Togo’s Debt Burden Eases as Economic Growth Outpaces Borrowing

Economic governance

Friday, 03 October 2025 05:49

Togo’s Debt Burden Eases as Economic Growth Outpaces Borrowing

(Togo First) - Togo’s public debt-to-GDP ratio fell to 65% by the end of June 2025, down from 69% at the close of 2024, according to figures presented at the third session of the National Credit Council (CNC), chaired by Economy and Finance Minister Essowè Georges Barcola. The level remains below the 70% ceiling set by the West African Economic and Monetary Union (WAEMU).

Economic Resilience

Minister Barcola said Togo’s economic indicators remain robust. Growth for 2025 is projected at around 6.3%, driven by all sectors, with services making a notable contribution.

The financial sector also showed strength in the first half, with bank credit up 22%. The cost of credit continued to decline as banks cleaned up their portfolios. The CNC, however, urged financial institutions to improve customer service and complaint handling.

Microfinance institutions (MFIs) remain a weak spot, with the council warning of continued deterioration in their portfolios.

Debt and IMF Reclassification

In nominal terms, Togo’s outstanding public debt stood at 4,288 billion CFA francs at the end of March 2025, up slightly from 4,217 billion at the end of 2024, before falling again in the second quarter. The increase was attributed to financing for infrastructure projects and social programs, though strong economic momentum eased the burden relative to GDP, according to the supervisory authority.

The International Monetary Fund (IMF) confirmed Togo’s reclassification among countries with a “strong debt-carrying capacity,” citing contained inflation and an improved World Bank CPIA score.

Authorities said they plan to maintain the favorable trajectory by strengthening debt management, prioritizing investment, and improving oversight of microfinance institutions.

R.E.D

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.