Togo Secures New $60.5M Disbursement from IMF

Economic governance

Wednesday, 02 July 2025 01:19

Togo Secures New $60.5M Disbursement from IMF

The International Monetary Fund (IMF) has approved an immediate disbursement of $60.5 million to Togo.
The approval follows a second review of Togo's 42-month, $400 million Extended Credit Facility (ECF), which received approval in March 2024.

The International Monetary Fund (IMF) announced on June 30 a new disbursement of $60.5 million for Togo. The package, approved by the IMF’s Board of Directors, is immediate. It comes after the second review of the Fund’s 42-month Extended Credit Facility (ECF), totaling $400 million and approved in March 2024.

The IMF lauded Lomé for successfully implementing the program, despite persisting security challenges and difficult financing conditions. All quantitative goals set for the end of December 2024 were met, barring the performance criterion regarding the budget balance.

The fiscal revenue increased as planned during this period while non-fiscal revenue surpassed expectations. However, higher-than-expected expenditures led to a faster-than-anticipated accumulation of debt.

"Authorities have satisfactorily implemented the IMF-backed program, despite ongoing security issues, challenging financing conditions, and high global uncertainty. Among other achievements, authorities have rallied fiscal revenues in line with targets while non-fiscal revenues have exceeded expectations," notes Kenji Okamura, Acting Chair and Deputy Managing Director of the fund.

He also pointed out that progress on fiscal adjustment has been slower than anticipated due to operations recorded by the authorities below the budget line, resulting in faster-than-expected debt accumulation. Authorities' efforts to address this trend—such as publishing a forward-looking note on budget execution and debt accumulation—are acknowledged.

In this context, the Fund encourages Togolese authorities to continue fiscal adjustment efforts while preserving growth and enhancing inclusion. Reforms to improve expenditure efficiency and enhance the social protection system, including the phased elimination of fuel subsidies, are also recommended.

The importance of strengthening governance, particularly through the publication of planned governance diagnostic and aligning wealth and income declaration systems with international standards, is underscored.

Including the latest disbursement, the IMF has released around $129 million for Togo under the ECF since March 2024. The next review of the program is scheduled for the second half of 2025.

This article was initially published in French by Ayi Renaud Dossavi

Edited in English by Ola Schad Akinocho

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.