Togo serves as a regional commercial and trade centre. The government's decade-long effort, supported by the World Bank and the International Monetary Fund (IMF), to implement economic reform measures, encourage foreign investment, and bring revenues in line with expenditures, has stalled. Political unrest, including private and public sector strikes throughout 1992 and 1993, jeopardized the reform program, shrank the tax base, and disrupted vital economic activity.
The 12 January 1994 devaluation of the currency by 50% provided an important impetus to renewed structural adjustment; these efforts were facilitated by the end of strife in 1994 and a return to overt political calm. Progress depends on increased openness in government financial operations (to accommodate increased social service outlays) and possible downsizing of the armed forces, on which the regime has depended to stay in place. Lack of aid, along with depressed cocoa prices, generated a 1% fall in GDP in 1998, with growth resuming in 1999. Assuming no deterioration of the political atmosphere, growth is expected to rise.
Togo is a member of the Organization for the Harmonization of Business Law in Africa (OHADA)
