• Extractive revenues rose to CFA124.25 billion in 2023 from CFA19 billion a year earlier.
• The increase was driven mainly by CFA102.99 billion in debt-offset operations at SNPT.
• The sector accounts for 1.1% of GDP but over 10% of public revenue.

Togo’s extractive sector generated about CFA124.25 billion in 2023, up from CFA19 billion in 2022, based on figures from the Togo EITI Report 2023 published in late December.

While this represents a year-on-year increase of 553.8%, the report says the rise does not reflect higher mining output. It stems mainly from debt-offset operations involving Société Nouvelle des Phosphates du Togo (SNPT), amounting to CFA102.99 billion.

In 2023, Togo’s GDP at current prices was estimated at CFA5,563 billion, up 9% from the previous year. The extractive sector accounted for just 1.1% of national output. However, it represented 15.6% of exports and 10.9% of public revenue, underlining its role in foreign exchange generation and budget balances.

Total budget revenue from extractive industries reached CFA119.4 billion in 2023. These receipts came mainly from corporate income tax and customs duties and taxes. They were supplemented by non-tax revenues, including dividends and mining royalties.

The sector remains highly concentrated. SNPT and SCANTOGO MINES together accounted for more than 97% of total recorded contributions.

The report highlights several structural weaknesses. These include heavy reliance on a small number of operators, limited transparency due to offset mechanisms, and the presence of implicit subsidies, notably on electricity.

Since July 2022, extractive companies SNPT, WACEM, and SCANTOGO MINES have benefited from preferential electricity tariffs, based on data from the 2023 activity report of the Electricity Sector Regulatory Authority (ARSE). The application of these tariffs represents foregone revenue treated as an implicit public subsidy and a quasi-budgetary expense. The amount was estimated at about CFA9.98 billion in 2023.

Produced under the Extractive Industries Transparency Initiative (EITI), the report calls for a consolidated reading of revenues, offsets, and quasi-budgetary support. The aim is to better assess the sector’s net impact on public finances and inform economic policy choices. For 2026, mining royalties in the strict sense are expected to slightly exceed CFA10 billion. By contrast, the sector’s overall contribution to the state budget remains much higher, notably through corporate income tax projected at CFA201.1 billion, with a significant share expected to come from extractive companies.

Ayi Renaud Dossavi