The agreement was reached following discussions held in Washington in April and in Lomé from May 11 to May 19, led by IMF official Tidiane Kinda.
The outcome remains subject to approval by the IMF Executive Board.
Upon approval, Togo is expected to access funding of about $110.8 million, bringing total disbursements under the programme to about $302.2 million.
The IMF said Togo’s economy has remained resilient despite global and regional pressures. Economic growth reached about 6% in 2025, supported by activity in the services sector, while inflation moderated during the same period.
The outlook for 2026 points to slower growth and higher inflation, largely linked to global developments, including tensions in the Middle East. The IMF said risks to the outlook include security challenges, climate shocks and volatility in energy and food prices.
Implementation of the reform programme has remained broadly on track. The IMF said most performance targets were met, while seven out of eight structural benchmarks were achieved. These measures include reforms to strengthen public financial management, improve fiscal transparency and enhance oversight of state-owned enterprises.
The programme aims to improve public finances while maintaining spending on social protection and investment. The fiscal deficit declined to about 3.2% of gross domestic product in 2025, supported by controlled spending despite weaker-than-expected revenue.
The IMF said execution of the 2026 budget faces new pressures related to rising energy costs. Discussions with authorities focused on balancing fiscal discipline with targeted support for vulnerable groups.
The government has committed to reducing the deficit further to 3% of gross domestic product by 2027, supported by measures to improve revenue collection.
The IMF said strengthening the financial sector and advancing structural reforms remain important to support private sector growth. Priority areas include improving governance, enhancing the business environment and addressing weaknesses in the banking sector.
The IMF and Togolese authorities also discussed reforms in the energy sector to reduce fiscal risks and improve service delivery.
–IMF/ChannelAfrica–
