Togo’s tax ratio remains below regional benchmark at 13.1% in 2025
Wednesday, 22 April 2026 02:26 
(Togo First) - Togo’s tax-to-GDP ratio is estimated at 13.1% in 2025, well below the 20% benchmark set by the regional bloc, as the country rolls out a medium-term budget framework covering 2027–2029.
The framework aims to strengthen public finance planning by projecting revenue, spending, deficits and debt over a three-year horizon.
“Unlike the annual budget, which sets allocations for a single fiscal year, the medium-term framework provides a strategic vision and ensures consistency over time between public policies and available financial resources,” said Akou Mawussé Afidenyigba, chief of staff at the Ministry of Finance and Budget, speaking on behalf of the minister.
“More concretely, it is a decision-support tool that allows authorities to simulate debt and deficit paths under different assumptions, determine levels of public investment compatible with fiscal sustainability, and identify the budget allocations needed to implement development priorities, particularly those outlined in the 2026–2031 strategy,” she added.
The country is projecting economic growth of 6.2% in 2025 and inflation of 0.4%, but fiscal space remains limited, largely due to debt servicing, which constrains public investment capacity.
In response, authorities have identified several measures to boost revenue. Broadening the tax base by tapping new sources without raising rates, alongside the digitalization of public administration, is expected to improve tax collection. At the same time, curbing spending — particularly wages, which account for around 7% of GDP — is seen as key to avoiding rigid budget structures.
Public investment stands at about 6.6% of GDP, equivalent to roughly 458 billion CFA francs. The challenge is to channel these resources into high-impact projects that support growth and employment.
Amid global tensions and declining external aid, Togo is seeking to preserve its macroeconomic credibility, which depends in part on improving tax collection, building on recent gains. Revenue has risen steadily in recent years, driven by the performance of the Office togolais des recettes (OTR).
Tax and customs revenues reached 990.1 billion CFA francs in 2023, up 14.5% year-on-year and above projections. The trend continued in 2024, with collections hitting 1.098 trillion CFA francs, surpassing the one-trillion mark for the first time.
The framework through 2029 is built around three priorities: security and stability, including stronger defense capacity and social safety nets; national cohesion, through decentralization and reduced inequality; and economic transformation, with targeted investment in infrastructure, agriculture, logistics and digital technology.
Authorities also plan to enforce strict project selection criteria, requiring investments included in the 2027–2029 program to be backed by solid technical studies and secured financing, according to the budget ministry.
R.E.D.
