Togo Secures AfDB’s €200M for Sustainable Financing

African Development Bank Group (AfDB) has approved a €200 million partial credit guarantee (PCG) to back Togo’s first sustainable financing initiative.

he funding will enable Togo to access competitive financing from international commercial banks, supporting green and social projects that align with the UN Sustainable Development Goals (SDGs) and the country’s Sustainable Financing Framework.

The initiative, funded through the African Development Fund (ADF)—AfDB’s concessional lending arm—will empower Togo to diversify its funding sources and extend loan maturities. The funds raised will be directed toward transformative projects in areas critical to sustainable development, including:

• Climate adaptation and mitigation: Projects to protect biodiversity, promote sustainable agriculture, forestry, and fisheries, and reduce pollution.
• Renewable energy access: Initiatives to deliver carbon-free, reliable, and affordable energy to underserved communities.
• Food security and sovereignty: Supporting local agricultural innovation to strengthen food systems.
• Education and digital inclusion: Expanding access to quality educational services and digital infrastructure.
• Social safety nets: Poverty reduction programs and efforts to enhance economic empowerment and financial inclusion, especially for vulnerable populations.

Strengthening Financial Markets and Debt Sustainability

This marks Togo’s first foray into sustainable financing on international markets, a significant milestone in the country’s financial evolution.

By using the partial credit guarantee, Togo can attract international investors by lowering credit risk concerns; set a precedent for future fundraising with reduced reliance on external guarantees; and diversify its investor base, increasing resilience in its financial ecosystem.

“This intervention will deepen financial markets through Togo’s first-ever sustainable financing and broaden the country’s investor base,” noted Ahmed Attout, AfDB’s Director for Financial Sector Development.

The operation aligns with Togo’s 2020-2025 Government Roadmap, which prioritizes inclusive and sustainable economic growth.

Driving Structural Economic Transformation

In addition to enabling green and social investments, the initiative will accelerate structural transformation in Togo, fostering equitable economic growth and resilience.

“The operation aligns with the African Development Bank’s commitment to advancing structural transformation and economic diversification in Togo,” said Wilfrid Abiola, AfDB’s Country Manager for Togo. “It will create high-value jobs, improve socio-economic resilience, and promote sustainable, inclusive growth.”

A Model for Future Sustainable Financing

By embarking on this path, Togo is setting a regional example for mobilizing sustainable financing to address pressing development challenges. The AfDB’s partial credit guarantee ensures that international investors gain confidence in Togo’s creditworthiness, paving the way for future independent financing efforts.

This innovative approach contributes to climate-resilient infrastructure, improved governance, and enhanced capacity-building, reinforcing Togo’s commitment to sustainability while promoting broader regional and global development goals.