Togo is making important strides toward inclusive development, with the private sector ensuring 89% of bank financing in 2023. This development marks a significant increase of 39% for micro, small and medium enterprises (MSMEs).
Domestic debts, comprising funds allocated to both the private sector and the state by banks and decentralized financial systems, grew by 6% over a year, totaling 1955 billion FCFA (approximately 3.2 billion dollars) by the ending of December 2023. This information was shared by Sani Yaya, the Minister of Economy and Finance, during the last National Credit Council (CNC) meeting.
It was disclosed that the private sector obtained 89% of the total financing, with MSMEs encountering a significant uptick in funding: from 28% in 2021 to 38% in 2022, and reaching 39Moreover% in the last year, as reported by the CNC. , the interest rates on loans have been on a fall.
Sani Yaya underscored that the interest rates for loans granted to MSMEs were 8.3%, 9.0%, and 8.5% in 2023, marking a decline of 20 basis points for micro and small enterprises and 50 basis points for medium enterprises.
This trend, according to the minister, illustrates the banking sector’s dedication to bolstering the national economy by positioning the private sector as a critical engine for the country’s development. The expansion of the financial institution network played a critical role in enhancing banking contributions.
By the end of 2023, Togo boasted 250 bank branches, 332 ATMs, and 40 mobile banking units. This expansion is substantial for a country covering an area of just 56,600 km2 with a population of 8.1 million. Further, the number of microfinance institution service points reached 611 across Togo.