(Ecofin Agency) - The United Kingdom will provide £68.6 million (US$76 million) guarantee for the construction of the Sokode-Tchamba-Kambole road, a cross-border road in North Togo. The guarantee will be granted via UK Export Finance (UKEF), a British export credit agency, to support a loan from the Japanese bank MUFG, the British government announced last Wednesday.

The announcement was made on the sidelines of the first UK-Francophone West and Central Africa Trade and Investment Forum ( October 19-20, 2022). 

"This project is part of Togo's expanded road infrastructure plan," said Rose Kayi Mivedor, Togo's Minister of Investment Promotion, who attended 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 involved," she added.

The road is expected to connect more than 200,000 people living in the Centrale -one of Togo’s five regions- to safer transport routes to neighboring Benin.

For UK Minister for International Trade James Duddridge, the road will accelerate intra-African trade, opening up routes to dynamic markets, and unlock £47 million of UK exports to the region.

The guarantee announced is part of a £174.4 million package described by London as a "landmark finance package" for Togo and Benin, in the wake of Togo's entry into the CommonWealth.

“UKEF participation confirms the project strength and viability and through its expertise, the parties were able to put in place an affordable financing solution that will make this priority project a success for Togo’s economy,” a British government release informs. 

Let’s note that one of the conditions for UKEF support is the guarantee that a large portion of contracts for works in the projects supported is awarded to British companies. 

Ayi Renaud Dossavi