## IMF Staff Completes Review Mission to Togo

_IMF News, December 18, 2019_

## Source details

**Canonical URL:** [IMF Staff Completes Review Mission to Togo](https://www.imf.org/en/news/articles/2019/12/18/pr19473-togo-imf-staff-completes-review-mission)

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## Bibliographic details
- Published: December 18, 2019

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### Mission and context
- IMF team led by Mr. Ivohasina Fizara Razafimahefa visited Lomé during December 4-17, 2019 to discuss the sixth and final review of the program supported by IMF’s Extended Credit Facility (ECF).
- The statement reports that, following finalization of discussions, the IMF Executive Board could consider the conclusion of the sixth ECF review.
- The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

### Macroeconomic outlook
- Economic growth:
  - 4.9 percent in 2018
  - 5.3 percent in 2019 (estimated)
  - 5.5 percent in 2020 (estimated)
- Growth drivers and risks:
  - Growth is driven primarily by domestic demand.
  - Some export sectors are showing signs of weaknesses.
- Financial indicators:
  - Credit to the private sector expanded by 3.6 percent (year-on-year).
  - Inflation stood at 0.4 percent (year-on-year) at end-September 2019.

### Fiscal developments and public debt
- Fiscal consolidation:
  - Fiscal consolidation started in 2017 and remains sustained.
  - Overall fiscal deficit estimated at 2.2 percent of GDP at end-September 2019.
- Revenues and expenditures:
  - Revenue collections were on target, with strong customs revenue collections compensating for weaknesses in domestic tax collections.
  - Overall expenditure was less than projected.
- Public debt:
  - Total public debt amounted to 81 percent of GDP at end-2016.
  - Projected to decline to 70 percent of GDP by end-2019.
- Policy emphasis:
  - It would be essential to persevere in fiscal consolidation to further reduce debt vulnerabilities.

### Structural reforms and public financial management
- Revenue administration measures implemented:
  - Creation and harmonization of tax identification numbers.
  - Tele-procedures to reduce compliance costs.
  - Withholding and provisional deposits to secure revenue collections.
  - Internal controls against corruption.
  - Reduction of tax exemptions.
  - Key measures underway to promote voluntary compliance.
- Customs and public investment management:
  - All customs clearance procedures will be progressively automated to reduce opportunities for revenue leakages and improve services to private sector agents.
  - Evaluation and selection of public investment projects have become more rigorous; all new projects must go through a cost-benefit analysis before inclusion in the public investment program.
- Budgeting:
  - The shift to program-based budgeting is planned to start from 2021.
- Expected impact:
  - Continued implementation of these reforms will improve the efficiency of public expenditure.

### Financial sector reforms
- Progress and actions:
  - Reforms in the financial sector are progressing and discussions are underway.
  - A prequalification notice for the privatization of the two public banks was announced in international financial news outlets; the prequalification process is underway.
- Priorities and risks:
  - It is essential to finalize the reforms in these two public banks to safeguard financial stability and minimize risks to the State budget.
  - Non-performing loans in the banking sector remain high.
  - Priority will be given to strengthening the legal and institutional frameworks for the recovery of such loans.

### Business environment and governance
- Improvements:
  - The Togolese authorities have made highly commendable progress to improve the business environment; Togo is amongst the best reforming countries in the World under the latest Doing Business Indicators.
- Institutional reforms:
  - Authorities are engaged in institutional reforms to strengthen governance.

### Meetings and next steps
- The mission held discussions with:
  - Mr. Sani Yaya (Minister of Economy and Finance)
  - Mr. Kossi Ténou (National Director of the Central Bank BCEAO)
  - Other senior officials, as well as representatives of the private sector and development partners.
- Next steps:
  - Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.

*Press Release No. 19/473, IMF Communications Department, December 18, 2019.*

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## References

- [Togo and the IMF](http://www.imf.org/external/country/TGO/index.htm)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2019/12/18/pr19473-togo-imf-staff-completes-review-mission_