Lomé — The private sector in Togo is sounding the alarm over a mounting financial crisis that threatens to cripple local businesses. Despite repeated assurances from government officials, delays in settling state debts to enterprises are grinding the economy to a halt.

At the heart of the issue is the country’s staggering domestic debt, which has ballooned to over 1,700 billion West African CFA francs—more than 60% of Togo’s total public debt. This burden is crushing companies across key industries, including construction, public service providers, and energy distributors, all of which rely on timely payments from the state for survival.

The Association of Large Enterprises in Togo (AGET) has warned that the situation has reached a breaking point. Businesses, unable to access funds owed to them, are forced to halt investments, upgrade equipment, and even meet payroll obligations. Small and medium-sized enterprises (SMEs) are particularly vulnerable, struggling to pay their own employees and subcontractors, creating a ripple effect that risks destabilizing the entire economy.

« We are being asked to create jobs and drive development, yet the state fails to honor its financial commitments, » lamented a prominent entrepreneur in Lomé. « How can we fulfill these expectations when our cash flow is drying up? »

Government officials have pledged to address the issue through a gradual debt clearance process, but skepticism runs deep. Many industry leaders view these assurances as little more than political rhetoric, designed to buy time rather than deliver tangible relief. With state coffers stretched thin, even efforts to secure regional borrowing through the West African Monetary Union (UMOA) have done little to ease the immediate pressure on businesses.

The private sector is now pinning its hopes on a lifeline from an unlikely source: Washington. Entrepreneurs are urging the government to expedite the disbursement of a $200 million loan approved by the World Bank, which could inject much-needed liquidity into the economy. They argue that without this funding, economic reforms aimed at modernizing transport and logistics infrastructure will remain stalled—and the private sector will continue to suffocate under the weight of unpaid debts.

For now, businesses remain in limbo, waiting for concrete action rather than empty promises. Their survival hinges on real financial inflows, not just official statements.

By Mariama Hamani — Analyst