Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s infrastructure solutions provider, has arranged a EUR 108.3 million sovereign-backed financing facility for the Government of the Republic of Togo to support food security through modernisation of the country’s agricultural sector.
AFC acted as Co-Mandated Lead Arranger and joint financier on the transaction, marking its inaugural sovereign investment in Togo and further expanding its government financing footprint across Africa. The facility reflects AFC’s heightened focus on food security as global supply chain disruptions, climate-related shocks and rising agricultural input costs underscore the importance of strengthening domestic production in the face of rapid population growth, while unlocking the continent’s potential to become a more significant supplier of agricultural produce to regional and international markets.
With a tenor of 10 years, the financing will support the purchase, assembly and distribution of essential agricultural machinery and equipment including 2,126 tractor and trailer sets, 1,020 units of seeding and harvesting equipment, 930 irrigation units, and 95 water supply systems. The programme supports Togo’s national agricultural transformation strategy – Programme de Modernisation de l’Agriculture Togolaise (ProMAT) – aimed at improving productivity, strengthening food security and accelerating the commercialisation of agricultural production.
“Food security has become an increasingly urgent priority for African countries as global supply chains become more volatile and climate-related risks intensify,” said Samaila Zubairu, President and CEO of AFC. “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.”
Agriculture remains central to Togo’s economy, employing approximately 60% of the workforce and contributing about 40% of GDP. However, productivity continues to be constrained by limited access to mechanisation, irrigation and modern inputs. Only 37% of agricultural households use fertiliser and 8% use improved seeds, while less than 1% have access to irrigation. Commercialisation levels also remain low, with only around 20% of agricultural output reaching the market.
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By directly addressing critical gaps in farm equipment and irrigation infrastructure, the programme is expected to increase yields, improve market access, expand commercialisation, support job creation, and strengthen the resilience of Togo’s agricultural economy.
The transaction further reinforces AFC’s role as a trusted financing partner to African governments, delivering strategic investments across priority sectors. AFC has an established track record in sovereign financing, having recently arranged approximately US$2.5 billion in facilities for sovereign borrowers including Nigeria, Angola, Côte d’Ivoire, and Egypt. These transactions have supported key national institutions such as the Egyptian General Petroleum Corporation (EGPC) and the General Authority for Supply Commodities (GASC), enabling investment in critical infrastructure and strategic sectors.
