Agriculture : TIRSAL Fund renamed MIFA

Agriculture
Monday, 18 June 2018 18:28
Agriculture : TIRSAL Fund renamed MIFA

(Togo First) - The TIRSAL fund which was put in place to cover risks and provide guarantees related to loans in the agricultural sector, in Togo, was re-baptized. The initiative which is inspired from the Nirsal in Nigeria, is now called MIFA which stands for Mécanisme Incitatif de Financement Agricole (Incentive Scheme for Agricultural Financing).

The name change occurs as the scheme is about to enter its pilot phase.

Launched last April 25, by the Togolese President, the TIRSAL is a tool which the government wishes to leverage in the framework of its 2018-2022 national development plan (PND 2018-2022) to boost agricultural loans. Actually, these loans represent about 0.3% of all loans granted by banks in Togo. The fund aims to bring this figure to 5%.

President Faure Gnassingbé said the MIFA will in the long term, benefit from a €100 million financing. A significant part of this monies will be provided by the State, private sector and development partners. Overall, more than one million actors, farmers mostly, are expected to benefit from the initiative.

Agriculture is a pillar of Togo’s economy. It contributed around 38% of its GDP in 2017. Meanwhile, loans in this sector are not much accessible. Between 2011 and 2016, only 0.3% of all bank loans provided were granted to the sector. Microfinance institutions which were supposed to help reverse that trend backed out.

Fiacre E. Kakpo

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