Togo’s tax system continues to show gradual improvement in revenue collection, but the country remains significantly below the tax performance standards set by its regional economic bloc. In 2025, the country’s tax to gross domestic product ratio is estimated at 13.1 percent, far below the 20 percent benchmark expected within the West African region.
The gap highlights both progress and structural limitations in Togo’s public finance system. While revenue mobilisation has strengthened in recent years, fiscal space remains constrained, limiting the government’s ability to expand public investment and fully fund development priorities.
Officials say the country is now focusing on medium term planning as a way to improve financial discipline and align spending with available resources. A new medium term budget framework covering 2027 to 2029 has been introduced to guide revenue, expenditure, deficit levels and debt management over a three year cycle.
According to the Ministry of Finance and Budget, the framework is designed to strengthen strategic planning beyond the annual budget cycle. Speaking on behalf of the minister, Akou Mawussé Afidenyigba explained that the approach is intended to ensure policy consistency over time and improve fiscal sustainability.
She stated that “unlike the annual budget, which sets allocations for a single fiscal year, the medium term framework provides a strategic vision and ensures consistency over time between public policies and available financial resources.” She further described it as a decision support tool that allows authorities to simulate debt and deficit scenarios under different economic conditions and determine investment levels compatible with long term sustainability.
The government is targeting economic growth of 6.2 percent in 2025, alongside very low inflation of 0.4 percent. However, despite these macroeconomic projections, fiscal space remains tight due to debt servicing obligations that continue to absorb a significant share of public resources.
To address these constraints, authorities are pursuing reforms aimed at expanding the tax base without increasing tax rates. One major focus is the digitalisation of public administration, which is expected to improve efficiency, reduce leakages and strengthen tax collection systems.
At the same time, the government is attempting to control public spending, particularly the wage bill, which is estimated at around 7 percent of gross domestic product. Officials argue that without containing recurrent expenditure, it will be difficult to maintain a flexible budget capable of supporting development priorities.
Public investment currently stands at about 6.6 percent of gross domestic product, equivalent to roughly 458 billion CFA francs. The challenge for policymakers is to ensure that these limited resources are directed toward high impact sectors that can stimulate growth, create employment and improve productivity across the economy.
Despite fiscal constraints, Togo has recorded consistent improvements in revenue mobilisation. The Office Togolais des Recettes has been central to this progress, driving stronger performance in both tax and customs collections over the past several years.
In 2023, total revenue reached 990.1 billion CFA francs, representing a 14.5 percent increase compared to the previous year and exceeding official targets. The upward trend continued in 2024, when collections rose above the one trillion CFA franc mark for the first time, reaching approximately 1.098 trillion CFA francs.
This steady increase suggests that administrative reforms and improved compliance are beginning to yield results. However, analysts note that despite these gains, the overall tax to GDP ratio remains low compared to regional expectations, indicating that a large part of the economy is still outside the formal tax system.
The medium term fiscal framework now being implemented is anchored on three major policy priorities. These include strengthening security and stability through enhanced defence capacity and social protection systems, promoting national cohesion by advancing decentralisation and reducing inequality, and driving economic transformation through investment in infrastructure, agriculture, logistics and digital technology.
A key feature of the new fiscal approach is stricter control over public investment projects. Authorities have stated that only projects backed by solid technical studies and secured financing will be included in the 2027 to 2029 programme. This is intended to reduce waste, improve efficiency and ensure that limited public funds are allocated to viable and impactful initiatives.
Togo’s fiscal strategy is also unfolding in a challenging global environment marked by declining external aid and rising economic uncertainty. As a result, maintaining macroeconomic credibility has become a central priority for policymakers, particularly as the country seeks to attract investment and sustain growth momentum.
While the current tax ratio reflects ongoing structural weaknesses, the combination of digital reforms, improved revenue collection and tighter fiscal planning suggests a gradual shift toward stronger public finance management. The key challenge going forward will be whether these reforms can significantly expand the tax base and bring the country closer to regional standards without slowing economic activity.
