Togo

Gary Smith November 9, 2017

Togo, officially the Togolese Republic (French: République togolaise), is a country in West Africa. It is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It is one of the least developed countries and extends south to the Gulf of Guinea, where its capital, Lomé, is located. It is a small, tropical country, which covers 56,785 square kilometers (22,000 square miles) and has a population of approximately 8.6 million, [in 2021] and has a width of less than 115 km (71 mi) between Ghana and its eastern neighbor Benin.

Various people groups settled the boundaries of present-day Togo between the 11th to 16th centuries. Between the 16th and 18th centuries, the coastal region served primarily as a European slave trading outpost, earning Togo and the surrounding region the name “The Slave Coast”. In 1884, Germany declared a region including a protectorate called Togoland. After World War I, rule over Togo was transferred to France. Togo gained its independence from France in 1960. In 1967, Gnassingbé Eyadéma led a successful military coup d’état, after which he became president of an anti-communist, single-party state. In 1993, Eyadéma faced multiparty elections marred by irregularities, and won the presidency three times. At the time of his death, Eyadéma was the “longest-serving leader in modern African history”, having been president for 38 years. In 2005, his son Faure Gnassingbé was elected president.

Togo is a tropical, sub-Saharan nation whose economy depends mostly on agriculture. The official language is French, but other languages are spoken, particularly those of the Gbe family. 47.8% of the population adhere to Christianity, making it the largest religion in the country. Togo is a member of the United Nations, African Union, Organisation of Islamic Cooperation, South Atlantic Peace and Cooperation Zone, Francophonie, Commonwealth, and Economic Community of West African States.

Agriculture

Agriculture contributes more than 40% of Togo’s GDP, employing nearly two-thirds of its workforce. With over 3.6 million hectares of cultivable land, the growth potential in the industry is virtually limitless. Cultivable land makes up 60% of the total Togolese territory. Out of this arable land, only 1.4 million hectares of the area get sown.  

Contrasting these facts, we understand that agriculture is the main driving force for the economy. When it comes to Togo’s soil, it has relatively rich soil, with lands in the Plateaux region being highly fertile. Since 1975, the country’s green revolution has made many efforts to remain self-sufficient and achieved the national program for agricultural investment and food security (PNIASA). 

Besides improving Togo’s agricultural output, the government mustered efforts to modernize this sector. It focused on improving farmers’ access to finance for quality production, introducing agroforestry practices, enhanced agricultural research, mechanization, and use of fertilizers, developing agricultural value chains, and helping Agri-entrepreneurs invest in the country.

With cash crops like cassava, maize, yam, cotton, palm oil, rice, peanut, and coffee accounting for a significant percentage of Togo’s foreign exchange earnings, the commercial farming contributions are vital for its economic growth.

Poverty

The poverty level is twice as high in rural areas (58.8%) as in urban areas (26.5%).

This is due in large measure to concentrated economic growth in the modern sectors and limited access to quality services. Poverty is higher in female-headed households (45.7%) than in male-headed households (45.2%). Women remain more vulnerable, as they have less access to economic opportunities, education, health, and other basic socioeconomic facilities.

Togo’s score on the human capital index (HCI) is 0.43. This means that children born in Togo today will be only 43% as productive when they grow up as they could be if they had access to good health, education, and nutrition.

Political Context

The ruling Union pour la République (UNIR) party has dominated the political scene for several years and won 59 of the 91 seats in the National Assembly in the 2018 elections. Victory in the presidential elections held on February 22, 2020, returned Faure Gnassingbé to power for a fourth five-year term as Head of State.

On September 28, 2020, Victoire Tomégah-Dogbé was appointed prime minister, the first woman to hold this office in Togo. Togo held municipal elections in June 2019 for the first time in 32 years, and the UNIR secured 878 of 1,490 seats.

Economic Future

After a post-COVID rebound in 2021, growth slowed in 2022 owing to war-related disruptions in Ukraine, leading to lower export earnings and an increase in the cost of living that was only partially offset by increased government spending. A sharp increase in food and energy prices pushed headline inflation to a 20-year high of 7.5% in 2022, contributing to a significant slowdown in consumer spending. Rising energy and fertilizer costs have also had a negative impact on the agriculture sector. In this context, extreme poverty has increased to 30.6% nationally and 45.9% in rural areas.

Rising inflation and insecurity in the Savannah region have led the government to implement emergency spending in a revised 2022 budget, including higher subsidies for fertilizers and fuel, tax exemptions, wage and pension increases in the public sector, amounting to 1.3% of GDP, and new investment spending for security purposes amounting to 2% of GDP. These emergency measures contributed to an increase in the fiscal deficit to 8.3% of GDP in 2022, up from 4.8% in 2021. Public debt also increased from 63.6% of GDP in 2021 to 68% of GDP in 2022.

Growth is projected to stabilize at 4.9% in 2023. With the global economy recovering in 2024-25, growth is also expected to strengthen in Togo, reaching 5.3% in 2024 and 5.5% in 2025. However, fiscal consolidation measures and tighter financing conditions will dampen domestic demand. While extreme poverty is expected to remain high at 30.7% in 2023, it is projected to gradually decrease to 30.1% in 2024 and 29.5% in 2025 thanks to moderating inflation and the recovery of agricultural production.

The government’s fiscal consolidation plan, which includes reduced investment spending and increased revenue mobilization, is expected to narrow the deficit to 4.5% of GDP in 2025, which is still above the WAEMU convergence criterion of 3%. While external debt distress risks are moderate, high domestic debt, continued refinancing pressures, and tighter global financing conditions are a source of vulnerability. Downside risks to the outlook also stem from regional security threats.

If you decide to travel to Togo:

Keep a low profile.
Be aware of your surroundings.
Stay alert in locations frequented by Westerners.
Be extra vigilant when visiting banks or ATMs.
Do not physically resist any robbery attempt.
Do not display signs of wealth, such as expensive watches or jewelry.
Avoid demonstrations and crowds.
Monitor local media for breaking events and be prepared to adjust your plans.
Keep travel documents up to date and easily accessible.
Have evacuation plans that do not rely on U.S. government assistance.

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