- IMF staff and the Togolese authorities have reached staff-level agreement on economic policies and reforms to be supported by a new 42-month arrangement under the Extended Credit Facility (ECF) of about US$390 million to address pressing spending needs, including due to increasing security concerns and to preserve stability and social inclusion.
- The authorities' strong reform program aims at preserving macroeconomic stability and strengthening debt sustainability while laying the foundations for stronger and more inclusive growth.
- Key policies include efforts to raise fiscal revenue by an ambitious 0.5 percent of GDP per year to support fiscal consolidation while enabling more government spending in support of growth through public investment and social protection so that the benefits of growth can be shared more widely. The authorities will also strengthen financial stability and continue their successful efforts to enhance the business environment.
Lomé: An International Monetary Fund (IMF) team led by Mr. HansWeisfeld visited Lomé during November 29–December 8, 2023, to discuss with the Togolese authorities IMF support for their policy and reform plans and assess recent economic developments.
At the end of the mission, Mr. Weisfeld issued the following statement:
"The IMF team is pleased to announce that we reached staff-level agreement with the Togolese authorities on a 42-month program supported by an arrangement under the Extended Credit Facility (ECF) (The Extended Credit Facility (ECF) (imf.org)) in the amount of SDR 293.60 million, or about US$390 million. The authorities' economic program aims to preserve economic stability and strengthen debt sustainability while laying the foundations for stronger and more inclusive growth. The staff-level agreement is subject to IMF Management and Executive Board approval.
"Key reforms aim to ensure reducing the budget deficit to 3 percent of GDP by 2025 while protecting spending that can support growth and enhance economic inclusion. The fiscal strategy relies in part on measures to increase domestic resource mobilization by an ambitious 0.5 percent of GDP per year. The authorities will also rationalize public expenditure. In addition, they intend to strengthen social protection, including by expanding cash transfers, based on the creation of a single social registry and biometric identification platform.
"The authorities will implement various structural reforms to underpin the fiscal strategy and enhance the country's growth potential. These include reforms to broaden the tax base and enhance the efficiency of the tax collections. The authorities are determined to continue improving the business climate to stimulate investment and job creation, including through the digitalization of public services. In addition, the authorities have committed to strengthening financial stability.
"The IMF mission met with the Togolese President, His Excellency Mr. Faure Essozimna Gnassingbé, as well as the Prime Minister, Mrs. Victoire Tomegah Dogbé, and held meetings with Minister of Finance and the Economy, Mr. Sani Yaya, and the National Directorate of the Central Bank of West African States (BCEAO) for Togo, and their respective teams. The IMF mission also met with development partners. Staff would like to express their gratitude to the Togolese authorities for their open and constructive engagement and their hospitality."
