Togo’s entrepreneurial landscape faced another year of contraction in 2025, as new business registrations declined for the second year in a row. Fresh data compiled by Togo First from the Business Creation Formalities Center reveals that 14,202 new businesses were registered during the year. This figure represents a 4.8 percent drop compared to the 14,919 enterprises created in 2024.
This slowdown did not emerge suddenly. Instead, it followed a worrying trend already visible the previous year. In 2024, business registrations fell by 13 percent, signalling early stress within the private sector. Consequently, the 2025 figures confirm that the pressure on entrepreneurs persisted rather than eased.
At the start of the year, activity appeared relatively stable. During the first quarter of 2025, the country recorded 4,262 new business registrations. At that point, expectations remained cautiously optimistic. Many observers hoped the economy would rebound as the year progressed. However, that momentum quickly weakened.
By the second quarter, new registrations dropped to 3,485. This decline confirmed that the slowdown had taken hold earlier than expected. Entrepreneurs began to delay decisions. Investors became more cautious. As a result, the pace of formal business creation lost strength.
The third quarter reinforced this trend. Between July and September, only 3,352 new businesses were registered. This figure reflected persistent uncertainty across key sectors. Rising costs, limited access to financing, and fragile consumer demand continued to weigh heavily on small and medium-sized enterprises.
Moreover, the final quarter showed an even sharper deceleration. Between October and December, registrations fell to 3,103. This represented the weakest quarterly performance of the year. Typically, the last quarter benefits from seasonal activity and end-of-year spending. In 2025, however, those effects failed to offset broader economic constraints.
Taken together, these quarterly figures tell a clear story. The slowdown was not an isolated event. Instead, it unfolded steadily from the beginning of the year and intensified toward the end. Each quarter recorded fewer new businesses than the one before it. That pattern highlights structural challenges rather than short-term volatility.
Several factors help explain this outcome. First, financing conditions remained tight. Many aspiring entrepreneurs struggled to secure affordable credit. Although microfinance institutions played a role, their reach proved insufficient for larger ambitions. Consequently, many ideas never reached the registration stage.
In addition, operating costs increased. Energy prices, logistics expenses, and input costs rose throughout the year. These pressures reduced profit margins, especially for startups. Therefore, some entrepreneurs chose to remain informal or postpone entry into the formal economy.
Furthermore, regulatory compliance still posed difficulties for small operators. While reforms have simplified procedures over time, administrative hurdles remain. For first-time business owners, these barriers can discourage formal registration. As a result, the official figures may understate informal economic activity.
Despite these challenges, the data also reveal resilience. Over 14,000 new businesses still emerged in one year. That number reflects enduring entrepreneurial spirit. Even in a difficult environment, many Togolese continued to pursue opportunities, innovate, and create value.
Importantly, the steady pace of registrations across all quarters suggests persistence rather than collapse. No quarter experienced a dramatic drop. Instead, the decline occurred gradually. This pattern indicates that with targeted support, confidence could return.
Looking ahead, policy responses will matter. Improved access to credit could stimulate new ventures. Simplified taxation for startups could ease early-stage pressure. In addition, digital registration tools could further reduce entry barriers. Together, these measures could help reverse the downward trend.
The 2025 data therefore serve as both a warning and a guide. They warn of sustained strain within the entrepreneurial ecosystem. At the same time, they guide policymakers toward areas needing attention. Business creation remains a vital engine for jobs, income, and innovation.
Ultimately, Togo’s experience in 2025 underscores a broader lesson. Entrepreneurship responds quickly to economic conditions. When confidence weakens, new ventures slow. When support strengthens, activity rebounds. The challenge now lies in restoring momentum and ensuring that future years tell a story of renewed growth rather than continued decline.
