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Africa Finance Corporation (AFC) announced on Tuesday a landmark €108.3 million sovereign-backed financing facility for the Government of Togo to modernise its agricultural sector and strengthen food security. 

The deal marks AFC’s inaugural sovereign investment in Togo, expanding its government-financing footprint across Africa amid intensifying global supply-chain disruptions, climate shocks, and rising input costs that are pressuring food systems.

The 10-year facility will fund the purchase, assembly, and distribution of critical agricultural machinery and equipment, including 2,126 tractor and trailer sets, 1,020 seeding and harvesting units, 930 irrigation systems, and 95 water supply systems. These investments support Togo’s national agricultural transformation strategy, Programme de Modernisation de l’Agriculture Togolaise (ProMAT), which aims to boost productivity, enhance food security, and accelerate 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 60% of the workforce and contributing 40% of GDP. Yet productivity is constrained by limited access to mechanisation, irrigation, and modern inputs.

Currently, only 37% of Togo’s agricultural households use fertiliser, 8% use improved seeds, and fewer than 1% have access to irrigation. Commercialisation levels are also low, with only 20% of agricultural output reaching the market. By addressing these gaps, the programme is expected to increase yields, expand market access, create jobs, and strengthen the resilience of Togo’s agricultural economy.

The transaction underscores AFC’s role as a trusted partner to African governments. The corporation has arranged approximately $2.5 billion in sovereign facilities for countries including Nigeria, Angola, Côte d’Ivoire, and Egypt, thereby supporting investments in critical infrastructure and strategic sectors. Since its establishment in 2007, AFC has invested more than US$19 billion across 36 African countries, with a focus on energy, transport, natural resources, heavy industry, and telecommunications.

This latest financing highlights AFC’s growing emphasis on food security, positioning Togo to better withstand global shocks and unlock its potential as a supplier of agricultural produce to regional and international markets.