CPIA: Togo improved its score in 2017

Economic governance
Thursday, 13 September 2018 16:22
CPIA: Togo improved its score in 2017

(Togo First) - After falling last year, the CPIA score of the 38 African countries eligible for the International Development Association’s (IDA) loans is steady this year. This is disclosed in World Bank’s 2017 CPIA report released on Wednesday 12, 2017.

Overall, these countries scored 3.1 with sub-Saharan Africa getting a slightly better score than other nations benefiting from IDA’s support. Average score for the latter was 3.2.

With a 3.1 score, up 0.1pt in 2017, Togo is among African countries eligible for IDA’s loans that have improved the quality of their policies and public institutions.

Released yearly, the CPIA report rates every country that can benefit from IDA grants. The scores reflect quality of policies and institutions in the concerned countries. The CPIA consists of 16 criteria grouped in four equally weighted clusters: Economic Management, Structural Policies, Policies for Social Inclusion and Equity, and Public Sector Management and Institutions.

These are Togo’s ratings for each of these clusters: 3.2 pt, 3.2 pt, 3.4 pt and 2.8 pt.

Compared to 2016’s ratings, this is a good performance, which is to be attributed to the many reforms put in place by the government to improve the country’s macroeconomic environment.

Looking at economic management’s score, it improved by 0.4. Structural policies were stable, the same goes for policies for social inclusion and equity. Last is the public sector management whose score rose by 0.1 pt.  

Economic Management : Carrot and stick

Though its score for economic management is the same as average for sub-Saharan African nations (3.2), Togo will have to improve its policy and debt management. Truly, the country’s debt soared significantly in 2016. And though the CPIA report notes a 0.5 pt improvement of its ratings in 2017, other major actions should be taken to fix things. Actually, a few months ago, the World Bank said it would send a mission to Lomé to help the government better manage its debt.  

Concerning public sector management and institutions, Togo also needs to improve. In effect, this year, concrete actions were taken to raise the countries’ indicators. Such reforms include a new land code, a new tax code to come into force in 2019; a new custom code was also adopted by the parliament. These reforms could help the country improve its results for the next CPIA report.

Social and environment : Positive evolution

In regards to social and environmental conditions, Togo’s results are better. Indeed, World Bank’s report gave the nation a score of 3.4 for social inclusion and equity while average for the sub-Saharan African region was 3.2. The World Bank lauded Togolese authorities for the multiple reforms implemented over the recent years to increase ecologic sustainability. Also, for the equity in use of public resources, the report gave Togo a score of 3.5, against 3.2 for the SSA region. Regardless, once again, the country still has to fix various issues related to the valorization of its human resources, since it keeps lagging behind its neighbors in this aspect.

Structural policies

In regards to structural policies, Togo scored 3.2 as a result of regional standards imposed in the WAEMU and ECOWAS which the country is part of. The 2017 CPIA report assesses all reforms implemented in the Togolese trade industry up to 2017. Under these, measures aiming to simplify procedures related to external trade were well seen by the World Bank. Same goes for monetary and exchange policies, which are also strengthened due to Togo’s appurtenance to the above-mentioned communities.

A look at the past decade

From 2008 to 2017, Togo’s CPIA scores grew by 0.4 pt, driven by progress made in economic management, social inclusion and equity, public sector management and institutions. However, over the period, according to the World Bank, structural policies stagnated.

In the CPIA ranking, Rwanda still remains at the top, both across the region and worldwide, with a score of 4. Other well placed nations in the region include Senegal (3.8), Cape Verde, Kenya and Tanzania (3.7 each). 

Let’s recall that the CPIA is a tool that allows the World Bank, through the IDA, to increase the amount of concessional loans it grants. It is also a great tool to develop public policies.

Fiacre E. Kakpo

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