Togolese economy shows resilience but concerns remain

Economy

Monday, 10 October 2022 14:12

Togolese economy shows resilience but concerns remain

(Togo First) - Thanks to various measures, the Togolese economy has been resilient to ongoing global crises. Sani Yaya, the country’s minister of economy and finance, said so at the opening of the session of the National Credit Council (CNC) which he chaired on October 6, 2022, in Lomé.

According to Yaya, Togo’s public debt has been kept under control, at 61% between the end of 2021 and the middle of 2022, and inflation stood at 7.5% for the first eight months of 2022, average, after 7.8% at the end of June 2022 and 8.2% on 31 March 2021.

However, the persistence of inflationary pressures remains a major concern.

"As you know, the rise in the general price level, which began in 2021, has been accentuated by the Russian-Ukrainian conflict and geopolitical tensions, with their consequences on the prices of food and energy products. In most countries, including developed ones, inflation rates are reaching high levels. Some countries have recorded double-digit rates," said Minister Sani Yaya.

Thus, if in general, thanks to the measures taken by the government, the pace of change in the general price level is decelerating at the national level, after the peak reached in March 2022, "the inflation rate remains high, which degrades the purchasing power of households, reduces the profit margins of businesses and could slow the momentum of the post-Covid-19 economic recovery," the official added.

Esaïe Edoh

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.