Togo has experienced steady economic growth over the past decade, but now faces new challenges due to a changing regional and international environment. The World Bank’s latest economic update, titled "Boosting Growth in Times of Uncertainty," outlines steps for Togo to accelerate its development and strengthen confidence amid these uncertainties.
The report notes that Togo’s economy is projected to grow by 5% in 2025 and could reach 5.4% in 2026. While this demonstrates resilience despite global economic struggles, the World Bank emphasizes the importance of further strengthening growth potential, investing in human capital, and addressing regional disparities.
“To reduce the poverty rate below the 10% threshold and reach upper-middle-income status by 2045, Togo would need to maintain economic growth above 6%, which will require far-reaching reforms to free up private sector investment and create more jobs," said Justin Beleoken Sanguen, Acting Resident Representative for Togo.
Restoring fiscal space is also identified as a key priority. This would not only help maintain stability but also ensure continued funding for development projects and productive public investments.
“Implementing ambitious tax reforms are essential to strengthen the state's capacity to finance development and deliver quality public services. Policy reforms, including in public financial management and broadening the tax base, will create an environment conducive to investment and innovation. Seizing this opportunity will promote job creation and contribute to inclusive and sustainable growth for Togo,” said Marc Stocker, Lead Economist and co-author of the report.
The World Bank report calls for institutional and policy changes such as a strong regulatory framework that addresses climate risks, transparent procurement practices, promotion of public-private partnerships, and improvements in governance.
“The fiscal consolidation strategy that the government has put in place is important to preserve debt sustainability and the quality of public services. It should be clearly communicated to the public, and supported by initiatives to strengthen transparency and accountability," said Nimonka Bayale, Economist and co-author of the report.
The full report is available for download from the World Bank website.