Togo To Fund Revised 2025 Budget Deficit From Cash Reserves

Economic governance

Thursday, 18 December 2025 12:14

Togo To Fund Revised 2025 Budget Deficit From Cash Reserves

(Togo First) - The Togolese government on Wednesday, December 17, approved a supplementary budget for the 2025 fiscal year, revising its initial financial projections, according to a statement issued after a Cabinet meeting.

The government said the revision was driven by persistent international and domestic uncertainties, making it necessary to update earlier budget assumptions to ensure transparency and credibility in the management of public finances.

Under the revised framework, projected budget revenues have been cut to 1,472 billion CFA francs, down 1% from the initial forecast. At the same time, total spending has been raised to 1,717.1 billion CFA francs, an increase of 2.3%.

The supplementary budget totals 2,436 billion CFA francs and includes a deficit of 245.1 billion CFA francs. The shortfall will be fully covered by existing cash reserves, the government said, ruling out additional borrowing or new debt issuance on the financial markets.

Economists said the move reflects short-term fiscal discipline and the government’s capacity to absorb economic shocks without immediately increasing its debt burden. However, they cautioned that reliance on cash reserves may not be sustainable if deficits persist, forcing the authorities over time to either boost revenues, curb spending, or turn to borrowing.

Looking ahead to 2026, Togo is planning a budget of 2,751 billion CFA francs for both revenues and expenditures, nearly 15% higher than the revised 2025 level. The draft finance law, which prioritises social spending in areas such as education, health and social protection, while supporting economic transformation, has been approved at first reading by the National Assembly and will now be submitted to the Senate.

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.