Truly awful decision. I wonder if FIFA can put any pressure on them, but then again it's all so political that it may not work. There is surprisingly little sympathy coming from CAF, and they seem more concerned about the financial and political ramifications than the event itself.
According to reports, article 78 of the African Cup of Nations Charter states that teams should be banned for pulling out of a tournament so late for the next two tournaments, but I think there is a caveat a bit later saying this doesn't apply if they withdrew because of extenuating circumstances - which I think this definitely is.
Given all that, it's striking the lack of sensitivity to both Togo and the sentiments of the world more generally. Further to that, a BBC blog on the topic makes the valid point that it seems they're trying to scuttle the tournament by announcing this twenty four hours before the Final.
Egypt will win anyway by team ethic and a strength and nothing else approach, after which they'll disappear until the next ACN. Bit boring really.