In support to the nation’s economic and financial reforms, the International Monetary Fund has approved US$241.5 million under an extended credit facility arrangement (EFC) for Togo. Under the new arrangement, $34.5 million will be immediately disbursed “to support the authorities’ efforts towards fiscal consolidation while maintaining space for pro-poor spending”, said IMF’s deputy managing director, Tao Zhang, in a statement released on the institution’s website.

The rest of the funding will be provided over the next three years based on progress made by the country in the implementation of economic reforms imposed by IMF.

Between 2014 and 2016, the West African economy grew by 5.2% spurred by investments in infrastructures and a better agricultural output.

“Togo’s economy has shown solid performance in recent years, with sustained growth and low inflation,” Zhang said.

Though its performance is slightly below average growth in WAEMU (about 7%), the Bretton Woods institution projects a promising outlook for the Togolese economy in the years to come. By 2021, its GDP should rise by 5.6% according to IMF.

“The medium-term economic outlook is favorable, with private sector activity benefiting from stronger infrastructure and an improved business climate. However, further progress will hinge on the authorities’ successful implementation of their ambitious macroeconomic program, as well as pursuing broader structural reforms to improve public financial management and address social needs”, Tao Zhang added.