The International Monetary Fund (IMF) has reached a staff-level agreement with Togo following discussions on the second review of the Extended Credit Facility (ECF). Led by Hans Weisfeld, an IMF team engaged in talks with Togolese authorities in Lomé and Washington to assess progress under the economic program supported by the ECF arrangement.
Hans Weisfeld stated, "The mission has had constructive and productive discussions with the Togolese authorities and commended them on the sustained progress in advancing reforms. A staff-level agreement was reached on all policies, including key parameters of the 2025 fiscal framework and reform measures going forward, in line with the program's objectives."
Togo's economic growth was estimated at 5.3 percent for 2024 and is projected to be 5.2 percent in 2025, maintaining around 5.5 percent annually thereafter if no major adverse shocks occur. Inflation has decreased to 2.6 percent as of April 2025.
"The IMF-supported government economic policy program is broadly on track," noted Weisfeld. Although Togo met most quantitative performance criteria for end-2024, it fell short regarding fiscal balance due to increased government debt from financing flood-affected communities and purchasing fertilizers at subsidized prices for farmers.
Progress was made on structural reforms as well, meeting benchmarks such as enhancing budgetary risk analysis reports and injecting funds into public banks to align with regional regulatory requirements. Additionally, efforts are underway to improve governance through public procurement legal frameworks and an invited IMF Governance Diagnostic Assessment.
Weisfeld emphasized that continued progress is crucial: "It will be very important to make good progress on the planned growth-friendly and socially responsible fiscal consolidation to reinforce debt sustainability while continuing reforms."
The ECF arrangement approved by the IMF in March 2024 aims to address challenges stemming from global shocks since 2020, including COVID-19 impacts and rising food and fuel prices. The program seeks inclusive growth while strengthening debt sustainability through structural reforms.
Looking ahead, "The staff team looks forward to continuing the fruitful dialogue with the Togolese authorities," said Weisfeld regarding future engagements for a third review mission scheduled for later in 2025.