IMF, for the second time this year, scales up its forecast for Togo’s economic growth

Economic governance

Thursday, 12 September 2019 17:27

IMF, for the second time this year, scales up its forecast for Togo’s economic growth

(Togo First) - For the second time this year, the International Monetary Fund (IMF) has scaled up its growth forecast for the Togolese economy.

From 5% to 5.1% in March, the Bretton Woods institution now projects the figure at 5.3% by the end of the year.

“After considerable slowing in 2017 amid socio-political tensions, economic activity regained momentum in 2018 and maintained this momentum throughout the first half of 2019. Economic growth should slightly accelerate, from 4.9% in 2018 to 5.3% in 2019,” recently declared Ivohasina Fizara Razafimahefa, head of the IMF delegation which was in Lomé between August 28 and September 10, in the framework of the fifth review of Togo’s economic performance under a program supported by an Extended Credit Facility (ECF) arrangement.

The IMF lauds “the significant budgetary efforts started in 2017” and “sustained till end-June 2019.” It also declared satisfactory the country’s debt collection level and overall expenditures which were lower than expected.

“If current policies are sustained in the second half of 2019, Togo will be meeting, for the third consecutive year, WAEMU’s 3% standard for the budget deficit to GDP ratio,” adds the mission while also praising the Gnassingbé government for improving its business climate.

“Pursuing efforts in this area [Ed note: business climate] will be key to achieving goals set under the national development plan and help foster inclusive economic growth.”

Taking this into account, the IMF forecasts economic growth at 5.5% in 2020 (0.1% less than the government’s projection). Let’s recall that Togo eyes an economic growth of 7.6% by 2022.

Ayi Renaud Dossavi

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.