This report explores the integration and competitiveness of Togolese small and medium-sized enterprises (SMEs) in regional markets, with a focus on the opportunities offered by the African Continental Free Trade Area (AfCFTA). Operational since 1 January 2021, the African Continental Free Trade Area (AfCFTA) offers African economies an opportunity for development through intra-African trade, industrialisation and structural transformation. Togo ratified this agreement in April 2019 and has adopted an implementation strategy. The report highlights the strategic importance of SMEs, which account for 99% of registered businesses in Togo and contribute 80% of GDP. The study identifies key sectors such as agriculture, textiles, renewable energy, logistics and services as drivers of SME growth and regional integration.
The role of the private sector and industry in enabling African countries (including Togo) to take full advantage of this agreement is well established. The Togolese government has implemented several initiatives to support the development of SMEs and improve their competitiveness, notably the Government Roadmap (FDR 2025). These government initiatives address challenges such as limited access to finance, inadequate infrastructure and technological gaps, including economic zones, innovative financing mechanisms and digitisation efforts.
The main objective of this report is to identify market niches for SMEs in Togo and opportunities that promote their integration into the African market. Specifically, it aims to: provide a detailed map of the continental value chain that will enable Togo to more easily position its exports of goods and services within the continental market network, particularly in the agribusiness, textile, renewable energy, fisheries and aquaculture, and maritime and logistics services sectors.
The methodology combines an in-depth literature review and interviews with various public and private stakeholders. A systematic analysis of sectors with high potential for the Togolese economy was carried out by combining sectoral policy guidelines, secondary data on sector performance and the opinions of key stakeholders. Sectoral development opportunities were cross-referenced with those offered by the AfCFTA for the Togolese economy. The challenges for better integration of SMEs into regional and continental value chains were analysed, leading to proposals for actions to support Togolese SMEs.
The report highlights the need for a comprehensive strategy to improve the competitiveness of SMEs, including market analysis, value chain mapping, capacity building, infrastructure development and the promotion of Togolese products. It also describes the role of institutions such as the Youth Economic Initiatives Support Fund (FAIEJ), the National Agency for the Promotion of Small and Medium-sized Enterprises (ANPGF) and the Agency for the Development of Micro, Small and Medium-sized Enterprises (ADTPME) in supporting entrepreneurship and facilitating access to finance.
Recommendations include promoting public-private partnerships, improving governance and using digital tools to strengthen SME participation in regional value chains.
The study concludes with concrete measures to maximise the economic and social benefits of the AfCFTA while advancing Togo's industrialisation and export capabilities.
The actions to be implemented are set out in a matrix and are structured around the following six strategic objectives:
- Identify regional market opportunities for Togolese SMEs.
- Conduct in-depth analyses of regional value chains.
- Improve access to finance for the regional integration of SMEs.
- Strengthen the capacities of Togolese SMEs to meet the requirements of regional markets.
- Improve logistics and digital infrastructure.
- Promote the products of Togolese SMEs at the regional level.
This report was prepared as part of UNCTAD's project entitled ‘Enhancing the capacity of African vulnerable countries in adopting policy incentives and innovative instruments for SMEs' participation in regional value chains’, funded by the Sub-Fund for the 2030 Agenda for Sustainable Development of the United Nations Fund for Peace and Development.