The IMF has upgraded Togo’s debt-carrying capacity from “medium” to “strong,” giving the country more room to borrow and manage its budget. This comes as Togo’s economy grows steadily and inflation stays low.
The upgrade means the safe debt limit has increased from 55% to 70% of GDP. Togo’s current debt is around 72.1% of GDP but is expected to fall over time. The IMF now allows more time—until 2027—for the country to reduce its debt. Stronger public policies and better reserves also helped the upgrade. But challenges remain, especially with high short-term borrowing and rising interest costs. The IMF advises boosting tax revenue and improving how state-owned companies are managed.
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