UNCDF in Togo

UNCDF in Togo

The Challenge

Togo has a very poor Human Development Index, ranking in 2013 159 out of 187 countries. The country has achieved considerable progress during the past three years, but significant institutional and economic challenges remain. The rise in oil and food prices, the severe flooding in 2008 and 2010, and the global recession in 2009 adversely impacted Togo’s economy. Togo’s income per capita is low compared to Sub-Saharan Africa and Low-Income Countries averages. With regard to the Millennium Development Goals, progress has been achieved toward reaching the goals of universal primary education and the combat of HIV/AIDS. However, Togo is unlikely to meet six of the eight goals by the 2015 deadline. The capacity of the administration to create an environment conducive to private sector development needs to be strengthened.

How We Are Helping?

Togo’s financial sector strategy and planned privatization of ailing state-owned banks is expected to boost investors’ confidence and improve the banking sector’s capacity to finance the economy. UNCDF is helping Togo meet its development challenges through initiatives designed to strengthen the financial sector and increase access to sustainable microfinance services. 

The National Strategy for Microfinance Support Programme (PASNAM) targets microfinance institutions geared toward poor households or low-income micro-entrepreneurs. It seeks to improve the institutional environment in which they operate as well as the professionalism of their services, while helping to forge stronger links between commercial banks and microfinance institutions. 

A second phase of this programme started in 2009 with the support of UNCDF, UNDP and the World Bank, focuses on further strengthening the institutional framework of the microfinance sector and on developing self-sustaining financial services.

In Detail

Project

National Strategy for Microfinance Support Programme (PASNAM II)

Goal To strengthen the financial sector and increase access to sustainable microfinance services.
How
  • By improving the institutional environment and service quality of microfinance institutions; 
  • By helping to forge stronger links between commercial banks and microfinance institutions;
  • By strengthening the legal, regulatory and institutional framework of the microfinance sector.
Period 2009-2013
Partners UNCDF, UNDP, World Bank.
Total project cost and UNCDF contribution USD 7,471,625
USD 1,639,778
Project

YouthStart

Goal To increase access to financial services for low-income youth in sub-Saharan Africa. Spur innovation and delivery of microfinance for youth in Africa.
How
  • Designing, testing and scaling up sustainable services targeting the needs of young people;
  • Helping to create an enabling regulatory environment to allow young people to access financial and other services they need.
Period 2010-2014
Partners UNCDF, The MasterCard Foundation.
Total project cost and UNCDF contribution USD 12,000,000
USD 200,000

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