Togo’s banking sector is sending a clear message — confidence in the economy is rising, and small businesses are finally getting a bigger slice of the financial pie.

Between January and March 2025, Togolese banks disbursed CFA 286 billion in new loans, marking a 19% increase compared to the same period last year. The figures were disclosed during the June 27 session of the National Credit Council (CNC), chaired by the Minister of Economy and Finance, Essowè Georges Barcola.

What makes this growth particularly noteworthy is its focus on small and medium-sized enterprises (SMEs). Nearly 44% of the new loans went to very small, small, and medium-sized businesses, up from 37% in Q1 2024. This shift suggests better access to finance for local enterprises and stronger alignment between banks and the real economy.

During the CNC meeting in Lomé, members assessed the country’s financial health and shared projections for a 6.2% GDP growth rate in 2025, following a robust 6.3% performance in 2024. Key drivers include improved performance in market services, which saw revenues rise by 6.3% in the first quarter.

Adding to the positive picture, inflation dropped to 0.8% in April, down from 1.8% in March. This was mainly due to stabilised food prices and better supply chain performance — both of which have created more favourable lending conditions.

On the monetary side, average lending rates held steady at 7.56% in March, nearly aligned with WAEMU benchmarks. Meanwhile, deposit rates slightly dipped to 5.67%, reflecting a conservative but stable approach by local banks.

The CNC report positions Togo as a regional standout in the broader West African Economic and Monetary Union (WAEMU), where Q2 growth is expected to reach 7.3%. Togo’s financial system is proving not just resilient but responsive — actively fueling real sector growth while maintaining macroeconomic stability.