Togo secures significant financial agreement with IMF for $400 Million credit facility
Togo has recently finalized a substantial financial agreement with the International Monetary Fund (IMF) for a credit facility of nearly $400 million. The IMF mission, led by Hans Weisfeld, took place from November 29 to December 8, 2023, in Lomé, during which discussions were held with Togolese authorities.
The 42-month agreement, supported by the Extended Credit Facility (ECF), amounts to 293.6 million SDRs, approximately $400 million.
The primary objective of this agreement is to promote inclusive economic growth through public investments and social protection measures.
Hans Weisfeld emphasized that the economic program developed by Togolese authorities aims to maintain economic stability, strengthen debt sustainability, and lay the groundwork for stronger and more inclusive growth.
The program will be submitted for approval to the IMF’s management and board of directors.
Togolese authorities have committed to implementing an extensive economic reform program aligned with the government’s development plan.
The reforms include reducing the budget deficit to 3% of GDP by 2025 while preserving growth-friendly expenditures.
The budget strategy relies on ambitious measures to increase domestic resource mobilization and streamline public spending.
Additionally, Togolese authorities intend to enhance social protection by expanding cash transfers, based on the creation of a single social registry and a biometric identification platform.
Structural reforms will also be implemented to support the budget strategy, such as broadening the tax base, improving tax collection efficiency, digitizing government procedures, and enhancing financial stability.
In summary, this agreement with the IMF marks a significant step in strengthening Togo’s economic stability, with a clear commitment from authorities to implement important reforms to foster inclusive growth and financial sustainability.
Kodjovi Makafui
