Togo Lands €108.3 Million AFC Financing to Modernize Agriculture

Agriculture

Thursday, 25 June 2026 12:16

Togo Lands €108.3 Million AFC Financing to Modernize Agriculture

(Togo First) - Togo has secured 108.3 million euros, or nearly 71 billion CFA francs, in sovereign financing from Africa Finance Corporation (AFC) to support the modernization of its agricultural sector.

The financing, which has a 10-year maturity, marks the AFC's first sovereign investment in the West African country. The institution is acting as a mandated lead arranger and co-financier of the operation.

The funds will finance the acquisition, assembly and distribution of modern agricultural equipment under Togo's Agricultural Modernization Program (ProMAT), according to AFC.

The program includes 2,126 heavy truck units, 1,020 seeders and combine harvesters, 930 irrigation units and 95 water supply systems.

Agriculture contributes about 40% of Togo's gross domestic product and employs nearly 60% of the country's workforce. Despite its importance, the sector's performance remains constrained by a low level of mechanization. According to data cited by AFC, only 37% of farming households use fertilizers, 8% use improved seeds and less than 1% have access to irrigation systems. Only about 20% of agricultural output reaches the market.

Implementing ProMAT

ProMAT, launched by the government, aims to improve productivity, strengthen food security and increase agricultural processing. The strategy follows the implementation of the Planned Agricultural Development Zones (ZAAP), the Agricultural Financing Incentive Mechanism (MIFA) and public investment in mechanization.

The financing alone will not transform Togo's agricultural sector, where investment needs are still estimated at several hundred billion CFA francs to modernize equipment, expand irrigation, improve storage and strengthen processing. With nearly 71 billion CFA francs mobilized, however, the operation represents one of the largest financing packages for agricultural mechanization in recent years. By focusing investment on equipment and irrigation—two of the sector’s main productivity constraints—the financing could generate broader economic benefits through higher yields, increased farm incomes and stronger private investment, provided it is accompanied by reforms, improved access to credit and technical support for producers.

Beyond the financial contribution, AFC said the program is expected to boost yields, increase farmers’ incomes and help create jobs in rural areas.

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“Professionalizing Public Procurement Is the Most Important Reform for Strengthening Integrity,” Adu-Gyamfi Abunyewa, World Bank Group

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.