The Togolese state is preparing for a significant reduction in project grants over the next three years. Official revenue projections point to a steady and sharp decline in external funding between 2026 and 2028.
According to the forecasts, grants from international institutions are expected to fall to 166.9 billion FCFA in 2026. This figure represents the starting point of a downward trend. In 2027, projected grants are set to drop further to 70.9 billion FCFA. By 2028, the amount is expected to decline again, reaching just 31.6 billion FCFA.
This projected fall signals a major shift in Togo’s public finance outlook. For years, project grants have played an important role in supporting development initiatives. These funds have helped finance infrastructure, social programmes, and institutional reforms. However, the new projections suggest that reliance on external grants will reduce significantly.
Several factors may explain this trend. First, international financial partners are increasingly encouraging fiscal discipline and self-reliance. As a result, grant-based financing is gradually giving way to loans and domestic revenue mobilisation. In addition, global economic pressures continue to reshape donor priorities, with many institutions tightening funding conditions.
At the same time, Togo has pursued economic and structural reforms in recent years. These reforms aim to strengthen public finance management and improve revenue generation. Consequently, reduced grant inflows may reflect growing expectations for the country to fund more projects internally.
Nevertheless, the scale of the projected decline raises concerns. A drop from 166.9 billion FCFA to 31.6 billion FCFA within two years represents a steep adjustment. Such a reduction could affect the pace of public investment if alternative funding sources are not secured.
In response, the government is expected to focus more on domestic resources. This includes improving tax collection, expanding the tax base, and prioritising spending efficiency. In parallel, authorities may seek innovative financing models, including public private partnerships.
Ultimately, the projected decline in grants marks a turning point. It highlights changing dynamics in international development financing. It also places greater responsibility on national planning and fiscal resilience.
As 2026 approaches, how effectively Togo adapts will shape its development path through 2028 and beyond.
