AGF AND MIFA TOGO COMMIT TO PROMOTE THE TOGOLESE AGRICULTURAL SECTOR
The risk-sharing agricultural financing incentive mechanism (MIFA) and the African Guarantee Fund for small and medium-sized enterprises have signed a partnership agreement for the establishment of the guarantee fund known as ” Financial Guarantee for the Actors of the Agricultural Value Chain” of MIFA.
Through this agreement, both parties agree to collaborate on
• The formalization and implementation of portfolio guarantees covering 50% of the amounts of projects submitted by MIFA to partner financial institutions.
• The formalization and implementation of individual guarantees for the benefit of the actors supported by MIFA, soliciting the financing of MIFA’s partner financial institutions and the technical support of AGF West Africa for the benefit of financial institutions as well as MIFA to offer the best financial products for the Togolese agricultural sector with a view to transforming it into a professionalized, business-oriented agriculture.
The beneficiaries, the terms and conditions of the AGF guarantee, the duration of the agreement and the obligations of each party are also specified in the agreement signed by the managers of the two organizations in the presence of the concerned stakeholders.
Adidjatou ZANOUVI, AGF West Africa’s Managing Director said: “The partnership signed by AGF and MIFA is in line with our strategy for the coming years and represents a unique development opportunity for Togolese agricultural sector which is facing structural challenges. Therefore, our action will facilitate and lead to a gradual increase in the share of bank loans granted to the agricultural sector; this increase will have a considerable impact on Togo’s economic growth and the transformation of the sector.
The partnership concretely materializes the commitment of the MIFA to contribute effectively to the achievement of the National Development Plan 2018-2022 focus area 2 launched by the President of the Togolese Republic in March.