Togo’s services sector recorded robust year-on-year growth in late 2025, outperforming regional peers despite sharp month-to-month fluctuations, according to the latest economic report from the Central Bank of West African States (BCEAO).
Activity in non-financial market services rose 19.5 percent year on year in November 2025, one of the strongest performances within the eight-member West African Economic and Monetary Union (WAEMU), the BCEAO said in its January 2026 economic bulletin. By comparison, average annual growth across the WAEMU stood at 5.4 percent, underscoring Togo’s relative resilience.
The non-financial services segment includes transport, hotels and restaurants, business services and certain commercial activities, sectors that are closely linked to domestic demand, trade flows and seasonal patterns. While annual growth remained strong, activity showed pronounced short-term volatility toward the end of the year.
After contracting by 12.0 percent on a monthly basis in October 2025, non-financial market services rebounded sharply, expanding 10.3 percent in November. Economists say the swings reflect sensitivity to demand cycles, logistical disruptions and year-end adjustments by businesses.
“The data suggest that the underlying trend in services remains positive, but short-term activity is still exposed to fluctuations linked to consumption, transport and seasonal factors,” a regional economist said.
Togo’s economy has increasingly relied on services as a driver of growth, alongside logistics, trade and public investment. The country’s strategic port in Lomé, which serves as a transit hub for landlocked neighbours, continues to support transport and related services, while hospitality and commerce benefit from cross-border trade and regional mobility.
Financial market services also posted solid annual growth, although they too showed signs of short-term moderation. Revenues in banking, microfinance, insurance and payment services rose 15.0 percent year on year, according to the BCEAO. However, activity declined by 4.0 percent in November after increasing by 8.1 percent in October, pointing to a cooling after earlier momentum.
The BCEAO did not provide a detailed breakdown of the drivers behind the monthly decline, but analysts point to tightening liquidity conditions, cautious lending and adjustments in payment activity toward year-end as possible factors. Across the WAEMU, financial services have been affected by a combination of monetary tightening, inflation pressures and efforts to strengthen balance sheets.
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Despite the volatility, overall indicators suggest that services remain one of the most dynamic components of Togo’s economy. The sector benefits from ongoing investments in infrastructure, digital services and financial inclusion, as well as reforms aimed at improving the business climate.
In recent years, Togo has pursued policies to position itself as a regional logistics and services hub, leveraging port infrastructure, road corridors and administrative reforms. Authorities have also promoted digitalisation in public services and payments, supporting growth in fintech and related activities.
However, the BCEAO data highlight that momentum remains uneven, particularly in non-financial services that are more exposed to shifts in demand and external conditions. Transport and hospitality, for example, can be affected by fuel prices, regional trade dynamics and household purchasing power, while business services are sensitive to corporate investment cycles.
The broader WAEMU context also matters. While regional growth has been supported by public investment and services, several member states face fiscal consolidation pressures, security challenges and tighter financing conditions, which can weigh on private sector activity.
For policymakers, the challenge will be to sustain the strong annual growth observed in services while reducing vulnerability to short-term shocks. Analysts say this will require continued investment in infrastructure, more stable financing conditions and measures to strengthen domestic demand.
As 2026 begins, the BCEAO said it would continue to closely monitor economic conditions across the monetary union. In Togo’s case, the latest figures point to a services sector that is expanding faster than the regional average, but one that still faces volatility that could test growth prospects if not carefully managed.
