors in need of financing (fertilizers, production, processing, export, industrialization), in addition to providing technical support to agricultural actors. 

Ayi Renaud Dossavi

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