TOGO – African Development Bank (AFDB) has approved a loan of US $26.55 million to Togo to implement the second phase of the Agro-Food Processing Zone Project.
The investment aims to provide Togo with an industrial hub for processing agricultural products and establish a business zone to offer opportunities to young people and women in the Kara and Savanes regions, in the north and far north of the country, respectively.
In addition, the project will support the creation and operationalization of the company that will manage the agro-park and the construction of an agro-industrial park in Broukou (in Doufelgou prefecture, in the north of the country) by opening roads, developing electricity and street lighting networks, and building an administrative, financial, civil protection and access control centre.
It will also fund the purchase of small agricultural equipment for vegetable-growing plots, processing, storage and marketing, particularly for women.
The funds for this project that was approved in Abidjan on 19 July 2024, comes from the Transition Support Facility, an African Development Bank Group mechanism aimed at countries in transition.
It seeks to support investments that encourage inclusive agricultural growth that creates jobs and reduces food imports into the small West African country located on the Atlantic Ocean.
“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,” said Wilfrid Abiola, the African Development Bank’s Country Manager in Togo.
This will focus on the construction and operationalization of the agro-industrial park (the central hub), including building a network of infrastructure (various roads and networks, administrative buildings, electrification, water and fibre optics) to create the right conditions for establishing private businesses,”
In Togo, agriculture employs two-thirds of the population and accounts for about 41% of the GDP.
According to Global Agriculture and Food Security Program, the country’s yields have been consistently low for food crops and the performance of the main export crops (cotton, coffee, and cocoa) has been deteriorating.
Meat and fish production is also low and the country relies on imports to make up for its food deficit. Rural infrastructure is scarce, poorly maintained, and a major constraint to growth.
A new study from World Bank Group, Hawa Wagué, World Bank Resident Representative for Tog says that the development of local industries will scale up domestic processing of raw materials and the promotion of agricultural value chains in the country.
“This will contribute to the creation of quality jobs for strong and inclusive economic growth,” said Wagué.
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