Author(s): Bertelsmann Foundation
Type of publication: report
Date of publication: 2018
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Level of Socioeconomic Development
The current socioeconomic situation in Togo is precarious. Economic growth perspectives remained favourable with a 5.5% average growth rate in the years before 2015. But economic growth has been not inclusive. Poverty remains at a high level, with 55.1% of the population living below the poverty line in 2015. Though the poverty rate has decreased slightly from 59% in 2011 (WDI 2015, QUIBB 2015). However, the depth and severity of poverty has worsened, with about 81% of population now at risk of falling below the poverty line. The rate of extreme poverty in Togo is 49.2%, almost twice the 25.2% rate in Ghana.
According to the IMF (2014), the distribution of regional poverty varies dramatically. For example, 91% of the population in the northern Savanes Region live below the poverty line, while 37.8% of the population in Lomé live below the poverty. The urban-rural divide is also pronounced: 68.9% of the population in rural areas (e.g., in the Savanes, Central, Kara and Maritime regions) live below the poverty line (i.e., an annual income of €239), while 37.8% of the population in Lomé live below the poverty line (i.e., an annual income of €369). Regional and inter-household income inequality is increasing. The Gini coefficient for Togo increased from 0.34 in 2013 to 0.38 in 2015. The rural exodus continues.
The depth and severity of poverty has worsened, with about 81% of population now at risk of falling below the poverty line
Today, about 40% of the population live in urban areas, an increase of 160% between 1990 and 2014 (AEO Togo, 2016). Urban unemployment and underemployment persists, with an estimated 33% of the urban population either unemployment or underemployment. Though officially the national rate of underemployment decreased from 6.5% in 2011 to 3.4% in 2015. In 2012, life expectancy at birth was 57.5 years, while the mortality rate for children under 5 years old was 85 deaths per 1,000 live births (HDR 2015).
For example, 91% of the population in the northern Savanes Region live below the poverty line, while 37.8% of the population in Lomé live below the poverty
All in all, the changes in the country since 2006 have not yet led to a substantial improvement in people’s living conditions. The subsistence economy in rural areas, the potential of the informal sector in urban areas and remittances from expatriated Togolese have helped to avoid a more severe crisis. However, on balance, Togolese citizens lack adequate freedom of choice and an effective decentralization policy including a real devolution of power and resources.
Welfare regime
Togo’s welfare system is underdeveloped. It is available only to government employees and those employed in the formal sector. The monthly minimum wage (salaire minimum interprofessionnel garanti, SMIG) was increased in August 2008 to CFA 28,000 (€42.68). The updated SMIG of CFA 35,000 (€53) was applied to the Lomé free-trade zone in January 2012 by stipulations of the Convention Collective Interprofessionnelle du Togo. However, workers complained regularly about precarious working conditions characterized by bad hygienic and security conditions and non-payment of the minimum wage. The Togolese minimum wage is still rather low compared with CFA 60,000 (€91) in Côte d’Ivoire (2013) and 18,000 NGN (€85) in Nigeria.
In any case, it is hardly enough to feed an individual for a month and only applies to the formal sector. About 85% of the working age population is active and an estimated 33% underemployed (2011), while youth unemployment is a major problem in urban centers. The government tried to counteract this tendency with limited success by introducing in 2011 a program for unemployed school leavers, PROVONAT (Programme de Promotion du Volontariat au Togo).
The Togolese minimum wage is still rather low compared with CFA 60,000 (€91) in Côte d’Ivoire (2013) and 18,000 NGN (€85) in Nigeria
PROVONAT, which was backed by the UNDP, was reformed in June 2014 into the National Agency of Volunteers in Togo (Agence Nationale de Volontariat au Togo, ANVT). The program secured volunteer positions for 2,334 people of which 1,092 people had secured employment by 2016. Overall, 8,906 volunteers (32% women) have participated in the programs since 2011 and in one program 44% of participants found employment.
Pension schemes in Togo do not guarantee beneficiaries a decent living. Despite the fact that the median age in Togo is 18.6 years (i.e., almost half of the population is younger than 18), the current system is no longer financially sustainable. This is why the government has been negotiating with unions to increase the pension entry age for civil servants to 60, which would put further pressure on the labour market.
Social safety nets
Togo does not provide equal opportunities to all citizens, especially to women. There are severe disadvantages for girls in the Togolese education system, notably with regard to secondary and higher education. In 2015, the enrolment ratio of women to men was 0.9 in primary education, but 0.5 and 0.4 in secondary and tertiary education respectively. The literacy rate is considerably lower for women (73%) compared to men (90%).
Although women are dominant in the informal sector (e.g., agriculture and petty trade) and form almost 51% of the labour force, they have only very limited access to, and control of the factors of production (land, equipment, inputs, credit). In addition, it is highly unlikely that they will get equal access to wage employment in the formal sector in the foreseeable future.
Although women are dominant in the informal sector (e.g., agriculture and petty trade) and form almost 51% of the labour force, they have only very limited access to, and control of the factors of production (land, equipment, inputs, credit)
Yet, the exclusion of women from key activities in the economy and politics has slightly improved since 1990. In 2008, the government introduced a national action plan to correct gender inequality (PNEEG – Plan d’Action national pour l’équité et l’égalité de genre au Togo 2009-2013). However, the means to implement this policy are insufficient. Discrimination of women remains widespread.
The percentage of girls who completed primary education rose from 55% (2008) to 79% (2014), against boys from 77% to 91% (World Bank 2016). Girls are increasingly more disadvantaged vis-à-vis boys as the level of education increases. However, gender inequality is most pronounced concerning property rights (land tenure), access to credit and employment.
Women are underrepresented in the political arena (i.e., government, parliament and political parties) and enterprises. Togo amended the national electoral law in 2013, which now requires that candidate lists include equal numbers of men and women. This amendment will be applied from the next (2018) legislative election. In addition, a 2013 law on Political Party and Electoral Campaign Funding provides that 20% of public funding allocated to political parties be distributed in proportion to the number of women elected in previous legislative elections. The last legislative elections (2013) resulted in the election of 16 women deputies out of a total of 91 deputies (17.6%), compared with 9 (11%) in the previous parliament elected in 2007.
All the same, the representation of women in the cabinet decreased from 26% in 2013 to only 3% women (Alphabetization, Trade and Postal Service) or 13% in the cabinet since the latest government reshuffle in August 2016
Women have comprised 11.1% of mayors and 0.38% of canton chiefs since the 2000s (IMF 2014). All the same, the representation of women in the cabinet decreased from 26% in 2013 to only 3% women (Alphabetization, Trade and Postal Service) or 13% in the cabinet since the latest government reshuffle in August 2016. The socio-cultural conditions for a stronger participation of Togolese women in politics are rather bleak. A survey of Afrobarometer (2014) revealed significant gender differences concerning men and women’s interest in political affairs. Just 31% of women have participated in election campaigns against 52% of men, and three times more men (27%) assisted candidates as women (8%) during the 2010 presidential election.
According to a UNDP report of April 2010 the unequal distribution of the standard of living (Gini coefficient 33.5%) is overwhelmingly due to inequality in income differences according to region (i.e., a north-south divide), gender and socioeconomic strata. Political factors have disadvantaged southern parts of the country since 2006. However, the significance of these factors has decreased (apart from the public and security services), although belonging to a wealthy family or having a family member in the administration remain important factors in securing formal employment.