Togo rural institutions and private sector

The CU National Association (CUNA), CARE, and the Ministry of Rural Development (MRD) will implement the project. At the national level, the project will encourage the Government of Togo (GOT) to improve the legislative environment for CU development by updating legislation to give clear legal identity to CU"s, approving insurance for CU savings and loans, and establishing the rights of Togo"s CU Federation (FUCEC) to inspect CU records and enforce corrective measures. Policy dialogue to improve the environment for private sector development will focus on completing and reviewing five MRD policy studies on the private sector and sponsoring observation/ study tours and seminars to familiarize MRD and GOT officials with private sector issues. CUNA will strengthen FUCEC and its member CU"s by helping to: (1) create 80 new CU"s throughout Togo, but especially in the high potential Central Region; (2) increase total CU membership from 16,000 to 38,000; (3) train 540 CU officers and 240 employees or volunteer managers; (4) reduce average CU loan delinquency from 35% to 15%; (5) create a risk management program for at least 50 CU"s; (6) assist FUCEC toward budgetary self-sufficiency; and (7) increase dues collection by FUCEC from 60% to 80%. Activities to foster private producer groups and private enterprises will be implemented by CARE. It is expected that 3,400 farmers in the Zio Prefecture of southwest Togo will be organized into producer groups, while a total of 7,500 farmers will receive project training in group sessions. To expand the producer groups beyond Zio Prefecture, 30 training programs and 10 operations research activities will be held for other development organizations; at least 50 producer groups are expected to be established as a result. CARE will also provide TA and credit to some 250 microenterprises and 10 small enterprises in the Zio areas, and will help to develop 10 rural trade associations.