TOGO

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Togolese Republic is situated in West Africa. It is a narrow rectangle of land which extends north from the Bight of Benin, on which it has a small coastline of 50 kilometers (31 miles). To the west lies Ghana, to the east is Benin, and Burkina Faso borders on the north. It has a land area of 56,785 square kilometers (21,925 square miles), making it slightly smaller than West Virginia. Lomé, the capital city, is situated on the coast and is the only city with an international airport.

POPULATION.

In mid-1999 the United Nations estimated Togo's population at 4.5 million. With an average annual population growth of 2.6 percent, the population is projected to grow by the year 2025 to 8.5 million. Some 31 percent of the population lives in towns, which have an urban growth rate of 4.8 percent. Togo has a young age profile, with half the population aged less than 14 years. Life expectancy in Togo is 48.8 years. Although infant mortality is down from 110 per 1,000 births in 1980 to 70 in 1995, it remains high. (In the United States, by way of comparison, the rate is 7 per 1,000 births). Fertility rates remain high, with an estimated average of 6.05 children born per woman. The country's workforce stands at 1.74 million and this comprises about 41.7 percent of the population.

The largest ethnic group, the Ewe, live predominantly in the south and on the coast, and have cross-border ties to Ghana. Also in the south live the Mena and the Ana. The Kabre people are concentrated in the Kozah and Binah prefectures of the Kara region in the north. The Losso and Tchokossi live in north Lamba. The Bassar inhabit Central Kotokoli and Kotokoli, and have strong links to northern Ghana. The population is 10 percent Muslim, one-third Christian, and the remainder follow traditional beliefs.

OVERVIEW OF ECONOMY

Togo is a small economy in terms of the total value of its output. This is because the population is small, at around 4.5 million, and the GDP per capita in 1999 was very low at US__BODY__,700 a year (by way of comparison the U.S. figure is US$33,900 per capita). The population is growing rapidly, at 3.4 percent a year, which adds to the problems of generating higher incomes. Most people (66 percent of the total) depend on agriculture for their livelihoods, mostly from small family farms. The economy of Togo has not performed well in recent years. Output has increased less rapidly than population, and average living standards have fallen. The agriculture sector has performed better than industry and services, however, and agricultural output per person has increased in recent years.

Togo is by all accounts a severely underdeveloped country. Low income levels mean that most income is devoted to subsistence, and more than 80 percent of GDP goes to private consumption. Savings (7 percent of GDP) and investment (13 percent of GDP) are both low. But underdevelopment is more than just a matter of income levels. The United Nations (UN) includes education and health as well as income in its Human Development Index, and the problems in both these areas helped place Togo 145th out of the 174 countries listed by the Human Development Index in 1998.

There are, however, some bright spots in Togo's economic picture. Mineral exploration in 1998 showed oil deposits in Togo waters, which may be exploited if shown to be viable. Hoping to attract investment, the government inaugurated what it calls an "industrial free zone " (actually, a free trade zone) with fiscal benefits in exchange for company guarantees on export levels and employment. And electricity imports fell after the completion in 1988 of a hydroelectric dam, built in conjunction with Benin.

In 1994, Togo embarked upon a strategy to achieve currency and other fiscal stabilization in consultation with the IMF. This program has been delayed due to political instability. The IMF has also since been very critical of the government's loss of momentum in tightening public finances. In the lead-up to the election in 1998 the government overspent, which meant the budget deficit grew to 6.7 percent of GDP, well outside the IMF guidelines of 3 percent of GDP. There is pressure to establish effective control of the budget and to reduce public sector wages, with spending reallocated to poverty alleviation and other high priority issues. Despite efforts to rationalize and broaden the tax system, heavy deficits were still recorded. In the 2000 budget many cutbacks were made. Health spending decreased by 16.3 percent, defense spending decreased by 17.7 percent, presidential office spending decreased by 32.7 percent, and expenditures by the prime minister's office decreased by 51.1 percent. However, the government is still dependent on foreign aid to cover the US$40 million deficit.

Togo is a member of the CFA Franc Zone, with its currency linked by a fixed exchange rate to the French franc. This provides a convertible currency with other countries that share the CFA franc and exchange rate stability. However, in order to achieve this, Togo has agreed to give control of its monetary policy to the regional central bank of the CFA Franc Zone, the Banque Centrale des Etats de l'Afrique de l'Ouest (BCEAO). Since more rapid inflation makes it difficult to maintain the fixed exchange rate, the money supply is under the control of the BCEAO. The BCEAO changed its 1980s policy of expansion and started to restrict credits to the private and government sectors in the early 1990s, which meant a slowdown in the growth of the money supply. As inflation fell after a 1994 devaluation of the currency, BCEAO was able to ease its monetary policy by reducing interest rates from 19.5 percent (1994) to 6 percent (1997). In 1998 BCEAO raised interest rates to 6.25 percent and increased commercial bank minimum reserve ratios (which restrict the banks' ability to lend) to forestall inflation. In 1999 the CFA franc became tied to the euro (the European Union's common currency) at a rate that reflected the euro's relationship to the French franc. A smooth transition meant that the BCEAO was able to cut interest rates to 5.75 percent, making it easier for people and business to borrow money.

Steady economic growth in the 1970s (averaging about 4 percent) gave way to low growth in the 1980s, with GDP growth becoming less than population growth, leading to a reduction in GDP per capita. Political and social unrest in the early 1990s meant that GDP contracted by 3.7 percent in 1992 and 13.7 percent in 1993. The situation was aggravated by depressed world commodity markets and an economic crisis in the West African Franc Zone.

After a return to relative domestic normality and de-valuation in 1994, the economy had a positive, if patchy, recovery. Real GDP increased by 16.7 percent in 1994 (albeit from a very low base), 6.8 percent in 1995, and by 9.7 percent in 1996. Growth fell back to 4.3 percent in 1997, but it became negative in 1998 (at-1.3 percent) due to the energy crisis. GDP growth rallied in 1999, on the back of a good harvest, to 3.5 percent. This improvement partly reflected higher phosphate production, but manufacturing, which is still state dominated, suffered due to weak demand and inefficiency.

On average, consumer inflation is normally around 5 percent or less. In 1994 the CFA devaluation caused inflation to rise to approximately 40 percent, although it fell back down over the next 2 years. Inflation then rose again to 8.7 percent in 1998 due to an increase in the value-added tax (VAT), higher oil and food prices, and increased government spending. By 2000, however, inflation had settled to the targeted 3 percent, and is expected to remain at this level.

POLITICS, GOVERNMENT, AND TAXATION

Politics have been dominated since 1967 by President Gnassingbé Eyadema, Africa's longest-serving head of state. Despite the introduction of a multi-party system in 1992 and elections in 1994, democracy still seems a long way off. The 1998 elections were boycotted and were deemed flawed by outside observers. A process of national reconciliation was forced on the president by the donor community, and talks with opposition groups resumed with a promise of a re-run of elections in 2000. Most bilateral and multilateral aid remains frozen, and the country has had a poor human rights record.

Togoland was originally a German protectorate from 1884 until the end of World War I. Britain and France split Togoland after the war and ruled under a League of Nations mandate. The western sector was controlled by Britain as part of the Gold Coast, which went on to become Ghana. French Togo became independent in 1960. The first leader, Sylvanus Olympio, was assassinated in 1963, and the army appointed a civilian, Nicolas Grunitzky, to rule. Four years later the army overthrew Grunitzky, and Colonel Eyadema took over control of the government. Eyadema formed the Rassemblement du Peuple Togolese (RPT) party in 1971 and drew civilian technocrats into government. Cabinet reshuffles in the late 1970s were designed to add legitimacy to the military regime.

A constitution based on universal suffrage was introduced in 1979, but the RPT remained the only legal party. After demonstrations and international pressure, Eyadema called a national conference in April 1991. A transitional government was appointed with opposition representation and was led by a lawyer, Joseph Koffigoh. However, the new government came under attack from the president's armed forces. Trade unions and opposition parties launched a general strike in 1992 which lasted for 9 months. A quarter of a million Togolese took shelter in neighboring countries from massacres perpetrated by the armed forces. The presidential election in 1993 was held amid further violence. The opposition boycotted the presidential election, only a third of the electorate voted, and all international observers (with the notable exception of France) rejected Eyadema's victory.

There was a legislative election in 1994. Two opposition parties gained 43 seats out of 81 in the assembly and hence the majority. The pro-Eyadema parties gained 37 seats, with Koffigoh's party winning only 1 seat. The major opposition party, the Union of Forces for Change (UFC), boycotted the election. Eyadema maintained supremacy by convincing the opposition leader, Edem Kodjo, to form an RPT-dominated government. In 1996 Kodjo was thrown out and a technocrat with links to Eyadema took control.

In the lead-up to the 1998 election there were opposition protests, social unrest, and military repression, although not nearly on the same scale as in the early 1990s. After chaos on election day, during which vote-counting stopped, the multi-party election was abandoned and Eyadema was proclaimed the winner. However, this led to violent demonstrations in Lomé. All 5 major opposition party leaders supported the claim of Gilchrist Olympio (son of the former leader and head of the UFC) that he won with 59 percent of votes. International observers condemned the result.

Legislative elections were held again in 1999. There is a National Assembly of 81 seats, with members elected for 5-year terms. The main opposition parties boycotted the election and the RPT gained all but 3 seats. There was much international pressure, including European Union threats to strike Togo off the Lomé Convention (a European Union aid program which compensates certain African and Pacific countries when the prices of their export products fall on world markets). This led to the government and opposition having reconciliation talks, mediated by the European Union and other bodies. A framework agreement was signed in July 1999 to hold a new election by March 2000, with an independent electoral commission. Disagreements have delayed this election, which may not take place until late 2001.

Eyadema remains in power with the support of the army. He has stated that he will not run in the 2004 election, although he has been known in the past to change his mind.

Government revenue comprises around 30 percent of GNP. Of this, about a third comes from taxes on incomes, profits, and capital gains, and a further third from customs duties. Of the rest, about 15 percent comes from indirect taxes on goods and services, and 14 percent is generated by government enterprises (mainly the surpluses from the phosphate sector).

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Togo's main port and growing road transport sector have an important role in the sub-regional economy. The commercial and transport sector earns 35 percent of Togo's GDP. Togo has 9,600 kilometers (5,965 miles) of roads, 1,600 kilometers (994 miles) of which are paved. The World Bank has introduced a US$200 million transport infrastructure program, which was instituted in 1997. Parts of the 700 kilometer (435 miles) north-south road (the main road to Burkina Faso) have already been rehabilitated. The main east-west road which links Togo to Benin and Ghana also has money earmarked for rehabilitation. The railway network is limited and needs modernizing. There are 275 kilometers (171 miles) of track leading from Lomé to Blitta, and 262 kilometers (163 miles) from Kpalimé to Aného.

Lomé's deep-water port has benefitted from under-capacity in other countries and competes successfully within the region. In the 1970s the port grew rapidly, reflecting increased trade with Niger, Burkina Faso, and Mali. Togo's social upheaval and a general regional economic downturn has led to a trade slump, with re-exports dropping from 2.7 million metric tons to 1.1 million metric tons in 1993. Under a government privatization program, new installations are planned, including computerization to speed up loading and unloading in order to make the port competitive.

Telecommunications are operated by Togo Telecom, which is a parastatal. Togo Telecom sought to increase the number of telephone lines in the country from 21,500 in 1998 to 30,400 in 2000. The company has been slated for privatization since 1997. One of its subsidiaries, Togocellulaire, manages the digital network, which had 6,000 subscribers by the end of 1998.

Apart from the government-run Togo Presse, there are several outspoken opposition newspapers. Since 1998 privately-owned television and radio stations have been allowed to operate alongside the parastatals.

In a US$400 million agreement with Nigeria, Ghana, and Benin in 1999, Togo hopes to find a solution to its energy supply problems. A gas pipeline will supply industry and power stations in recipient countries, which should reduce Togo's dependence on Ghana's unpredictable hydroelectricity supply. The pipeline should be in operation by 2002, and is funded by ECOWAS, the World Bank, the United States, and Italy, and will be managed by Chevron Oil of the United States. The problems of Togo's dependency on Ghana for energy were highlighted in 1998, when it received less than 5 percent of its requirements for electricity, severely disrupting the economy.

CEET, the Togolese electricity company, still relies heavily on Ghana. The hydroelectric dam that is jointly owned by Togo and Benin has produced output only sporadically. In 1996 CEET produced 35.1 million kilowatt-hours,

hours, but 349.3 million kilowatt hours (kWh) were required. CEET has also been earmarked for privatization.

ECONOMIC SECTORS

The agricultural sector provided 42.1 percent of Togo's GDP in 1997, and was responsible for 65 percent of employment. Core food crop production and livestock rearing make up most of the sector's output. Togo is self-sufficient in beans, ground nuts, yams, cassava, and sweet potatoes. Roughly 20 percent of cereals are imported. Export crops—including cotton, coffee, and cocoa—account for 20 percent of agricultural output.

The industrial sector is dominated primarily by phosphate production, which is the principal foreign exchange earner. The sector provided 21 percent of GDP in 1997 and employed 5 percent of the active population. Industry in Togo is also involved in agro-processing, construction, and energy. The government has recently set up a small Export Processing Zone in Lomé, which is designed to lure foreign companies who can take advantage of relaxed labor laws and hold large foreign exchange accounts.

The services sector (which includes commerce, transport, and tourism) provided 37 percent of GDP and 30 percent of employment in 1997.

AGRICULTURE

Agriculture is the most important sector to most Togolese. It employs two-thirds of the active population, who predominantly work on small land holdings. Food crops (mainly cassava, yams, maize, millet, and sorghum) account for two-thirds of production, and are mostly used domestically. Togo's cash crops are mainly cocoa, coffee, cotton, and to a lesser extent, palm oil. These cash crops provide a valuable return for small farmers, and they provide 40 percent of exports. Some foodstuffs need to be imported. The main imported foodstuff is rice, although production has increased 6-fold since the mid-1980s. Production increased by 9.1 percent in 1999 due to good weather, although depressed world prices for exports affected Togo (especially in cotton).

Agricultural exports are dominated by cotton. The cotton production sector employs 230,000 people, predominantly small farmers. Cultivation has expanded rapidly since the mid-1980s. Output has quadrupled from the 1985-1986 season to 200,000 metric tons in 1998, stabilizing at 190,000 metric tons in the 1999-2000 season. About 163,420 hectares were under cotton cultivation during the 1999-2000 season. Soil degradation is likely to become a problem.

Most farmers are under contract to the state-owned marketing board, Sotoco. In 1995 Sotoco lost its monopoly on processing and the external marketing of cotton, and a private company, Sicot, was given export and processing rights. Sotoco still has a dominant purchasing position and is the sole provider of fertilizers and pesticides. Several new ginning plants opened in the late 1990s, and they should be running at full capacity by early 2001.

Cocoa and coffee production appear less important than cotton, but unrecorded cross-border trade distorts the figures. Togo's production of these 2 commodities is small compared to its neighbors, producing 13,000 metric tons of coffee and 9,000 metric tons of cocoa in 1998. The state-owned OPAT was in charge of marketing, processing, and exporting until 1996, when private companies were introduced.

INDUSTRY

Togo is the world's fourth-largest phosphate producer. Phosphate is a mineral used to produce fertilizers. Reserves are estimated at 260 million metric tons of first-class phosphate and 1 billion metric tons of carbonate phosphate. Deposits were found in 1952 not far from Lomé. The good geological characteristics and geographical position led to a low cost for extraction.

Established in 1974, the parastatal OTP has a monopoly on phosphates. Annual production was around 3.3 million metric tons in 2000, and OTP employed 2,200 people. After expansion during the 1980s, the industry suffered in the 1990s. In 1993 production was only 1.79 million metric tons, and prices bottomed at US$33 per metric ton, putting the company on the verge of bankruptcy. The devaluation of the CFA franc in 1994 restored the profitability of the phosphate industry. In 1997 output was 2.69 million metric tons, which realized US$110 million, though production fell in 1998 to 2.24 million metric tons. Although the industry looks good in the short term, it is likely to face growing international competition, especially as world phosphate fertilizer demand is falling. After World Bank negotiations, 40 percent of the OTP is to be privatized, mainly to outside investors.

The overvaluation of the CFA franc in the early 1990s hit the industrial sector hard. In addition, it was not helped by the political instability of the early 1990s, when industry's GDP contribution fell by a fifth. Once order was restored, and following the devaluation in 1994, industry's GDP contribution grew by 26 percent, and 20 percent in 1995, before settling to around 5 percent growth in 1997. Industrial activity recovered in 1998 after 2 bad years, despite the 1994 devaluation boost. The privatized construction sector led the recovery. In November 1999, the International Finance Corporation (IFC), the agency of the World Bank which lends to the private sector, announced a US$6 million loan to the building materials sector.

A duty-free "Export Processing Zone" was launched in 1989, and now includes 41 industrial units, which involve a US$50 million investment and 7,000 new jobs. It has attracted international interest, predominantly French, and advantageous terms for foreign investors if they export 80 percent of their production and give jobs to Togolese.

SERVICES

A recent World Bank report shed doubt on the stability of Togo's banks, once thought to be amongst the most stable in West Africa, following the crises of the 1990s, during which period many banks suspended activities. The commercial banks, already faced with falling deposits and increased lending, also had to absorb public sector deficits in the early 1990s. Weak capital flows and stagnant exports led to a US$24 million decrease in bank assets by 1990-94. Credit grew by US$12 million in the same period, reflecting increased lending, while the government indebtedness increased by US$19 million. This meant that banks had to borrow heavily from BCEAO. The 2 state-owned banks fared the worst, and accounted for 74 percent of all lending and 62.5 percent of all deposits. The rest of the sector is shared between a variety of foreign banks, including French and Belgian interests.

In 1993, the hotel industry included 4,163 beds and employed 1,309 people. During the problems of the 1990s, hotel occupancy dropped to less than 20 percent of capacity. International arrivals halved, and visitors stayed on average only 3.5 nights. The 80,000 arrivals were a record in 1996, although many of these were business travelers and returning Togolese. Several state-owned hotels have been slated for privatization, and the government has allowed foreign leasing of the more prestigious hotels.

INTERNATIONAL TRADE

For the past 20 years Togo has had a net trade deficit, reaching $50 million in 1999, with exports at US$400 million and imports at US$450 million. Exports and imports both contracted in 1992 and 1993, but in 1994 the currency devaluation boosted agricultural exports, which meant that the trade deficit fell to $37 million from US$111 million in 1993. The main destinations for exports in 1994 were France, Benin, Ghana, and Canada, while imports came from France, Germany, Côte d'Ivoire, and China.

In 1998 trade revenue from cotton and cocoa fell, despite an increase in the volume exported, due to unfavorable world prices. However, phosphate exports increased both in terms of volume and revenue collected.

Re-exports increased in 1998 (as in every year since 1994), and accounted for 20 percent of exports in 1998. France is historically the main importer of goods, but the suspension of aid led to a decrease in French imports and an increase in Chinese imports. However, the published data underestimate cross-border trade with Benin, Ghana, and Nigeria, much of which goes unrecorded.

MONEY

Togo is part of the 8-member Union Economique et Monetaire Ouest-Africaine (UEMOA) and uses the CFA franc. The BCEAO issues currency notes and regulates credit expansion throughout the region. The CFA franc was pegged to the French franc at a 50:1 exchange rate from 1948, but was overvalued in the late 1980s; the 1994 devaluation dropped the value to a 100:1 exchange rate. With France having joined the European Monetary Union, the CFA franc is now valued at CFA Fr 655.959 to 1 euro.

POVERTY AND WEALTH

Togo is a poor country; GDP per capita stood at __BODY__,700 in 1999, and 32 percent of the population was thought to be living below the poverty line (according to 1987-89 estimates).

Education provisions have deteriorated in Togo in recent years. The one university, the University of Benin, was established in 1970. Originally designed for 6,000 students, it currently is trying to cope with 17,000, which has led to many campus demonstrations. A second university is planned in Clara, Eyadema's hometown, but its development is at a standstill due to the political situation.

Education has suffered during the 1990s due to demographic pressures and the freeze on hiring civil servants. A World Bank-sponsored scheme to provide 6,000 primary-level educators is under way. Despite these problems, Togo has traditionally had good education standards for a sub-Saharan African country. The United Nations Development Program (UNDP) put adult literacy in Togo at 53.2 percent in 1997, with 82.3 percent of primary school age children attending school and 58.3 percent of children of the appropriate age attending secondary school. The government provided 24.7 percent of the money required for education. However, gender imbalances are rife throughout the education system. Roughly 43 percent of males and only 31 percent of females are literate in Togo, according to the U.S. Department of State.

Togolese health care has struggled due to a lack of resources and population growth. The number of AIDS cases is expected to increase up to 2005, when the number of new cases is expected to stabilize and then begin a slow fall, although this depends on the success of AIDS education programs. In 1993 there were 6 doctors and 31 nurses per 100,000 population, and this figure is unlikely to change in the near future. Regional disparities are huge, as 50 percent of all medical staff work in the capital. Infant mortality stands at 78 deaths per 1,000 live births, and 125 children per 1,000 die before the age of 5. The maternal mortality rate stands at 640 per 100,000. In 1997 there were 185 AIDS cases per 100,000.

WORKING CONDITIONS

A Labor Tribunal is provided for in Togo's judicial system. The Collectif des Syndicates Independents (CSI) was founded in 1992 and is a coordinating body for labor organizations. The other main trade union in Togo is the Confederation Nationale des Travailleurs de Togo (CNTT), which was affiliated with the RPT party until 1991. The trade unions can be militant in Togo, as was shown in a 9-month general strike in 1992.

In the 1990 budget a mere US__BODY__.2 million was spent on social security and welfare. Togo has no minimum wage. The labor force was estimated at 2 million in 1998, of which 40 percent were women. Unemployment figures have little significance in Togo. There are very few people with no work at all, but few people work at what is considered full employment, and much work is informal or subsistence labor. There are no unemployment benefits, and those who do not work tend to rely on support from charities or their families. Many people would like a modern sector job, but eke out an existence on family farms or in casual informal sector activities in the urban areas.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1884-1919. Togoland is a German protectorate.

1919. Britain and France take Togoland from Germany during World War I; they split the country—with France ruling French Togoland—and rule under a League of Nations mandate.

1960. On April 27, the newly named Republic of Togo becomes independent, and Sylvanus Olympio is elected president under a provisional constitution.

1963. President Olympio is assassinated by army officers, and Nicolas Grunitzky leads a provisional government as prime minister and, later, as president.

1967. President Grunitzky's government is overthrown by the military, and Colonel Etienne Gnassingbé Eyadema takes control.

1972. Eyadema is reelected to the presidency in a national referendum in which he is the only candidate.

1979. Eyadema is reelected once more in elections in which he is the only candidate. A new constitution provides for a national assembly which will consult with the president, but Eyadema holds all the power.

1991. Facing pressure from pro-democracy protestors, Eyadema agrees to a transitional government leading up to free elections. Kokou Joseph Koffigoh is selected as prime minister, and Eyadema's powers are limited.

1992. Fearing that Eyadema will not relinquish power, trade unions and opposition parties launch a general strike, which lasts for 9 months and decimates Togo's economy.

1993. Presidential elections are held, but alleged fraud keeps many opposition parties and voters away. Eyadema wins with 96 percent of the votes and declares the success of democracy in Togo.

1994. Multiparty legislative elections are held, giving parties opposed to Eyadema's RPT control in the legislature. Edem Kodjo is named prime minister but has little power in a country that is still dominated by Eyadema.

1994. The CFA franc is devalued, leading to a surge in exports for Togo.

1998. Presidential elections are again boycotted by the opposition and deemed flawed by outside observers. Eyadema retains presidency.

1999. CFA franc becomes tied to the euro. Legislative elections are won by Eyadema's RPT.

FUTURE TRENDS

It is very difficult to have economic progress without a platform of political stability, as both domestic and foreign investors are unwilling to risk their resources unless they are confident that they will be secure. In the Togolese context, the lack of consensus over the operation of the political system between the government and the opposition parties is the main worry for international donors and the business community. Until these matters are resolved, Togo cannot expect to make progress in improving the living standards of its people.

Disagreements between the opposition and the ruling parties may lead to such a delay that new legislative elections (to replace the elections in 1999, widely seen as flawed) may not be carried out until the end of 2001. European Union aid will resume if new elections are seen to be free and transparent. It is likely that the United States and the IMF will follow suit. The government plans to restore stability to public finances, including the banking and financial sectors, and to revive the privatization process. Real GDP is expected to grow to 3.5 percent in 2001, and 3.8 percent in 2002, thanks to external assistance. Assuming a satisfactory harvest and a downturn in oil prices, inflation is forecast to fall to 2 percent in 2001 and 1.5 percent in 2002. Aid inflow means Togo's economy can be expected to improve between 2001 and 2002.

Following international pressure, a national independent electoral commission will oversee the 2001 election. The president has strengthened his international position through the presidency of the Organization of African Unity (OAU). A joint UN and OAU investigation is underway into the murder of political opponents in the 1998 election.

Though there has been little increase in revenue, a decrease in public expenditures has resulted in a lower deficit. In 2000 the economy was recovering from the 1998 recession, helped by an agricultural upturn and by the fact that the OAU summit was held in Lomé. Cotton output is estimated to have fallen to 110,000 metric tons in 2000 due to uneven rainfall, but cereal and coffee production both increased in the 2000-2001 season. The new Togo, Benin, and Nigeria power scheme should improve Togo's power situation.

DEPENDENCIES

Togo has no territories or colonies.

BIBLIOGRAPHY

Economist Intelligence Unit. Country Profile: Togo. London: Economist Intelligence Unit, 2001.

Hodd, Michael. The Economies of Africa. Dartmouth: Aldershot,1991.

Togo. <http://www.republicoftogo.com/english/index.htm>.Accessed September 2001.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed August 2001.

U.S. Department of State. Background Notes: Togo, October 1997. <http://www.state.gov/www/background_notes/togo_9710_bgn.html>. Accessed September 2001.

U.S. Department of State. FY 2000 Country Commercial Guide: Togo. <http://www.state.gov/www/about_state/business/com_guides/2001/africa/index.html>. Accessed September 2001.

Welcome to the Republic of Togo (official home page). <http://www.afrika.com/togo>. Accessed September 2001.

—Jack Hodd

CAPITAL:

Lomé.

MONETARY UNIT:

Communauté Financiére Africaine franc (CFA Fr). The CFA franc is tied to the French franc at an exchange rate of CFA Fr50 to Fr1. One CFA franc equals 100 centimes. There are coins of 5, 10, 50, 100, and 500 CFA francs, and notes of 500, 1,000, 2,000, 5,000, and 10,000 CFA francs.

CHIEF EXPORTS:

Ginned cotton, coffee, cocoa, phosphate.

CHIEF IMPORTS:

Consumer goods, foodstuffs, petroleum products.

GROSS DOMESTIC PRODUCT:

US$8.6 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$400 million (f.o.b., 1999 est.). Imports: US$450 million (f.o.b., 1999 est.).