Lomé, October 25, 2023 - According to the Togo Economic Update released today by the World Bank, trade openness and increased private investment mobilization will be key to unlocking Togo's growth potential.
Titled Unlocking Togo's Growth Potential, the report begins with an analysis of the performance of Togo's economy, which has been buffeted by multiple shocks since 2020, and the drivers of growth over the medium term. Against the backdrop of a persistently challenging global environment, economic growth is expected to remain at around 5.2% in 2023 and 2024, before gaining strength and climbing to 5.8% in 2025, buoyed by a rebound in external demand and favorable conditions for private investment. The baseline scenario projections for the medium term have growth leveling off at 5.5% through 2030. An ambitious reform program that includes the mobilization of funds to help Togo achieve its climate goals could, however, quicken the pace of growth to 7%.
According to Fily Sissoko, World Bank Country Manager for Togo: "The establishment of the African Continental Free Trade Area is a great opportunity for Togo, as it could lead to a doubling of the stock of foreign investment by 2035. This is an opportunity to develop cross-border trade, which plays a key role, particularly in the agriculture sector."
The second part of the report focuses on the role of regional integration in accelerating Togo's development and underscores the importance of cross-border trade, the advantages of the Port of Lomé, and the potential role of the African Continental Free Trade Area (AfCFTA) in trade openness and foreign investment mobilization. Improved connectivity with landlocked countries is expected to promote domestic exports and transit trade, thereby contributing to the development of secondary cities along the Lomé-Ouagadougou-Niamey corridor.
As Marc Stocker, World Bank Senior Economist and lead author of the report, put it, "Togo has shown resilience in the face of successive crises and can tap its significant growth potential, provided reforms are implemented to mobilize private investment, even as the government enters a period of fiscal consolidation."
Another issue raised by the report is the need to strengthen social inclusion to build the resilience of vulnerable populations in the coming years. Boosting economic opportunities and access to basic services for vulnerable populations will help Togo reduce socioeconomic disparities and realize its full potential.
Download the Togo Economic Update report in English.
