The Executive Board of the International Monetary Fund (IMF) has completed the combined third and fourth reviews under the Extended Credit Facility (ECF) arrangement for Togo, enabling an immediate disbursement of SDR 80.74 million approximately USD 109.5 million to the country.
In a statement released on July 29,2026 the fund added that the following this agreement, the total disbursements under the arrangement now stands at SDR 220.2 million, or approximately USD 298.63 million.
The ECF arrangement was originally approved by the Executive Board in March 2024 for a total amount of SDR 293.6 million approximately USD 403.4 million to support Togo’s economic reform agenda aimed at addressing the legacies of the COVID-19 pandemic and the increase in global food and fuel prices while laying the foundations for stronger and more inclusive growth.
In completing the review, the Deputy Managing Director and Acting Chair of the fund, Mr. Kenji Okamura stated that despite a challenging regional and external environment, performance under the ECF-supported programme has been broadly satisfactory and the economy has remained resilient in the face of successive shocks.
Economy Resilient Despite Headwinds
A look into the macroeconomic environment revealed a real GDP growth by approximately 6 percent in 2025, led by the services sector, while inflation eased with this growth however expected to soften temporarily in 2026 and inflation to rise, mainly due to spillovers from heightened geopolitical tensions,particularly the war in the Middle East.
Programme Performance Broadly Satisfactory
The IMF stated that most quantitative performance criteria for the review period were met and progress on structural reforms has been strong.
Since the completion of the second review, seven of eight structural reforms have been implemented,including measures to improve public financial management, fiscal transparency, and oversight of state-owned enterprises.
Mr. Okamura further stated that sustaining fiscal consolidation to preserve debt sustainability and return to the WAEMU fiscal deficit convergence target remains essential.
Banking Sector Vulnerabilities Flagged
The Deputy Managing Director stated that addressing banking sector vulnerabilities requires prompt and decisive action, describing the launch of an independent asset quality review of a weak financial institution as an important step.
“Timely analysis of risks and vulnerabilities, followed by a credible strategy that safeguards financial stability, ensures transparency, and contains fiscal costs, will be critical to move forward,” he stated.
Structural Reforms and Governance
Mr. Okamura emphasised that structural reforms should remain focused on areas critical to supporting growth and mitigating fiscal risks including strengthening governance and financial viability in the electricity sector, particularly for the state-owned utility company, and enhancing fiscal reporting, debt transparency, and oversight of state-owned enterprises.
He additionally called for stronger anti-corruption frameworks, timely publication and implementation of the Governance Diagnostic Assessment recommendations, and improved anti-money laundering and counter-financing of terrorism effectiveness.
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