Togo’s Bank Credit Recovers After 2023 Slump, Led by Equipment Financing

Banking

Tuesday, 22 July 2025 05:53

Togo’s Bank Credit Recovers After 2023 Slump, Led by Equipment Financing

(Togo First) - Togolese businesses and the state primarily drove bank credit demand in 2024, according to the latest BCEAO report on banking conditions in the West African Economic and Monetary Union. Non-financial corporations received 658.3 billion CFA francs in bank credit, an increase from 2023, making them the top source of demand.

The state followed, receiving 133.1 billion CFA francs. This was an eightfold increase from 2023, reflecting renewed public investment spending or greater reliance on bank financing.

In contrast, household financing declined to 296 billion CFA francs from 372.3 billion the previous year. This drop occurred amid a contraction in consumer credit, which fell to 130.5 billion CFA francs from 183 billion CFA francs.

Equipment loans, however, surged to 240.4 billion CFA francs from 161.5 billion CFA francs. This marks a record for the 2019–2024 period, suggesting a renewed interest in productive investment compared to the prior year.

Meanwhile, mortgage lending remained low at 65.3 billion CFA francs, well below the 2021 peak of 394.2 billion CFA francs. Cash flow loans stabilized at around 532.6 billion CFA francs, indicating a persistent need for short-term liquidity within the economy.

After contracting in 2023, bank credit disbursements in Togo resumed growth in 2024, reaching 1,094.7 billion CFA francs. This represents a 12% year-on-year increase. More broadly, credit trends in Togo over the past six years have been uneven, with a record peak of 1,265.9 billion CFA francs in 2022, followed by a drop to 977.3 billion CFA francs in 2023, before the current rebound.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.