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It is also expected that ProMIFA will support the establishment of a financing and risk-mitigation mechanism, develop new financial products, improve the quality of financial services. Picture by Erick Kaglan

Creating Economic Opportunities for Rural People

By Abdi Ali
Published February 9, 2019

The new project will first develop production and marketing of rice, market gardening, maize and poultry in order to improve the food and nutritional security of rural communities. Picture by AFP.More than 50 000 African households are set to benefit from a US$35 million rural project.

The Shared-risk Agricultural Financing Incentive Mechanism Support project (ProMIFA) of International Fund for Agricultural Development (IFAD) and the Government of Togo is meant to to spur inclusive economic growth and create employment opportunities in the western African country whose backbone is agriculture.

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The new project will first develop production and marketing of rice, market gardening, maize and poultry in order to improve the food and nutritional security of rural communities in the country in which agriculture provides 60 per cent of employment and contributes 41 per cent to the Gross Domestic Product (GDP).

It is also expected that ProMIFA will support the establishment of a financing and risk-mitigation mechanism, develop new financial products, improve the quality of financial services. Picture by Erick KaglanIt is also expected that ProMIFA will support the establishment of a financing and risk-mitigation mechanism, develop new financial products, improve the quality of financial services and provide training to financial institutions to enable them to assist smallholders in drafting business plans besides providing them with financial products that meet their needs.

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“Although the agriculture sector remains the main employer for young people, especially women in Togo, the financial sector operators hesitate to provide them with credit,” noted Lisandro Martin, Regional Director for West and Central Africa Division of IFAD, while signing the agreement with Sani Yaya, Minister of Economy and Finance of the Republic of Togo. “ProMIFA will facilitate sustainable access to financial services tailored to smallholder farmers and micro, small and medium-sized agricultural enterprises so they can develop their activities and gain access to markets.”

IFAD, an international financial institution and a specialized United Nations agency based in Rome, says it has since 1983 financed eight rural development programmes and projects in Togo at a cost of US$252.5 million and that nearly 320,000 rural households have directly benefited from these initiatives.

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