Lomé — The Togolese private sector is sounding the alarm as mounting state debt cripples local businesses. Despite government assurances, delays in payments for completed work and services have pushed the economy to the brink.

Members of the Association des Grandes Entreprises du Togo (AGET) warn that the country’s domestic debt—estimated at over 1.7 trillion West African CFA francs—now exceeds 60% of the nation’s total public debt. This financial strain is crushing key industries, including construction, public service providers, and energy distributors, leaving them unable to sustain operations.

Economic paralysis as debts pile up

The ripple effects are devastating. Businesses struggling to secure payments from the government cannot invest in modernization, hire new staff, or even pay their own employees and subcontractors. The situation has escalated into a full-blown financial domino effect threatening the entire economy.

« We are expected to create jobs and drive development, but how can we do that if the state fails to honor its obligations? » laments a local entrepreneur.

Government promises fall short

In response, the Prime Minister has pledged a gradual « debt clearance » process to address the mounting arrears. However, skepticism runs deep. Critics argue this is merely a political maneuver to postpone public outrage rather than a genuine solution. With state coffers stretched thin, immediate relief remains unlikely despite efforts by the Treasury to secure loans within the West African Monetary Union (UMOA) framework.

The private sector is turning its attention to a more pressing solution: the disbursement of $200 million in funds recently approved by the World Bank. Business leaders argue that this injection of capital is critical to easing budget constraints and supporting economic reforms, particularly in transport and logistics infrastructure.

Without these funds reaching their accounts, official promises risk remaining hollow. Entrepreneurs are demanding tangible action—real transfers to prevent widespread business failures.