Togo and the IMF sign a $400 million agreement
The Togolese authorities concluded on Friday in Lomé a 42-month agreement under the Extended Credit Facility (ECF) with a delegation from the International Monetary Fund (IMF), led by Hans Weisfeld, for an estimated amount of around 400 million dollars. The goal is to enhance services on economic policies and implement new reforms.
The agreement was reached following an IMF mission that stayed in Togo from November 29th to December 8th, 2023. The discussions aimed at fostering open and constructive cooperation between the Togolese authorities and the IMF team.
«This agreement holds crucial importance for Togo, addressing urgent expenditure needs, especially in tackling growing security concerns and preserving social stability. The main objective of the authorities’ reform program is to maintain macroeconomic stability while enhancing debt sustainability», explained Sani Yaya, Minister of Economy and Finance.
In their commitment to laying the groundwork for stronger and more inclusive growth, the Togolese authorities are making ambitious efforts to increase fiscal revenues by 0.5% of GDP annually, thereby supporting budget consolidation. This approach will facilitate increased public spending for growth, particularly through public investments and social protection measures. The authorities also aim to strengthen financial stability and continue efforts to improve the business climate.
For Mr. Weisfeld, head of the IMF delegation, emphasizing the significance of this agreement, «the Togolese authorities have committed to implementing an extensive economic reform program that aligns with the government’s development plan…».
«This plan addresses urgent challenges, notably security issues. Key reforms aim to reduce the budget deficit to 3% of GDP by 2025 while preserving essential expenditures to support growth and enhance economic inclusion», he stated.
The budget strategy relies on ambitious measures to boost domestic resource mobilization and streamline public spending. The authorities also plan to bolster social protection, including through expanding cash transfers.
The IMF mission held high-level meetings with the President of Togo, Faure Gnassingbé, the Prime Minister, Victoire Tomegah Dogbé, the Minister of Economy and Finance, Sani Yaya, and the Advisor to the National Director of the Central Bank of West African States (BCEAO) for Togo, Adjatougbė Ameyo Fioklou.
