Key Takeaways
- Africa Finance Corporation (AFC) has arranged a EUR 108.3 million sovereign-backed financing facility for the Government of Togo to modernise its agricultural sector and strengthen food security.
- The 10-year facility will fund the procurement of 2,126 tractor and trailer sets, 1,020 seeding and harvesting units, 930 irrigation units, and 95 water supply systems.
- The financing supports Togo's national agricultural transformation programme, ProMAT, which targets productivity improvements, food security, and the commercialisation of domestic production.
- Agriculture employs approximately 60% of Togo's workforce and contributes around 40% of GDP, yet fewer than 1% of agricultural households currently have access to irrigation.
- AFC has now arranged approximately USD $2.5 billion in sovereign facilities across Africa, including for Nigeria, Angola, Côte d'Ivoire, and Egypt.
AFC Arranges EUR 108 Million Facility for Togo's Agricultural Modernisation
Africa Finance Corporation (AFC) has arranged a EUR 108.3 million sovereign-backed financing facility for the Government of Togo, acting as Co-Mandated Lead Arranger and joint financier on the transaction. The deal marks AFC's inaugural sovereign investment in the country and further extends its government financing footprint across Africa. The 10-year facility is structured to fund the purchase, assembly, and distribution of agricultural machinery and equipment at scale.
The transaction is aligned with Togo's national agricultural transformation strategy, the Programme de Modernisation de l'Agriculture Togolaise (ProMAT), which targets improvements in farm productivity, food security, and the commercialisation of domestic agricultural output.
What the Facility Will Fund
The financing package covers a substantial volume of mechanisation and irrigation infrastructure. Specifically, it will support the procurement of 2,126 tractor and trailer sets, 1,020 units of seeding and harvesting equipment, 930 irrigation units, and 95 water supply systems. The programme is designed to directly address the gaps in access to modern farm inputs that have long constrained productivity across Togo's agricultural sector.
Agriculture employs approximately 60% of Togo's workforce and contributes around 40% of GDP. Yet only 37% of agricultural households currently use fertiliser, just 8% use improved seeds, and fewer than 1% have access to irrigation. Commercialisation levels are also low, with only around 20% of agricultural output reaching the market. The ProMAT programme is intended to shift those figures materially over the next decade.
AFC Food Security Focus and Sovereign Financing Track Record
AFC framed the transaction as part of a broader strategic emphasis on food security across the continent, against a backdrop of global supply chain volatility, climate-related agricultural shocks, and rising 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. This financing demonstrates AFC's ability to deliver sovereign financing solutions that unlock productivity, strengthen food systems and support long-term economic resilience by supporting Togo's agricultural modernisation agenda,” said Samaila Zubairu, President and CEO of AFC.
The Togo deal adds to AFC's established track record in sovereign financing. The corporation has now arranged approximately USD $2.5 billion in facilities for sovereign borrowers across Africa, including transactions for Nigeria, Angola, Côte d'Ivoire, and Egypt. Those prior arrangements have supported national institutions such as the Egyptian General Petroleum Corporation and the General Authority for Supply Commodities.
