The growth rate of outstanding loans to the economy by Togolese banks, on an annual basis, is 4.9% at the end of June 2019 against 4.2% at March 31, according to data communicated during the third annual session of the National Credit Council (CNC) devoted to the examination of the economic situation, financial and monetary of Togo.

At the end of December 2018, this rate was 4.1%. "This dynamism has brought the ratio of loans to the economy to GDP to 40% as of June 30, 2019," according to Demba Tignokpa, Togo's Minister of Development Planning and Cooperation.

Official data indicate an average lending interest rate on bank loans that fell to 7.65% as of June 30, 2019, from 8.52% a year earlier. However, notes Minister Tignokpa, when we look at the new credit implementations, they have experienced a decrease of 8.1% over the first six months of the year, compared to the situation observed during the same period of 2018.

"In addition, funding remains poorly directed towards housing and agriculture, despite the importance of these sectors in the economic and social development of the country. By way of illustration, at the end of June 2019, housing and agriculture loans represented only 4.3% and 0.2%, respectively, of total bank financing," added the former Minister of economy, finance and privatization. And to call for "working to raise the level of new credit implementations and change the financing structure for the benefit of sectors that promote inclusive growth".

As a reminder, Togolese credit institutions are reluctant to grant credit to the private sector. The problem, according to an analysis drawn up in the National Development Plan (PND, 2018-2022), lies not only in access to finance but also in that of the exorbitant cost of credit.

"The available statistics indicate that exit rates are between 9% and 13% for bank loans and sometimes close to 18% or even 20% for microfinance. In an environment characterized by low inflation, real rates appear to be very high and constitute a real obstacle to entrepreneurship in general and in particular to the development of the agricultural, industrial and artisanal sectors. Statistics on the distribution of credit also indicate that sectors such as agriculture receive little financing," reads the strategic plan launched in March 2019 by President Faure Gnassingbé.