| TOGO |
Economy:
This small, sub-Saharan economy suffers from anemic economic growth and depends
heavily on both commercial and subsistence agriculture, which provides employment for
65% of the labor force. Some basic foodstuffs must still be imported. Cocoa, coffee, and
cotton generate about 40% of export earnings with cotton being the most important cash
crop. Togo is the world's fourth-largest producer of phosphate. The government's decade-
long effort, supported by the World Bank and the IMF, to implement economic reform
measures, encourage foreign investment, and bring revenues in line with expenditures has
moved slowly. Progress depends on follow through on privatization, increased openness in
government financial operations, progress toward legislative elections, and continued
support from foreign donors. Togo is on track with its IMF Extended Credit Facility and
reached a HIPC debt relief completion point in 2010 at which 95% of the country's debt
was forgiven. Economic growth prospects remain marginal due to declining cotton
production and underinvestment in phosphate mining.
GDP (purchasing power parity):
$5.974 billion (2010 est.)
country comparison to the world: 157
$5.778 billion (2009 est.)
$5.596 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$3.194 billion (2010 est.)
GDP - real growth rate:
3.4% (2010 est.)
country comparison to the world: 113
3.2% (2009 est.)
2.4% (2008 est.)
GDP - per capita (PPP):
$900 (2010 est.)
country comparison to the world: 216
$900 (2009 est.)
$900 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 47.4%
industry: 25.4%
services: 27.2% (2009 est.)
Exports - commodities:
reexports, cotton, phosphates, coffee, cocoa
Exports - partners:
Germany 17.57%, Ghana 12.74%, Burkina Faso 11.02%, India 10.22%, Belgium 7.1%,
Benin 6.92%, Netherlands 5.94%, Mali 4.41% (2009)
Imports - commodities:
machinery and equipment, foodstuffs, petroleum products
Imports - partners:
China 36.58%, France 8.64%, Netherlands 6.76%, India 5.06%, US 4.4% (2009)
Extracted from IMF Report - Togo: 2011 Article IV Consultation and Sixth
Review Under the Extended Credit Facility Arrangement (August 2011)
Togo’s economic performance continued its gradual improvement in 2010, marking
progress in overcoming the legacy of its protracted domestic crisis (1990-2005). Economic
growth has accelerated progressively, reaching 3.7 percent in 2010 and a projected 3.9
percent in 2011 despite unfavorable external economic conditions. Macroeconomic
stability has also improved. Public finances have strengthened markedly, thanks to
external debt relief under the HIPC initiative and prudent fiscal policy. Despite global price
shocks, inflation has remained moderate, and the current account deficit, while growing
somewhat, has remained financed in a sustainable manner.
Thanks to strong implementation, Togo’s IMF-supported economic program has broadly
achieved its objectives in 2010. Budget execution was particularly strong in 2010, and all
performance criteria were met by ample margins. Moreover, investment and social
spending execution improved; the increase in the former was intended in part to offset the
impact of the adverse external environment. The program’s structural reforms continued to
advance in 2010.
The improving economic performance and sound policies generally continued in early
2011, despite the adverse impact of the global oil price shock, particularly on fiscal policy.
Concerned with social stability, the authorities initially did not pass through the global oil
price rise to consumers, which led to costly and poorly targeted generalized price
subsidies. To maintain a sustainable fiscal framework in 2011, the authorities adjusted
their policy approach in June, by: beginning to implement a previously adopted automatic
price adjustment mechanism, with a smoothing formula; offsetting partially the costs
incurred with spending savings; and taking temporary, targeted social measures to
cushion the social impact. Stronger public finances have enhanced economic confidence
substantially; care should be taken to preserve these hard-won gains. Despite ongoing
progress, implementation of certain structural reforms has lagged behind plans in 2011. In
particular, preparations for bank privatization—a cornerstone of the program—have begun
moving quickly only recently. Capacity constraints have proven an obstacle, highlighting
the importance of continued public sector reform.
The Article IV consultation discussions focused on fiscal and structural policies to achieve
higher economic growth while maintaining stability. A planned temporary scaling up of
public investment in 2012-14 can support growth without compromising stability under the
authorities’ current policy plans. Continued public financial management reforms are
particularly important in this context. Institutionalizing the commitment to sustainable fiscal
policies will also be important, for example through adoption of a formal policy rule.
Accelerated structural reforms are key for robust, sustained and quality growth. These
reforms also offer important means to enhance Togo’s competitiveness. Its real effective
exchange rate is broadly in line with fundamentals. Priority sectors for reform are banking,
phosphate, telecommunications and energy, where the state plays large roles.
Click here to view full report
Banking
Togo’s banking system was weakened by an ongoing economic crisis in the late 1990s
and early 2000s. Currently, the larger banks, wholly or partially state-owned, have over-
concentrations of loans to the government and parastatal sector. Most of Togolese civil
servants have accounts in the state owned Togolese Development Bank (BTD) because
it is faster and easier for them to receive salaries. Small-scale loans are easier to obtain
at BTD because the process is less complicated than at other banks. Larger enterprises
acquire loans from BTCI, UTB, ECOBANK, and BIA. BTCI is the most popular loan-
granting institution because it grants loans to enterprises after six months of initial
account setup. The amount of the loan depends on the firm’s capacity, activities, and
available assets.
Stock Exchange
Founded in 1998, the Bourse Régionale des Valeurs Mobilières SA ("West African
Regional Stock Exchange") or BRVM, is a regional stock exchange headquartered in
Abidjan, Cote D'Ivoire, serving the following west African countries: Benin, Burkina Faso,
Guinea Bissau, Côte d'Ivoire, Mali, Niger, Senegal and Togo.
This small, sub-Saharan economy suffers from anemic economic growth and depends
heavily on both commercial and subsistence agriculture, which provides employment for
65% of the labor force. Some basic foodstuffs must still be imported. Cocoa, coffee, and
cotton generate about 40% of export earnings with cotton being the most important cash
crop. Togo is the world's fourth-largest producer of phosphate. The government's decade-
long effort, supported by the World Bank and the IMF, to implement economic reform
measures, encourage foreign investment, and bring revenues in line with expenditures has
moved slowly. Progress depends on follow through on privatization, increased openness in
government financial operations, progress toward legislative elections, and continued
support from foreign donors. Togo is on track with its IMF Extended Credit Facility and
reached a HIPC debt relief completion point in 2010 at which 95% of the country's debt
was forgiven. Economic growth prospects remain marginal due to declining cotton
production and underinvestment in phosphate mining.
GDP (purchasing power parity):
$5.974 billion (2010 est.)
country comparison to the world: 157
$5.778 billion (2009 est.)
$5.596 billion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$3.194 billion (2010 est.)
GDP - real growth rate:
3.4% (2010 est.)
country comparison to the world: 113
3.2% (2009 est.)
2.4% (2008 est.)
GDP - per capita (PPP):
$900 (2010 est.)
country comparison to the world: 216
$900 (2009 est.)
$900 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 47.4%
industry: 25.4%
services: 27.2% (2009 est.)
Exports - commodities:
reexports, cotton, phosphates, coffee, cocoa
Exports - partners:
Germany 17.57%, Ghana 12.74%, Burkina Faso 11.02%, India 10.22%, Belgium 7.1%,
Benin 6.92%, Netherlands 5.94%, Mali 4.41% (2009)
Imports - commodities:
machinery and equipment, foodstuffs, petroleum products
Imports - partners:
China 36.58%, France 8.64%, Netherlands 6.76%, India 5.06%, US 4.4% (2009)
Extracted from IMF Report - Togo: 2011 Article IV Consultation and Sixth
Review Under the Extended Credit Facility Arrangement (August 2011)
Togo’s economic performance continued its gradual improvement in 2010, marking
progress in overcoming the legacy of its protracted domestic crisis (1990-2005). Economic
growth has accelerated progressively, reaching 3.7 percent in 2010 and a projected 3.9
percent in 2011 despite unfavorable external economic conditions. Macroeconomic
stability has also improved. Public finances have strengthened markedly, thanks to
external debt relief under the HIPC initiative and prudent fiscal policy. Despite global price
shocks, inflation has remained moderate, and the current account deficit, while growing
somewhat, has remained financed in a sustainable manner.
Thanks to strong implementation, Togo’s IMF-supported economic program has broadly
achieved its objectives in 2010. Budget execution was particularly strong in 2010, and all
performance criteria were met by ample margins. Moreover, investment and social
spending execution improved; the increase in the former was intended in part to offset the
impact of the adverse external environment. The program’s structural reforms continued to
advance in 2010.
The improving economic performance and sound policies generally continued in early
2011, despite the adverse impact of the global oil price shock, particularly on fiscal policy.
Concerned with social stability, the authorities initially did not pass through the global oil
price rise to consumers, which led to costly and poorly targeted generalized price
subsidies. To maintain a sustainable fiscal framework in 2011, the authorities adjusted
their policy approach in June, by: beginning to implement a previously adopted automatic
price adjustment mechanism, with a smoothing formula; offsetting partially the costs
incurred with spending savings; and taking temporary, targeted social measures to
cushion the social impact. Stronger public finances have enhanced economic confidence
substantially; care should be taken to preserve these hard-won gains. Despite ongoing
progress, implementation of certain structural reforms has lagged behind plans in 2011. In
particular, preparations for bank privatization—a cornerstone of the program—have begun
moving quickly only recently. Capacity constraints have proven an obstacle, highlighting
the importance of continued public sector reform.
The Article IV consultation discussions focused on fiscal and structural policies to achieve
higher economic growth while maintaining stability. A planned temporary scaling up of
public investment in 2012-14 can support growth without compromising stability under the
authorities’ current policy plans. Continued public financial management reforms are
particularly important in this context. Institutionalizing the commitment to sustainable fiscal
policies will also be important, for example through adoption of a formal policy rule.
Accelerated structural reforms are key for robust, sustained and quality growth. These
reforms also offer important means to enhance Togo’s competitiveness. Its real effective
exchange rate is broadly in line with fundamentals. Priority sectors for reform are banking,
phosphate, telecommunications and energy, where the state plays large roles.
Click here to view full report
Banking
Togo’s banking system was weakened by an ongoing economic crisis in the late 1990s
and early 2000s. Currently, the larger banks, wholly or partially state-owned, have over-
concentrations of loans to the government and parastatal sector. Most of Togolese civil
servants have accounts in the state owned Togolese Development Bank (BTD) because
it is faster and easier for them to receive salaries. Small-scale loans are easier to obtain
at BTD because the process is less complicated than at other banks. Larger enterprises
acquire loans from BTCI, UTB, ECOBANK, and BIA. BTCI is the most popular loan-
granting institution because it grants loans to enterprises after six months of initial
account setup. The amount of the loan depends on the firm’s capacity, activities, and
available assets.
Stock Exchange
Founded in 1998, the Bourse Régionale des Valeurs Mobilières SA ("West African
Regional Stock Exchange") or BRVM, is a regional stock exchange headquartered in
Abidjan, Cote D'Ivoire, serving the following west African countries: Benin, Burkina Faso,
Guinea Bissau, Côte d'Ivoire, Mali, Niger, Senegal and Togo.
Background:
French Togoland became Togo in 1960. Gen.
Gnassingbe EYADEMA, installed as military
ruler in 1967, ruled Togo with a heavy hand for
almost four decades. Despite the facade of
multiparty elections instituted in the early
1990s, the government was largely dominated
by President EYADEMA, whose Rally of the
Togolese People (RPT) party has maintained
power almost continually since 1967 and
maintains a majority of seats in today's
legislature. Upon EYADEMA's death in
February 2005, the military installed the
president's son, Faure GNASSINGBE, and then
engineered his formal election two months
later. Democratic gains since then allowed
Togo to hold its first relatively free and fair
legislative elections in October 2007. After
years of political unrest and condemnation from
international organizations for human rights
abuses, Togo is finally being re-welcomed into
the international community.
Government type:
republic under transition to multiparty
democratic ruleCapital:
name: Lome
time difference: UTC 0 (5 hours ahead of
Washington, DC during Standard Time)
Independence:
27 April 1960 (from French-administered UN
trusteeship)
National holiday:
Independence Day, 27 April (1960)
Constitution:
adopted by public referendum 27 September
1992
Legal system:
French-based court system; accepts
compulsory ICJ jurisdiction with reservations
Suffrage:
18 years of age; universal (adult)
Government:
Chief of state: President Faure GNASSINGBE
(since 4 May 2005);
head of government: Prime Minister Gilbert
HOUNGBO (since 7 September 2008)
cabinet: Council of Ministers appointed by the
president and the prime minister
elections: president elected by popular vote for
a five-year term (no term limits); election last
held on 4 March 2010 (next to be held in 2015);
prime minister appointed by the president
election results: Faure GNASSINGBE reelected
president; percent of vote - Faure
GNASSINGBE 60.9%, Jean-Pierre FABRE
33.9%, Yawovi AGBOYIBO 3%, other 2.2%
For names of current Ministers, click here.
Disputes - international:
!n 2001, Benin claimed Togo moved boundary
monuments - joint commission continues to
resurvey the boundary; in 2006, 14,000
Togolese refugees remain in Benin and Ghana
out of the 40,000 who fled there in 2005
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
French Togoland became Togo in 1960. Gen.
Gnassingbe EYADEMA, installed as military
ruler in 1967, ruled Togo with a heavy hand for
almost four decades. Despite the facade of
multiparty elections instituted in the early
1990s, the government was largely dominated
by President EYADEMA, whose Rally of the
Togolese People (RPT) party has maintained
power almost continually since 1967 and
maintains a majority of seats in today's
legislature. Upon EYADEMA's death in
February 2005, the military installed the
president's son, Faure GNASSINGBE, and then
engineered his formal election two months
later. Democratic gains since then allowed
Togo to hold its first relatively free and fair
legislative elections in October 2007. After
years of political unrest and condemnation from
international organizations for human rights
abuses, Togo is finally being re-welcomed into
the international community.
Government type:
republic under transition to multiparty
democratic ruleCapital:
name: Lome
time difference: UTC 0 (5 hours ahead of
Washington, DC during Standard Time)
Independence:
27 April 1960 (from French-administered UN
trusteeship)
National holiday:
Independence Day, 27 April (1960)
Constitution:
adopted by public referendum 27 September
1992
Legal system:
French-based court system; accepts
compulsory ICJ jurisdiction with reservations
Suffrage:
18 years of age; universal (adult)
Government:
Chief of state: President Faure GNASSINGBE
(since 4 May 2005);
head of government: Prime Minister Gilbert
HOUNGBO (since 7 September 2008)
cabinet: Council of Ministers appointed by the
president and the prime minister
elections: president elected by popular vote for
a five-year term (no term limits); election last
held on 4 March 2010 (next to be held in 2015);
prime minister appointed by the president
election results: Faure GNASSINGBE reelected
president; percent of vote - Faure
GNASSINGBE 60.9%, Jean-Pierre FABRE
33.9%, Yawovi AGBOYIBO 3%, other 2.2%
For names of current Ministers, click here.
Disputes - international:
!n 2001, Benin claimed Togo moved boundary
monuments - joint commission continues to
resurvey the boundary; in 2006, 14,000
Togolese refugees remain in Benin and Ghana
out of the 40,000 who fled there in 2005
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
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| Last Updated: 6 September 2011 |