Economy of Togo

Economy of Togo

Phosphate mining in Togo
Currency	West African CFA Franc (XOF)
Fixed exchange rates	1 USD = 514,1 XOF (2012)
Fiscal year	calendar year
Trade organisations	WTO, African Union
Statistics
GDP	$7.024 billion (2012) Rank: 161th (2012)
GDP growth	5% (2012)
GDP per capita	$1,100 (2012)
GDP by sector	agriculture (45.7%), industry (21.4%), services (33%) (2012)
line-height:1.1em	2.8% (2012)
Population below poverty line	32% (1989)
Labour force	2,595,000 (2007)
Labour force by occupation	agriculture 65%, industry 5%, services 30% (1998)
Unemployment	N/A
Main industries	phosphate mining, agricultural processing, cement, handicrafts, textiles, beverages
External
Exports	$893.8 million (2012)
Export goods	reexports, cotton, phosphates, coffee, cocoa
Main export partners	India 13.7% Lebanon 10.5% Burkina Faso 8.0% Benin 7.9% Niger 6.0% China 5.8% Netherlands 4.9% Ghana 4.6% (2012 est.)
Imports	$1.492 billion (2012)
Import goods	machinery and equipment, foodstuffs, petroleum products
Main import partners	China 41.2% Netherlands 8.0% France 5.5% United Kingdom 5.4% (2012 est.)
Gross external debt	1.64 billion (2009)
Public finances
Revenues	$729.6 million (2012)
Expenses	$872.2 million (2012)
line-height:1.25em;padding:0.2em;

The economy of Togo is refers to the economic activity of the West African nation of Togo.

Agriculture

Subsistence agriculture is the main economic activity in Togo; the majority of the population depends on subsistence agriculture. Food and cash crop production employs the majority of the labor force and contributes about 42% to the gross domestic product (GDP). Coffee and cocoa are traditionally the major cash crops for export, but cotton cultivation increased rapidly in the 1990s, with 173,000 metric tons produced in 1999.

After a disastrous harvest in 2001 (113,000 metric tons), production rebounded to 168,000 metric tons in 2002. Despite insufficient rainfall in some areas, the Togolese Government has achieved its goal of self-sufficiency in food crops — maize, cassava, yams, sorghum, pearl millet, and groundnut. Small and medium-sized farms produce most of the food crop; the average farm size is one to three hectares.

Industry

In the industrial sector, phosphates are Togo's most important commodity, and the country has an estimated 60 million metric tons of phosphate reserves. From a high point of 2.7 million tons in 1997, production dropped to approximately 1.1 million tons in 2002. The fall in production is partly the result of the depletion of easily accessible deposits and the lack of funds for new investment. The formerly state-run company appears to have benefited from private management, which took over in 2001. Togo also has substantial limestone and marble deposits.

Encouraged by the commodity boom of the mid-1970s, which resulted in a fourfold increase in phosphate prices and sharply increased government revenues, Togo embarked on an overly ambitious program of large investments in infrastructure while pursuing industrialization and development of state enterprises in manufacturing, textiles, and beverages. However, following declines in world prices for commodities, its economy became burdened with fiscal imbalances, heavy borrowing, and unprofitable state enterprises.

Togo turned to the International Monetary Fund (IMF) for assistance in 1979, while simultaneously implementing a stringent adjustment effort with the help of a series of IMF standby programs, World Bank loans, and Paris Club debt rescheduling. Under these programs, the Togolese Government introduced a series of austerity measures and major restructuring goals for the state enterprise and rural development sectors. These reforms were aimed at eliminating most state monopolies, simplifying taxes and customs duties, curtailing public employment, and privatizing major state enterprises. Togo made good progress under the international financial institutions' programs in the late 1980s, but movement on reforms ended with the onset of political instability in 1990. With a new, elected government in place, Togo negotiated new 3-year programs with the World Bank and IMF in 1994.

Togo returned to the Paris Club in 1995 and received Naples terms, the club's most concessionary rates. With the economic downturn associated with Togo's political problems, scheduled external debt service obligations for 1994 were greater than 100% of projected government revenues (excluding bilateral and multilateral assistance). By 2001, Togo was embarked on an IMF Staff Monitored Program designed to restore macroeconomic stability and financial discipline but without any new IMF resources pending new legislative elections. New IMF, World Bank and Africa Development Bank (ADB) lending must await the willingness of Togo's traditional donors – the European Union, principally, but the US also – to resume aid flows. So far, Togo's problematic legislative and presidential elections and the government's continued unwillingness to transition from an Eyadéma-led autocracy to democracy have deterred these donors from providing Togo with more aid. As of the fall 2002, Togo was $15 million in arrears to the World Bank and owed $3 million to the ADB.

Togo is one of 16 members of the Economic Community of West African States (ECOWAS). The ECOWAS development fund is based in Lomé. Togo also is a member of the West African Economic and Monetary Union (UEMOA), which groups seven West African countries using the CFA franc. The West African Development Bank (BOAD), which is associated with UEMOA, is based in Lomé. Togo long served as a regional banking center, but that position has been eroded by the political instability and economic downturn of the early 1990s. Historically, France has been Togo's principal trading partner, although other European Union countries are important to Togo's economy. Total United States trade with Togo amounts to about $16 million annually.

While Togo itself produces no crude oil, it is the namesake of an illegal market for stolen oil off the Niger Delta, called the Togo Triangle.

Statistics

GDP: purchasing power parity - $8.684 billion (2004 est.)

GDP - real growth rate: 3% (2004 est.)

GDP - per capita: purchasing power parity - $1,600 (2004 est.)

GDP - composition by sector:
agriculture: 39.5%
industry: 20.4%
services: 40.1% (2003 est.)

Investment (gross fixed): 18.4% of GDP (2003)

Population below poverty line: 32% (1989 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): -1% (2003 est.)

Labor force: 1.74 million (1996)

Labor force - by occupation: agriculture 65%, industry 5%, services 30% (1998 est.)

Unemployment rate: NA (2003 est.)

Budget:
revenues: $214.5 million
expenditures: $296.4 million, including capital expenditures of NA (2003 est.)

Agriculture - products: coffee, cocoa, cotton, yams, cassava (tapioca), corn, beans, rice, pearl millet, sorghum; livestock; fish

Industries: phosphate mining, agricultural processing, cement; handicrafts, textiles, beverages

Industrial production growth rate: NA%

Electricity - production: 0.1016 TWh (2001)

Electricity - production by source:
fossil fuel: 93.33%
hydro: 6.67%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 0.6145 TWh (2001)

Electricity - exports: 0 TWh (1998)

Electricity - imports: 0.520 TWh;
electricity supplied by Ghana (2001)

Oil - production: 0 barrels per day (0 m³/d) (2001 est.)

Oil - consumption: 10,000 barrels per day (1,600 m³/d) (2001 est.)

Oil - exports: NA (2001)

Oil - imports: NA (2001)

Current account balance: $-140 million (2003)

Exports: $398.1 million f.o.b. (2003 est.)

Exports - commodities: reexports, cotton, phosphates, coffee, cocoa

Exports - partners: Burkina Faso 16.6%, Ghana 15.4%, Netherlands 13%, Benin 9.6%, Mali 7.7% (2003)

Imports: $501.3 million f.o.b. (2003 est.)

Imports - commodities: machinery and equipment, foodstuffs, petroleum products

Imports - partners: France 21.1%, Netherlands 12.1%, Ivory Coast 5.9%, Germany 4.6%, Italy 4.4%, South Africa 4.3%, People's Republic of China 4.1% (2003)

Reserves of foreign exchange & gold: $257 million (2003)

Debt - external: $2 billion (2006)

Economic aid - recipient: ODA $80 million (2000 est.)

Currency: Communaute Financiere Africaine franc (XOF);
responsible authority is the Central Bank of the West African States

Exchange rates: Communaute Financiere Africaine francs (XOF) per US dollar - 581.2 (2003), 696.988 (2002), 733.039 (2001), 711.976 (2000), 615.699 (1999)

Fiscal year: calendar year

Togo is a member of the WTO.

See also

• Economy of Africa
• Economy of Ghana
• List of Ghanaian companies
• List of banks in Togo
• List of companies based in Togo
• Togo

External links

• Economy of Togo at DMOZ
• Togo latest trade data on ITC Trade Map
• West African Agricultural Market Observer/Observatoire du Marché Agricole (RESIMAO), a project of the West-African Market Information Network (WAMIS-NET), provides live market and commodity prices from fifty seven regional and local public agricultural markets across Benin, Burkina Faso, Ivory Coast, Guinea, Niger, Mali, Senegal, Togo, and Nigeria. Sixty commodities are tracked weekly. The project is run by the Benin Ministry of Agriculture, and a number of European, African, and United Nations agencies.