The private sector in Lomé is sounding the alarm as delays in government payments cripple operations. Despite reassurances from officials, the soaring interior debt—funds owed to local businesses for completed projects and services—has reached a breaking point.
According to the Association of Major Enterprises of Togo (AGET), this debt now exceeds 1,700 billion FCFA, accounting for over 60% of the country’s total public debt. The crisis disproportionately affects construction firms, government contractors, and fuel distributors, who face severe cash flow shortages.
Without these payments, businesses cannot invest in modernization, hire staff, or even meet payroll obligations. The ripple effect threatens to destabilize the entire economy, with some small and medium-sized enterprises (SMEs) already struggling to pay subcontractors and employees.
« The government urges us to create jobs and drive growth, yet how can we when payments are delayed indefinitely? » laments a local entrepreneur.
A political promise amid financial strain
The government has pledged to address the issue through a structured debt clearance process, promising gradual repayment. However, skepticism runs deep. Critics argue that this move is more about appeasing frustration than delivering tangible relief, as state coffers remain stretched thin despite regional borrowing efforts.
The private sector, however, is looking beyond domestic solutions. The long-awaited disbursement of 200 million USD from the World Bank is seen as the most viable path forward. Business leaders emphasize that these funds—earmarked for economic reforms and infrastructure upgrades—could unlock critical budget flexibility.
Until then, official statements will remain hollow for many entrepreneurs, who demand concrete action: direct deposits into their accounts to prevent collapse.