IMF Staff Completes Review Mission to Togo

December 18, 2019

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
  • The IMF mission had constructive and productive discussions with the Togolese authorities on the final review under the program supported by the Extended Credit Facility.
  • The economic recovery is firming up and growth is estimated to have accelerated from 4.9 percent in 2018 to 5.3 percent in 2019 and 5.5 percent in 2020.
  • The Togolese authorities have implemented a significant reduction of the budget deficit and public debt as well as strong structural reforms. The reforms in the financial sector are progressing and discussions are underway.

An International Monetary Fund (IMF) team, led by Mr. Ivohasina Fizara Razafimahefa, visited Lomé during December 4-17, 2019 to discuss the sixth and final review of the program supported by IMF’s Extended Credit Facility (ECF). [1]

At the end of the visit, Mr. Razafimahefa issued the following statement:

“The mission had constructive and productive discussions with the Togolese authorities and commended them on the sustained progress in advancing reforms and pursuing with sound economic policies. Following the finalization of discussions, the IMF Executive Board could consider the conclusion of the sixth ECF review.

“The economic recovery is firming up. Economic growth is estimated to accelerate from 4.9 percent in 2018 to 5.3 percent in 2019 and 5.5 percent in 2020, driven primarily by domestic demand while some export sectors are showing signs of weaknesses. Credit to the private sector expanded by 3.6 percent (year-on-year) and inflation stood at 0.4 percent (year-on-year) at end-September 2019.

“The fiscal consolidation, which started in 2017, remains sustained with the overall fiscal deficit estimated at 2.2 percent of GDP at end-September 2019. Revenue collections were on target, with strong customs revenue collections compensating for weaknesses in domestic tax collections. Overall expenditure was less than projected. Total public debt that amounted to 81 percent of GDP at end-2016 is decreasing and projected to decline to 70 percent of GDP by end-2019. It would be essential to persevere in fiscal consolidation to further reduce debt vulnerabilities.

“The Togolese authorities have implemented strong structural reforms. Several revenue administration measures have been implemented, including the creation and harmonization of tax identification numbers, tele-procedures to reduce compliance costs, withholding and provisional deposits to secure revenue collections, internal controls against corruption, and reduction of tax exemptions. Key measures are underway to promote voluntary compliance. All customs clearance procedures will be progressively automated to reduce opportunities for revenue leakages and improve services to private sector agents. The evaluation and selection of public investment projects have become more rigorous; all new projects must go through a cost-benefit analysis before they can be included in the public investment program. The shift to program-based budgeting is planned to start from 2021. Continued implementation of these reforms will improve the efficiency of public expenditure.

“Reforms in the financial sector are progressing and discussions are underway. A prequalification notice for the privatization of the two public banks was announced in international financial news outlets. The prequalification process is underway. It is essential to finalize the reforms in these two public banks to safeguard financial stability and minimize risks to the State budget. Non-performing loans in the banking sector remain high and priority will be given to strengthening the legal and institutional frameworks for the recovery of such loans.

“The Togolese authorities have made highly commendable progress to improve the business environment; Togo is amongst the best reforming countries in the World under the latest Doing Business Indicators. The authorities are also engaged in institutional reforms to strengthen governance.

“The mission held discussions with Mr. Sani Yaya (Minister of Economy and Finance), Mr. Kossi Ténou (National Director of the Central Bank BCEAO), and other senior officials, as well as representatives of the private sector and development partners. The IMF mission wishes to express its gratitude to the authorities and interlocutors for the constructive discussions and warm hospitality during its visit to Togo.”


[1] The Extended Credit Facility (ECF) provides financial assistance to countries with protracted balance of payments problems. It supports countries’ economic programs aimed at moving toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth. The ECF may also help catalyze additional foreign aid.

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