Rural development and agriculture in Togo
Title: Rural development including agriculture in Togo
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministère de la Planification du Développement et de la Coopération (MPDC), Ministry of Development Planning and Cooperation
Overall term: 2013 to 2020
Togo's economic growth has remained relatively stable in recent years, averaging five per cent. Nevertheless, many people are affected by unemployment and underemployment. Although Togo's agricultural economy is poorly developed, it contributes 40 per cent of gross domestic product. However, there are potentials for improving the processing of agricultural products, most notably in rural areas. Exports are dominated by primary goods such as cotton and coffee and cocoa beans.
In order to solve the problem of poverty in rural areas, the Togolese development policy relies on the structural transformation of the economy. It aims to expand agricultural production chains with high employment and export potential. Although public investment has helped to increase food production in the past, efficient production systems, technical and organisational skills and innovative business models are still lacking. The market focus, food security and food quality all need to be improved significantly.
The economic and technical capacities of actors in selected agricultural value chains have improved and their capacity for self-sufficiency has been strengthened.
The project is piloting improvements to individual value chains and is co-financed by the EU. It is working closely with the Ministries for Agriculture and Industry, with cooperatives and producer associations as well as with processors and retailers.
Small farmers are cooperating with small-sized to medium-sized processing enterprises to reduce transaction and production costs and, in this way, to increase production in the processing plants. This approach can give farmers in particular an opportunity to generate sufficient income. In the long term, it will create and safeguard jobs in the processing industry. The project is supporting production for the national and international market as well as the self-sufficiency of small farmers. Together with financial services providers, the project is developing loans that are adapted to the circumstances of small-scale farming. It advises the Government of Togo on improving the overall framework conditions for agriculture. The project supports both investments in the country and exports in order to positively influence long-term economic growth.
- The development of the selected fruit, spices, coffee, cocoa and pineapple production chains made significant progress in the preceding project stages. The self-organisation of the actors in the value chains was strengthened above all in the coffee, cocoa and vegetable sector associations.
- The project has supported over 30,000 vegetable, coffee, cocoa and pineapple producers in their organisational development.
- More than 9,100 farmers have been trained in better agricultural practices and entrepreneurship. More than 77 per cent of the participants are demonstrably applying the new skills and, as a result, their income increased by an average 30 per cent in 2018.
- The producers have gained access to international markets thanks to the alliance with the private sector.
- Processing enterprises have been supported and new jobs created. Today, 26,400 people are employed in cashew production and around 4,000 in pineapple production.
- ProDRA has established environmentally friendly production practices. In the pineapple sector, 76 per cent of companies have already adopted environmentally friendly production practices. Furthermore, there are now almost 13,000 organic cocoa producers.
- More than 3,750 cashew and pineapple producers have been trained in finance management. Further training in agricultural risk assessment has been provided to 87 bank employees. More than 850 producers received loans between 2017 and 2019.