In Togo, agriculture is still highly under-financed by banks

Finance
Monday, 07 October 2019 16:40
In Togo, agriculture is still highly under-financed by banks

(Togo First) - For the first half of 2019, the proportion of loans to agriculture by banks represented only 0.2% of the institutions' overall lending to the economy over the period. This is in a context where this sector contributes 40% of Togo's GDP and employs 60% of its population, worried Demba Tignokpa, the minister of development planning. 

Banks' lending to agriculture thus is at the same level as when the MIFA was launched last year. This is far from the 5% objective set by the minister of agriculture, Noël Bataka, for 2020, leveraging the MIFA.

Overall, Togo, just like many of its neighbors, is under-financed by its banks. Indeed, bank financing represented only 40% of GDP in H1 2019.

"As revealed at our previous sessions, financings are still poorly oriented to housing and agriculture, despite the strong contribution of these sectors to the country's economic and social development," said Demba Tignokpa, last Thursday at the opening of the third national council on credit.

The official then urged banks and relevant authorities to "work to level up lending and amend financing structure for sectors enabling inclusive growth, such as housing and agriculture."

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