The International Monetary Fund (IMF) has completed the combined third and fourth reviews of Togo’s Extended Credit Facility (ECF) programme, approving an immediate disbursement of SDR 80.74 million (US$109.5 million) to support the country’s economic reform agenda.
The latest funding brings total disbursements under the IMF-backed arrangement to SDR 220.2 million (US$298.6 million), the Fund said after the Executive Board approved the review.
The IMF said Togo’s programme implementation had been broadly satisfactory, with most quantitative performance targets met and structural reforms progressing steadily.
The Board also approved waivers for breaches related to limits on net domestic financing, new external borrowing and the accumulation of external arrears, citing the temporary nature of the deviations, delays in external financing and changing funding conditions.
Togo’s ECF programme, approved in March 2024 for SDR 293.6 million (US$403.4 million), aims to strengthen fiscal and debt sustainability, protect vulnerable groups, address financial sector weaknesses, improve governance and support inclusive economic growth.
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The IMF said Togo’s economy had remained resilient despite global and domestic challenges, with real GDP growth reaching about 6% in 2025, driven largely by the services sector.
Growth is expected to slow temporarily in 2026, while inflation could rise due to external pressures, including the impact of heightened geopolitical tensions and the war in the Middle East.
The Fund warned that risks remain elevated from regional insecurity, climate shocks, volatile food and energy prices, and continued financial and external vulnerabilities.
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Since the previous review, Togo has implemented seven of eight structural reforms, including measures aimed at improving public financial management, fiscal transparency and oversight of state-owned enterprises.
The IMF noted that social and pro-poor spending targets were also achieved, reflecting government efforts to protect vulnerable households.
Following the Board discussion, IMF Deputy Managing Director and Acting Chair Kenji Okamura said Togo’s economic performance had remained resilient but urged authorities to maintain reform momentum.
“Significant downside risks, including persistent security threats, geopolitical tensions and commodity price volatility, cloud the outlook,” Okamura said, stressing the need for continued fiscal consolidation and structural reforms.
The IMF said Togo should balance efforts to contain fiscal pressures from the energy price shock with protecting vulnerable groups, particularly through targeted social spending.
It encouraged faster implementation of tax reforms to reduce exemptions, expand the tax base and strengthen domestic revenue mobilisation.
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The Fund also called for improved spending efficiency and prudent debt management to preserve fiscal sustainability and support Togo’s return to the West African Economic and Monetary Union (WAEMU) fiscal deficit target.
The IMF highlighted the need for urgent action to address weaknesses in the banking sector, including completing an independent assessment of a troubled financial institution and developing a strategy to safeguard financial stability while limiting fiscal costs.
Further reforms in the electricity sector, state-owned enterprises, governance, debt transparency, anti-corruption measures and anti-money laundering frameworks were identified as key priorities for sustaining long-term growt
