Togo Approves New Climate Finance Fund

Economic governance

Thursday, 07 May 2026 13:18

(Togo First) - Togo has established a one-stop mechanism to mobilize climate finance, named the "Fonds Vert Togo." The project was formalized through a decree adopted during the Council of Ministers meeting on Wednesday, May 6, 2026, defining the mandate, structure and operations of the new mechanism, which is intended to centralize and channel funding dedicated to environmental and climate-related initiatives.

The new fund replaces the Fonds national de l'environnement and is expected to finance projects linked to renewable energy, climate resilience and the sustainable management of natural resources by leveraging public and private funding from domestic and international sources.

“This decree forms part of broader efforts to strengthen environmental governance and adapt national instruments to the growing challenges of climate change and green finance,” the Council of Ministers communiqué said.

Attracting More Climate Finance

Through this mechanism, authorities aim to strengthen the country’s credibility with donors and investors specializing in green finance. The decree comes as Lomé intensifies efforts to secure greater access to international climate funding.

Togo recently secured 15.3 billion CFA francs in financing from the West African Development Bank (BOAD) for a climate resilience project backed by the Green Climate Fund, notably aimed at strengthening early warning systems and disaster risk management.

In 2025, the country also secured a 200-million-euro financing facility with support from the African Development Bank (AfDB), Deutsche Bank and Legal & General. The funds are intended to support green and social projects in sectors including sustainable agriculture, clean energy, climate adaptation and biodiversity.

Toward a Sustainable Finance Market in Togo

Togo is also developing sustainable financing instruments aligned with international standards. The country has adopted a sustainable finance framework consistent with the principles of the International Capital Market Association (ICMA), with the longer-term objective of facilitating future green bond issuances.

The establishment of the "Fonds Vert Togo" therefore marks another step in the government’s strategy to mobilize larger volumes of climate-related financing.

According to the government, “the adoption of this decree reflects the government’s commitment to creating a credible and attractive instrument that meets international standards, with a view to facilitating access to climate finance and supporting sustainable and inclusive growth.”

R.E.D

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.