Boosting Togo’s Rural Economy: A Roadmap for Agriculture and Infrastructure Investment

This article highlights key findings from the World Bank's Togo’s Agriculture and Infrastructure Public Finance Review (PFR), focusing on the need for strategic public investments to modernize agriculture and improve infrastructure in rural areas. It explores the importance of increasing agricultural productivity, expanding rural electrification, and improving road connectivity. The report also calls for greater private sector participation to support these efforts and drive Togo’s economic transformation.

Togo’s agricultural sector, despite being the backbone of the country's rural economy, has long struggled with low productivity and inadequate infrastructure. In a comprehensive report titled Togo’s Agriculture and Infrastructure Public Finance Review (PFR), Leveraging Public Investment to Transform the Rural Economy by the World Bank, the need for strategic public investment is outlined as the key to unlocking the full potential of the country's rural economy. The review explores how better management of public funds, private sector participation, and infrastructure development can drive much-needed economic transformation.

Modernizing Agriculture to Tackle Poverty

For Togo, where about 50% of the population depends on agriculture for their livelihood, improving agricultural productivity is vital to reducing poverty. The report reveals that a significant portion of farmers remain trapped in subsistence farming, relying on rain-fed, low-yield practices. This is not only limiting their productivity but also exposing them to risks posed by unpredictable climate conditions.

To reverse this trend, the review suggests a focused investment in agricultural research, modern farming methods, and irrigation. The government needs to prioritize providing farmers with access to high-quality seeds, fertilizers, and modern equipment. Mechanization, increased irrigation, and targeted research can dramatically improve yields and stabilize the income of rural communities, allowing them to move beyond self-sustenance toward commercial agriculture.

Despite some progress, the report notes that government spending in agriculture has not met its ambitious goals. While public investment in the sector has increased, it remains inadequate to meet the growing needs of rural communities. The report calls for better budget execution and coordination in agricultural projects to avoid delays and ensure that resources are allocated where they are most needed.

Rural Electrification and Infrastructure: The Key to Connectivity

One of the greatest obstacles to rural development in Togo is the lack of infrastructure, especially in rural electrification and road connectivity. As the report highlights, only 25% of Togo's rural population has access to electricity, which stifles economic activity. Without reliable power, farmers cannot modernize their operations with essential technologies like irrigation systems, post-harvest processing, or mechanized farming tools. These gaps further limit productivity and economic opportunities for rural communities.

The review points out that significant investment in both the energy and transport sectors is crucial. Expanding rural electrification is not just about improving living standards but also about enabling agricultural productivity, opening up markets, and boosting the overall economy. The review suggests that the government should encourage private sector participation through Public-Private Partnerships (PPPs) and streamline the regulatory framework to attract investments in renewable energy and rural electrification projects.

Road connectivity is another pressing issue. Poorly maintained and limited road networks in rural areas prevent farmers from accessing markets, making it difficult to sell their produce at competitive prices. Upgrading rural roads is key to improving access to markets and reducing transportation costs, which would enhance both productivity and profitability for rural businesses.

Crowding In Private Sector Investment

Given Togo’s limited fiscal space, the public sector alone cannot bear the responsibility of financing the substantial investments needed to modernize agriculture and improve infrastructure. The report advocates for a strong collaboration with the private sector, emphasizing that public investment can be used as a tool to mobilize private capital. By improving public investment management and implementing clear regulations, the government can attract more private investors, particularly in energy and infrastructure projects.

The review stresses that with improved governance and a favorable business environment, the private sector can play a significant role in boosting rural electrification, building climate-resilient infrastructure, and creating opportunities for rural populations. Reforms in public investment management, along with efforts to enhance transparency, will help increase the efficiency of projects, ensuring that investments yield maximum benefits.

Togo’s Agriculture and Infrastructure Public Finance Review (PFR) provides a roadmap for the country to transform its rural economy through strategic public investments and partnerships with the private sector. The focus on modernizing agriculture, improving infrastructure, and enhancing rural electrification will be critical in driving economic growth and reducing poverty. By addressing these key challenges, Togo has the potential to create a more productive, resilient, and prosperous rural economy that benefits all.