The tertiary sector, the country's economic engine
The tertiary sector is one of the main pillars of the Togolese economy, accounting for 58.6% of GDP. It employs two-thirds of the modern sector's workforce. Within this sector, transport is the main focus of activity. Togo plays an important role in regional trade. As a natural communication route between the ocean and the Sahel countries, the deep-water port of Lomé plays an important transit role in the sub-region. It is also the sector in which Togo is most dependent on the outside world. Maritime transport is entirely dependent on foreign companies, as is air transport. Most land transport is linked to transit trade between Togo and Sahelian countries. However, Togo faces competition from other regional ports, such as Cotonou, Accra and Dakar, which benefit from major advantages and bilateral agreements with each of these three Sahelian countries. This is the sector with the highest growth rate in the country's economy.
The primary sector, another economic lever
Employing 65% of the working population, the primary sector accounts for around 20% of the country's GDP. Agriculture is divided into two parts: on the one hand, cash crops - cotton, coffee and cocoa - and, on the other, food crops - yams, maize, millet, sorghum, cassava and groundnuts. In 1977, the "Green Revolution" was launched, with the aim of achieving food self-sufficiency within five years. Based on extensive, monoproductive, mechanized agriculture, it failed to deliver the expected results, with Togolese farmers preferring to cultivate with hoes and machetes. The lack of training and support infrastructure also explains the failure of this policy. The liberalization of the sector, imposed in 1996, was also an illusion, particularly with regard to cash crops. However, having continued to invest in the sector, the country is now virtually self-sufficient in food, with around 25% of its land under cultivation. To continue its efforts, the government has launched several pilot projects in the country, notably in the Kara region, with the aim of becoming self-sufficient in various agricultural products.
A tourist potential to exploit
With almost 950,000 visitors registered in Togo in 2019, compared with 514,000 in 2017, tourism now plays a growing role in the local economy, accounting for around 6% of GDP. The first structures set up to support tourism development date back to the 1960s, with the creation of the Société togolaise d'hôtellerie and then the Office national togolais du tourisme (ONTT). However, the government's commitment to tourism development took concrete form in the 1970s, with the effective integration of the sector into various economic, social and cultural development plans. In terms of tourism infrastructure, major financial efforts have been made by the State and the private sector. Good-quality hotels can now be found throughout the country, and roads are increasingly passable. In 2019, the government launched the National Development Plan (PND) with the aim of further developing this sector and creating at least 10,000 jobs over the coming years. To achieve this, it wants to promote the destination internationally, while investing in several tourism sectors, notably ecotourism. Lomé is also banking on business tourism, positioning the country as a major hub in the West African sub-region.
A variety of natural resources
Togo's mineral resources include zinc, iron, attapulgite, gold, manganese and, above all, a large phosphate deposit, with production set to exceed 1.5 million tonnes in 2022. The country has been one of the world's top fifteen phosphate producers for several years now. It also produces limestone from the Tabligbo deposit, north of Vogan, operated by Wacem and Scantogo Mines. Annual production exceeds 100,000 t. Half of this production is sufficient for national consumption, while the other half is destined for export. Other resources, if properly exploited, could boost the economy. Iron reserves, for example, are estimated at 500 million tonnes in the Bassar region. There are also chromite reserves estimated at 50,000 tonnes in the Kabyè massif and over 8.5 million tonnes of manganese in the Nayega mine in western Togo. Since 2020, this mine has been operated by the Keras Group, present in Togo through its subsidiary Société Générale des Mines (SGM). It could generate up to 16 million dollars in public revenue per year.
Current issues
During the socio-political conflict that affected Togo in the early 1990s, several countries and organizations suspended their economic cooperation with the country. For Togo, the key challenge was to re-establish good relations on the international stage, in order to strengthen the country and make the structural investments needed to get the economy off the ground. In 2007, the European Union resumed diplomatic relations with Togo, followed by other countries and organizations. Since then, international relations have calmed down, and Togo benefits from the support of numerous partners. Togo's current economic challenges are to reduce poverty and revitalize the economy, by creating jobs for young people and women, and promoting the development of the private sector in tourism, agriculture, livestock breeding and handicrafts. The other challenge is to further modernize the country's infrastructure, such as roads, the airport and the port. Air transport and port activities are also high value-added sectors for Togo. Thanks to the expansion of these infrastructures, the port of Lomé is now considered the fourth largest container port in Africa.
