MCC 2021: Togo, second-best reformer in Africa

Economic governance

Wednesday, 11 November 2020 17:16

MCC 2021: Togo, second-best reformer in Africa

(Togo First) - From 14 indicators in 2019 and 2020, Togo validated 15 out of the 20 indicators on the Millenium Challenge Corporation (MCC) scorecard for 2021. The card was released on November 10, 2020.

This makes Togo one out of 25 countries that validated a majority of the MCC indicators, and the second-best reformer in Africa, after Cape Verde. Meanwhile, 53 countries were taken off the rankings due to insufficient reforms.

Back to Togo, the five indicators where it performed best are business start-ups, primary education expenditures, freedom of information, fiscal policy, and access to credit.

Significant improvements were recorded in other key indicators, such as control of corruption, land rights, and rule of law.

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This is the fifth consecutive year that Togo meets the MCC’s three eligibility criteria. The country, therefore, consolidates its position concerning the program which will enable it to secure more financing.

Faure Essozimna Gnassingbé rejoices!

The new performance is greatly lauded by Lomé. Following the scorecard’s release, Togolese president, Faure Essozimna Gnassingbé tweeted: “The scorecard just released by the Millenium Challenge Corporation (MCC) confirms the improvement in our country’s performance. This makes me happy! Our country now validates 15 out of 20 indicators, against 7 five years ago.”

“This promising improvement, he added, bears beautiful perspectives for our economy and our people.” According to the leader, this is due to “many reforms implemented in multiple sectors, especially relative to governance, economic freedom, and investment in human capital.”

The reforms in question, according to Sandra Ablamba Johnson, minister, and secretary-general of the Togolese presidency, were primarily introduced to improve the lives of the Togolese people and not just to “please” international institutions.

More efforts to make

Regardless, Togo should, the MCC observes, make more effort to validate indicators such as children's health, vaccination rate, health expenditures, government efficiency, and political rights. For his part, Stanislas Baba, national coordinator of the MCA, seems perplexed regarding Togo’s new scores which he estimates to be far-fetched, and he noted very little contribution of national actors to the MCC evaluation.

Séna Akoda

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.