Editing Economy of Togo

{{Short description|none}}
{{Infobox economy
|country         = Togo
|image           = Togo phosphates mining.jpg
|image_size      = 310px
|caption         = [[Phosphate]] mining in [[Togo]]
|currency        = [[West African CFA Franc]] (XOF)
|fixed exchange  = 1 [[USD]] = {{IncreaseNegative}} 566.06,1 [[XOF]] ({{As of|2018|alt=2018}}) <ref>{{cite web | url=http://www.worldforexrates.com/usd/xof/1-exchange-rate/ | title=U.S. Dollar (USD) to West African CFA Franc (XOF) Exchange Rate & Converter }}</ref>
|organs          = [[African Union|AU]], [[African Continental Free Trade Area|AfCFTA]], [[Community of Sahel–Saharan States|CEN-SAD]], [[Economic Community of West African States|ECOWAS]], [[WTO]]
|group           = {{plainlist|
*[[Least developed countries|Least Developed]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[Least Developed Countries|Low-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
|population      = {{increase}} 8,608,444 (2020 est.)<ref name="CIAWFTO">{{cite web |title=AFRICA :: TOGO |url=https://www.cia.gov/the-world-factbook/countries/togo/ |website=CIA.gov |publisher=[[Central Intelligence Agency]] |access-date=6 March 2020}}</ref>{{refn|group=note|estimates for this country explicitly take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality, higher death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected<ref name="CIAWFTO"/>}}
|gdp             = {{plainlist|
*{{increase}} $9.766 billion (nominal, 2024 est.)<ref name="IMFWEOTG">{{cite web |title=World Economic Outlook Database, October 2024 |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=742,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,GGXWDG_NGDP,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |website=IMF.org |publisher=[[International Monetary Fund]] |access-date=25 January 2025}}</ref>
*{{increase}} $30.563 billion ([[Purchasing power parity|PPP]], 2024 est.)<ref name="IMFWEOTG"/>}}
|gdp rank        = {{plainlist|
*[[List of countries by GDP (nominal)|148th (nominal, 2024)]]
*[[List of countries by GDP (PPP)|149th (PPP, 2024)]]}}
|growth          = {{plainlist|
*5.8%&nbsp;(2022) 5.6%&nbsp;(2023)
*5.3%&nbsp;(2024e) 5.3%&nbsp;(2025f)}}
|per capita      = {{plainlist|
*{{increase}} $1,051 (nominal, 2024 est.)<ref name="IMFWEOTG"/>
*{{increase}} $3,290 (PPP, 2024 est.)<ref name="IMFWEOTG"/>}}
|per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|170th (nominal, 2024)]]
*[[List of countries by GDP (PPP) per capita|169th (PPP, 2024)]]}}
|components      =
|sectors         = {{plainlist|
*[[agriculture]]: 28.1%
*[[Industrial sector|industry]]: 21.6%
*[[Service (economics)|services]]: 50.3%
*({{As of|2017|alt=2017}})<ref name="cia.gov">{{cite web| url = https://www.cia.gov/the-world-factbook/countries/togo/| title = The World Factbook| date = 10 May 2022}}</ref>}}
|inflation       = 2.0% (2020 est.)<ref name="IMFWEOTG"/>
|poverty         = {{plainlist|
*{{IncreaseNegative}} 55.1% ({{As of|2015|alt=2015}})<ref name="cia.gov" />
*49.2% on less than $1.90/day (2015)<ref>{{cite web |title=Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) - Togo |url=https://data.worldbank.org/indicator/SI.POV.DDAY?locations=TG |website=data.worldbank.org |publisher=World Bank |access-date=6 March 2020}}</ref>}}
|gini            = 43.1 {{color|darkorange|medium}} (2015)<ref>{{cite web |title=GINI index (World Bank estimate) - Togo |url=https://data.worldbank.org/indicator/SI.POV.GINI?locations=TG |website=data.worldbank.org |publisher=World Bank |access-date=6 March 2020}}</ref>
|hdi             = {{plainlist|
*{{increase}} 0.513 {{color|red|low}} (2018)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref> ([[List of countries by Human Development Index|167th]])
*0.350 [[List of countries by inequality-adjusted HDI|IHDI]] (2018)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref>}}
|labor           = {{formatnum:3807000}} ({{As of|2020|alt=2020}})
|occupations     = {{plainlist|
*agriculture 69%
*industry 6%
*services 25%
*({{As of|2008|alt=2008}})}}
|unemployment    = 3.95% ({{As of|2016|alt=2020}})
|edbr            = {{increase}} [[Easiest place to do business|97th (easy, 2020)]]<ref>{{cite web|url=http://www.doingbusiness.org/data/exploreeconomies/togo |title=Ease of Doing Business in Togo |publisher=Doingbusiness.org |access-date=2017-01-23 }}</ref>
|industries      = [[phosphate]] mining, agricultural processing, [[cement]], [[handicraft]]s, [[textiles]], beverages
|exports         = {{Increase}} $1.002 billion ({{As of|2017|alt=2017}})
|export-goods    = re exports, cotton, phosphates, coffee, cocoa
|export-partners = {{plainlist|
*{{flag|Benin}} 17.5%
*{{flag|Burkina Faso}} 15.9%
*{{flag|India}} 7.6%
*{{flag|Mali}} 7.2%
*{{flag|Niger}} 7%
*{{flag|Côte d’Ivoire}} 6.1%
*{{flag|Ghana}} 4.8%
*{{flag|Nigeria}} 4.3%
*(2015)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#to|archive-url=https://web.archive.org/web/20070613004055/https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#to|url-status=dead|archive-date=June 13, 2007|title=Export Partners of Togo|publisher=[[CIA World Factbook]]|year=2015|access-date=26 July 2016}}</ref>}}
|imports         = {{Increase}} $2.009 billion ({{As of|2017|alt=2017}})
|import-goods    = machinery and equipment, foodstuffs, petroleum products
|import-partners = {{plainlist|
*{{flag|China}} 22.9%
*{{flag|Belgium}} 20.3%
*{{flag|Netherlands}} 11.9%
*{{flag|France}} 6.6%
*{{flag|India}} 4.8%
*{{flag|Singapore}} 4.4%
*(2015)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#to|archive-url=https://web.archive.org/web/20070613003031/https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#to|url-status=dead|archive-date=June 13, 2007|title=Import Partners of Togo|publisher=[[CIA World Factbook]]|year=2015|access-date=26 July 2016}}</ref>}}
|gross external debt = {{DecreasePositive}} $1.387 billion ({{As of|2017|alt=2017}})
|FDI             = $451 million ({{As of|2017|alt=2017}})<ref>{{cite web|url=https://www.indexmundi.com/facts/togo/foreign-direct-investment |title=Togo - Foreign direct investment |publisher=Indexmundi.com |date=2019-12-28 |accessdate=2022-03-21}}</ref>
|debt            = {{DecreasePositive}} $391 million ({{As of|2017|alt=2017}})
|revenue         = {{Increase}} $1.469 billion ({{As of|2017|alt=2017}})
|expenses        = {{Increase}} $1.7 billion ({{As of|2017|alt=2017}})
|reserves        = $215.1 million ({{As of|2017|alt=2017}})<ref>{{cite web |title=The World Fact Book: Economic Overview - Togo |url=https://www.cia.gov/the-world-factbook/countries/togo/ |website=Central Intelligence Agency|date=10 May 2022 }}</ref>
|cianame         = togo
}}
The '''economy of [[Togo]]''' has struggled greatly. The [[International Monetary Fund]] (IMF) ranks it as the tenth poorest country in the world,<ref>{{cite web|url=http://www.imf.org/external/ns/cs.aspx?id=28|title=IMF World Economic Outlook Database List, information about Gross Domestic Product (GDP)|website=www.imf.org|access-date=2018-09-08}}</ref> with development undercut by political instability, lowered commodity prices, and external debts. While industry and services play a role, the economy is dependent on [[subsistence agriculture]], with industrialization and regional banking suffering major setbacks.

In January 2017, the IMF signed an Extended Credit Facility arrangement, consisting of a three-year $238 million loan package. Progress depends on follow through on privatization, increased transparency in government financial operations, progress toward legislative elections, and continued support from foreign donors.<ref>{{cite web |title=Togo - Economy:Togo |url=https://www.cia.gov/the-world-factbook/countries/togo/ |website=Central Intelligence Agency|date=10 May 2022 }}</ref>

==Agriculture==
The majority of the Togolese population depends on subsistence agriculture. Its agricultural products includes coffee, cocoa, cotton, yams, cassava (tapioca), corn, beans, rice, pearl millet, sorghum and livestock such as fish. Food and [[cash crop]] production employs the majority of the labor force and contributes about 42% to the [[gross domestic product]] (GDP). [[Coffee]] and [[Cocoa bean|cocoa]] are traditionally the major cash crops for export, but [[cotton]] cultivation increased rapidly in the 1990s, with 173,000 [[metric tons]] produced in 1999.

After a disastrous harvest in 2001 (113,000 metric tons), cash crops production rebounded to 168,000 metric tons in 2002. Despite insufficient rainfall in some areas, the [[Togolese Government]] has achieved its goal of self-sufficiency in food crops &mdash; [[maize]], [[cassava]], [[yam (vegetable)|yams]], [[sorghum]], [[pearl millet]], and [[peanut|groundnut]]. Small and medium-sized farms produce most of the food crop; the average farm size is one to three [[hectare]]s.

Togo produced in 2018:

* 1 million tons of [[cassava]];
* 886 thousand tons of [[maize]];
* 858 thousand tons of [[Yam (vegetable)|yam]];
* 277 thousand tons of [[sorghum]];
* 207 thousand tons of [[beans]];
* 156 thousand tons of [[palm oil]];
* 143 thousand tons of [[vegetable]];
* 145 thousand tons of [[rice]];
* 127 thousand tons of [[cotton]];
* 43 thousand tons of [[peanut]];
* 41 thousand tons of [[Cocoa bean|cocoa]];
* 26 thousand tons of [[millet]];
* 26 thousand tons of [[banana]];
* 21 thousand tons of [[coffee]];

In addition to smaller productions of other agricultural products.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = Togo production in 2018, by FAO}}</ref>

[[Choco Togo]] is the country's first [[List of bean-to-bar chocolate manufacturers|bean-to-bar chocolate manufacturer]].

==Industry==

===Mining===

In the industrial sector, [[phosphates]] are Togo's most important [[commodity]], and the country has an estimated 60 million metric tons of phosphate reserves. From a high point of 2.7 million tons in 1997, production dropped to approximately 1.1 million tons in 2002. The fall in production is partly the result of the depletion of easily accessible deposits and the lack of funds for new investment. The formerly state-run company Société Nouvelle des Phosphates du Togo (New Phosphate Company of Togo) appears to have benefited from private management, which took over in 2001. Togo also has substantial [[limestone]] and [[marble]] deposits.

Encouraged by the commodity boom of the mid-1970s, which resulted in a fourfold increase in phosphate prices and sharply increased government revenues, Togo embarked on an overly ambitious program of large investments in [[infrastructure]] while pursuing [[industrialization]] and development of state enterprises in [[manufacturing]], [[textiles]], and [[beverage]]s. However, following declines in world prices for commodities, its economy became burdened with fiscal imbalances, heavy borrowing, and unprofitable [[state enterprises]].

=== Other ===
While Togo itself produces no crude oil, it is the namesake of an illegal market for stolen oil off the [[Niger Delta]], called the Togo Triangle.<ref name="NPR_301014">{{cite web|url=https://www.npr.org/blogs/money/2014/10/29/359624435/episode-578-how-to-steal-a-million-barrels-of-oil|title=How To Steal A Million Barrels Of Oil|last1=Smith|first1=Robert|last2=Simon|first2=Julia|date=30 October 2014|work=[[Planet Money]]|publisher=NPR|access-date=1 November 2014}}</ref>

== IMF relationship ==
Togo turned to the IMF for assistance in 1979, while simultaneously implementing a stringent adjustment effort with the help of a series of IMF standby programs, [[World Bank]] loans, and [[Paris Club]] debt rescheduling. Under these programs, the Togolese Government introduced a series of austerity measures and major restructuring goals for the state enterprise and rural development sectors. These reforms were aimed at eliminating most state monopolies, simplifying taxes and customs duties, curtailing public employment, and privatizing major state enterprises. Togo made good progress under the international financial institutions' programs in the late 1980s, but movement on reforms ended with the onset of [[History of Togo#Opposition|political instability in 1990]]. With a new, elected government in place, Togo negotiated new 3-year programs with the World Bank and IMF in 1994.

Togo returned to the Paris Club in 1995 and received [[Naples terms]], the club's most concessionary rates. With the economic downturn associated with Togo's political problems, scheduled external debt service obligations for 1994 were greater than 100% of projected government revenues (excluding bilateral and multilateral assistance). By 2001, Togo was embarked on an [[IMF Staff Monitored Program]] designed to restore macroeconomic stability and financial discipline but without any new IMF resources pending new legislative elections. New IMF, World Bank and [[Africa Development Bank]] (ADB) lending must await the willingness of Togo's traditional donors &ndash; the [[European Union]], principally, but the US also &ndash; to resume aid flows. So far, Togo's problematic legislative and presidential elections and the government's continued unwillingness to transition from an [[Gnassingbé Eyadéma|Eyadéma]]-led autocracy to democracy have deterred these donors from providing Togo with more aid. As of the fall 2002, Togo was $15 million in arrears to the World Bank and owed $3 million to the ADB.

Togo is one of 16 members of the [[Economic Community of West African States]] (ECOWAS). The ECOWAS development fund is based in Lomé. Togo also is a member of the [[West African Economic and Monetary Union]] (UEMOA), which groups seven West African countries using the [[CFA franc]]. The [[West African Development Bank]] (BOAD), which is associated with UEMOA, is based in [[Lomé]]. Togo long served as a regional banking center, but that position has been eroded by the political instability and economic downturn of the early 1990s. Historically, France has been Togo's principal trading partner, although other European Union countries are important to Togo's economy. Total United States trade with Togo amounts to about $16 million annually.

==Open Market==
Trade is extremely important to Togo's economy; the combined value of exports and imports equals 105 percent of GDP. The average applied tariff rate is 11.4 percent. Non-tariff barriers impede some trade. Government openness to foreign investment is above average. Capital transactions are subject to some controls or government approval. The evolving banking system continues to expand but lacks liquidity.<ref>{{cite web|title=Togo Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption|url=https://www.heritage.org/index/country/togo|archive-url=https://web.archive.org/web/20090115143303/http://www.heritage.org/index/country/Togo|url-status=unfit|archive-date=January 15, 2009|access-date=2021-10-25|website=www.heritage.org|language=en}}</ref>

==Statistics==
The following table shows the main economic indicators in 1980–2024.<ref>{{Cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=742,&s=NGDP_RPCH,NGDPD,PPPGDP,PPPPC,PCPIPCH,GGXWDG_NGDP,&sy=1980&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |access-date=2025-01-25 |website=IMF |language=en}}</ref>
{| class="wikitable" style="text-align:center; vertical-align:middle;"
|- style="font-weight:bold;"
! Year
! GDP<br />(in bil. US$ PPP)
! GDP per capita<br />(in US$ PPP)
!GDP<br />(in bil. US$ nominal)
! GDP growth<br />(real)
! Inflation<br />(in Percent)
! Government debt<br />(Percentage of GDP)
|-
|'''1980'''
|2.6
|934
|2.0
|−2.3%
|12.3%
|n/a
|-
|'''1981'''
|2.8
|955
|1.7
|−3.4%
|19.7%
|n/a
|-
|'''1982'''
|2.8
|942
|1.4
|−3.7%
|11.1%
|n/a
|-
|'''1983'''
|2.8
|898
|1.3
|−5.2%
|9.4%
|n/a
|-
|'''1984'''
|3.1
|953
|1.2
|5.9%
| −3.5%
|n/a
|-
|'''1985'''
|3.3
|988
|1.3
|3.7%
| −1.8%
|n/a
|-
|'''1986'''
|3.5
|1,009
|1.8
|3.3%
|4.1%
|n/a
|-
|'''1987'''
|3.5
|978
|2.1
| −2.5%
|0.1%
|n/a
|-
|'''1988'''
|4.0
|1,082
|2.3
|10.1%
| -0.2%
|n/a
|-
|'''1989'''
|4.3
|1,137
|2.3
|4.1%
| -1.0%
|n/a
|-
|'''1990'''
|4.7
|1,213
|2.8
|5.9%
|1.1%
|n/a
|-
|'''1991'''
|4.8
|1,210
|2.7
|−0.6%
|0.2%
|n/a
|-
|'''1992'''
|4.8
|1,164
|2.9
|−3.2%
|1.6%
|n/a
|-
|'''1993'''
|4.1
|1,004
|2.2
|−16.3%
| -0.1%
|n/a
|-
|'''1994'''
|4.8
|1,165
|1.7
|13.9%
|35.3%
|n/a
|-
|'''1995'''
|5.8
|1,361
|2.2
|19.7%
|15.8%
|n/a
|-
|'''1996'''
|5.7
|1,282
|2.4
|−3.9%
|4.6%
|n/a
|-
|'''1997'''
|6.0
|1,311
|2.5
|3.8%
|5.3%
|n/a
|-
|'''1998'''
|6.0
|1,258
|2.4
|−2.3%
|1.0%
|n/a
|-
|'''1999'''
|6.2
|1,271
|2.4
|2.5%
| −0.1%
|n/a
|-
|'''2000'''
|6.3
|1,251
|2.0
|−1.0%
|1.6%
|n/a
|-
|'''2001'''
|6.5
|1,256
|2.0
|0.8%
|5.1%
|n/a
|-
|'''2002'''
|6.8
|1,290
|2.3
|3.8%
|2.7%
|n/a
|-
|'''2003'''
|7.4
|1,368
|2.9
|6.7%
| −0.9%
|n/a
|-
|'''2004'''
|7.5
|1,354
|3.0
|−1.0%
|0.7%
|n/a
|-
|'''2005'''
|7.4
|1,298
|3.1
|−4.7%
|5.3%
|63.1%
|-
|'''2006'''
|7.8
|1,335
|3.2
|2.7%
|1.1%
|67.7%
|-
|'''2007'''
|8.2
|1,349
|3.8
|1.2%
|0.4%
|70.5%
|-
|'''2008'''
|8.6
|1,390
|4.6
|4.0%
|7.7%
|67.3%
|-
|'''2009'''
|9.2
|1,434
|4.7
|5.5%
|4.1%
|57.6%
|-
|'''2010'''
|9.8
|1,496
|4.8
|5.9%
|0.2%
|33.5%
|-
|'''2011'''
|10.6
|1,573
|5.4
|5.8%
|3.6%
|33.8%
|-
|'''2012'''
|11.5
|1,660
|5.4
|6.3%
|2.6%
|34.3%
|-
|'''2013'''
|12.4
|1,741
|6.0
|5.8%
|1.8%
|41.1%
|-
|'''2014'''
|13.3
|1,825
|6.4
|5.6%
|0.2%
|44.9%
|-
|'''2015'''
|14.2
|1,894
|5.8
|5.5%
|1.8%
|52.4%
|-
|'''2016'''
|15.1
|1,972
|6.1
|5.7%
|0.9%
|59.9%
|-
|'''2017'''
|16.0
|2,037
|6.4
|4.0%
| −0.2%
|57.1%
|-
|'''2018'''
|17.1
|2,122
|7.0
|4.8%
|0.9%
|58.0%
|-
|'''2019'''
|18.7
|2,274
|7.0
|4.9%
|0.7%
|54.9%
|-
|'''2020'''
|20.4
|2,417
|7.4
|2.0%
|1.8%
|62.2%
|-
|'''2021'''
|22.9
|2,644
|8.3
|6.0%
|4.5%
|64.9%
|-
|'''2022'''
|25.9
|2,926
|8.1
|5.8%
|7.6%
|67.4%
|-
|'''2023'''
|28.3
|3,125
|9.1
|5.6%
|5.3%
|68.0%
|-
|'''2024'''
|30.6
|3,290
|9.8
|5.3%
|2.7%
|69.7%
|}

==See also==
* [[Economy of Africa]]
* [[Economy of Ghana]]
* [[List of Ghanaian companies]]
* [[List of banks in Togo]]
* [[List of companies based in Togo]]
* [[Togo]]
* [[United Nations Economic Commission for Africa]]

==References==
{{reflist}}
{{reflist|group=note}}

==External links==
* [http://www.trademap.org/open_access/Index.aspx?proceed=true&reporter=768 Togo latest trade data on ITC Trade Map]
* [http://www.resimao.org West African Agricultural Market Observer/Observatoire du Marché Agricole  (RESIMAO)], a project of the West-African Market Information Network (WAMIS-NET),  provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Ivory Coast, Guinea, Niger, Mali, Senegal, Togo, and Nigeria.  Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.

{{portalbar|Business and economics||Africa}}
{{Economy of Togo}}
{{Africa in topic|Economy of}}
{{Togo topics}}
{{World Trade Organization}}

[[Category:Economy of Togo| ]]
[[Category:World Trade Organization member economies|Togo]]
[[Category:African Union member economies|Togo]]