A total of US$37 million in grants so that agriculture can become the engine of economic growth in Togo
WASHINGTON, April 12, 2011 - The World Bank’s Board of Executive Directors approved a project worth US$37 million (about CFAF 18 billion) to help the Togolese Government implement its National agriculture and food security investment plan (PNIASA).
The new Agriculture Sector Support Project (PASA) is set to boost food crop production, food exports, livestock herding and inland fish production in Togo, as part of strategic moves to boost the country’s agricultural sector.
It will directly benefit about 60,000 farmers, 13,000 livestock producers, 1,600 fishers, and 500 fish vendors, operating in the five administrative regions of Togo. In addition, about 650,000 households raising poultry and/or small ruminants will benefit from vaccination campaigns for their animals. The new Project has three main components.
Promotion of strategic food crops, export crops, and inland fish production: US$17.5 million (about CFAF 8.5 billion). This component is designed to increase the production and added value of strategic foodstuffs (rice, soybeans, cassava, maize, sorgho, fruits, and vegetables) chosen for their growth potential and their impact on poverty reduction. This goal will be achieved through partnerships between producer organizations, input distributors, wholesalers, food processors, financial institutions, and other service providers. The Project will also support export crops, by encouraging the policy dialogue between the Government and its internal and external partners in the design and implementation of essential reforms for the three traditional export crop sectors (cotton, coffee, and cocoa). The Project will also finance a study for preparing the entry of a private partner in the capital of the cotton company and for the creation of a cotton inter-professional board. For coffee and cocoa, the Project will support gradual regeneration of the existing plantations and some extensions in favorable zones. For export diversification, the Project will support innovative micro-projects targeting non-traditional export crops through a competitive grant scheme. Lastly, through this first component, the Project will support freshwater fish production in order to improve the management of inland fisheries and develop fish farming, which is of particular interest to small rural enterprises and to young people.
Recovery of the livestock subsector: US$9 million (about CFAF 4.3 billion). Activities planned for this component will focus on quick results for investments geared toward restocking and enhancing productivity of short-cycle species (small ruminants and poultry). Emphasis will be placed on three critical factors: (i) restocking with locally available herds with higher genetic potential for growth and disease resistance; (ii) animal health and improved control of prevalent diseases; and (iii) improvement of zootechnical conditions of husbandry, particularly housing, through training of service providers and direct assistance to farmers with a view to improving traditional husbandry and reducing animal mortality.
Support for capacity building and sector coordination: US$10.5 million (about CFAF 5 billion). The goal of this last component is to strengthen the capacity of the Ministry of Agriculture, Livestock, and Fisheries to coordinate the implementation of the Project efficiently and manage the other PNIASA investments, while preparing the transition to a sector-wide approach. It will lead to an increase of the physical and financial execution rate of sound agricultural investments in Togo. It will also help to mitigate mismanagement risks and minimize transaction costs.
The World Bank Country Director for Togo, Mr. Madani M. Tall, welcomed the approval of this important project and stated: “Our support for the agriculture sector, which occupies over 50 percent of the Togolese population, is provided in the context of the Partnership Framework created by Togo in February 2010 to refocus the dialogue with development partners on implementation of the National Agriculture and Food Security Investment Plan (PNIASA). We are convinced of the determination of the Togolese authorities to make agriculture one of the main engines of economic growth and we know that the short-term emergency activities planned under the Agriculture Sector Support Project, as well as the long-term investments for agricultural development, will promote attainment of the economic growth goals set by the Government.” For Mr. Tall, it is essential to make agriculture a competitive sector, by introducing effective production techniques, with well-trained farmers, within dynamic and professional sectors, while promoting environmental preservation and sustainable management of natural resources.
The project aims to help people benefit from better export performances, better zootechnical performances and the creation of product processing and marketing enterprises and of partnerships to organize the food crop sectors. The capacity of organizations of Togolese producers will be strengthened in the production of the main agricultural commodities.
The project is aligned with Togo’s poverty reduction strategy. It reflects the World Bank’s Interim Strategy Note for Togo and implements several recommendations of the study on potential sources of growth of September 2010 (Togo Economic Memorandum). It is also in line with the first pillar of the new World Bank strategy for Africa which focuses on competitiveness and employment. The Project is financed by several donors, including: (i) US$19 million from the multi donor Global Agriculture and Food Security Program (GAFSP); (ii) US$9 million from the International Development Association – IDA (the World Bank’s fund for the poorest); and (iii) US$9 million from the Bank’s food crisis response program, known as GFRP.
It should be noted that, in addition to the Project, Togo received a grant of US$12 million (approved in March 2011) to implement the West Africa Agricultural Productivity Project (WAAPP), the main goals of which are to increase the agricultural productivity, generate and disseminate agricultural knowledge and technology. These projects are supplemented by a US$43.5 million operation involving IFAD, BOAD and EBID, through the Togo Agricultural Development Support Project (PADAT). The three projects propose concrete activities to implement the PNIASA, in accordance with the principles of donors’ alignment and harmonization as recommended in the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action.