LOME, September 1st, 2025 - Togo has maintained robust and stable growth over the past decade but is now facing new challenges in a more uncertain regional and international context, according to the World Bank's latest economic update. To accelerate development and build confidence in the face of these uncertainties, the country should deepen reforms and implement its fiscal consolidation strategy while protecting basic services and attracting private investment. Entitled "Boosting Growth in Times of Uncertainty", the report highlights the urgency of supporting private sector-led growth that generates productive jobs.
With the prospect of economic growth reaching 5% in 2025, before recovering to 5.4% in 2026, Togo is demonstrating its resilience in the face of a struggling global economy but also underlines the need to strengthen its growth potential, strengthen human capital and reduce 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.
It is also critical for the country to restore fiscal space, not only for stability but also to preserve development spending and enable more productive public investment.
"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 report also highlights the need for institutional and policy reforms, including a robust regulatory framework, incorporating climate risks, transparent procurement practices, promoting public-private partnerships, and strengthening governance and transparency.
"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.
Download the Togo Economic Update in English.
