Togo has experienced steady and robust economic growth over the past decade, but it now faces new challenges amid increasing regional and global uncertainties, according to the World Bank’s latest economic update. To navigate these uncertainties and accelerate development, the report recommends that Togo deepen structural reforms, implement its fiscal consolidation strategy, and attract greater private sector investment, all while safeguarding essential public services. The report, titled “Boosting Growth in Times of Uncertainty”, underscores the urgency of fostering private sector–led growth that generates productive employment opportunities.
Despite the difficult global economic environment, Togo’s economy is projected to grow by 5% in 2025, with a slight recovery to 5.4% in 2026. These projections reflect the country’s resilience but also highlight the need for policies that enhance long-term growth potential, reduce regional inequalities, and invest in human capital development. Sustaining growth above 6% annually is essential for Togo to reduce poverty to below 10% and achieve upper-middle-income status by 2045.
Achieving these ambitious goals will require significant reforms to unlock private sector investment and improve job creation. Justin Beleoken Sanguen, the World Bank’s Acting Resident Representative for Togo, emphasized that far-reaching economic measures are necessary to ensure that growth is both inclusive and sustainable. A key priority is restoring fiscal space to maintain macroeconomic stability while also preserving development expenditures and boosting the efficiency of public investment.
Marc Stocker, Lead Economist and co-author of the report, pointed out the need for bold tax reforms to enhance the government’s ability to fund development and provide quality public services. Reforms in public financial management, broadening the tax base, and improving transparency are critical steps toward creating an environment that supports investment and innovation. These changes, the report argues, are essential to promote job creation and ensure lasting, inclusive economic growth.
Institutional and policy reforms are also emphasized as crucial components of Togo’s development strategy. These include the establishment of a strong regulatory framework, integrating climate risk management into economic planning, ensuring transparent procurement processes, promoting public-private partnerships, and improving governance and accountability.
Nimonka Bayale, economist and co-author of the report, noted that the government’s fiscal consolidation strategy is a vital tool for safeguarding debt sustainability and the quality of public services. He stressed the importance of clearly communicating this strategy to the public and reinforcing it with measures to improve fiscal transparency and public trust.
Together, these recommendations form a comprehensive roadmap for Togo to achieve resilient, inclusive, and sustainable economic growth in an increasingly uncertain global landscape.
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