Togo’s Agriculture and Infrastructure Public Finance Review (PFR)

Investment Rating - The report does not explicitly provide an investment rating for the agriculture and rural connectivity sectors in Togo. Core Insights - The Public Finance Review emphasizes the need for improved public investment management to accelerate rural development and structural transformation in Togo, where 50% of the population living under the national poverty line relies on agriculture as their primary income source [12][29]. - The report highlights that low agricultural productivity and inadequate rural connectivity hinder economic growth and poverty reduction, necessitating a holistic approach that combines agricultural advancements with infrastructure development [12][29]. - It identifies that public investment can mobilize private sector investment, especially when fiscal constraints limit public funding, and suggests reforms to enhance the business environment and governance [14][28]. Summary by Sections Country Context and Challenges - Togo has faced significant challenges, including the COVID-19 pandemic and global trade disruptions, but managed to maintain robust growth with public investment reaching 9.7% of GDP in 2022, up from 3.2% in 2019 [19]. - Despite growth, structural transformation has been limited, with stagnant agricultural productivity and poor connectivity between rural and urban areas contributing to persistent poverty [19][20]. Public Investment Management and Structural Transformation - The report assesses the quality of public investment management in Togo, noting that while there has been progress in project selectivity, inefficiencies remain in budgeting and transparency [40]. - It emphasizes that improving public investment efficiency could significantly enhance infrastructure quality without additional budget resources, with potential gains of 14% to 37% by matching the efficiency of peer countries [13][43]. Agriculture Sector - The agriculture sector in Togo is characterized by low productivity, with only 37% of households using fertilizers and 8% using improved seeds, leading to reliance on self-subsistence farming [20][21]. - The report suggests that improving access to agricultural inputs and enhancing public sector governance are critical for boosting productivity and food security [15][16]. Energy Sector - Rural electrification is a major constraint, with only 25% of the rural population having access to electricity, which limits agricultural modernization and productivity [17][25]. - The report recommends reforms in the electricity tariff structure and governance of public utilities to improve rural electrification and support renewable energy solutions [17][25]. Transport Sector - Despite significant investments in rural road connectivity, many roads remain unpaved and poorly maintained, with 37% of the rural population living more than two kilometers from an all-weather road [18][26]. - The report calls for improved road asset management and prioritization of climate-resilient road designs to enhance rural access and agricultural productivity [18][26].