Lomé and Moscow are solidifying their military ties. On July 22,  Russia’s legislative committee approved a bill to ratify a framework agreement on military cooperation with Togo. This step follows the signing of the agreement a few months earlier.

The deal includes joint military exercises, training for Togolese soldiers, security intelligence exchange, and free emergency medical assistance. Vladimir Grouzdev, president of the Association of Lawyers of Russia and commission member, told the official Russian press agency, “The agreement is of a framework nature and provides for the granting of medical aid: the host party undertakes to provide emergency medical assistance free of charge to the other state-party.”

For Lomé, this agreement arrives amid a surge of jihadist attacks in the northern Savanes region. The security threat pushed Togo to seek stronger military partnerships. While Togo’s parliament still has to ratify the deal, it unfolds in a broader geopolitical context marked by fading French and American influence in the Sahel and growing Russian presence through similar pacts with Cameroon, the Central African Republic, and São Tomé and Príncipe.

This realignment could impact regional power balances. Some analysts see it as a chance for Togo to strengthen its security sovereignty. Others worry it might spark tensions with ECOWAS, where Togo remains a vital member and key transit point for goods, as well as a diplomatic actor.

Despite concerns, Togo remains committed to a multipolar foreign policy. It continues diversifying its international partnerships to navigate a changing global landscape. Key to this strategy is the country's logistical advantage through the deep-water port of Lomé, which supports its role as a regional gateway.

This article was initially published in French by Ayi Renaud Dossavi

Edited in English by Ange Jason Quenum

Starting in August 2025, Lomé will host a floating terminal with a 160,000 metric ton capacity, operated by United Petro Group (UPG).

This new oil infrastructure will comprise 60,000 metric tons of gasoline and 100,000 metric tons of diesel, stored on a vessel anchored offshore. It aims to ensure an uninterrupted supply to key markets in West and Southern Africa, including Ghana, South Africa, and Mozambique.

The announcement comes from the Singapore-based energy trading company, which operates in over 16 countries across Africa, Asia, Europe, and Latin America.

According to United Petro Group, the Lomé platform addresses the limited onshore storage capacity in the region, where fewer than 6% of facilities exceed 150,000 cubic meters. The floating terminal also arrives as nearly 70% of West Africa’s fuel surpluses are already stored off the coast of Togo, establishing the country as a strategic oil trading hub.

While the infrastructure is expected to strengthen Lomé’s position as a hub for hydrocarbon flows in the subregion and beyond, the strategy faces criticism, particularly from regional players in the sector.

For instance, Nigerian cement and now refining magnate Aliko Dangote has criticized what he views as a counterproductive system. He contends that Lomé’s offshore platform would severely undermine the viability of any refinery in sub-Saharan Africa.

"In fact I don’t see any new major refining project succeeding with the offshore Lome market in existence," he said, as quoted by Nigerian media outlet Vanguard. He accuses international traders of maintaining floating stockpiles to manipulate prices, to the detriment of local refining capacity.

His comments come as he continues to support his $20 billion mega-refinery project, which still faces challenges securing crude oil supplies.

In Lomé, however, officials emphasize the efficiency of maritime trade and the logistical resilience offered by the deep-water port. The conflict between these two visions highlights growing tensions around Africa’s energy future. For now, the West African nation appears set to consolidate its position, navigating between economic pragmatism and geopolitical pressure.

Ayi Renaud Dossavi

American diplomat visits West Africa’s fourth-largest container hub to explore opportunities for U.S. firms amid rising trade barriers.

Highlights:

• The US seeks to capitalize on Lomé’s strategic deep-water port for greater African market access.
• Togo’s exports to the U.S. rose from $20M in 2021 to $97M in 2024.
• New U.S. tariffs risk undermining growth; AGOA status remains in place.

The United States is looking to deepen economic ties with Togo by leveraging the logistical strengths of the Port of Lomé, one of Africa’s busiest maritime hubs. Richard Michaels, Chargé d’Affaires at the U.S. Embassy in Togo, visited the site on Monday, July 21, to assess its potential for American companies.

“Togo has the fourth busiest container port in Africa. Thanks to its deep-water capabilities and state-of-the-art equipment, it offers U.S. companies privileged access to African markets,” Michaels said during the field mission.

Togo boasts the fourth busiest container port in Africa. With advanced deep-water capabilities and cutting-edge equipment, @portdelome offers U.S. businesses unmatched access to African markets. Chargé d’Affaires Michaels toured the port and #LomeContainerTerminal on July 21 to… pic.twitter.com/Ik40D3XmMK

— U.S. Embassy Togo (@USEmbassyLome) July 23, 2025

Several investment and trade opportunities were identified during the visit, which the U.S. diplomat believes could help expand bilateral trade and contribute to “America’s prosperity.”

The move follows a steady increase in trade between the two countries. In 2024, Togolese exports to the U.S. reached $97 million, up from just $20 million in 2021, according to the Ministry of Investment Promotion. Meanwhile, U.S. exports to Togo totaled $283.6 million last year, per COMTRADE data.

However, recent U.S. tariff hikes pose a threat to this progress. In April 2025, the Trump administration imposed a 10% base tariff on imports from several African countries, including Togo. While the country still benefits from the African Growth and Opportunity Act (AGOA), local exporters fear the new duties could erode their competitiveness.

Concerns are especially high in Togo’s agriculture and textile sectors. Key exports like cocoa, coffee, shea butter, and soybeans may take a hit. Industrial initiatives such as the Plateforme Industrielle d’Adétikopé (PIA), which began exporting garments to the U.S. in 2024, also face uncertainty.

Against this backdrop, the U.S. diplomatic push to maximize Lomé’s port potential could offer a lifeline, sustaining bilateral trade momentum despite a more restrictive policy environment.

This article was initially published in French by Esaïe Edoh

Edited in English by Ola Schad Akinocho

Togo's external debt continues to offer more favorable financing conditions than its domestic debt. According to the latest data from the Ministry of Economy and Finance, the average interest rate on external debt was 1.58% at the end of 2024. In contrast, debt contracted on the regional market carried an average rate of 6.65%.

This cost difference is explained by the nature of Togo’s external partners. The country primarily relies on multilateral lenders such as the World Bank, the International Monetary Fund, IMF, the African Development Bank, AfDB, and the West African Development Bank, BOAD. These institutions account for nearly 70% of the outstanding external debt and offer long-term, low-interest loans, often with grace periods. Bilateral creditors, including France, China, India, and Arab funds from Kuwait and Saudi Arabia, complete the portfolio. More expensive commercial loans remain marginal.

Despite this, domestic debt continues to dominate, representing nearly 58% of total outstanding debt at the end of 2024. This situation contradicts the country’s medium-term debt strategy, which aims to reverse the trend by the end of 2025, targeting 55% external debt.

One reason for this dependence on the regional market is the ease of access to financing. The Treasury can quickly raise funds through Treasury bills, BAT, but at high interest rates. As of the end of June 2025, these short-term securities were yielding 8.04%, compared to approximately 6% for longer-term bonds. According to the IMF, the average yield on Togolese government securities rose to 7.4% in 2024, up from 6.1% over the 2019-2023 period.

This structure creates strong refinancing pressure. BATs still represent 89% of the securities issued by Togo, forcing the state into frequent rollovers. Increasing reliance on external debt would help extend maturities, reduce interest charges, and improve debt sustainability. Partners appear to be fully engaged. The World Bank recently approved a $200 million package for electricity, another $300 million for agriculture, and $75 million for governance and administration. Several other projects are in the pipeline, even as the IMF oversees a nearly $400 million Extended Credit Facility, ECF, program.

Fiacre E. Kakpo

Highlights:

• New facility spans 600 m² with a 540-tonne storage capacity
• Equipped with ventilation, leak detectors, fire-fighting, and surveillance systems
• The project aims to enhance safety and environmental protection in the chemical sector

A modern and safe warehouse for storing chemical products was recently inaugurated in Cinkassé, northern Togo. Eco Business developed the project with the National Authority for the Prohibition of Chemical Weapons (ANIAC-Togo).

The warehouse, built on a 2,400 m² plot in a non-residential area on the town’s western outskirts, covers 600 m² and offers a capacity of 540 tonnes. It features a controlled ventilation system, leak detection, fire-fighting equipment, and an administrative building with video surveillance, ensuring high standards of safety and traceability.

Officials stated that the facility aims to mitigate environmental and public health risks while fostering a more responsible industrial ecosystem. “This project strengthens the security of the chemical distribution chain, aligning with international safety norms,” ANIAC-Togo representatives stated.

Local authorities described the initiative as a milestone in Togo’s efforts to support industrial operators while prioritizing sustainable resource management.

Togo advances the renovation of Kara University Hospital Centre (CHU) with 35% of work done by June 2025. President of the Council Faure Gnassingbé visited the project site on July 21 to assess progress and consult contractors. This visit followed a recent inspection by the country’s Health Minister.

Dans le cadre du suivi rapproché des projets structurants de la Feuille de route gouvernementale Togo 2025, le Président du Conseil, @FEGnassingbe, a effectué ce 21 juillet 2025 une visite de terrain au CHU de Kara, en pleine transformation.https://t.co/MPgCenqMlU pic.twitter.com/xoxIuyNuj5

— Présidence du Conseil du Togo (@presidencecstg) July 21, 2025

The Presidency of the Council said the visit reflects Gnassingbé’s firm commitment to delivering on promises in health and social inclusion. “This visit reflects the constant determination of the President of the Council to ensure the effective implementation of the commitments made to the population, particularly in the areas of health and social inclusion,” it stated.

The renovation is part of the CFA34 billion ELLIPSE project. Upon completion, Kara University Hospital will expand to nearly 400 beds spread across surgery, medicine, maternity, pediatrics, emergency, and intensive care departments. The goal is to provide facilities that meet international hospital standards.

Ellipse Projects leads the work, which started in April 2024 and aims to finish within 36 months. Executed as a public-private partnership, the project includes constructing a new technical center and maternity unit using modular building techniques. It also involves rehabilitating existing infrastructure, such as buildings, roads, water, and electricity networks.

This article was initially published in French by Esaïe Edoh

Edited in English by Ange Jason Quenum

Togolese businesses and the state primarily drove bank credit demand in 2024, according to the latest BCEAO report on banking conditions in the West African Economic and Monetary Union. Non-financial corporations received 658.3 billion CFA francs in bank credit, an increase from 2023, making them the top source of demand.

The state followed, receiving 133.1 billion CFA francs. This was an eightfold increase from 2023, reflecting renewed public investment spending or greater reliance on bank financing.

In contrast, household financing declined to 296 billion CFA francs from 372.3 billion the previous year. This drop occurred amid a contraction in consumer credit, which fell to 130.5 billion CFA francs from 183 billion CFA francs.

Equipment loans, however, surged to 240.4 billion CFA francs from 161.5 billion CFA francs. This marks a record for the 2019–2024 period, suggesting a renewed interest in productive investment compared to the prior year.

Meanwhile, mortgage lending remained low at 65.3 billion CFA francs, well below the 2021 peak of 394.2 billion CFA francs. Cash flow loans stabilized at around 532.6 billion CFA francs, indicating a persistent need for short-term liquidity within the economy.

After contracting in 2023, bank credit disbursements in Togo resumed growth in 2024, reaching 1,094.7 billion CFA francs. This represents a 12% year-on-year increase. More broadly, credit trends in Togo over the past six years have been uneven, with a record peak of 1,265.9 billion CFA francs in 2022, followed by a drop to 977.3 billion CFA francs in 2023, before the current rebound.

Ayi Renaud Dossavi