LOMÉ: Africa Finance Corporation (AFC) has secured more than €108 million in sovereign-backed financing for the Government of Togo to strengthen food security and modernise the country’s agricultural sector.
The €108.3 million facility marks AFC’s first sovereign investment in Togo, where the corporation served as Co-Mandated Lead Arranger and joint financier. The agreement also expands AFC’s sovereign financing activities across Africa as governments increase investment in domestic agricultural production.
The initiative comes amid continued pressure on global food systems from supply chain disruptions, climate-related risks and rising agricultural input costs. AFC said strengthening local production capacity remains critical as populations grow and food demand increases across the continent.
The 10-year financing package will support the procurement, assembly and distribution of agricultural equipment across Togo. Planned investments include 2,126 tractor and trailer sets, 1,020 seeding and harvesting machines, 930 irrigation units and 95 water supply systems.
The programme aligns with Togo’s agricultural transformation strategy, Programme de Modernisation de l’Agriculture Togolaise (ProMAT), which aims to raise productivity, improve food availability and accelerate the commercial development of agricultural output.
Samaila Zubairu, President and Chief Executive Officer of AFC, said food security has become a growing priority for African economies as supply chains become increasingly unpredictable and climate risks intensify.
He said the financing reflects AFC’s capacity to structure sovereign investment solutions that increase productivity, strengthen food systems and support long-term economic resilience through agricultural transformation.
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Agriculture remains one of the main drivers of Togo’s economy, employing nearly 60% of the workforce and contributing around 40% of national economic output. However, limited mechanisation, low irrigation access and restricted use of modern inputs continue to affect productivity.
Current figures show that only 37% of agricultural households use fertiliser and 8% use improved seed varieties, while less than 1% benefit from irrigation systems. Market participation also remains limited, with approximately 20% of agricultural production reaching commercial markets.
The programme is expected to improve agricultural yields, increase market access, create employment opportunities and strengthen the resilience of Togo’s agricultural economy by addressing gaps in farm equipment and irrigation infrastructure.
The transaction further strengthens AFC’s position as a financing partner for African governments. In recent years, the corporation has arranged approximately US$2.5 billion in sovereign facilities for countries including Nigeria, Angola, Côte d’Ivoire and Egypt, supporting strategic infrastructure and development priorities.
