## Togo: Selected Issues

_IMF Staff Country Reports, July 2, 2019_

## Source details

**Canonical URL:** [Togo: Selected Issues](https://www.imf.org/en/publications/cr/issues/2019/07/02/togo-selected-issues-47079)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/07/02/togo-selected-issues-47079/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/07/02/togo-selected-issues-47079/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/07/02/togo-selected-issues-47079/bundle-manifest.json)

## Bibliographic details
- Published: July 2, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498323987.002

---

### Overview and objective
- Investigates state-owned financial institutions’ (SOFIs) performance in developing economies, focusing on Sub-Saharan Africa and the Togolese experience with SOFIs and privatization.
- Context: Togolese government decision to further disengage from the financial sector.

### Main findings on SOFIs and financial stability
- SOFIs are typically set up with a public interest and financial inclusion mandate.
- SOFIs tend to weaken financial stability and fiscal discipline in developing economies, especially if they are not typically regulated and supervised on the same basis as other banks.
- Cross-country and Togo-specific evidence indicate improved performance after privatization under certain conditions.

### Conditions associated with stronger privatization outcomes
- Performance improves more after privatization when:
  - the government fully relinquishes control;
  - banks are privatized to strategic investors rather than through share issues;
  - bidding is open to all, including foreign banks.
- The success of privatization also hinges on:
  - the business environment for competition, governance, and entry;
  - banks’ valuation and how policy concerns are dealt with;
  - owner’s prudential review quality.

### Policy implications for Togo
- Further disengagement from the financial sector should consider:
  - ensuring full relinquishment of control where privatization is pursued;
  - favoring strategic investors in privatization transactions rather than partial share issues;
  - allowing open bidding, including foreign bidders, to improve outcomes;
  - strengthening regulatory and supervisory parity between SOFIs and other banks to protect financial stability and fiscal discipline;
  - addressing business environment constraints—competition, governance, and entry—and ensuring rigorous prudential review of prospective owners.

### Key statistics and publication identifiers
- Publication date: July 2, 2019
- Pages: 49
- Volume: 2019
- Issue: 206
- Series: Country Report No. 2019/206
- DOI: https://doi.org/10.5089/9781498323987.002
- Stock No: 1TGOEA2019002
- ISBN: 9781498323987
- ISSN: 1934-7685

### Subjects and keywords
- Subject: Banking, Commercial banks, Corruption, Crime, Economic sectors, Financial institutions, Health, Privatization, State-owned banks
- Keywords: authority, Commercial banks, Corruption, CR, ECF program, education expenditures in Togo, education outlay, frontier, frontier analysis, Global, health performance, ISCR, outlay, Privatization, social spending, spending leakage, State-owned banks, Sub-Saharan Africa, Togo, WAEMU country

*International Monetary Fund. African Dept. "Togo: Selected Issues", IMF Staff Country Reports 2019, 206 (2019).*

---

## Content in this bundle

- **Togo: Selected Issues; IMF Country Report No. 19/206; June 10, 2019**
  - [Togo: Selected Issues; IMF Country Report No. 19/206; June 10, 2019 (Markdown version)](/-/media/files/publications/cr/2019/1tgoea2019002.pdf.md){rel="alternate" type="text/markdown"}
  - [Togo: Selected Issues; IMF Country Report No. 19/206; June 10, 2019 (PDF)](/-/media/files/publications/cr/2019/1tgoea2019002.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2019/07/02/togo-selected-issues-47079_