AFC Secures €108.3 Million to Boost Food Security, Transform Agriculture in Togo
The Africa Finance Corporation (AFC) has secured a €108.3 million sovereign-backed financing facility for the Government of Togo to modernise the country’s agricultural sector, a move expected to improve food security, create jobs and strengthen rural livelihoods.
The financing, arranged by AFC as Co-Mandated Lead Arranger and joint financier, marks the institution’s first sovereign investment in Togo and signals growing confidence in the country’s agricultural transformation agenda. The 10-year facility will support the government’s Programme de Modernisation de l’Agriculture Togolaise (ProMAT), which seeks to increase farm productivity and expand commercial agriculture.
The investment is expected to ease one of the biggest challenges facing the sector for thousands of farmers across Togo, which is limited access to modern farming equipment. The programme will finance the acquisition, assembly and distribution of 2,126 tractor and trailer sets, 1,020 seeding and harvesting machines, 930 irrigation units and 95 water supply systems.
Apart from supplying machinery, the initiative is expected to improve harvests, reduce post-harvest losses and enable more farmers to cultivate larger areas efficiently. Better irrigation systems will also help communities withstand changing weather patterns and prolonged dry spells, making food production more reliable throughout the year.
The impact is likely to transcend farms. As agricultural production increases, rural businesses, equipment service providers, transport operators, agro-processors and local markets are expected to benefit from stronger value chains and increased commercial activity. The programme is also projected to generate employment opportunities for young people and women, who make up a significant share of the agricultural workforce.
Agriculture remains the backbone of Togo’s economy, employing about 60 per cent of the labour force and contributing roughly 40 percent of the country’s Gross Domestic Product (GDP). Nonetheless, productivity has remained low due to limited mechanisation, inadequate irrigation and restricted access to improved farming inputs. Currently, less than 1 percent of agricultural land is irrigated, while only 37 percent of farming households use fertilizers and just 8 percent have access to improved seeds.
These constraints have limited the country’s food production and commercial potential, with only about one-fifth of agricultural output reaching formal markets. By addressing these gaps, the AFC-backed programme is expected to help farmers produce more, earn higher incomes and improve the availability of locally produced food.
The investment also carries wider economic and political significance. Strengthening domestic food production, could reduce Togo’s dependence on food imports, improve capacity against global supply chain disruptions and help stabilise food prices. This aligns with wider efforts by African governments to build more self-sufficient economies, while enhancing regional food trade under the African Continental Free Trade Area (AfCFTA).
Speaking on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu said, the financing reflects the institution’s commitment to support African countries, in building resilient food systems that are capable of withstanding climate-related and global economic shocks.
He noted that investing in agricultural modernisation would unlock productivity, strengthen food security and support long-term economic resilience.
The deal further reinforces AFC’s growing role, in financing strategic development projects across the continent. In recent years, the institution has arranged approximately US$2.5 billion in sovereign financing for countries including Nigeria, Angola, Côte d’Ivoire and Egypt, supporting investments in critical infrastructure and other key sectors.
The latest financing represents more than an investment in machinery for Togo. It is an investment in farmers, rural communities and the country’s long-term economic stability. As modern equipment reaches farming communities, the programme is expected to improve food availability, raise household incomes and position agriculture as a stronger driver of inclusive growth.
Media Enquiries: Yewande Thorpe | Communications | Africa Finance Corporation | Mobile : +234 1 279 9654 | Email : yewande.thorpe@africafc.org
About AFC: AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. Nineteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of energy, natural resources, heavy industry, transport, and telecommunications. AFC has 48 member countries and has invested over US$19 billion in 36 African countries since its inception.
