Progress in Reforming Public Expenditure Management in Togo 

Since May 2023, at the request of the Togolese authorities, the Fiscal Affairs Department (FAD) of the International Monetary Fund (IMF) has been implementing a technical assistance project on public financial management (PFM) reform, financed by the European Union (EU). This approach is fully in line with the directives adopted by the West African Economic and Monetary Union (WAEMU). 

This project is structured around three pillars, namely: (i) support the transition to program-based budget management and the development of gender-responsive budgeting (GRB) and climate-sensitive budgeting (CSB) tools; (ii) improve the efficiency of public investment management (PIM); and (iii) strengthen fiscal risk management. It combines the support of a resident advisor (Mr. Ephrem Ghonda Makiadi) together with short-term experts and missions from IMF headquarters. After almost three years, this project has made significant progress. 

In the area of budget management, the project has enabled the gradual adoption of the tools necessary to complete the transition to program budgeting, which took effect on January 1, 2020. This reform allows for the first time in Togo to direct public expenditure towards measurable results, by clearly linking the resources allocated to the objectives of public policies. This includes developing appropriate tools such as budget preparation and execution circulars, the introduction of internal budget control through a pilot project in the Ministry of Finance and Budget (MFB), and training to strengthen the capacities of budget managers and improve the predictability of budget execution. 

In the area of GRB, the project has made it possible to further improve the quality of the gender-responsive budget document, which has accompanied the draft budget since 2022. Most recently a mission took place to strengthen ministerial gender-sensitive analyses. 

For CSB, which aims to analyze public spending from the perspective of its impact on climate change and the environment, a first mission undertaken under the EU-IMF project in May 2023 made it possible to develop a roadmap for the production and progressive improvement of a "green budget". Togo's third "Green Budget" was published with the draft budget for 2026. The country has already shared its experience in CSB with Cameroon and Congo, and also presented that experience in Paris for the February 2026 annual meeting of the OECD Development Assistance Committee Network. 

In terms of PIM, the EU-IMF project funded a Climate Public Investment Management Assessment (C-PIMA) mission in October 2024. The recommendations of this report aimed to integrate climate concerns into the PIM framework. One of the key aspects is the planned adoption of a decree governing the entire PIM cycle, for which a draft was developed during a technical assistance mission held in September 2025. In February 2026, the Togolese authorities issued an order approving the manual of procedures for the selection, prioritization, and programming of public investment projects, which now includes both gender and climate aspects.

In terms of fiscal risk management, the EU-IMF project has prioritized fiscal risks related to state-owned enterprises, supporting the strengthening of fiscal risk statements and the preparation of a dedicated report on state enterprises, using the SOE Health Check tool developed by FAD.   

However, much remains to be done. For this reason, the Togolese authorities have requested the extension of the support project from the EU and the IMF. This extension will make it possible to extend the internal budget control experiment beyond the finance ministry, to propose a new organization of the Directorate-General for Budget and Finance, to deepen progress in GRB and CSB, and to strengthen the methodologies for maintaining public assets. For fiscal risks, the extension should help build capacity in analyzing risks related to guarantees and public-private partnerships. Finally, the project would include new areas such as the quality of fiscal reporting. 

The reform process in Togo illustrates the need for continued strong, sustainable national ownership. It will also require close coordination with other donors, including the GIZ Good Financial Governance project and the World Bank project to modernize public administration related to service delivery. The project will continue to present its activities and results to the Economic and Financial Governance thematic group of technical and financial partners in Lomé, which is co-chaired by the EU and the World Bank.