Located on Africa’s west coast, Togo is bordered by Ghana, Benin, and Burkina Faso and is home to approximately 8.5 million people. The poverty level is twice as high in rural areas (58.8%) than in urban areas (26.5%).
This is due in large measure to an annual population growth rate of 2.5% that is outpacing development progress, concentrated economic growth in the modern sectors, and limited access to quality services. Poverty is also higher in female-headed households (45.7%) than in male-headed households (45.2%). Women remain more vulnerable, as they have less access to economic opportunities, education, health, and other basic socioeconomic facilities.
Togo’s score on the human capital index (HCI) remains low at 0.43. This means that children born in Togo today will be only 43% as productive when they grow up as they could be if they had access to good health, education, and nutrition.
The ruling Union pour la République (UNIR) party has dominated the political scene for several years, and won 59 of the 91 seats in the National Assembly in the 2018 elections. Presidential elections held on February 22, 2020, returned Faure Gnassingbé to power for a fourth five-year term.
On September 28, 2020, Victoire Tomégah-Dogbé was appointed prime minister, the first woman to hold this office in Togo.
Togo held municipal elections in June 2019 for the first time in 32 years, and the UNIR secured 878 of 1,490 seats.
After a slowdown in GDP growth to 1.8% during the COVID-19 pandemic in 2020, the country rebounded to 5.3% in 2021, reflecting progress in the services sector. On the consumption side, household spending and public and private investment have strongly contributed to the recovery. Public investment is expected to remain strong in 2022 due to the implementation of the "Togo Roadmap 2020-2025", gradually declining in favor of private investment over the next few years.
Inflation remains a concern due to rising international food and oil prices.
The current account deficit widened to 3.2 % in 2021, that is more than double of its 2020 level. Grants and concessional loans helped finance the current deficit account. The budget deficit remained high at 6.5% of GDP in 2021, leading to an increase in public debt from 60.3 % of GDP in 2020 to 64.7 % in 2021.
The path to an inclusive and sustainable recovery will depend on successfully managing the risks that could reduce fiscal space and discourage private investment. These include obstacles to the implementation of the "Togo Roadmap 2020-2025", fluctuations in international prices due to supply shocks, security risks in the north of the country, new waves of COVID-19, growing and costly domestic debt, and fiscal risks from public-private partnerships, state-owned enterprises, and domestic subsidies.
Last Updated: Sep 29, 2022