Togo: Economy Expands in January, Business Confidence Remains High (BCEAO)

Economic governance

Wednesday, 12 March 2025 10:18

Togo: Economy Expands in January, Business Confidence Remains High (BCEAO)

(Togo First) - The Togolese economy is off to a good start in 2025. The latest statistics show that industrial production is strong, services and trade are growing, and inflation is controlled. However, economic policies might need some adjustments in the coming months.

Industrial Efficiency in Motion

Togo's industrial sector is performing well. In January 2025, industrial production increased by 10.5%, following an 11.0% rise in December 2024. The slight difference does not reflect a slower growth, but rather that it needs to be sustained. The Industrial Platform of Adetidokpé or Plateforme Industrielle d’Adétidokpé (PIA) could further boost industrial activity by attracting new investments and enhancing local industrialization, especially in processing agricultural raw materials.

In market services, sales rose 3.4% in January, less than the previous month's 5.0% but still positive. Trade also increased by 1.2%, following a 4.8% rise in December. This could be a post-holiday adjustment or a signal to watch.

Inflation and Business Confidence

Inflation is stable, with an annual rate of 2.5%, within the BCEAO's target range of 1% to 3%. This follows a broader trend of price stabilization after previous surges. Inflation decreased from 7.6% in 2022 to 3.3% in 2024 and is projected to reach 2.3% in 2025. The decline in imported food prices, such as rice (-13.8%) and sugar (-14.1%), contributed to this balance. However, prices of oil (+43.3%) and milk (+26.8%) keep rising, which could impact purchasing power.

With an index of 100.7, the business climate remains stable, thus economic players are neither overly optimistic nor worried. Business leaders remain confident, reflecting a favorable economic environment where the private sector continues to invest and hire despite economic challenges.

A Promising Economic Outlook

The International Monetary Fund (IMF) forecasts a 5.3% economic growth for 2025, slightly lower than the 5.6% in 2023 but still solid. This growth should be supported by public infrastructure investments, a thriving industrial sector, and tighter fiscal policies. However, prudent economic management is necessary to balance growth, inflation control, and public debt management.

Fiacre E. Kakpo

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.