News from 2018-04-26 / KfW Development Bank

More electricity and roads for Togo

French-German cooperation: around EUR 75 million earmarked to expand rural roads and the energy sector

A rural track in Africa is being rehabilitated.
The development and rehabilitation of paved and unpaved roads facilitates trade in Africa.

West African Togo lacks electricity and adequate roads. Together with the French development bank AFD and the European Union, KfW is providing around EUR 75 million on behalf of the German Federal Government to improve rural infrastructure and urban energy supply.

The Atakora Mountains in Togo are situated on a high plateau. The climate there is very good for growing manioc, avocados, coffee, cocoa and green pepper on the fertile fields. The people who farm this land often produce good harvests. But it is difficult for them to earn a reasonable income selling their grain and fruit. The inadequate infrastructure results in high costs for producing and selling agricultural goods.

The remote regions in particular are often poorly connected to the road network. Or the roads are in such poor condition that trips to the markets in the capital Lomé, for example, are very time consuming. A project supported by Germany and France aims to change this. Around 500 kilometres of rural dirt roads are being upgraded and rehabilitated throughout the country. This means that seeds, fertilisers and other means of production can be supplied more quickly – agriculture will become more profitable. To ensure that the roads stay navigable in the long term, a fund financed exclusively by the Togolese government will be set up at the same time to pay the necessary maintenance in the future.

The German bank KfW and the French development bank AFD are working closely together on the financing. “This cooperation will enable us to jointly tap various sources of finance,” says project manager Ulrich Jahn. While KfW is providing a grant of EUR 17 million, AFD is contributing a low-interest loan of EUR 10 million. KfW is the lead agency for the project, meaning that the Togolese side, the Ministry of Transport and Infrastructure, is supported by two parties but has only one negotiating partner. “This greatly simplifies procedures and approvals,” emphasises Jahn.

Access to energy for 300,000 people in Lomé

Another joint initiative between KfW, the EU and AFD is helping to make life easier for city residents: because Lomé, the capital of the country on the coast, is growing faster and faster. More and more people need energy. The electricity transmission grid will be rehabilitated and expanded so that initially around 300,000 people in the greater area of the city will have reliable access to electricity. In addition, a new grid control centre is being built. Another aim is to enable CEET, the energy supplier, to further expand its capacities. This expansion of the energy sector will be financed with a total of around EUR 48 million, of which AFD will provide EUR 30 million (loan), while KfW will contribute EUR 10 million and the EU EUR 8 million in the form of a grant.