International Trade in Togo

Togo's growth is less than the average of the countries of the West African Monetary and Economic Union (UEMOA).  This is due to the fact that the country has been denied international aid for 15 years and also to the drop in the prices of raw materials.  From 3.1% in 2009, the growth slightly increased to 3.3% in 2010.  It is estimated that during the next coming years Togo's growth rate will be much higher due to the restoration of its international aid. 

In April 2008, the government negotiated a three-year agreement with the IMF for an Extended Credit Facility (ECF).  In this framework, the budget for 2011 has emphasized the revival of public investments to sustain growth on a mid-term and the reduction of poverty.  The authorities have the intention of limiting the non-priority expenses and continuing to implement a solid budget plan, mainly giving the priority to social expenses.  The government of Faure Gnassingbe Eyadema has launched an ambitious project aimed at achieving food self-sufficiency and establishing a reliable electricity network.  The factors that encourage economic growth are the privatization and the financial aid from international sponsors.  The forces that limit the country's growth are the decline in cotton production as well as the under-investments in phosphate mining.

The majority of the Togolese population lives in poverty, and almost two-thirds of the poor population suffers of malnutrition.  The job market is characterized by its instability and an increasing informal market sector, which gathers more than 80% of the active population.

The country imports more than it exports, which creates a deficit trade balance.  This trend is expected to worsen in the coming years.

Its main trading partners are the countries of the European Union, the UEMOA (West African Economic and Monetary Union) and China.