- Economy of Togo
Subsistence agricultureis the main economic activity in Togo; the majority of the population depends on subsistence agriculture. Food and cash cropproduction employs the majority of the labor force and contributes about 42% to the gross domestic product(GDP). Coffeeand cocoaare traditionally the major cash crops for export, but cottoncultivation increased rapidly in the 1990s, with 173,000 metric tonsproduced in 1999.
After a disastrous harvest in 2001 (113,000 metric tons), production rebounded to 168,000 metric tons in 2002. Despite insufficient rainfall in some areas, the
Togolese Governmenthas achieved its goal of self-sufficiency in food crops — maize, cassava, yams, sorghum, pearl millet, and groundnut. Small and medium-sized farms produce most of the food crop; the average farm size is one to three hectares.
Commerce is an important economic activity in Togo, and
Lomeis an important regional trading center. Its port operates 24 hours a day, mainly transporting goods to the inland countries of Mali, Burkina Faso, and Niger.
Lome's "Grand Marche" is known for its entrepreneurial market women, who have a stronghold over many areas of trade, particularly in African
cloth. In addition to textiles, Togo is an important center for re-export of alcohol, cigarettes, perfume, and used automobilesto neighboring countries. Recent years of political instability have, however, eroded Togo's position as a trading center.
In the industrial sector,
phosphatesare 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 appears to have benefited from private management, which took over in 2001. Togo also has substantial limestoneand marbledeposits.
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
infrastructurewhile pursuing industrializationand development of state enterprises in manufacturing, textiles, and beverages. However, following declines in world prices for commodities, its economy became burdened with fiscal imbalances, heavy borrowing, and unprofitable state enterprises.
Togo turned to the
International Monetary Fund(IMF) for assistance in 1979, while simultaneously implementing a stringent adjustment effort with the help of a series of IMF standby programs, World Bankloans, and Paris Clubdebt 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 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 Programdesigned 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 – the European Union, principally, but the US also – to resume aid flows. So far, Togo’s problematic legislative and presidential elections and the government’s continued unwillingness to transition from an 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 Lome. 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 Lome. 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, Francehas been Togo's principal trading partner, although other European Union countries are important to Togo's economy. Total U.S. trade with Togo amounts to about $16 million annually.
GDP:purchasing power parity - $8.684 billion (2004 est.)
GDP - real growth rate:3% (2004 est.)
GDP - per capita:purchasing power parity - $1,600 (2004 est.)
GDP - composition by sector:
"services:"40.1% (2003 est.)
Investment (gross fixed):18.4% of GDP (2003)
poverty line:32% (1989 est.)
Household income or consumption by percentage share:
Inflationrate (consumer prices):-1% (2003 est.)
Labor force:1.74 million (1996)
Labor force - by occupation:agriculture 65%, industry 5%, services 30% (1998 est.)
Unemploymentrate:NA (2003 est.)
"expenditures:"$296.4 million, including capital expenditures of NA (2003 est.)
Agriculture - products:coffee, cocoa, cotton, yams, cassava (tapioca), corn, beans, rice,
pearl millet, sorghum; livestock; fish
Industries:phosphate mining, agricultural processing, cement; handicrafts, textiles, beverages
Industrial production growth rate:NA%
Electricity - production:
0.1016 TWh (2001)
Electricity - production by source:
Electricity - consumption:0.6145
Electricity - exports:0 TWh (1998)
Electricity - imports:0.520 TWh;
electricity supplied by
Oil - production:0 barrel/day (2001 est.)
Oil - consumption:10,000 barrel/day (2001 est.)
Oil - exports:NA (2001)
Oil - imports:NA (2001)
Current account balance:$-140 million (2003)
Exports:$398.1 million f.o.b. (2003 est.)
Exports - commodities:reexports, cotton, phosphates, coffee, cocoa
Exports - partners:
Burkina Faso16.6%, Ghana 15.4%, Netherlands13%, Benin9.6%, Mali7.7% (2003)
Imports:$501.3 million f.o.b. (2003 est.)
Imports - commodities:machinery and equipment, foodstuffs, petroleum products
Imports - partners:
France21.1%, Netherlands 12.1%, Côte d'Ivoire5.9%, Germany4.6%, Italy4.4%, South Africa4.3%, People's Republic of China4.1% (2003)
Reserves of foreign exchange & gold:$257 million (2003)
Debt - external:$2 billion (2006)
Economic aid - recipient:ODA $80 million (2000 est.)
Communaute Financiere Africaine franc(XOF);
responsible authority is the Central Bank of the West African States
Exchange rates:Communaute Financiere Africaine francs (XOF) per US dollar - 581.2 (2003), 696.988 (2002), 733.039 (2001), 711.976 (2000), 615.699 (1999)
Fiscal year:calendar year
Togo is a member of the
Economy of Africa
Economy of Ghana
List of Ghanaian companies
List of Togolese companies
* [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, Côte d'Ivoire, 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.
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