World Bank Approves $600 Million in Loan Facilities for Togo under New CPF Deal

Economic governance
Tuesday, 28 May 2024 14:31
World Bank Approves $600 Million in Loan Facilities for Togo under New CPF Deal

(Togo First) - Under its new Country Partnership Framework (CPF) for Togo, the World Bank approved three loans totaling $298 million (180 billion CFA francs) on May 23, 2024. For Sandra Johnson, Minister Secretary General to the Presidency, this first loan series is a milestone for Togo. "This agreement marks a decisive turning point for Togo, and together, we are building a country where every citizen can benefit from the progress made through these innovative and transformative projects," she said. The new CFP spans from 2024 to 2029.

The three loans break down into a $200 million loan, a $75 million loan, and a $23 million loan. 

The first will help bolster inclusive development through a power supply project. The latter targets more than 1.5 million people, mostly in rural areas. 

The second loan, $75 million, will help develop the public sector by improving human resources and public finance management. It will also help digitize tax revenue collection.

The third loan, $23 million, will support the Social Cohesion Project in the Gulf of Guinea Northern Regions (COSO). The project aims to support refugees and host communities in Northern Togo better.

Besides these three facilities, the World Bank will provide Togo with $315 million to prevent and weather crises better. The funds will be made available through the Bank’s  Financing for Prevention and Resilience window.

Togo will therefore secure $613 million under its new CPF deal with the World Bank.

New CPF: $1.5 billion target for Togo

These funds represent the first milestones of the new Country Partnership Framework, under which the multinational institution intends to mobilize more than $1.5 billion (907 billion CFA francs) for Togo. "With this Country Partnership Framework, the World Bank is intensifying its commitment to Togo and plans to mobilize more than $1.5 billion to support reforms and investments in strategic sectors, such as agriculture, energy, connectivity, and the development of secondary cities. Youth and women will be the main beneficiaries of this partnership framework," said Fily Sissoko, World Bank Country Representative for Togo.

The new CPF targets three goals: creating quality jobs through the private sector, improving human capital, and promoting inclusive and resilient territorial development. Areas of focus are agricultural productivity, logistics, and connectivity. Several institutions, including the World Bank’s arms dedicated to concession loans and the private sector, the IDA and IFC, as well as the Multilateral Investment Guarantee Agency, will contribute to the initiative. 

According to Sergio Pimenta, “the IFC will work closely with the World Bank and MIGA to stimulate private sector participation in several promising sectors, such as agribusiness, infrastructure, digital, manufacturing, transport, and logistics”. As for the MIGA, its Vice President, Ethiopia Tafara, said it “will provide guarantees that could boost agriculture, public-private partnerships in infrastructure, digital investments, and the energy sector”.

Fiacre E. Kakpo

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