Togo has a very poor Human Development Index, ranking in 2012 159 out of 187 countries. The country has achieved considerable progress during the past three years, but significant institutional and economic challenges remain. The rise in oil and food prices, the severe flooding in 2008 and 2010, and the global recession in 2009 adversely impacted Togo’s economy. Togo’s income per capita is low compared to Sub-Saharan Africa and Low-Income Countries averages. With regard to the Millennium Development Goals, progress has been achieved toward reaching the goals of universal primary education and the combat of HIV/AIDS. However, Togo is unlikely to meet six of the eight goals by the 2015 deadline. The capacity of the administration to create an environment conducive to private sector development needs to be strengthened.
How We Are Helping?
Togo’s financial sector strategy and planned privatization of ailing state-owned banks is expected to boost investors’ confidence and improve the banking sector’s capacity to finance the economy. UNCDF is helping Togo meet its development challenges through initiatives designed to strengthen the financial sector and increase access to sustainable microfinance services.
The National Strategy for Microfinance Support Programme (PASNAM) targets microfinance institutions geared toward poor households or low-income micro-entrepreneurs. It seeks to improve the institutional environment in which they operate as well as the professionalism of their services, while helping to forge stronger links between commercial banks and microfinance institutions.
A second phase of this programme started in 2009 with the support of UNCDF, UNDP and the World Bank, focuses on further strengthening the institutional framework of the microfinance sector and on developing self-sustaining financial services.