Togo Nears Lower-Middle-Income Status as GDP Per Capita Reaches $1,400

Economic governance

Tuesday, 26 May 2026 14:34

Togo Nears Lower-Middle-Income Status as GDP Per Capita Reaches $1,400

(Togo First) - Togo's Institut national de la statistique et des études économiques et démographiques (INSEED) released preliminary 2025 national accounts data in Lomé in May 2026. Nominal gross domestic product reached 6,919.1 billion CFA francs, while the economy expanded by 6.3% in real terms.

Based on a population estimated at 8.5 million by the United Nations and converted at the average annual exchange rate of 581.93 CFA francs to the dollar, GDP per capita stood at roughly $1,400. This puts the country within reach of the World Bank's lower-middle-income classification.

The World Bank calculates gross national income per capita using the Atlas method, which smooths exchange rates over three years. The threshold for lower-middle-income status is set at $1,136 for the 2026 fiscal year. Togo remains classified as a low-income economy, but the gap is narrowing. With GDP per capita now above that threshold and economic growth exceeding 6% for a fifth consecutive year, Togo could be reclassified in one of the World Bank's upcoming annual reviews, the next of which is expected on July 1, 2026.

A double-edged status

The reclassification would carry mixed implications. For private investors, it would signal a strengthening economy and could support future fundraising on international markets. Togo would also join Côte d'Ivoire, Senegal and Benin within the West African Economic and Monetary Union (UEMOA) as lower-middle-income economies.

The new status could also gradually reduce access to financing from the International Development Association (IDA), the World Bank's concessional lending arm. In practice, however, the transition tends to be gradual. Benin, Côte d'Ivoire and Senegal, despite having already moved into the lower-middle-income category, continue to receive substantial IDA financing. Senegal's current portfolio alone stands at nearly $2.8 billion.

Sub-Saharan Africa remains the World Bank's main priority region, accounting for nearly three-quarters of IDA disbursements. The fund's 21st replenishment cycle, which took effect in July 2025, raised a record $100 billion.

Fiacre E. Kakpo

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)

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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.