Togo scales down growth forecast from 6.6% to 6.4% for 2023

Economy

Friday, 29 September 2023 10:39

Togo scales down growth forecast from 6.6% to 6.4% for 2023

(Togo First) - Togo has revised its growth forecast for 2023 to 6.4%, compared with the 6.6% initially anticipated. Sani Yaya, Minister of Economy and Finance, disclosed the new prospect on September 27th.

In contrast with the downscaled growth, the government expects an improvement in its budget deficit, from 8.3% in 2022 to 6.6% this year. “But achieving these results requires overcoming some challenges linked to tighter financing conditions,” emphasized Minister Yaya.

Port and airport activities on the rise

During Q1 2023, activities at the port and airport of Togo improved, driving up trade flows and consolidating receivables from the economy.

Regarding trade, exports rose by CFA52.3 billion year-on-year compared with the first quarter of 2022, while imports shot up by CFA84.9 billion. This did not help the country's trade balance, still in deficit vis-à-vis the rest of the world.

Falling inflation

The inflation rate in Togo slumped from 7.8% at the end of June 2022 to 6.3% at the end of June 2023, a situation attributable to "measures taken by the government to combat high living costs."

There are plans to revise the state budget for this year, with a rectifying finance bill, to respond to state pressures and priorities. For now, Lomé said it wants to "bolster means to fight terrorism" and "keep implementing development policies in line with the priorities of the government's 2020-2025 roadmap."

It is worth noting that Togo had initially adopted a budget of CFA1,950 billion for 2023.

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.