Lomé — The alarm bells are ringing across Togo’s private sector. Despite repeated assurances from officials, the financial strain on businesses is reaching a breaking point, driven by one critical issue: unpaid state debt.
This so-called dette intérieure, or internal debt, refers to funds the government owes to local companies for completed projects or services rendered. The mounting delays in payments are now choking the economy, leaving entrepreneurs struggling to keep operations afloat.
The heavy burden of unpaid dues
For the Association des Grandes Entreprises du Togo (AGET), the debt crisis has become unbearable. The total amount owed exceeds 1,700 billion FCFA, accounting for over 60% of the country’s public debt. The impact is devastating, particularly for construction and public works firms, government service providers, and energy distributors.
Without these critical funds, businesses face a domino effect of financial distress. Many cannot invest in upgrades, hire new employees, or even meet payroll for their own staff. Some small and medium enterprises (SMEs) are already struggling to pay subcontractors, pushing the crisis deeper into the economy.
« How can we create jobs and drive growth when the government fails to honor its payments? » questioned a local business leader, highlighting the frustration gripping the sector.
Empty promises vs. urgent needs
In response, the government has pledged a gradual « debt clearance » program to settle outstanding obligations. Yet skepticism runs deep. Critics argue that such commitments often serve as political maneuvers to buy time rather than deliver tangible relief.
The reality is stark: Togo’s treasury is stretched thin. While the Treasury has sought regional loans through the UMOA to ease the burden, the situation remains dire. The private sector, however, is looking beyond domestic solutions. Their focus is fixed on Washington, where a 200 million USD credit from the World Bank awaits approval.
For business leaders, this funding represents their best hope for immediate relief. They argue that injecting these fresh resources into state coffers would unlock much-needed budgetary flexibility, allowing the government to modernize key sectors like transport and logistics while adhering to its economic reform roadmap. Without this cash infusion, official statements will remain hollow promises, and the private sector’s collapse will only deepen.
