(Ecofin Agency) – The United Kingdom will provide a guarantee of 68.6 million pounds (76 million dollars) for the construction of the Sokode-Tchamba-Kambole road, a cross-border road in northern Togo. The guarantee will be provided through UK Export Finance (UKEF), a UK export credit agency, to back a loan from Japanese bank MUFG, the UK government announced last Wednesday.
The announcement was made on the sidelines of the first British and Francophone West and Central Africa Trade and Investment Forum (19-20 October 2022).
“This project is part of Togo’s broader road infrastructure plansaid Rose Kayi Mivedor, Togolese Minister for Investment Promotion, who participated in the Forum.Our government continues to make strategic investments in infrastructure to build and maintain a road network that not only improves the movement of people and goods, but also stimulates growth in the cities concerned.,” she added.
The road is expected to connect more than 200,000 people living in Centrale, one of Togo’s five regions, to safer transport routes to neighboring Benin.
For the UK’s Minister for International Trade, James Duddridge, the road will speed up intra-African trade, open up routes to dynamic markets and unlock £47 million of UK exports to the region.
The advertised guarantee is part of a £174.4million package described by London as a “historic funding package” for Togo and Benin, in the wake of Togo’s entry into the Commonwealth.
“UKEF’s participation confirms the solidity and viability of the project and thanks to its expertise, the parties have been able to put in place an affordable financing solution that will make this priority project a success for the Togolese economy.“, informs a press release from the British government.
It should be noted that one of the conditions for UKEF support is the guarantee that a large part of the works contracts for the projects supported are awarded to British companies.
Ayi Renaud Dossavi