Togolese Banks Boost Loans to CFA286 Billion, Up 19% in Q1

Economic governance

Tuesday, 01 July 2025 11:14

Togolese Banks Boost Loans to CFA286 Billion, Up 19% in Q1

(Togo First) - Banks in Togo sharply increased lending in the first quarter of 2025, signaling a resilient economy and stronger support for the private sector.

Togolese banks issued CFA286 billion in new loans from January to March 2025, according to data shared on June 27 at the National Credit Council (CNC) meeting. Minister of Economy and Finance Essowè Georges Barcola chaired the session. This amount marks a 19% jump compared to the same period last year.

Officials say the rise reflects growing confidence from financial institutions in the national economy, which has maintained steady growth despite global uncertainties. Minister Barcola noted this trend particularly benefits very small, small, and medium-sized enterprises (VSEs and SMEs), which secured 44% of new loans, up from 37% a year ago.

Economy Stays Robust, Growth Forecast at 6.2%

At their Lomé meeting, CNC members assessed Togo’s economic, monetary, and financial health as of March 31. They confirmed the economy’s strong momentum, projecting 6.2% growth for 2025, after 6.3% growth in 2024. Officials expect all sectors to contribute, especially market services, which saw revenue climb 6.3% in Q1.

Construction and public works activity also remains solid, with its index standing 0.9 points above the long-term average, according to BCEAO data.

Inflation Under Control, Credit Rising

Another positive sign: inflation fell to 0.8% in April from 1.8% in March, thanks to lower food prices and better local supplies. This price stability has created favorable conditions for expanding credit.

The BCEAO reported total outstanding bank loans reached CFA1,788.3 billion by March 2025, a 5.5% year-on-year increase.

Lending rates stayed moderate at an average of 7.56% in March, close to the WAEMU average. Meanwhile, banks slightly reduced deposit rates to 5.67%, reflecting a cautious monetary stance.

Focus on Microfinance and Financial Inclusion

The CNC also discussed microfinance institutions, which remain vital for providing credit to vulnerable populations but face high risks of unpaid loans. The council is considering reforms to make these institutions more sustainable.

Overall, the semi-annual Credit Council meeting confirmed Togo’s financial system is effectively supporting the economy while maintaining stability. In the broader WAEMU region, where growth is projected to hit 7.3% in Q2, Togo continues to stand out as a pillar of resilience and financial inclusion.

This article was initially published in French by Fiacre E. Kakpo

Edited in English by Ange Jason Quenum

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)

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GETTING ELECTRICITY (more info)

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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)

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