Togo in 2025: Economic Resilience Amid Political Reforms and Regional Integration

Economic Progress and Development Initiatives

Togo’s economy has shown remarkable resilience, with economic growth reaching 5.3 percent in 2024, while inflation has continued to decline, reaching 2.8 percent in February 2025.

The country’s development strategy is outlined in its 2020-2025 roadmap, which aims to structurally transform the economy to promote growth, social inclusion, job creation, and institutional modernization through digitalization.

Political Reforms and Governance

A significant political transformation occurred in May 2024 when Togo passed a constitutional amendment law, shifting from a presidential to a parliamentary system. Under the new system, the President of the Republic is elected by MPs with reduced executive powers, while the President of the Council of Ministers, appointed from the majority party, holds primary executive authority.

Regional Integration and Security

Togo has strengthened its ties with neighboring countries, particularly regarding trade flows with Sahelian nations. President Faure Gnassingbé has taken a favorable stance towards regional governments, leading to his designation as co-facilitator of trade between ECOWAS and Mali, Niger, and Burkina Faso.

Financial and Development Initiatives

The country has made significant strides in financial inclusion, issuing over 39,142 loans worth CFA4.06 billion between August 2024 and August 2025, primarily supporting income-generating projects, SMEs, and digital finance initiatives. The Maritime Region has approved a substantial budget for social services and infrastructure development.

Challenges and Future Outlook

While Togo faces risks including potential terrorist violence in certain regions, lower agricultural yields, and volatility in world phosphate prices, these challenges can be addressed through effective fiscal policy coordination, continued structural reforms, political dialogue, and social stability.

According to the World Bank, trade openness and increased private investment mobilization will be crucial for unlocking Togo’s growth potential. The country’s development strategy particularly emphasizes the role of regional integration, cross-border trade, and the advantages of the Port of Lomé in accelerating development.