Togo’s External Debt Becomes Increasingly Diversified

Economic governance

Monday, 06 October 2025 16:50

Togo’s External Debt Becomes Increasingly Diversified

The share of Togo’s external debt rose from 28.3% before the pandemic to 41.1% between 2020 and 2024, according to the IMF.
Concessional loans from the IMF and World Bank now represent over a quarter of public debt, up from less than one-fifth in 2018.
Togo secured over $850 million in new external loans in 2024, half under concessional terms, while maintaining a “strong” debt-carrying capacity and a “moderate” risk of debt distress.

Togo’s public debt profile is evolving toward greater international diversification, the International Monetary Fund (IMF) said in its latest review under the Extended Credit Facility (ECF). The share of external debt in the country’s total debt stock increased to 41.1% between 2020 and 2024, compared with 28.3% before the COVID-19 pandemic.

The IMF viewed this evolution as a rebalancing of the debt portfolio, reflecting both a diversification of creditors and stronger participation from multilateral partners.

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Concessional borrowing from the IMF and the World Bank now accounts for more than one-quarter of Togo’s public debt, compared with less than one-fifth in 2018. Over the same period, Lomé has reduced its reliance on non–Paris Club creditors—an informal group of public lenders that coordinates debt relief for distressed countries—in favor of structured bilateral and commercial borrowing.

This strategic shift has helped stabilize debt servicing costs and extend average maturities, the IMF said.

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In 2024, the Togolese government signed over $850 million in new external loans, about half on concessional terms. Officials said the diversification of borrowing sources, particularly toward low-interest financing, aims to reduce the interest burden and limit exposure to regional financial markets.

Despite a short-term commercial loan equivalent to 1.7% of GDP, the IMF rated Togo’s debt-carrying capacity as “strong,” maintaining the country’s overall risk of debt distress at a “moderate” level.

This article was initially published in French by R.E.D

Adapted 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)

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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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PUBLIC PROCUREMENT (more info)

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