The project, approved on July 19, 2024, will also help attract significant private investment into key agricultural sectors such as rice, maize, soya, sesame, cashew nuts and broiler chickens. The funds come from the AfDB's Transition Support Facility, which aims to support countries in transition, and will support investments that encourage inclusive agricultural growth, job creation and reduced food imports.

"As well as consolidating the achievements of the first phase of the project, it was essential to support the structure of the Togo Agro-Food Processing Zone Project (Togo Agropole) with a second phase. This will focus on the construction and operationalization of the agro-industrial park (the central hub), including building a network of infrastructure to create the right conditions for establishing private businesses," said Wilfrid Abiola, the AfDB's Country Manager in Togo.

The project will support the creation and operationalization of the company that will manage the agro-park, the construction of an agro-industrial park in Broukou, and the purchase of small agricultural equipment for vegetable-growing plots, particularly for women. It will also build the capacity of agricultural producers, including women, in production, processing, storage and marketing to help them find markets and sell agricultural products.

Agriculture is a crucial sector in Togo, contributing over 40% of the country's GDP and employing nearly two-thirds of its workforce. With over 3.6 million hectares of cultivable land, the growth potential in the industry is significant, as only 1.4 million hectares of the area are currently sown.

The government has made efforts to modernize the agricultural sector, focusing on improving farmers' access to finance, introducing agroforestry practices, enhancing agricultural research, mechanization, and use of fertilizers, developing agricultural value chains, and helping agri-entrepreneurs invest in the country.

Key agricultural products in Togo include corn, rice, yam, cassava, soybean, palm oil, pineapple, cashews, and cotton. Soybean production, in particular, has experienced a ten-fold increase between 2015 and 2022, enabling exporters to expand their business and increase export revenue substantially.

The AfDB's loan comes as part of its ongoing support for Togo's agricultural development. The Bank has also funded the Project to Support the Financial Inclusion of Vulnerable Women in Togo (PAIFFV), which has reached over 13,500 women with 15,251 loans disbursed, facilitating the creation of 8,072 micro- and small businesses.

With the new $26.55 million loan, Togo aims to further develop its agricultural potential, attract private investments, create jobs, and reduce food imports. The project will focus on building infrastructure, supporting women and youth, and strengthening the capacity of agricultural producers to access markets and sell their products.