Togo’s economy set for 5.5% annual growth

By:

Judith Ugwumadu

11 Aug 15

Togo’s economy will grow by 5.5% on average each year between 2015 and 2018, but attaining this will be a challenge if the country fails to implement “simple” reforms that modernise public finance administration and strengthen debt management, the International Monetary Fund said.

The IMF’s economic growth projection for Togo was up slightly from the 5.4% achieved in 2013/14.

But the international lender said Togo’s aspiration to increase potential growth and become a regional transit hub “call for policies that strike the right balance”.

“To become a commercial and transportation hub, it will be important to facilitate the development of key sectors, such as energy and telecommunications in particular, and to continue improving the business climate and the efficiency of public investment projects,” Cemile Sancak, staff team leader said following the conclusion of an Article IV mission.

“The authorities also need to prioritise simple but essential reforms with maximum impact, such as improving the performance of the Revenue Authority, modernising public finance administration, and strengthening debt and liquidity management.”

The government is expected to cut down its current account deficit to 12.3% of gross domestic product in 2015 thanks to lower oil prices. This is projected to fall further to 9.6% of GDP by 2020 provided Togo narrows its fiscal deficit in the coming years, the IMF said.

Public debt is expected to remain high, mainly reflecting continued investments in public infrastructure which has been funded by borrowing on the sub-regional market and external loans, it added.

Judith Ugwumadu

Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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