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Togo’s Business Landscape in 2025: A 5% Dip in New Ventures 

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Togo’s entrepreneurial scene saw a slight cooling-off in the first quarter of 2025, with new business registrations dropping by 5% year-on-year. According to data from the Center for Business Formalities (CFE), 4,262 new businesses were registered between January and March 2025, down from the same period in 2024. While the dip raises questions about economic momentum, the numbers also reveal promising trends in local entrepreneurship and gender inclusivity. Let’s unpack the details.

Key Highlights from Q1 2025
  • Homegrown entrepreneurship thrives: Togolese nationals dominated new business launches, accounting for 81% of registrations.
  • Women’s growing footprint: Female entrepreneurs made up 28.6% of new ventures, underscoring gradual progress in closing the gender gap.
  • January leads the way: The year started strong with 1,498 new businesses registered in January alone, outpacing February (1,314) and March (1,450).

A Decade of Reforms: Laying the Groundwork

The steady flow of new businesses—despite the recent dip—reflects the success of Togo’s decade-long push to simplify business creation. Reforms like digitized registration processes, reduced bureaucratic hurdles, and incentives for startups have made it easier for entrepreneurs to formalize their ventures. These efforts have fostered a culture of entrepreneurship, positioning Togo as one of West Africa’s emerging business hubs.

Behind the Numbers: Cyclical Dip or Long-Term Trend?

While the 5% YoY decline is notable, context matters. In 2024, Togo recorded 14,921 new businesses, with over 10% (1,492) launched in January. The 2025 January figure (1,498) aligns closely with this trend, suggesting seasonal consistency. Economists caution against overinterpreting the Q1 slowdown—it could stem from temporary factors like election uncertainty, global economic headwinds, or delayed investments. However, if the trend persists through 2025, it may signal deeper structural challenges.

Looking Ahead: Opportunities and Challenges

Togo’s entrepreneurial spirit remains resilient, driven by a young population and improving ease of doing business. Yet, sustaining growth will require:

  1. Boosting access to funding: Expanding microloan programs and venture capital for SMEs.
  2. Enhancing digital infrastructure: Strengthening online platforms for business registration and tax compliance.
  3. Supporting women-led businesses: Targeted grants and training to amplify female participation.

The Bottom Line

Togo’s Q1 business registration dip is a reminder that economic progress isn’t linear. While the decline warrants monitoring, the strong role of local entrepreneurs and rising female participation offer reasons for optimism. As reforms continue to bear fruit, the coming quarters will reveal whether this slowdown is a bump in the road—or a sign of shifting tides.

For aspiring entrepreneurs, the message is clear: Togo’s market remains ripe with opportunity. Stay tuned as we track how policy and innovation shape its economic journey in 2025!

Let us know your thoughts: Are you a Togolese entrepreneur? Share your experience navigating the business landscape in the comments below!

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About the author

Ahmad

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