Togo: AfDB pours CFA16 billion into Kara’s agropole project

Agriculture
Tuesday, 28 August 2018 15:38
Togo: AfDB pours CFA16 billion into Kara’s agropole project

(Togo First) - To back Togo’s 2018-2022 national development plan, the African Development Bank (AfDB) just granted the country three financings for its agro-food processing project (PTA-Togo).

Total amount of the facilities is CFA16.63 billion. They include two loans and a grant which will all be invested in Kara agricultural hub project.

According to the minister of economy and finances, Sani Yaya, “this major project should help create at least 25,000 agricultural, industrial and service jobs and also contribute to no less than 2% to GDP growth, thus reducing agricultural trade balance deficit from -44% to -38%”.

Double volumes of locally processed products

The PTA is the pilot project for Togo’s 2017-2030 strategic plan to develop agropoles. It aims to promote an inclusive agricultural growth by leveraging on incentives that will boost private investment in processing, and supply of agricultural input and services. The project targets various production sectors including rice, maize, broiler, soybeans, sesame, cashew, fish and vegetables.

It aligns with AfDB’s Feeding Africa project and aims to double the amount of locally processed agricultural products, from 19% to 40%. How? By boosting private investments in agricultural value chains. The PTA whose implementation will start in the Kara basin, should directly benefit 303,000 people, of which 51% are women. Indirectly, it will revolutionize the local economy.

About 70% of required funding has already been secured

Global investment required for the PTA is CFA35.19 billion. 22% of this sum will be supplied through donations. The State itself is expected to provide 17% (CFA6 billion) of the required investment.

Last June, BOAD’s board approved a CFA10 billion financing for the project.

Another investor is the Korean foundation Seamaul which is expected to inject CFA2.6 billion in the project. The institution said it will help Togo develop its agropoles.

CFA190 billion and 17 projects in Togo

AfDB has invested so far, CFA190 billion in Togo, through 17 operations, most of which are focused on the agricultural sector.

Fiacre E. Kakpo

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