Exciting times ahead for micro-finance in Togo

In recent years Togo has made a push for economic transformation; most notably with its 2013-17 national Accelerated Growth and Job Promotion Strategy. Poverty rates have declined from 61.7 % to 55.1 % between 2006 and 2015 and were estimated at 47.4 % in 2017. Additional economic progress is noted in the World Bank’s 2016 and 2017 Doing Business reports.

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Though progress has been made, there is much to be done to address remaining widespread poverty. Poverty in Togo is mostly a rural phenomenon, with 68.9 % of rural households living below the poverty line in 2015.

On March 4th, 2019 Togo officially launched its five-year National Development Plan 2018–2022.

Social support workshop near Lome, Togo.

Social support workshop near Lome, Togo.

This strategy is set to address key development challenges including developing human capital, improving social safety nets, strengthening basic social services in health, water, and power and promoting financial inclusion and gender equity.

This is an exciting time for Deki and microfinance as a whole in Togo.

Characterised by inadequate earnings, low productivity and difficult conditions of work that undermine workers’ fundamental rights.

Characterised by inadequate earnings, low productivity and difficult conditions of work that undermine workers’ fundamental rights.

It is a highly strategic part of Togo’s development plans as it significantly contributes to financial inclusion goals. In order to have its greatest impact however, inadequacies in capacity and diversity of Microfinance Institutions must be addressed. Physical access, a lack of financial literacy, cultural and social norms and required levels of collateral inhibit the ability of many microfinance organizations to reach the most vulnerable groups including the poorest, young people, women and rural populations.

As we move into our third year delivering programmes in Togo, Deki is committed to continuing our efforts to meet the needs of Togo’s most vulnerable groups.

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