Togo Launches New Wave of Reforms to Enhance Business Climate

Economic governance
Tuesday, 15 October 2024 15:36
Togo Launches New Wave of Reforms to Enhance Business Climate

(Togo First) - Togo is launching a new wave of reforms to improve its business climate. On October 7, 2024, the country held a workshop to present the first B-Ready report from the World Bank’s Doing Business initiative. Togo ranked third in Africa, behind Rwanda and Mauritius, showcasing its progress in business reforms.

Sandra Johnson, Minister Secretary General of the Presidency, chaired the event alongside other key figures like Rose Kayi Mivedor, Minister of Trade, and Christopher Balliet Bleziri, IFC Country Representative in Togo. 

Eric Galley, Coordinator of the Business Climate Unit, presented the reforms already implemented and those currently in progress. Togo wants to keep its reform momentum, which started in 2018, especially in public services. The latter has been identified as the country’s weakest link in a recent World Bank report. Sandra Johnson stated, "We do reforms to improve the daily lives of Togolese. We don't do reforms for rankings or international institutions."

Togo has a clear aim: to sustain its reform efforts and significantly boost the performance of public institutions. In recent years, the country has prioritized economic reform, focusing on digitizing, modernizing, and simplifying administrative procedures. The B-Ready report showcases the results of these efforts. Eric Galley stated, "Togo has undergone a remarkable transformation," highlighting how digitization and transparency are central to the government's strategy.

Galley emphasized the government's commitment to simplifying administrative processes: "The regulatory framework has always improved, with the support of new provisions, particularly in business creation. Today, Togo is a country where everything can be done online or almost." The dematerialization of business registration through the Centre for Business Formalities (Centre de Formalités des Entreprises-CFE) has allowed thousands of entrepreneurs to set up their companies quickly without the previous bureaucratic hurdles.

The presidency's executive team emphasizes that reforms in Togo are ongoing. The government recognizes that improving the business climate requires digitalization. Consequently, Togo has launched several initiatives to simplify business operations. For instance, the Trade and Personal Property Credit Register (RCCM) has been digitized, and the process for obtaining building permits has also become fully digital. Now, most services are available online, significantly reducing processing times.

Additionally, the CFE has enhanced its collaboration with other agencies. Among other it reinforced partnership with the National Agency for Environmental Management to streamline access to environmental studies and necessary permits. A digital platform is being developed to fully dematerialize the delivery of environmental impact studies.

The land ownership sector is also undergoing a digital transformation. Togo has established a unique national identifier for each plot of land, making property searches and transactions easier. Water and electricity connection services were modernized; enabling users to request connection, track their applications in real-time, and pay their bills online. "We have set up a performance management system for public services, with indicators published online," Galley added.

Kayi Mivedor, Minister of Commerce and the Private Sector highlighted the importance of dialogue between public and private sectors to ensure sustainable reforms, stating: “The reforms we are putting in place, we are doing to meet the expectations of businesses, whether local or foreign.”

A digital platform was also set up for entrepreneurs who want to submit questions and concerns directly to the administration. "This platform enables total transparency and rapid processing of files. This communication channel seeks to increase the administration's responsiveness to the needs of the private sector," Galley said.

The tax sector is included in Togo's recent reforms. Companies, including small and medium-sized enterprises (SMEs), can now use a mobile app to declare and pay taxes online. This app, which was previously only available to large companies, aims to help more SMEs join the formal economy.

International trade is also benefiting from modernization. Licenses and other documents for exporters and importers have been digitized, making trade easier. The official launch of this platform took place on Thursday, aiming to improve cross-border trade as Sahelian countries increasingly use the Togolese corridor and the Port of Lomé.

Togo's Commercial Court is also being updated. Eric Galley explained that the court has implemented a digital case management system, allowing commercial disputes to be handled online and court fees to be paid electronically. He noted that this innovation “strengthens business confidence in judicial administration.”

Additionally, the court has opened a chamber for collective proceedings to help manage struggling companies. Sandra Johnson stated, “This is a signal of the authorities' determination to enhance the security and transparency of the business environment for investors and local companies” during her speech.

The government plans to enhance transparency by digitizing public procurement procedures. An electronic system has been created for managing tenders and bids, allowing companies to submit their proposals online and track public procurement projects.

While the reforms are welcomed, Togo's authorities recognize ongoing challenges. Christopher Balliet Bleziri, an IFC representative in Togo, stated, "The progress made is impressive, but we still need to work on the efficiency of public services to truly transform the business landscape." This aligns with recommendations from the B-Ready report, which calls for continuous improvements in administrative services and reduced processing times.

Fiacre E. Kakpo

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