Togo Secures $58 Million IMF Disbursement After Key Agreement

Public finance

Tuesday, 03 June 2025 16:08

Togo Secures $58 Million IMF Disbursement After Key Agreement

(Togo First) - The Togolese government struck a new deal with the International Monetary Fund (IMF) following the second review of its economic program under the Extended Credit Facility (ECF).

After weeks of talks in Lomé and Washington, both sides reached a “staff-level” technical agreement. This deal clears the way for a $58.4 million disbursement (about 44 million Special Drawing Rights), pending final approval from the IMF Executive Board.

Strong Economic Fundamentals

The IMF praised Togo’s economic progress. The country grew by an estimated 5.3% in 2024, led by strong gains in agriculture and services. Inflation dropped sharply to 2.6% in April 2025, down from a post-pandemic high above 7%.

However, the IMF flagged one issue: Togo missed a fiscal performance target. The government explained that unexpected public spending on flood relief and fertilizer subsidies widened the budget deficit and increased debt faster than planned.

Structural Reforms and Governance Improvements Gain Praise

Despite fiscal challenges, the IMF recognized Togo’s progress on reforms. The government improved risk assessment in the state budget and recapitalized the last public bank, bringing it into compliance with WAEMU banking regulations.

On the governance front, the government committed to revising public procurement laws, requiring the disclosure of ultimate beneficiaries in public contracts, and launching a governance diagnostic with the IMF. According to the institution, this process is underway, and results will be made public.

The ECF program totals $390 million over three years. It aims to restore debt sustainability and boost the state’s ability to support inclusive growth. The IMF and Togo are now preparing for the third review, planned for the second half of 2025.

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.