Togo: World Bank portfolio could exceed $2 billion in the next three years

Economy

Monday, 30 October 2023 12:11

Togo: World Bank portfolio could exceed $2 billion in the next three years

(Togo First) - The World Bank reviewed its Togolese portfolio, on October 26, with the country’s authorities. Sandra Johnson, Minister, Secretary General of the Togolese Presidency was present. So was the Bank’s Governor and Country Representative for Togo, Fily Sissoko.

Two billion dollars

According to World Bank teams, the indicators are encouraging. With new projects under negotiation, the portfolio should pass the $2 billion mark in the next three years, buoyed by reforms. "On the operational front, Togo stands out for its exceptional disbursement rate, the highest in Central and West Africa, at 43%," said Fily Sissoko.

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The World Bank’s portfolio currently stands at $1.2 billion and comprises 16 ongoing projects–seven national projects and nine regional projects. The Bank’s financial support for the national and regional projects respectively stand at $452.1 million and $597 million. The remaining funds, $150 million, are budgetary support. The portfolio covers different areas such as human development, infrastructure, and economic growth.

New projects

While lauding the annual disbursement performance, the World Bank also noted a downward trend in disbursements. This is partly explained by the inclusion of new, larger projects in the portfolio.

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"We're at the end of the cycle for most of our projects," Sandra Johnson noted, adding that the country is in talks with the institution for new projects.

"Currently, we are committed to $1.2 billion, and when future commitments are taken into account, we will probably reach $2 billion or even more," said a World Bank Country Office official.

As for the projects currently under negotiation, expectations are high. For example, Togo could get $200 million for the Increased Digital Connectivity and Electricity Access (IDEA) project; this would be a record amount for the country. The IDEA aims to improve digital connectivity and electricity access in Togo, building on the now-defunct CEB network shared by Benin and Togo.

More challenges to overcome

Beyond the promising advances and initiatives, operational challenges persist and require further attention. However, the country, according to Sandra Johnson, plans to introduce major reforms to "improve governance and social management" following presidential directives. According to the minister, there is also a decree on the governance of projects financed by multilateral institutions in the pipeline.

One of the main roadblocks that prevents Togo from rapidly mobilizing funds from the World Bank and implementing projects is the timeframe of public procurement procedures. According to the Bank’s experts, tackling this issue will help the country consolidate its performances and successfully implement the institution’s projects.

Fiacre E. Kakpo

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.