IMF Praises Togo’s Economic Gains Amid Fragile Sub-Saharan Recovery

Economic governance

Friday, 20 June 2025 18:24

IMF Praises Togo’s Economic Gains Amid Fragile Sub-Saharan Recovery

(Togo First) - Key Highlights

Sub-Saharan Africa grew by 4% in 2024, driven by commodities and tax reforms.
Togo’s inflation dropped to 2.2% in April 2025, one of the region’s lowest.
IMF urges Togo to raise domestic revenue and protect market access as aid declines.

The International Monetary Fund (IMF) presented its latest Sub-Saharan Africa outlook in Lomé on June 19, underscoring cautious optimism amid lingering global risks.

Titled “A Broken Recovery,” the report notes that the region posted 4% growth in 2024, supported by strong commodity prices and improved tax mobilization. Despite global instability, the IMF says macroeconomic indicators have started to stabilize across several economies.

Togo was singled out for strong performance, with inflation down to 2.2% in April 2025—one of the lowest in the region. The country also trimmed its fiscal deficit from 6.3% of GDP in 2023 to 5.6% in 2024. The IMF forecasts the deficit will fall to 4% in 2025 and reach 3% by 2026.

Amid dwindling development aid and global uncertainty, the IMF recommends Togo focus on boosting domestic revenue, reforming public policies, and safeguarding access to international capital markets.

Togo continues implementing its Extended Credit Facility (ECF) reform agenda. Government data shows 74% of the multisectoral strategy was executed in 2024. Togolese officials reiterated their commitment to reforms and appealed to global partners for renewed technical and financial backing.

“We’ve seen strong progress in stabilizing inflation, narrowing deficits, and managing debt, all of which have led to better-than-expected results across the region,” said Stéphane Tchasso Kpowbie Akaya, Secretary-General of the Ministry of Economy and Finance.

This article was initially published in French by Ayi Renaud Dossavi

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)

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.