The private sector in Lomé is sounding the alarm as the country’s financial crisis deepens. Despite government assurances, delays in settling state debts to businesses are crippling economic activity across the nation. This internal debt, owed by the government to local enterprises for completed projects and services rendered, has reached alarming levels, threatening the very foundations of the economy.
State debt stifles growth and employment
The Association of Major Enterprises of Togo (AGET) has raised the stakes, revealing that the total internal debt exceeds 1 700 billion FCFA, accounting for over 60% of the country’s public debt. The impact is most severe in critical sectors such as construction, public works, energy distribution, and ministry service providers. Without timely payments, businesses are struggling to meet payroll, invest in modernization, or even sustain operations.
« The government urges us to create jobs and drive development, yet how can we fulfill these demands when the state fails to honor its financial obligations? » laments a local industrialist. The financial strain has pushed some small and medium-sized enterprises (SMEs) to the brink, delaying payments to subcontractors and employees, creating a ripple effect that risks destabilizing the entire economy.
Government promises fall short amid financial constraints
In response to mounting pressure, the Council of Ministers has pledged to gradually clear this debt through a process known as « apurement ». However, skepticism is rampant. Observers argue that these assurances are more about political maneuvering than a tangible solution, given the government’s tight fiscal situation. While the Treasury has explored borrowing options within the West African Monetary Union (UMOA) to ease liquidity, immediate relief remains elusive for private enterprises.
The private sector is not holding its breath for domestic solutions. Instead, all eyes are on the 200 million USD recently approved by the World Bank for Togo. Business leaders believe this funding, if properly managed, could inject much-needed liquidity into the economy, support economic reform initiatives, and modernize key sectors like transport and logistics. Until these funds are disbursed and begin circulating in the market, government rhetoric will continue to ring hollow for entrepreneurs desperate for financial lifelines.
Entrepreneurs demand action, not words
The urgency of the situation cannot be overstated. Businesses, from large corporations to family-run SMEs, are at risk of collapse unless concrete steps are taken. The private sector, a critical engine of job creation and economic growth, is now pleading for transparency and prompt payment of outstanding debts. Without immediate intervention, the consequences could be dire, not just for individual companies, but for the nation as a whole.