The Public Finance Review (PFR) on Togo's agriculture and rural connectivity sectors highlights the potential of improved public investment management to drive rural development and structural transformation in the country. The report notes that "the stock of productive capital remains relatively low, and the quality of infrastructure and public services has some room for improvement." It suggests that enhancing public investment management could elevate service quality without additional resources.
Key reforms are proposed to improve project selection, budgeting, implementation, and climate risk considerations throughout the investment cycle. Mobilizing private sector involvement is deemed crucial for accelerating rural development amid fiscal constraints. The report emphasizes that investor confidence in institutional quality and fiscal sustainability is vital for attracting private capital to infrastructure and agricultural modernization projects.
Efficient spending in agriculture could boost productivity and food security. This involves revitalizing research, improving access to inputs, and building resilience against climate shocks through better resource allocation and governance.
A significant barrier to Togo's structural transformation is the low rate of rural electrification. This issue stems from insufficient financing for both on-grid and off-grid infrastructure, high connection costs, and unreliable service. Enhancing the performance of CEET and AT2ER, along with reforming electricity tariff structures, is essential for supporting universal access policies.
Despite substantial investments in the rural road network, maintenance challenges persist due to frequent climatic shocks. The report recommends modernizing road asset management systems, streamlining procurement procedures, promoting private sector engagement through public-private partnerships (PPPs), and ensuring adequate funding for road maintenance and rehabilitation as key strategies to enhance rural connectivity.