The IMF Executive Board has completed the third and fourth reviews of Togo’s Extended Credit Facility (ECF) programme, unlocking an immediate disbursement of about SDR 80.74 million (USD 109.5 million), bringing total support to roughly USD 298.63 million since the arrangement began in March 2024.
Despite minor breaches of certain fiscal and external borrowing targets—attributed to delays in financing flows and administrative constraints—the Board granted waivers, citing their temporary and limited nature.
Overall programme performance was assessed as broadly satisfactory, with most quantitative targets met and strong progress on structural reforms, including improvements in public financial management, fiscal transparency, and oversight of state-owned enterprises. Social and pro-poor spending commitments were also fulfilled.
Togo’s economy has demonstrated resilience, recording around 6% growth in 2025, driven mainly by services, alongside easing inflation. However, the outlook for 2026 points to a temporary slowdown and inflationary pressures, shaped by geopolitical tensions, notably in the Middle East, as well as persistent global risks such as commodity volatility, regional insecurity, climate shocks, and energy market instability.
The IMF underscored the need for sustained fiscal discipline to safeguard debt sustainability and support convergence within the WAEMU framework. It also highlighted the importance of broadening the tax base, improving revenue mobilisation, and maintaining efficient, well-targeted social spending, particularly in the face of fuel price shocks.
In the financial sector, the Fund called for decisive action to address vulnerabilities, including an independent asset quality review and a credible roadmap to reinforce stability while containing fiscal exposure.
Looking ahead, the reform agenda is anchored on strengthening governance, improving state-owned enterprise oversight—especially in the electricity sector—and deepening anti-corruption, debt transparency, and AML/CFT frameworks. The overarching message is one of cautious confidence: resilience has been proven, but durability will depend on disciplined reforms and steady stewardship in an uncertain global climate.