Togo Economy

Togo Economy


  • Basic data
  • Public finances and the state budget
  • Banking system
  • Tax System

Basic data

According to, Togo’s GDP was estimated at 5.1% in 2019, with similar upward growth expected to follow in 2020. However, macroeconomic results in 2020 were significantly affected by the COVID-19 pandemic. The baseline economic growth forecast for 2020 was revised downwards from percent before the outbreak of the pandemic to -percent as airport traffic was restricted by various bans and economic activity was disrupted, however, in 2021 Togo returned to growth of 6.3%. For 2022, the Togolese government expects economic growth of 6.5%. This recovery in activity was mainly due to counter-cyclical investments in infrastructure and an increase in agricultural production. The recovery also benefited to some extent from an increase in global demand, which led not only to increased exports but also to increased domestic demand. Since the beginning of 2021, the inflation rate has been steadily increasing, reaching 6.8% in July, the highest value since 2013. These figures reflect an upward trend in the prices of basic commodities in the country’s markets for several months. The recent modernization of public infrastructure and the continuous improvement of the business environment are expected to increase productivity and motivate private investment. In 2019, the Nominal GDP of Togo was estimated at US$ billion. GDP per capita was $1,670. The country ranks 146th in the GDP ranking of 196 countries. The agriculture sector contributes 23.4% of GDP and employs 34% of the active workforce (World Bank). Major food crops include cassava, yams, maize, millet and sorghum, with cocoa, coffee and cotton serving as cash crops (generating about 20% of export earnings). Although many farmers are subsistence farmers, some basic foods still need to be imported. The industrial sector is relatively limited in Togo, accounting for only 15.5% of GDP and 20% of total employment. With an estimated 60 million tons of reserves, phosphates are the country’s most important commodity, making Togo one of the world’s largest phosphate producers. The main industrial subsector is therefore mining, followed by food processing. The service sector is estimated to account for 28.8% of GDP, giving employment to 46% of the active population. The sector has been growing steadily in recent years (7.9% in 2017 and 4.4% in 2018, according to the African Development Bank). Trade contributes the most to this sector. 4% in 2018). Trade contributes the most to this sector. 4% in 2018). Trade contributes the most to this sector.

1st paragraph: Outlook and state of GDP, indebtedness, fiscal stability, shocks, possible overheating of the economy, capital, regional comparison, inflation and unemployment.

2nd paragraph: Brief description of the structure of the economy (what is its main added value, what it produces, what it imports, etc.)

Table from MOP + additionally balance of payments, indebtedness/GDP.

Pointer 2019 2020 2021 2022 2023
GDP growth (%) 5.3 -3.6 6.3 6.5 6.9
GDP/population (USD/PPP) 1,670.00 2,222.70 2,390.00 2,550.00 2,740.0
Inflation (%) 0.7 1.8 4.4 4.8 4.5
Unemployment (%) 3.7 4 ON ON ON
Export of goods (billion USD) 1.1 0.7 1 1.3 1.5
Import of goods (billion USD) 1.9 1.8 2.3 2.6 2.8
Trade Balance (Billion USD) -0.8 -1.1 -1.3 -1.3 -1.3
Industrial production (% change) ON ON ON ON ON
Population (millions) 8.1 8.3 8.5 8.7 8,9
Competitiveness ON ON ON ON ON
OECD export risk 06.VII 06.VII 06.VII ON ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance 2021
State budget balance (% of GDP) -0.6
Public debt (% of GDP) 52.6
Current account balance (billion USD) -0.3
Taxes 2022

Togo’s trade deficit (including services) widened again in 2020 (3.7% of GDP), rising from 349 billion CFA francs in 2019 to 460 billion CFA francs, a deterioration of 31%. This situation was mainly caused by the Covid-19 pandemic, which brought the global economy including Togo to an almost complete halt, especially after the border closures and other restrictive measures that greatly disrupted trade between Togo and the rest of the world. Despite this gloomy environment, imports of goods from Togo improved slightly in 2020 compared to 2019. In 2020, total imports of the entire Togolese economy amounted to 1,080 billion CFA francs of goods from the rest of the world, against 1,061 billion in 2019, a slight increase of 1.7%. For the same period, its exports were estimated at 580 billion CFAF, against 618 billion a year earlier. The deficit increased by 12% compared to 2019. Togo’s total public debt was estimated at 52% of GDP at the end of June 2021. In 2020, the total amount outstanding was estimated at 2,555.45 billion CFA francs, or 59.42% of GDP calculated retrospectively. At that time, 80.50% of the debt was denominated in non-fluctuating currencies (CFAF and Euro) and affected by the fluctuations of some major currencies such as US dollar (6.88%), Yuan CNY (6.35%). The Central Bank of West African States (BCEAO) said in its 2020 annual report that Togo has a high risk of external debt stress on total debt. The ratio of outstanding external debt to GDP was 17.7% in 2019, compared to 15.2% in 2018. The fiscal deficit widened to percent of GDP in 2020, reflecting a significant reduction in government revenues, as economic activity fell due to tax breaks for businesses and a surge in spending to deal with the COVID-19 crisis and support the economic recovery. External reserves reached an estimated months of imports in 2020 due to large donor support and reduced imports during the pandemic. Between March and October 2020, the REER (Real Effective Exchange Rate) appreciated by percent annually, reflecting the nominal appreciation of the euro against the USD. To support the regional economy and additional expenses related to COVID-19, the BCEAO announced a set of monetary and macroprudential measures from March 2020, including rate cuts and the extension of three-month COVID-19 bond refinancing operations to support governments and businesses.

Banking system

The minimum capital requirement is set at CFAF10 billion. Penetration of banking services in the country is low and generally only available in major cities. The government and banking sector have worked to restore Togo’s reputation as a regional banking center, which had been weakened by political upheavals between 1991 and 2005, and several regional and sub-regional banks now operate in Togo, including Orabank, Banque Atlantique, Bank of Africa, Diamond Bank, International Bank of Africa in Togo (BIAT) and Coris Bank. In addition, Togo is home to ECOWAS Bank for Investment and Development (EBID), West African Development Bank (BOAD), Oragroup and Ecobank Transnational Inc. (ETI), the largest independent regional banking group in West and Central Africa, operating in 36 countries in sub-Saharan Africa. The banking sector is generally healthy and the total assets of the largest Togolese banks are approximately $25-30 billion, including Ecobank, a very large regional bank based in Lomé. Togo’s monetary policy and banking regulation is governed by the Central Bank of West African States (BCEAO).

Tax system

As of 2014, the Togo Revenue Authority is the only tax collection authority in Togo with more autonomy than the ministries. This is the first attempt to unify customs and tax services between the 14 countries belonging to the Francophone zone using the West African Franc (West African Economic and Monetary Union) and the Central African Economic and Monetary Community. Income tax is progressive and ranges from 7% to 35%, with the first XOF 900,000 being tax-free. If the annual income exceeds the amount of XOF 15 million, the following formula is used to calculate the income tax = (taxable income after deduction of XOF 15,000,000) * 0.35 + XOF 3,017,000 XOF. Non-residents who spend more than 6 months in Togo during a fiscal year have the same obligation to pay taxes as residents. Details here:

Togo Economy