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Togo: Mifa to create an agricultural insurance firm to cover over 6,000 farmers

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For the last three months of its pilot stage, MIFA wants to speed up the creation of an agricultural insurance firm that will cover 6,000 farmers.

This mechanism, initially launched to push banks to lend more to agricultural value chains, intends to enroll three thousand additional farmers. In the same vein, it plans to boost capacities of all players in the agriculture value chain.

Launched six months ago, the Mifa which works on a risk-sharing basis, has gathered so far more than 3,500 farmers and 122 cooperatives.

The cooperatives, divised across 7 pilot phases sought out about two billion CFA of loans from financial institutions over the period. CFA105 million were granted at a rate of 8% while the remaining 1.2 billion is still being released.

In Sadori (Oti prefecture), Tagnamboul (Dankpen prefecture), Blitta, Notsè, Kovié and Aglomeglozou, farmers got nearly CFA75 million of fertilizers pre-delivered under the mechanism. Moreover, still under MIFA, about 10 partnership agreements were signed by around 50 players of the value chains; this goes along the creation of business relations with these players.

Regarding the contracts, there are mostly deals to purchase 10,000 tons of rice and cassava, and 3,500 tons of maize from aggregators.