Togo : The country commits to agricultural development with a new leasing system
Togo has partnered with the International Finance Corporation (IFC) to establish a leasing system benefiting Very Small and Medium Enterprises (VSMEs) in the agricultural sector. This initiative aims to strengthen financing and support for the country’s farmers.
Togo already has legislation on leasing, providing a favorable legal framework for this collaboration with the IFC. Together, they will work to create a conducive environment for the development of this financing mechanism, focusing on the specific needs of farmers.
Leasing, also known as credit leasing, is a financing modality that allows businesses to access goods and equipment necessary for their activities without having to mobilize significant financial resources. For agricultural VSMEs, this system offers a valuable opportunity to acquire modern and efficient agricultural equipment while preserving their cash flow for other operational needs.
By closely collaborating with the IFC, Togo aims to create a favorable environment for the development of agricultural leasing. This involves raising awareness among stakeholders in the agricultural sector about the benefits of leasing, strengthening the capacities of local financial institutions to offer suitable products, and establishing guarantees and monitoring mechanisms to ensure the proper functioning of the system.
This initiative is part of the broader efforts of the Togolese government to stimulate the economic and agricultural development of the country. By supporting agricultural VSMEs with innovative financing solutions, Togo aspires to enhance the competitiveness of its agricultural sector, create jobs, and improve the livelihoods of rural communities.
Ultimately, the partnership between Togo and the IFC for the establishment of a leasing system for agricultural VSMEs demonstrates the commitment of both parties to promoting sustainable and inclusive development through the agricultural sector. This initiative promises to generate significant positive outcomes for the Togolese economy and the well-being of its agricultural population.
