Togo: Domestic Receivables Close to CFA2,000 Billion

Finance

Wednesday, 09 October 2024 08:54

Togo: Domestic Receivables Close to CFA2,000 Billion

(Togo First) - As of the end of June 2024, Togo's total domestic receivables, which include financing provided to both the private sector and the government by banks and decentralized financial systems, reached CFA1,968 billion. This is 4% more than the sum reported for all of 2023–CFA1,890 billion. The Conseil National de Crédit (CNC) disclosed the recent figure during its third annual meeting in Lomé.

According to the CNC, nearly 90% of the receivables went to the private sector, with a significant 41% allocated to micro, small, and medium-sized enterprises (SMEs). The funds also supported real estate projects and equipment purchases for companies on the Plateforme Industrielle d'Adétikopé (PIA).

The CNC attributed this rise in bank lending to the commitment of credit institutions and microfinance organizations to support the national economy, a shift encouraged by the government over recent years. Additionally, the expansion of financial institutions in 2023 contributed to this growth, with Togo having 250 bank branches, 332 ATMs, and 40 other cash machines by the end of that year.

The Minister of Economy and Finance Essowè Georges Barcola, who chairs the CNC, announced ongoing economic reforms as part of the government's Togo 2025 Roadmap to build on these gains. These reforms aim to maintain a favorable macroeconomic environment for financial activities.

The Observatoire de la Qualité des Services Financiers du Togo (OQSF-TG) was established as part of these reforms. The OQSF-TG addresses disputes between financial institutions and consumers, promotes financial mediation, and enhances financial inclusion in Togo.

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.