IMF Approves $58.7 Million Disbursement for Togo

Public finance

Thursday, 26 December 2024 13:52

IMF Approves $58.7 Million Disbursement for Togo

(Togo First) - On December 20, 2024, the International Monetary Fund (IMF) approved the release of approximately $58.7 million for Togo, as part of the first review of its Extended Credit Facility (ECF) program. This funding is intended for budget support and is part of a larger 42-month agreement worth $390 million, which was established in March 2024.

The facility will help bolster the Togolese economy, making it more resilient to crises like COVID-19 and rising food and fuel prices on a global scale. The IMF reported that Togo's economic growth was 5.6% in 2023 and is expected to remain at 5.3% in 2024-2025. Additionally, overall inflation decreased to 3.3% in October 2024, down from much higher levels in previous years.

Despite these positive indicators, Togo faces significant challenges, including ongoing insecurity in the northern region, where sporadic terrorist attacks occur. Besides putting pressure on public finances, these issues make it hard to reduce deficits and improve debt sustainability.

"The Togolese authorities have demonstrated strong implementation of the program supported by the Extended Credit Facility (ECF)," said Bo Li, IMF Deputy Managing Director. "Despite security challenges and difficult financing conditions, they have met all quantitative targets and made progress on structural reforms to strengthen revenue mobilization, inclusion, and public financial management."

The IMF encourages the government to continue its structural reforms, particularly in the financial sector, as it restructures its last public bank. The IMF also welcomed the authorities' commitment to improving transparency in public procurement management.

"It will also be essential to pursue efforts to strengthen governance. The authorities' recent request for an IMF governance diagnostic is welcome, as is their commitment to strengthen declarations of beneficial ownership for companies benefiting from public contracts," the IMF stated.

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.