IMF Approves $109.5 Million for Togo, Urges Faster Economic Reforms

Economic governance

Tuesday, 30 June 2026 14:41

IMF Approves $109.5 Million for Togo, Urges Faster Economic Reforms

(Togo First) - The International Monetary Fund (IMF) has approved a $109.5 million (about 62.6 billion CFA francs) disbursement to Togo under its Extended Credit Facility (ECF) after completing the third and fourth reviews of the country's reform program.

The IMF Executive Board concluded that program implementation has been "broadly satisfactory." In a statement issued on Monday, June 29, the Fund said most quantitative performance targets had been met, while seven of the eight structural reforms scheduled since the previous review had already been completed.

"Despite a challenging regional and external environment, performance under the ECF-supported program has been broadly satisfactory. The economy has remained resilient in the face of successive shocks, and the outlook remains broadly favorable," IMF Deputy Managing Director and Acting Chair Kenji Okamura said after the Executive Board completed the reviews.

The decision clears the way for an immediate disbursement, bringing total funding released under the program to nearly $299 million. Approved in March 2024, the ECF arrangement provides total financing of $403.4 million to support Togo's economic reform agenda.

Reforms Still Needed

While welcoming the progress, the IMF said several challenges remain. "It is therefore essential to sustain fiscal consolidation momentum, decisively address financial sector’s vulnerabilities and advance structural and governance reforms to achieve sustained and inclusive growth," Okamura said.

The IMF also urged Togo to accelerate tax reforms to broaden the tax base and reduce tax expenditures while protecting social spending for vulnerable populations. It called for stronger governance of state-owned enterprises, particularly in the electricity sector, greater budget transparency, and more robust anti-corruption and anti-money laundering frameworks.

The IMF also said authorities need to move quickly to address persistent vulnerabilities in the banking sector. "A credible strategy that safeguards financial stability, ensures transparency, and contains fiscal costs, will be critical to move forward," it said. For 2026, the IMF expects economic growth to slow temporarily while inflation rises because of geopolitical tensions, particularly in the Middle East, and continued volatility in energy and food prices.

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.