Making Togo a Modern and Prosperous Nation: Bold Reforms and Promising Economic Growth

The vision of the Head of State, Faure Essozimna Gnassingbé, for this quinquennium 2020-2025, is to make Togo a modern, emerging and prosperous nation. With this in mind, several reform projects have been considered and implemented to make the business environment attractive and guarantee satisfactory socio-economic conditions for all citizens. A wind of bold reforms blowing in each region, making the national economy more resilient.

Togo, which is resolutely committed to sustainable and inclusive development, has initiated several projects to accelerate its economic growth, slowed down by Covid-19. These projects aiming to improve the well-being of the Togolese people, are thought out at the top of the State on the basis of the economic reforms undertaken. These reforms have obviously made it possible to make the economy more resilient in the face of the disturbances linked to the war in Ukraine. In July 2023, the Ministry of the Economy assured of the positive evolution of the economic situation and the financial system in the country, without forgetting the reduction of the factors blocking financing in several key sectors of activity.

For example, progress has been made in the indices of industrial production, turnover in trade and in market services. An upward trend was noted for the business climate index, a strategic area in which the country has excelled in recent years. Entrepreneurs and operators are seizing the opportunity. Agriculture is greatly impacted with a pleasing start to the new campaign, thanks to a better spatio-temporal distribution of rainfall on the territory, subsidies, the availability of inputs, the professionalization of the sector, etc.

Fertilizer pre-financed by the government to boost agriculture, an essential factor in economic growth.

Soaring growth

There is an increase in growth, coupled with a drop in inflation. The growth rate of the Gross Domestic Product (GDP) is confirmed at 6.6% for the current year. This is more than in 2022 when GDP was at 5.8%. This last rate being a little less than in 2021 with 6%. Naturally, the predictions are exciting. Thus, the state of the economy, during the first months of 2023, was clearly encouraging, according to the National Credit Council (CNC). In terms of inflation, the rate was around 8% a year ago. This year, it is calculated at 5.8% at the end of May 2023, thanks to the contributions of the previous agricultural campaign which generated the availability of products and facilitated the fight against the high cost of living. Another brilliant figure, public debt peaked at 60% at the end of March 2023. In December 2022, it was 66%, below the community standard of 70%.

The outlook for the Togolese economy remains favourable, according to forecasts from the General Directorate of Economic Studies and Analysis (DGEAE). It estimates that economic growth should accelerate over the period 2022-2024, rising from 5.9% in 2022 to 6.5% in 2023 before settling at 6.7% in 2024. An economic situation and a green financial system.

Patouani BATCHAMLA