May 21, 2026
PRESS OFFICER: Julie Ziegler
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Washington, DC: An International Monetary Fund (IMF) staff team, led by Tidiane Kinda, held discussions with Togolese authorities in Washington in late April and in Lomé during May 11–19, 2026, on policies to conclude the combined third and fourth reviews under Togo’s Extended Credit Facility (ECF) arrangement. The discussions focused on recent economic developments, program performance, and policy priorities going forward.
At the conclusion of the discussions, Mr. Kinda issued the following statement:
“The IMF team reached a staff-level agreement with the authorities on the combined third and fourth reviews of Togo’s economic reform program supported by the ECF arrangement. The agreement is subject to approval by the IMF Executive Board and the observance of all relevant Fund policies. Upon completion of the reviews, Togo would have access to SDR 80.74 million (about USD 110.8 million), bringing total disbursements under the arrangement to SDR 220.2 million (about USD 302.2 million).
“Togo’s economy has continued to demonstrate resilience despite a challenging global and domestic environment. In 2025, real GDP grew by approximately 6 percent, supported by strong activity in the services sector, while inflation moderated. The economic outlook for 2026 points to a temporary softening of activity and higher inflation, largely reflecting spillovers from heightened global geopolitical tensions, notably the conflict in the Middle East. Medium-term growth prospects depend on further progress on structural reforms. The outlook remains subject to persistent security challenges in the region, geopolitical tensions, and climate shocks. Rising and volatile energy and food prices could increase inflation and social pressures, while financial and external vulnerabilities persist. Maintaining fiscal discipline and prudent financing will be essential to safeguard debt sustainability. In the medium term, ongoing fiscal consolidation, infrastructure investment, and structural reforms should mitigate these risks.
Program implementation under the ECF arrangement has been broadly satisfactory. Most quantitative performance criteria under the third and fourth reviews were met. Progress on structural reforms has been satisfactory. Since the completion of the second review, seven of eight structural benchmarks have been met, including measures to strengthen public financial management, enhance fiscal transparency, and improve oversight of state-owned enterprises. Social and pro-poor spending targets were met, underscoring the authorities’ commitment to protecting vulnerable populations during the adjustment process.
“The program continues to target a strengthening of public finances while preserving fiscal space for investment and social protection. Fiscal performance in 2025 was solid with the fiscal deficit declining to 3.2 percent of GDP, supported by expenditure restraint despite some revenue underperformance. However, the execution of the 2026 budget is facing additional pressures stemming from the energy shock related to the conflict in the Middle East. In this context, IMF staff and the authorities discussed the impact of the shock on public finances and the appropriate policy response, underscoring the need to carefully balance efforts to contain fiscal pressures with the protection of the most vulnerable through well-targeted mitigating measures. Despite these challenges, the authorities remain committed to their medium-term objective of ensuring debt sustainability, including by reducing the fiscal deficit to 3 percent of GDP by 2027, supported by revenue mobilization efforts under the forthcoming Medium-Term Mobilization Strategy), while safeguarding social protection spending.
“Strengthening the financial sector and implementing structural reforms remain critical to reducing fiscal risks and supporting private-sector-led growth. IMF staff welcomed the authorities’ commitment to continue addressing pockets of vulnerabilities in the banking sector. Strengthening performance of state-owned enterprises, especially in the energy sector, remains a priority to contain fiscal pressures and improve service delivery. Structural reforms to improve governance and the business environment should be pursued to support competitiveness, investment, and inclusive growth.
“The IMF team would like to thank the Togolese authorities for their strong cooperation, constructive dialogue, and continued commitment to the program’s objectives. Meetings were held with the Minister of Finance and Budget, the National Director of BCEAO (Central Bank of West African States), other senior government officials, civil society organizations, representatives of the private sector, and development partners.”
