Then MIFA (incentive mechanism for agricultural financing) will do its technical work which will consist of working on structured projects. But it is the banks that will make the decisions to finance projects that will be profitable.
"Now that the project of support for MIFA (ProMIFA) is launched, a team will be recruited and if you want to do poultry farming, you present your project in the field. We’ll help you to structure, we will put you in a value chain and we submit your project to the bank. Our role is to ensure that your project is bankable. If the bank says ok, I finance, there are specific products that we will adapt", details Aristide Agbossoumonde, head of MIFA SA.
After six years of implementation, it is expected that 160,000 cooperative members, 100,000 actors in the agricultural value chain will benefit from the project with 40,000 jobs including 10,000 auto jobs.
"We want to encourage the financial institutions that are the keys to the success of all these figures. They are the ones who ultimately will spend their resources, and ultimately they will be able to translate access to finance into reality for young people and women here and across the country, we would like to invite them to more flexibility, more agility, more availability and more pragmatism in the rules they follow ", pleads Noël Koutera Bataka, Minister of Agriculture, Animal Production and Fisheries.
With its risk-sharing mechanism, MIFA breaks with the current model of providing private sector financing through an integrated approach to risk mitigation in the agricultural and agribusiness sector.
These include the development of insurance products, technical assistance to stakeholders, close monitoring, geo localization, innovative incentives, and more.
"Above all, the target is to massively increase funding for players to move from 0.2% of the banking sector's share devoted to the agricultural sector to 5% over 10 years but especially to reach in 2021, 1.000.000 people, the reduction of the interest rates, the food security, the technical and financial support of agricultural exploitation which can make it possible to create more than 1.000.000 jobs", clarifies the minister.
The expectations are many
Already beneficiary of an envelope of 17,925,000 CFA from MIFA to sow 35,9ha, VEVIEDODO cooperative based in the canton of Attitongon (prefecture of Bas-Mono), wants more to do better.
"We have more than 200ha to develop in the area. We would like MIFA to bring us mechanization. I think that only with this, we can go far," said Sossou Koffi, President of VEVIEDODO.
Since he started buying rice from farmers to resell, Kossivi Amegadze is experiencing a number of problems that he believes MIFA through ProMIFA could help relieve for better results.
"We have a lot of difficulties in the collection of the stock, logistics sometimes financially but with the intervention of MIFA, we see that there are some of our work, our responsibilities that will be delegated to other providers", hopes Amegadze executive director of global agri man.
Attracted by the activities of MIFA, Khalid Yacoubou-Boukari, risk director at the Bank of Africa (BOA) pledges on behalf of his institution to support any entrepreneur whose project will be submitted by MIFA.
"Zero risk does not exist, but the role of the banker is to be able to set up for each object of credit, a structure that can lead to say I'm taking a good risk and that at the end, I will be paid. I take the opportunity to tell the entrepreneur that the Bank of Africa Togo is ready to accompany him if MIFA submits his projet for funding", he says.
For insurers too, ProMIFA presents itself as a great opportunity to try to support all players in the value chain.
"In this dynamic and innovative process, it is a question of seeing at every level, what are the risks incurred by the actors from the producer to the processor through all those who deal with the transport and conservation of the product because there are risks at all levels", says Adote Akwei, general manager of the brokerage firm Lorica, specializing in micro health insurance and micro agricultural insurance.
In a nutshell, producers are willing to produce as long as the means are available to them, the bank is available to ensure the means as long as the profitability of the project is proven and that through the MIFA, the market is there to buy the products from the producers.