Togo: Ex-Sodigaz gets €16M from IFC to boost its LPG supply capacity

Energy

Tuesday, 09 August 2022 16:34

Togo: Ex-Sodigaz gets €16M from IFC to boost its LPG supply capacity

(Togo First) - The International Finance Corporation (IFC) provided Zener, a Togolese liquefied petroleum gas company, a €16.2 million in financing to expand its terminal at the port of Lomé, among others.

"The €16.2 million facility structured by IFC for Zener, whose operations cover the entire liquefied petroleum gas (LPG) sector in Togo, includes an €8.1 million loan from IFC on its own account and a parallel loan of €8.1 million to be mobilized from other partners," IFC said in a statement issued last week.

Besides expanding its LPG terminal, Zener is to use part of the funds to increase the availability of gas cylinders by an additional 3,600 tons throughout the country, and equip five future service stations with LPG cylinder exchange stations and solar kits.

Ultimately, the goal of the World Bank’s private sector arm is to have Togo reduce the use of biomass (firewood) as a source of energy and “increase access to LPG as a domestic energy source,” in response to concerns about environmental preservation. In Togo, let’s emphasize that more than 90% of the population uses biomass–charcoal, and firewood notably–to cook.

2 d174d4db06be32923e0a166d682059f L

"Zener has the only LPG import terminal by sea in Togo, which is currently operating at maximum capacity. IFC's support will allow Zener to expand the terminal to keep increasing LPG’s use and help reduce the country's carbon footprint as consumers adopt LPG as a better alternative to biomass fuels," said Jonas Daou, Zener's Managing Director.

Zener is among the companies identified by IFC for a pilot initiative called "Local Champions." This is a program designed to support high-potential local businesses in low-income countries.

the recent funding, the IFC had announced its support for another local "champion," the Gozem Transport Company. It is helping the latter finance 6,000 motorcycle cab drivers.

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.