Economic activity has been resilient in Togo over the last few years thanks in part to fiscal stimulus which now needs to be unwound to reduce deficits and put public debt on a sustainable trajectory. While Togo's recent economic performance has been positive, it still fell short of regional peers such as Benin and Cote d'Ivoire, or more aspirational ones like Bangladesh or Vietnam. This can mostly be attributed to structural factors, including a relatively muted contribution of capital deepening to Togo's potential growth
the predominance of low yielding agricultural practices
persistently large disparities in economic opportunities and access to basic services between rural and urban areas
a highly concentrated private sector
and limited strides in industrialization despite the expansion of port activities and the development of agro-processing and other industrial zones. The economic outlook remains positive for the next few years, contingent upon enacting adequate policy decisions and implementing ambitious reforms. This 2024 Economic Update for Togo is articulated in two chapters. The first chapter presents recent economic and poverty developments, as well as the outlook, key risks, and priorities to lift growth and accelerate structural transformation. The second chapter offers a deep dive on the likely impact of climate change on the agriculture sector in Togo and how scaling up agroforestry systems could help smallholder farmers increase their welfare, while boosting food security, preventing the loss of arable land, and reducing carbon emissions.