Financing a Togolese farm
In Togo, farmers finance their growing season mainly through rural SFDs and the FNFI's AGRISEF products, while MIFA shares risk with banks for the rice, maize, poultry, market gardening, soya and cotton value chains.
The weight of agriculture in Togo
Agriculture employs a large share of Togo's workforce, from the oil palm groves of the Maritime region to the cotton and sorghum fields of the Savanes. Coffee and cocoa dominate the Plateaux around Kpalimé, while soya has become a major export crop.
MIFA, a risk-sharing mechanism
The Incentive Mechanism for Agricultural Financing based on risk sharing, launched by the Togolese state, guarantees part of the loans granted by banks and SFDs to value chain players. It also offers agricultural insurance products to farmers.
IFAD's ProMIFA project
ProMIFA, backed by IFAD and the Ministry of Agriculture, targets smallholders growing rice and maize, raising poultry or market gardening. It funds seasonal credit, production loans and agricultural insurance adapted to climate hazards.
AGRISEF and the FNFI
The National Fund for Inclusive Finance's AGRISEF product is aimed at farmers and young rural people. It is distributed by partner SFDs once groups have been formed and members have been trained in managing credit.
SFDs in rural Togo
FUCEC-Togo cooperatives and other SFDs based in Notsé, Tchamba, Bassar or Dapaong lend for inputs, tractor hire or the purchase of small ruminants. The Togolese microfinance network remains the leading lender to family farms.
Seasonal credit and the farming calendar
Seasonal credit is paid out before sowing and repaid after harvest, often in a single instalment. In the south, two rainy seasons allow two cycles, while the north has only one, which changes the repayment schedule accordingly.
Cotton and the NSCT
In the cotton sector, the Nouvelle Société Cotonnière du Togo supplies inputs on credit to producer groups and recovers them from the purchase price of seed cotton. This integrated system reduces the need for cash credit among these growers.
Agropoles and processing in Togo
Agropoles, such as the one in Kara, aim to bring together production, processing and marketing. Processors of soya, cassava into gari or cashew nuts look there for larger equipment loans than ordinary producers need.
Collateral in rural Togo
Togolese farmland rarely has a title, which limits the use of mortgages. Lenders rely on joint guarantees, warehouse receipt credit, contracts with buyers and the MIFA guarantee. Insurance products also help to reduce the risk.
Rates and insurance in Togo
Farm loans from SFDs are subject to the 24% annual ceiling, and bank loans to 14% since June 2026. Index-based or multi-risk insurance offered through MIFA protects farmers against drought and flooding.
Burkinabe and Togolese cotton growers
Cotton farmers in Burkina Faso work with a comparable system of inputs on credit, described on the page on the farm loan in Burkina Faso. Both countries share the WAMU framework but have separate cotton companies.
Other sources of funding in Togo
Public projects, NGOs and cooperatives add to the supply of credit. The overview of credit in Togo places these schemes alongside the banks and national funds such as the FNFI or ANPGF. NGOs play a notable role in the Savanes region.
Getting a farm loan in Togo
- Join a recognised cooperative or producer group in your canton to access collective products.
- Draw up a season budget in CFA francs: seeds, fertiliser, labour and equipment hire.
- Open an account with a rural SFD and build up the required prior savings.
- Apply for the AGRISEF product or a MIFA-guaranteed loan from a partner institution.
- Take out the agricultural insurance offered and sign the contract before the sowing period.
- Repay after harvest, in cash, by mobile money or through a deduction made by the buyer.
Cost of a Togolese farm loan
| Item | Benchmark | Variation |
|---|---|---|
| SFD rate | At most 24% a year | Product, MIFA guarantee, term |
| Bank rate | At most 14% a year | Farm size and contracts |
| Agricultural insurance | Premium by crop, indicative | Area and type of risk covered |
| Prior savings | Blocked share of the loan | SFD and credit cycle |
| Inputs advanced by the value chain | Deducted from sales | Purchase price and quantities delivered |
Documents required from Togolese farmers
- National identity card or voter card
- Certificate of membership of a cooperative or producer group
- Projected budget for the growing season
- Proof of farming activity or the landowner's agreement
- Purchase contract with a processor or exporter if one exists
Frequent problems with farm credit in Togo
- Receiving the loan after the sowing date, which cuts yields and reduces the ability to repay.
- Using the financed fertiliser on a crop other than the one in the contract, which distorts the repayment calculation.
- Selling the whole harvest at the farm gate just when prices are at their lowest point of the year.
- Paying a fake agent claiming to represent MIFA or the FNFI to get onto a list of beneficiaries.
Rural credit in Togo: useful answers
Does MIFA lend directly to farmers?
No, MIFA shares risk with the banks and SFDs that grant loans to agricultural players. It also provides insurance and support services, which makes lenders more willing to finance the targeted value chains.
What is warehouse receipt credit?
Warehouse receipt credit means storing your harvest in a secure warehouse and obtaining a loan backed by that stock. The farmer sells later, when prices rise, then repays the SFD with part of the sale proceeds.
Can a young person without land get a farm loan?
Yes, if they farm a plot with the owner's written consent or within a producer group. AGRISEF products and some public programmes specifically target young rural people starting a farming or livestock activity.
Can you finance a tractor in Togo?
It is possible through a bank equipment loan or a finance lease, but you must prove regular income, for example by ploughing for other farmers. Cooperatives often pool resources for this type of purchase.