Togo: Net Foreign Assets with BCEAO Records Significant Drop in 2022
Thursday, 15 June 2023 17:03 
(Togo First) - Amid a deficit balance of payments and a rising oil bill, Togo's net foreign assets with the Central Bank of West African States (BCEAO) dropped significantly in 2022.
Togo's net foreign assets with the BCEAO were in a deficit of CFA410.2 billion in 2022, against a deficit of CFA23 billion in 2021, and a surplus of 70.5 billion in 2020. The substantial drop is attributed to a series of global crises over the past three years and an increased dependency of the Togolese economy on external resources.
Balance also greatly contributed to the situation. Indeed from a surplus of CFA121 billion in 2021, it plunged to a deficit of 19 billion last year. Then, there is the oil bill, which rose by 59%, from 162.8 billion in 2021 to 259.2 billion FCFA in 2022.
The higher oil bill, in part driven by a stronger dollar, hit Togolese importers and the country's finances. Togo, a non-oil-producing nation, saw its imports rise by 20% in a year, further deepening its trade deficit, which expanded by 24% to reach 514 billion FCFA.
Togo is not the only country in the sub-region to face economic headwinds. Others like Benin and Burkina Faso, also non-oil producers, face similar issues. The appreciation of the dollar against the CFA franc impaired import costs. And while it had a positive impact on exports, this was insufficient to offset the impact on imports.
Regardless, being a member of the West African Economic and Monetary Union (WAEMU) somehow benefited Togo in these hard times. Indeed, other WAEMU members including Côte d’Ivoire, Senegal, Niger, and Guinea Bissau recorded positive net foreign assets in 2022. They thus produced a buffer effect that cushioned external economic pressures.
For instance, Côte d’Ivoire, despite a decrease in its foreign assets, posted a robust balance of 2,303.6 billion FCFA, mostly resulting from its cocoa export revenues. Senegal and Niger also maintained substantial net foreign assets despite a downward trend. They both benefited from a burgeoning oil windfall.
Nevertheless, the WAEMU is in a less than ideal position marked by an overall fall of 3,064.1 billion FCFA in its net foreign assets, but still robust enough amid these uncertain times.
Fiacre E. Kakpo
