Agricultural Mechanization: BKG Distribution Secures €5M from Bank of Africa Togo

Investments

Tuesday, 18 February 2025 09:59

Agricultural Mechanization: BKG Distribution Secures €5M from Bank of Africa Togo

(Togo First) - Bank of Africa (BOA) Togo has provided €5 million (about CFA3 billion) to BKG Distribution, which sells agricultural equipment. The funding, announced last week, is part of a partnership established in May 2023 to help Togolese farmers buy agricultural equipment with more ease.

Under the deal, BKG Distribution will provide farmers with equipment like combines and tractors without requiring upfront payments. Repayment terms come at competitive interest rates. The repayment will be flexible, extending over three years.

The agreement aims to address the financial challenges in the agricultural sector by facilitating equipment purchases. Bassirou Bonkoungou, CEO of BKG Distribution, said the system should enable farmers to get the equipment needed to increase productivity, removing usual investment bottlenecks. Youssef Ibrahimi, a top manager at BOA-Togo, described it as a fast and simple financing solution tailored to the country's agricultural sector.

BOA Togo also announced that discussions are underway to disburse another €10 million to BKG Distribution. The move supports Lomé’s ambition to modernize agriculture and make it a key part of economic development.

Agricultural mechanization is a key priority for Togo, with the recent creation of Regional Agricultural Mechanization Centers (CRMA) to improve equipment access and increase yields.

This article was initially published in French by Esaïe Edoh

Edited in English by Ola Schad Akinocho

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