Togo plans to secure two commercial loans totaling €350 million from international banks, backed by a €200 million guarantee from the African Development Bank (AfDB) obtained in November 2024, according to S&P.
This arrangement, a first for Togo, will enable the country to access international markets under more favorable conditions, leveraging the AfDB’s backing through the African Development Fund (ADF). The goal is to finance a range of green and social projects while reducing reliance on the more expensive and volatile regional debt market.
These loans align with the Sustainable Financing Framework published by the Togolese government in October 2024, which has been validated by S&P. Funds will be allocated to initiatives in sustainable agriculture, water management, social protection, digital inclusion, and climate-resilient infrastructure.
This transaction is part of a strategic shift in Togo’s public finances. As regional rates in the West African Economic and Monetary Union (WAEMU) have risen since 2022, shortening maturities and increasing refinancing costs, Togo aims to rebalance its debt portfolio. S&P projects that non-WAEMU financing could account for 50% of the portfolio by 2026, up from 42% at the end of 2024.
In 2025, Togo has already secured a $200 million loan from the World Bank and intends to finalize these two new loans, supported by the AfDB guarantee. While S&P Global Ratings has mentioned other multilateral institutions as potential guarantors, only the AfDB guarantee has been publicly disclosed. The World Bank, through its new Country Partnership Framework (CPF), has indicated that Togo could utilize innovative financing instruments, including its concessional window (IDA) and its new guarantee platform, supported by the Multilateral Investment Guarantee Agency (MIGA).
This operation could set a precedent for other countries in the region seeking to combine commercial borrowing with multilateral support to achieve better financing terms.
