How to manipulate context - attach function to context or wrap dispatch in hook?

There is absolute no problem with using useContext directly in a component. It however forces the component which has to use the context value to know what context to use.

If you have multiple components in the App where you want to make use of TodoProvider context or you have multiple Contexts within your app , you simplify it a little with a custom hook

Also one more thing that you must consider when using context is that you shouldn't be creating a new object on each render otherwise all components that are using context will re-render even though nothing would have changed. To do that you can make use of useMemo hook

const Context = React.createContext<{ todos: any; fetchTodos: any }>(undefined);

export const TodosProvider: React.FC<any> = ({ children }) => {
  const [state, dispatch] = useReducer(reducer, null, init);
  const context = useMemo(() => {
    return {
      todos: state.todos,
      fetchTodos: async id => {
        const todos = await getTodos(id);
        console.log(id);
        dispatch({ type: "SET_TODOS", payload: todos });
      }
    };
  }, [state.todos, getTodos]);
  return <Context.Provider value={context}>{children}</Context.Provider>;
};

const getTodos = async id => {
  console.log(id);
  const response = await fetch(
    "https://jsonplaceholder.typicode.com/todos/" + id
  );
  return await response.json();
};
export const useTodos = () => {
  const todoContext = useContext(Context);
  return todoContext;
};
export const Todos = ({ id }) => {
  const { todos, fetchTodos } = useTodos();
  useEffect(() => {
    if (fetchTodos) fetchTodos(id);
  }, [id]);
  return (
    <div>
      <pre>{JSON.stringify(todos)}</pre>
    </div>
  );
};

Working demo

EDIT:

Since getTodos is just a function that cannot change, does it make sense to use that as update argument in useMemo?

It makes sense to pass getTodos to dependency array in useMemo if getTodos method is changing and is called within the functional component. Often you would memoize the method using useCallback so that its not created on every render but only if any of its dependency from enclosing scope changes to update the dependency within its lexical scope. Now in such a case you would need to pass it as a parameter to the dependency array.

However in your case, you can omit it.

Also how would you handle an initial effect. Say if you were to call `getTodos´ in useEffect hook when provider mounts? Could you memorize that call as well?

You would simply have an effect within Provider that is called on initial mount

export const TodosProvider: React.FC<any> = ({ children }) => {
  const [state, dispatch] = useReducer(reducer, null, init);
  const context = useMemo(() => {
    return {
      todos: state.todos,
      fetchTodos: async id => {
        const todos = await getTodos(id);
        console.log(id);
        dispatch({ type: "SET_TODOS", payload: todos });
      }
    };
  }, [state.todos]);
  useEffect(() => {
      getTodos();
  }, [])
  return <Context.Provider value={context}>{children}</Context.Provider>;
};