AFC Arranges €108 Million for Togo’s Farm Modernisation Drive

The transaction marks AFC's first sovereign investment in Togo and expands the institution's growing portfolio of government-backed financing projects across Africa.

Africa Finance Corporation (AFC) has arranged a €108.3 million sovereign-backed financing facility for the Government of Togo to support the modernisation of the country's agricultural sector and strengthen food security. The transaction marks AFC's first sovereign investment in Togo and expands the institution's growing portfolio of government-backed financing projects across Africa.

AFC served as Co-Mandated Lead Arranger and joint financier for the facility, which is designed to help Togo increase agricultural production, improve resilience and reduce vulnerabilities linked to global supply chain disruptions, climate-related challenges and rising farming costs. The financing comes at a time when many African countries are seeking to strengthen domestic food production while positioning themselves as larger suppliers to regional and international agricultural markets.

Equipment and Irrigation Programme to Support Farmers

The 10-year financing package will fund the acquisition, assembly and distribution of critical agricultural machinery and infrastructure across the country. The programme includes the deployment of 2,126 tractor and trailer sets, 1,020 units of seeding and harvesting equipment, 930 irrigation units and 95 water supply systems.

These investments form part of Togo's agricultural transformation programme, known as the Programme de Modernisation de l'Agriculture Togolaise (ProMAT), which aims to improve productivity, strengthen food security and increase the commercialisation of agricultural output.

AFC President and Chief Executive Officer Samaila Zubairu said food security has become a pressing priority for African nations as global uncertainties continue to affect agricultural systems. He noted that the financing demonstrates AFC's ability to support governments with long-term solutions that improve productivity, strengthen food systems and build economic resilience.

Agriculture Remains Vital to Togo's Economy

Agriculture plays a central role in Togo's economy, employing around 60 percent of the workforce and contributing approximately 40 percent of the country's gross domestic product.

Despite its importance, the sector continues to face significant challenges. Access to modern farming equipment, irrigation systems and improved agricultural inputs remains limited.

Current estimates indicate that only 37 percent of agricultural households use fertiliser, while just 8 percent have access to improved seeds. Irrigation coverage remains extremely low, with less than 1 percent of farmers benefiting from irrigation infrastructure.

Commercialisation also remains constrained, with only about 20 percent of agricultural production reaching formal markets.

Officials believe the new investment will help address these gaps by improving access to equipment and water infrastructure, increasing crop yields, expanding market participation and creating employment opportunities throughout the agricultural value chain.

The transaction further strengthens AFC's position as a key financing partner for African governments. The corporation has recently arranged approximately US$2.5 billion in sovereign financing facilities for countries including Nigeria, Angola, Côte d'Ivoire and Egypt, supporting investments in strategic sectors and critical infrastructure across the continent.