Press Release No. 24/394

IMF Reaches Staff-Level Agreement on the First Review of the Extended Credit Facility with Togo

October 24, 2024

• IMF Staff and the Togolese authorities have reached staff-level agreement on economic policies and reforms to conclude the first review of the 42-month Extended Credit Facility (ECF)-supported program. Once this staff-level agreement has received final approval from the IMF Executive Board, Togo will receive a disbursement of SDR 44.0 million (about US$58.7 million).
• Togo's growth performance remains robust, and inflation is moderating.
• The IMF-supported government economic policy program is on track, with all quantitative targets and two out of three structural benchmarks at end-June met.
• The authorities have reaffirmed their commitment to continue implementing sound policies, including by strengthening governance.

Washington, DC: An International Monetary Fund (IMF) staff team, led by Hans Weisfeld and comprising John-Paul Fanning, Maximilien Kaffo, Sassire Napo, Grace Li, and Etienne Vaccaro-Grange, conducted a mission to Lome during October 7 - October 18 as part of the first review of the authorities’ economic program supported by the Extended Credit Facility (ECF) arrangement of SDR 293.60 million (about US$ 390 million). The IMF Executive Board had approved the arrangement in March 2024.

At the conclusion of the visit, the mission 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 sound economic policies. A Staff-level agreement was reached on all policies, including key parameters of the 2025 fiscal framework and reform measures going forward, in line with the program‘s objectives.

“Economic growth reached an estimated 5.6 percent in 2023 and is projected at 5.3 percent in 2024-25 and around 5.5 percent per year thereafter according to IMF staff projections, barring major adverse shocks. Inflation has continued to slow, to 3.6 percent by September 2024 (annual average). 

“The IMF-supported government economic policy program is on track, with all quantitative targets and two out of three structural benchmarks at end-June met, with good prospects for the actions on the benchmark that was missed to be completed before the end of the year. Among other things, tax revenue is rising thanks to tax policy measures and efforts to enhance revenue administration, and the fiscal deficit is falling thanks to strong spending control. The authorities also reached the end-June target for social and pro-poor spending. Further, the authorities have successfully concluded the preparation of a mirror analysis comparing customs and trade data, which will help strengthen revenue going forward. And they have also progressed on establishing a biometric ID system for all citizens and a Social Register of Individuals and Households. These tools will enable better-targeted and thus more effective and less costly ways of supporting the most vulnerable. 

“During the mission, IMF Staff reiterated the importance of maintaining a disciplined fiscal approach to ensure that public debt remains sustainable and continue reforms to enhance inclusion, improve the business environment, and limit risks. Among other things, the authorities have agreed to important governance reforms, including in the area of public procurement.

“The IMF approved the ECF-arrangement in March 2024 to help the authorities address the legacies of the shocks seen since 2020, notably the COVID pandemic and the increase in global food and fuel prices. The Togolese authorities were able to lessen these shocks’ impacts on the Togolese economy and population. However, this resulted in an increase in fiscal deficits and debt. The IMF-supported government program aims to (i) make growth more inclusive while strengthening debt sustainability, and (ii) conduct structural reforms to support growth and limit fiscal and financial sector risks.

The mission looks forward to continuing the fruitful dialogue with the Togolese authorities in the period ahead, in the context of the second review under the IMF’s Extended Credit Facility in the first half of 2025.”