Methods of Payment

• Open Account / Bank Transfers: The most common method for domestic and international transactions. Local banks routinely process cross-border wire transfers via SWIFT without difficulty. Exporters dealing with new or higher-risk relationships may prefer more secure instruments. 
• Letters of Credit (LCs): Frequently used for medium- and large-value transactions to reduce payment risk. Local banks issue LCs through correspondent relationships with international banks. Exporters should ensure strict compliance with documentary requirements. 
• Documentary Collections: Suitable for established trading relationships. Banks handle the exchange of documents, but do not guarantee payment. 
• Cash in Advance: Common for small shipments, new customers, and higher-risk environments, or when political or credit risk warrants upfront payment. 
• Factoring / Receivables Finance: Available on a limited but growing basis. Some regional banks and international financial providers offer factoring, though costs and documentation requirements tend to be higher.
• Cards, E-Payments and Mobile Money: Visa and Mastercard are accepted at major hotels, larger retailers, and government e-services. Mobile money platforms (Mixx by Yas, Moov Africa Togo/Flooz, Gozem Money) are widely used for B2C transactions and an increasing number of small B2B payments. Businesses selling in Togo may benefit from integrating local mobile-wallet options.

Credit Ratings, Credit Information, and Debt Collection 

• Sovereign and Market Ratings: International agencies (e.g., Standard & Poor’s, Moody’s) maintain sovereign ratings for Togo. Consult them for country and credit risk assessment. 
• Credit Reporting / Bureaus: Regional and private credit-information services (e.g. Creditinfo West Africa through WAEMU’s regional framework) provide corporate and consumer credit data with coverage in Togo. 
• Collections: Local and international collection firms operate in Togo, including international networks such as Creditreform and specialized local agencies. Collection efforts typically begin with amicable negotiation followed, if necessary, by enforcement through the local court system.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

Banking Systems

• Monetary Union and Regulator: Togo is a member of the West African Economic and Monetary Union (WAEMU) and uses the CFA franc (XOF). The regional central bank, Central Bank of West African States, issues currency and sets monetary and regulatory policies that apply to Togo. Local banks operate under WAEMU banking regulations and are supervised according to these rules.
   
• Commercial Banking Landscape: The sector is served by a mix of regional pan-African banks and local institutions, many of which are subsidiaries or branches of West African or North African banking groups. International bank branches are limited, which can affect the speed and cost of international settlements.
   
• Electronic Money and Mobile Finance Regulation: Electronic money and mobile finance are regulated by the BCEAO, which lists approved electronic-money issuers such as Moov/Flooz, Mixx/Yas and Gozem partners. These electronic-money institutions are recognized and regulated payment channels, and adoption is expected to increase for both merchant and consumer payments.
   
• Foreign Exchange Controls: Togo is part of the WAEMU and uses the CFA franc (XOF), which is issued and regulated by the regional central bank, BCEAO, and pegged to the euro. This arrangement provides exchange-rate stability but places monetary policy under regional authority. Recent BCEAO and WAEMU regulations have tightened foreign exchange controls, requiring additional approvals in certain cases, such as opening accounts for non-residents, which can create administrative delays. U.S. businesses should anticipate documentary requirements for large foreign exchange transfers or account openings, price contracts in stable currencies such as USD or EUR where possible and consult local banks and legal counsel to ensure compliance. For further guidance, refer to the U.S. Department of State Investment Climate Statements.
   
• U.S. Banks and Local Correspondent Banks: There are no major U.S. retail banks with full commercial-branch networks in Togo. International transfers are typically clear through global correspondent banks (e.g., Citibank, JPMorgan, BNY Mellon) via local banks’ nostro accounts. Ecobank and Orabank are the main correspondent banks in Togo, and U.S. exporters should plan to route payments through these or other local banks’ correspondent relationships. Direct U.S.-branch access should not be assumed, and routing details should be confirmed with your bank. U.S. companies should also consult the EXIM Bank Country Limitation Schedule for the current availability of EXIM financing or insurance; as of January 15, 2025, Togo is listed with specific conditions.

For additional information, visit the U.S. Department of State Investment Climate Statements.