Togo’s 2024 Economic Update

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - Togo's economy has shown resilience with an average growth rate of 5.1% since 2013, although it has faced challenges such as high public debt and structural issues that hinder faster growth [9][10][11] - The agricultural sector, which employs 40% of the workforce, remains crucial for poverty reduction and economic transformation, but it suffers from low productivity and vulnerability to climate change [13][30] - The report emphasizes the potential of agroforestry as a nature-based solution to enhance agricultural productivity, food security, and carbon sequestration, requiring significant initial investments [15][16] Summary by Sections Chapter I – Towards Sustainable Poverty and Debt Reduction - Economic activity in Togo has been resilient, with growth projected to moderate to 5.3% in 2024 due to fiscal consolidation and regional uncertainties [11][23] - The poverty rate is expected to decline gradually, with a projected decrease of 4.4 percentage points from the 43.8% rate observed in 2021 [11][12] - Structural factors, including low investment rates and disparities in economic opportunities, continue to hinder Togo's growth compared to regional peers [10][29] Chapter II – Agroforestry and Climate Change: The Natural Solution? - The agricultural sector's productivity is stagnant, with climate change posing significant risks to yields, particularly for rain-fed crops [13][30] - Scaling up agroforestry could significantly enhance food security and farmer welfare, with potential benefits including increased crop production and carbon sequestration [15][16] - Investment needs for a national agroforestry plan are estimated to reach about 0.8% of GDP, with the potential to triple crop production from converted areas [15][16]