Small businesses play a vital role in Togo’s economy, employing over 70% of the non-farm workforce. However— they face challenges accessing finance, markets, skills and technology.
Credit is scarce and expensive, stifling entrepreneurship. Reforms to strengthen the banking sector and promote microfinance could boost access to loans. High import duties also squeeze small traders.
Poor infrastructure, unreliable energy and outdated regulations compound costs. Upgrading roads, ports, utilities and streamlining bureaucracy would improve the business climate.
Limited skills training and education constrain innovation. Investments in technical/vocational programs paired with private sector mentorship can nurture entrepreneurial talent.
Digital technologies also offer opportunities. Mobile money and ecommerce platforms open new markets while reducing costs. Subsidies and training could promote tech adoption.
With the right support system, Togo’s small businesses show promise. Sector priorities include- agriculture, retail, renewable energy, textiles and food processing. Partnerships between government, banks, investors and business associations are needed to strengthen small enterprises as engines of inclusive growth.