Banks in Togo granted CFA903 billion (US$1.47 billion) in new loans by the end of September 2025, marking a 22 percent increase compared with the same period in 2024, when lending reached CFA740 billion (US$1.21 billion), according to the National Credit Council (CNC).
The council, chaired by Finance and Budget Minister Essowè Georges Barcola, said the growth in bank financing reflected encouraging momentum and demonstrated continued confidence by financial institutions in the Togolese economy, even amid uncertain global conditions.
Average lending rates remained moderate at around 7.5 percent in September, close to the sub-regional average, the council added.
Despite the strong lending performance, the CNC highlighted ongoing challenges in the sector. Authorities called for the development of innovative financial products to mobilize diaspora savings, expand financing for micro, small, and medium-sized enterprises (MSMEs), housing, and agriculture, improve service quality, and advance the digitalisation of banking while safeguarding information systems.
The council urged the Professional Association of Banks and Financial Institutions of Togo (APBEF-Togo) and the Professional Association of Decentralized Financial Systems of Togo (APSFD-Togo) to propose concrete solutions addressing these challenges, with the goal of strengthening sustainable financing for the national economy.
The increase in bank lending comes amid Togo’s broader efforts to deepen financial inclusion and support economic growth, signalling optimism for credit expansion despite regional and global uncertainties.
Togo’s banking system is relatively small but steadily expanding, serving a population of about 8.5 million. It is part of the West African Economic and Monetary Union (WAEMU), which uses the CFA franc (XOF) pegged to the euro, providing monetary stability and low currency volatility for banks and borrowers.
Structure of the sector
Togo has a mix of commercial banks, microfinance institutions, and decentralized financial systems. The commercial banks, mostly subsidiaries of regional West African groups or international banks, dominate credit provision, particularly to larger companies, trade finance, and import-export activities. Microfinance institutions and decentralized finance networks play a crucial role in providing access to financial services in rural areas and to small-scale entrepreneurs, farmers, and informal sector participants.
Key banks operating in Togo include Ecobank Togo, Orabank Togo, Société Générale Togo, and Banque Atlantique Togo, alongside local banks such as Banque Togolaise pour le Commerce et l’Industrie (BTCI). These banks provide a full range of services, including deposits, loans, trade finance, digital banking, and mobile money integration.
Recent trends
Over the past decade, Togo’s banking sector has witnessed steady credit growth and financial deepening. Banks have increasingly expanded their lending to the private sector, particularly in trade, construction, agriculture, and MSMEs. The rise in lending reflects a combination of stable macroeconomic conditions, moderate interest rates, and improved regulatory oversight by the Central Bank of West African States (BCEAO), which supervises banks across the WAEMU region.
Digital banking is growing rapidly in Togo, driven by mobile money platforms and partnerships between banks and telecom operators. This has expanded financial inclusion, particularly in underserved rural communities. At the same time, authorities are promoting more sophisticated products, including long-term loans, mortgage financing, and diaspora-targeted instruments.
Challenges
Despite progress, Togo’s banking sector faces several challenges. Credit to the private sector remains constrained by high perceived risks and limited collateral. Small and medium enterprises often struggle to access affordable financing. Non-performing loans have historically been moderate but are a continuing concern for some institutions.
Other challenges include improving corporate governance, enhancing risk management practices, ensuring cybersecurity amid digitalisation, and developing innovative financial instruments to mobilize domestic and diaspora savings. Authorities also emphasise the importance of integrating microfinance and decentralized financial institutions into the broader banking framework to support inclusive growth.
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Outlook
With strong economic growth, supportive monetary policy, and regional integration under WAEMU, Togo’s banking sector is poised for further expansion. Continued investment in digital banking, financial literacy, and MSME lending could strengthen the sector’s contribution to economic development, while regulatory reforms aim to enhance stability, transparency, and access to finance.
In this context, the 22 percent rise in bank lending in 2025 reflects growing confidence in the sector and signals that Togo’s financial institutions are increasingly able to support economic activities across both urban and rural areas.
