Extended Credit Facility: IMF Wraps Up Mission in Lomé

Public finance

Wednesday, 02 April 2025 14:28

Extended Credit Facility: IMF Wraps Up Mission in Lomé

(Togo First) - The International Monetary Fund (IMF) concluded its mission to Lomé on Friday, March 28, 2025, as part of the second review of Togo’s Extended Credit Facility (ECF) programme. The IMF announced that discussions will resume this month, during the IMF-World Bank Spring Meetings in Washington.

Hans Weisfeld led the mission, which assessed macroeconomic developments in Togo since the first programme review completed in December 2024. The ECF programme, approved in March 2024, provides $390 million in concessional financial support. Upon approval, the IMF disbursed $68.3 million immediately, followed by a second disbursement of $58.7 million after the first review’s successful conclusion.

In its press release, the IMF praised Togo’s progress. Real GDP growth reached 5.3% in 2024, while inflation dropped to an annual average of 2.8% by February 2025.

Despite these achievements, the IMF urged Togo to focus on public revenue mobilisation, fiscal discipline, and debt sustainability. The institution also recommended structural reforms to improve the business climate and foster economic inclusion.

The IMF clarified that this mission would not lead to an immediate presentation of Togo’s case to its Executive Board. Further discussions are planned during upcoming meetings in Washington.

Togo joined the ECF programme to address the economic challenges resulting from the COVID-19 crisis and rising global energy and food prices.

This article was initially published in French by Fiacre E. Kakpo

Edited in English by Ola Schad Akinocho

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.