AFC Arranges EUR 108.3 Million Financing for Togo’s Agricultural Modernisation Programme

June 23, 2026
By Mintesinot Nigussie

The Africa Finance Corporation (AFC) has arranged a EUR 108.3 million sovereign-backed financing facility for the Government of Togo to support agricultural modernisation and strengthen the country’s food security efforts.

The facility will finance the implementation of Togo’s Programme de Modernisation de l’Agriculture Togolaise (ProMAT), which aims to improve agricultural productivity, expand commercial production and enhance the country’s agricultural value chains.

Under the agreement, the financing will support the acquisition, assembly and distribution of agricultural machinery and related infrastructure, including 2,126 tractor and trailer sets, 1,020 seeding and harvesting units, 930 irrigation systems and 95 water supply facilities.

The transaction marks AFC’s first sovereign investment in Togo and expands the institution’s government financing activities across Africa. AFC acted as Co-Mandated Lead Arranger and joint financier for the 10-year facility.

Samaila Zubairu, President and Chief Executive Officer of AFC, said the financing responds to increasing pressures on African food systems caused by supply chain disruptions, climate-related challenges and rising agricultural input costs.

“Food security has become an increasingly urgent priority for African countries as global supply chains become more volatile and climate-related risks intensify,” Zubairu said.

Agriculture remains a significant contributor to Togo’s economy, accounting for about 40 percent of gross domestic product and employing approximately 60 percent of the workforce. However, the sector continues to face constraints related to limited access to mechanisation, irrigation and modern agricultural inputs.

AFC data indicates that only 37 percent of agricultural households in Togo use fertiliser, while 8 percent use improved seeds. Less than 1 percent of agricultural households have access to irrigation, limiting productivity and commercialisation.

The financing is expected to improve agricultural capacity by addressing equipment and infrastructure gaps, increasing yields, strengthening market access and supporting employment opportunities.

The facility forms part of AFC’s wider sovereign financing portfolio. The institution has arranged approximately 2.5 billion US dollars in financing facilities for sovereign borrowers, including Nigeria, Angola, Côte d’Ivoire and Egypt, supporting investments in strategic sectors and infrastructure development.

Source: FSX Business News