Togo

Located on the West African coast, Togo is bordered by Ghana, Benin, and Burkina Faso, and is home to approximately 8.5 million people. Poverty rates are significantly higher in rural areas (58.8%) compared to urban areas (26.5%). This disparity is largely due to economic growth being primarily concentrated in modern sectors and limited access to quality services. Women remain more vulnerable, with more limited access to economic opportunities, education, health care, and other basic socioeconomic infrastructure. Togo’s score on the Human Capital Index (HCI) stands at 0.43. This means that children born in Togo today will be only 43% as productive as they could be as adults, due to limited access to good health care, adequate nutrition, quality education, and sufficient food.

Political Context

For several years, Togo’s political landscape has been dominated by the ruling party, the Union for the Republic (UNIR). A significant shift occurred with the adoption of a new Constitution on March 25, 2024, marking the transition from a semi-presidential system to a parliamentary system. The Parliament, now composed of two chambers — the National Assembly and the Senate — is responsible for electing both the President of the Republic and the President of the Council.

Under the new parliamentary system, the President of the Republic holds primarily symbolic functions, while the President of the Council — selected from the majority party — holds full executive authority, including over civil and military appointments. Parliament is now bicameral, comprising a National Assembly and a Senate. The 2024 and 2025 elections confirmed the dominance of UNIR in both chambers.

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Despite persistent shocks since the COVID-19 pandemic, Togo’s economy has demonstrated resilience, recording an average growth rate of 6.1% between 2021 and 2023, partly supported by fiscal stimulus measures. However, high inflation and disparities in economic opportunities between rural and urban areas continue to hinder progress in reducing poverty and inequality.

After posting a GDP growth rate of 5.3% in 2024, the economy is projected to slow to around 5.1% in 2025, due to fiscal consolidation efforts, weak global demand, and regional uncertainties. The fiscal deficit is expected to decrease from 6.1% of GDP in 2024 (4.5% excluding the recapitalization of the Union Togolaise de Banque [UTB]) to 3% in 2025, thanks to improved revenue mobilization and reduced public spending, particularly capital expenditures. The impact of fiscal consolidation on economic activity is expected to be partially offset by a rebound in consumption, supported by declining inflation, while private investment is being driven by the development of the Adétikopé Industrial Platform (PIA). On the supply side, although industrial activity shows signs of slowing — notably due to weaker external demand — a relatively strong agricultural season and sustained activity in the services sector have helped support overall economic activity.

Despite a challenging regional and global environment, growth is projected to strengthen to an average of 5.5% in 2026–2027. This modest increase is expected to be driven by ongoing and planned private investment projects, as well as rising consumption as inflation falls below the 3% threshold. In this context, the poverty rate is expected to gradually decline to 20.3% by 2027 (international definition), supported by higher per capita GDP and lower inflation.

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Improving the business environment and employment opportunities

Togo adopted a land code and established a fiscal cadastre. In August 2023, the World Bank, with financial support from GIZ, published the first data-driven multisectoral diagnostic on employment in Togo, analyzing labor supply and demand and assessing the impact of economic performance on the creation of quality jobs.

Strengthening fiscal policy and debt management

The World Bank supported the Ministry of Finance in preparing fiscal risk assessments and borrowing plans for 2021; Reforms have improved domestic revenue mobilization, the efficiency of public investment, and transparency in debt management.

Energy

Through development policy operations (DPOs) and the Energy Sector Support and Investment Project, Bank support helped improve the financial viability of the energy sector, increased the use of renewable energy, and enhanced the distribution network in Lomé. The Bank has a broad engagement in the energy sector through investment and development financing instruments, including technical assistance, capacity building, advisory services, and analytical support.

Health Services

The Sahel Women’s Empowerment and Demographic Dividend Plus Project — aims at improving access to education, economic opportunities, and health services, and at strengthening Togo’s capacity for gender equality.

Agriculture and Agricultural Productivity

The West Africa Food System Resilience Program (FSRP-Togo) aims to strengthen preparedness against food insecurity and increase the resilience of food systems in Togo and other countries. Established in 2014, the Regional Center of Excellence in Avian Sciences (CERSA) seeks to revolutionize the poultry industry in West and Central Africa.

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The government’s current development policy is outlined in its National Development Plan (PND) for the period 2017–2022 and updated through its 2020–2025 roadmap. The overarching objective is to structurally transform the economy to promote growth, social inclusion, job creation, and institutional modernization, notably through digitalization.

In response to growing insecurity in the northern region, Togo adopted the Emergency Plan for Strengthening Resilience in the Savanes Region (PURS) in 2022. The plan aims to: (i) improve community access to basic social services; (ii) strengthen income-generating capacity; and (iii) bolster security forces and territorial administration.

In 2023, the plan was expanded to the national level to address the drivers of fragility and promote multidimensional resilience. It is supported by the International Development Association (IDA)’s Prevention and Resilience Allocation, which accounts for 75% of Togo’s performance-based allocation.

The World Bank’s new Country Partnership Framework (CPF) with Togo is aligned with ongoing national strategies and focuses on three high-level objectives:

• Increasing quality private sector employment;
• Enhancing human capital;
• Promoting inclusive and resilient territorial development.

Under this CPF, the Bank plans to mobilize approximately $1.5 billion to support reforms and investments in strategic sectors. As of February 2025, the World Bank’s portfolio in Togo included seven national projects, nine regional projects, and one operation supporting priority reforms, for a total commitment of $1.5 billion. These projects are financed by the International Development Association (IDA).

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IFC has been a key partner for Togo, with landmark investments such as the Lomé container terminal — the largest transshipment port in West Africa — ContourGlobal IPP, the country’s first independent power plant, and Ecobank Transnational Incorporated, to facilitate access to finance for small and medium-sized enterprises (SMEs).

As outlined in the World Bank Group’s Country Partnership Framework (CPF) for FY2025–2029, IFC’s strategy in Togo will focus on: (i) agricultural productivity and selected agro-food value chains, as well as access to irrigation, mechanization, and financial services; (ii) improved transport and logistics infrastructure to position the country as a regional business hub through direct financing and public-private partnerships (PPPs); (iii) restructuring the energy sector to ensure reliable and sustainable access to electricity for all; and (iv) digitization and development of the digital economy to stimulate growth, create jobs, and build resilience.

IFC’s portfolio has grown significantly between FY2020 and FY2025. During this period, IFC invested and mobilized US$172 million across several sectors, including manufacturing, energy, and telecommunications — a result of private sector–oriented reforms led by the Togolese government.

In line with government priorities, IFC and the World Bank jointly completed the Country Private Sector Diagnostic (CPSD) for Togo, which identifies opportunities and reform pathways to unlock private investment and “build back better” in the aftermath of the COVID-19 pandemic. The diagnostic focuses primarily on two critical sectors: agriculture and transport and logistics. The CPSD laid the groundwork for the development of IFC’s country strategy and the new CPF for 2025–2029, which was approved in May 2024.

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