Togo Sustains Strong Economic Recovery Despite Regional Headwinds

Public Management

Tuesday, 16 September 2025 15:23

Togo Sustains Strong Economic Recovery Despite Regional Headwinds

(Togo First) - • Togo's economy rebounds strongly from COVID with steady 6.5% growth in 2024, reaching a historic 6,458 billion FCFA GDP milestone

• Country outpaces WAEMU average of 5.5% while maintaining inflation control at 2.3%, preserving consumer purchasing power

• Growth driven by infrastructure investment, industrial platform development, and port modernization, though rising security costs pose sustainability challenges

Togo has maintained robust economic momentum following its COVID-19 recovery, posting steady growth that outpaces regional averages while keeping inflation in check. After the economy slowed to 2.2% in 2020 due to border closures and disrupted international trade, recovery proved immediate and sustained.

Growth accelerated from 5.1% in 2021 to 6.3% in 2022, 6.2% in 2023, and 6.5% in 2024. The economy reached a historic milestone last year as nominal GDP surpassed 6,000 billion FCFA, hitting 6,458 billion compared to 5,954 billion in 2023. This trajectory positions Togo among the West African Economic and Monetary Union's most dynamic economies.

The country has managed to stay on course despite external shocks, with resilience rooted in strong domestic demand. Households maintained consumption levels while companies continued production, and the state sustained investment. Budget execution through March 2025 confirms infrastructure remains a government priority, with officials choosing to support growth even at the cost of temporary deficit increases amid growing security challenges.

The 2020-2025 roadmap provided the policy framework. The Adétikopé industrial platform established itself as a key industrialization and logistics hub. Planned agricultural zones boosted rural productivity and secured food crops. The Port of Lomé, already West Africa's leading container hub, continued modernization efforts. Digital transformation of public and financial services accelerated, supporting tertiary sector growth.

Regional comparisons highlight Togo's success. WAEMU average growth peaked at 5.5% in 2024, while neighboring heavyweights Nigeria and Ghana saw recovery hampered by currency tensions and high inflation. Togo contained price rises to 2.9% in 2023 and 2.3% in 2024, preserving purchasing power and supporting consumption.

However, momentum faces challenges. The IMF warns about rising security spending linked to northern attacks and a growing public debt trajectory. Financing needs are expanding, forcing increased reliance on regional financial markets where state competition intensifies. "The challenge is not so much to grow as to finance this growth without compromising sustainability," notes a local banker.

For now, investors remain responsive. The business climate stays attractive as the country leverages its logistical position to attract capital and regional headquarters.

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)

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.