Togo Approves Draft Law Overhauling Microfinance Sector

Finance

Friday, 20 February 2026 13:26

Togo Approves Draft Law Overhauling Microfinance Sector

(Togo First) - Togolese adopted a draft law reforming the microfinance sector at a Cabinet meeting on Feb. 19, 2026. The bill implements a uniform law adopted by the West African Monetary Union (UMOA) in December 2023. It seeks to address weaknesses in governance, credit management and information systems.

The reform is expected to align Togo with the regional trend toward sector consolidation. The new framework is structured around licensing, governance, supervision and client protection. It strengthens requirements for internal controls, financial transparency and prudential discipline.

“The transposition of this uniform law will help consolidate financial stability, strengthen financial inclusion, improve user protection and ensure compliance with international microfinance standards,” the government said.

The reform introduces stricter governance standards, tighter oversight of executives and stronger supervisory and enforcement mechanisms. It also establishes client protection measures, including mediation mechanisms and stronger safeguards for depositors.

With 3.5 million clients, microfinance is a pillar of Togo’s economy. Outstanding deposits stood at nearly 404 billion CFA francs at end-2024. The sector comprises about 60 licensed institutions operating nationwide, helping fill gaps left by the traditional banking system.

This has helped boost financial inclusion. In 2024, the inclusion rate rose from 87.7% to 89.04%, making Togo the second-ranked country in UEMOA on this measure.

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.