Lomé — July 2026: The private sector in Togo is sounding the alarm as unpaid state debts cripple local businesses. Despite government reassurances, delays in settling these obligations are grinding the economy to a halt. This financial strain stems from the so-called “domestic debt,” funds the State owes to companies for completed projects or services rendered.
For the Association of Large Enterprises of Togo (AGET), the burden has become unbearable. Totaling over 1,700 billion FCFA, this debt accounts for more than 60% of the country’s public debt. The crisis disproportionately affects sectors like construction, public services, and energy distribution, where companies struggle to sustain operations.
Cash flow shortages are strangling businesses. Entrepreneurs report they can no longer invest in modernization, hire staff, or even meet payroll for employees and subcontractors. The ripple effect threatens to destabilize the entire economy, with many small and medium-sized enterprises (SMEs) facing collapse.
« We’re expected to create jobs and drive development, but how can we do that if the State fails to honor its payments? » laments a local business leader. The frustration is palpable across industries.
Government promises vs. financial reality
The Council of Ministers’ President has pledged a debt clearance process, promising gradual reimbursement of outstanding amounts. Yet skepticism runs deep. Critics argue this is a tactical move to quell unrest rather than a sustainable solution. With state coffers stretched thin, immediate relief seems unlikely, despite efforts by the Treasury to secure loans in the West African Monetary Union (UMOA) market.
The private sector, however, remains focused on a more pressing solution: unlocking 200 million USD in funds recently approved by the World Bank. This injection could provide critical breathing room, allowing the government to implement economic reforms and upgrade transport and logistics infrastructure.
Until these funds materialize in actual payments to businesses, official statements risk falling flat. Entrepreneurs demand tangible action—not just rhetoric—to prevent widespread bankruptcies.
