• Togo targets middle-income status by 2030 despite mounting climate pressures

• World Bank estimates $14 billion climate funding needed by 2050

• Government seeks private capital, reforms energy and agriculture sectors 

Togo aims to reach middle-income status by 2030, banking on job creation, social inclusion and economic modernization. But climate change is increasingly complicating that trajectory. Rising temperatures and erratic rainfall are already affecting an economy still heavily reliant on agriculture, prompting the government to fold climate action into its broader development agenda. The fiscal and policy framework for that integration is laid out in an IMF technical assistance report published in September 2025.

That shift comes with a steep price tag. The World Bank estimates Togo will need around $14 billion by 2050 to address climate-related structural challenges. Between now and 2035, it would require average annual spending of 6.2% of GDP on climate investments, according to the bank. Around 60% would be allocated to mitigation, including renewable energy and sustainable mobility, and 40% to adaptation priorities such as water management, health resilience and coastal protection.

With public finances under pressure, authorities are increasingly looking to private capital to help bridge the gap. The World Bank and the International Finance Corporation (IFC) have argued that stronger private participation in sectors such as agriculture, transport and logistics will be needed to support growth and reduce poverty. In response, Togo has rolled out business-friendly reforms and transferred selected public assets to private operators, while positioning itself as a regional logistics hub.

Energy has become an early test case for that strategy. In May 2025, Togo raised electricity tariffs for the first time since 2011, a move intended to improve the financial position of state-owned utility CEET and reduce risks for private power producers. Tariffs had long remained below cost-recovery levels, contributing to persistent losses at CEET and discouraging investment, according to the IMF report. The government is targeting full electrification by 2030, with solar expected to account for 80% of generation by 2043.

Agriculture is another priority, both because of its weight in the economy and its exposure to climate shocks. The sector accounts for about 40% of GDP, and authorities are promoting agricultural development zones to expand value chains for soybeans, cashews and pineapples. To limit weather-related losses and reassure investors, Togo has partnered with international organisations on a National Agricultural Insurance Roadmap, including index-based insurance designed to cushion farmers and agribusinesses against adverse conditions.

To support these efforts, the 2025 Climate Act provides a legal basis to integrate climate policy into national budgeting and public investment planning. The government is also pursuing reforms such as digitalising public procurement and simplifying property registration, measures aimed at improving transparency and regulatory predictability for investors.

By Cynthia Ebot Takang