The Togolese government and the International Monetary Fund (IMF) have reached a “staff-level agreement” following the second review of Togo’s economic program supported by the Extended Credit Facility (ECF). This agreement paves the way for a disbursement of $58.4 million (approximately 44 million Special Drawing Rights), pending approval by the IMF Executive Board.
The IMF has expressed general satisfaction with Togo’s economic performance. The country’s economy grew by an estimated 5.3% in 2024, driven by strong performance in the agriculture and services sectors. Inflation has also decreased significantly, reaching 2.6% in April 2025, after peaking at over 7% following the pandemic.
However, a key concern remains the failure to meet the budget performance criterion, which was also raised during the previous review. The Togolese government has attributed this to unforeseen increases in public spending related to flood management and agricultural fertilizer subsidies, which have contributed to a larger deficit and increased debt.
Despite the budgetary challenges, the IMF has acknowledged progress on structural reforms. Togo has strengthened its assessment of fiscal risks within the state budget and recapitalized the last public bank, bringing it into compliance with the standards of the West African Economic and Monetary Union (WAEMU) banking regulator.
Regarding governance, Togo has committed to reviewing the legal framework for public procurement, publishing the beneficial owners of public contracts, and launching a governance assessment in partnership with the IMF, with the results to be made public. The IMF has confirmed that this process has begun.
The ECF program, totaling $390 million over three years, aims to restore debt sustainability and strengthen the government’s ability to support inclusive growth. The third review is scheduled for the second half of 2025.
