Analysis of the impact of the support fund for local authorities (FACT) on territorial inequality reduction and local public investment in Togo through municipal development plans (PDC)

This article analyzes the impact of the Support Fund for Local Authorities (FACT), operational since 2020, on the sustainable territorial development of Togolese municipalities. It contributes to the decentralization literature by offering a multidimensional and theory-informed assessment of a national equalization mechanism within a West African context. The study addresses a central research question: To what extent do FACT transfers contribute to reducing inter-municipal disparities while supporting the implementation of structuring projects aligned with Municipal Development Plans? This combined perspective allows for a comprehensive understanding of both the redistributive and developmental roles of intergovernmental transfers in a decentralized context. A mixed-methods approach is adopted, combining statistical analysis of municipal financial data (2021–2023), semi-structured interviews with 272 local stakeholders, and photographic documentation. Sixteen municipalities, selected across Togo’s four administrative strata, were purposefully chosen to reflect territorial diversity. Findings reveal that FACT allocations, based on equalization criteria such as poverty, population, and surface area, have strengthened investment capacities in rural municipalities. However, urban areas with more complex infrastructure demands remain underfunded, exposing the limits of the current allocation model. These findings underscore the need to differentiate funding mechanisms and better align them with both local development priorities and planning frameworks. The study concludes with policy recommendations aimed at enhancing the coherence between fiscal transfers and municipal planning, improving the equity and effectiveness of inter-municipal funding, and strengthening the long-term impact of decentralization on territorial development.