Togo

2023-11-08

Togo has a land mass of 56,785km2 and a coastline of 56km on the Bight (Bay) of Benin in the south and is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It has a population of 8.7 million people and a GDP of US$8.4bn.

In 1960, the Togolese Republic achieved independence from France, which is now one of its main trading partners. It has great potential in terms of agriculture, which accounts for 28% of GDP and employs 62.5% of the workforce. The country has clinker deposits, which fuel its cement industry. The Lome Port is a major asset as one of the largest ports in West Africa, and the transport of goods to neighbouring countries has led to the creation of a services industry.

Despite the various economic improvements and in spite of the government's efforts, the poverty rate remains high, with more than 55% of the population living in poverty, and it continues to rely heavily on foreign aid.

Real GDP growth declined to 5.5% in 2022 from 6.0% in 2021 due to the security crisis in the far north of the country and Russia’s invasion of Ukraine. Inflation rose from 4.6% in 2021 to 7.8% in 2022, driven by higher food and energy prices. The current account deficit widened from 0.9% of GDP in 2021 to 3.7% in 2022 due to higher costs of imported goods (oil and food) brought about by the disruption of supply chains during the pandemic and the effects of the Russia-Ukraine war. Public debt dropped to 55.9% of GDP in 2022 from 63.1% in 2021, due to debt management measures.

Real GDP is projected to grow 6.3% in 2023 and 6.6% in 2024 due to the government’s 2025 roadmap for infrastructure projects and economic, financial, and structural reforms, including those aimed at boosting agricultural production and yields. Inflation is projected to fall to 3.8% in 2023 and 2.6% in 2024 due to purchasing power support from the government. The current account deficit is projected to widen slightly to 6.1% of GDP in 2023 and 6.3% in 2024 on higher import growth than export growth.




Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.