Togo: World Bank backs government’s pro-development efforts with $100 mln financing

Investments

Monday, 04 April 2022 15:41

Togo: World Bank backs government’s pro-development efforts with $100 mln financing

(Togo First) - The World Bank’s International Development Association (IDA) has recently allocated Togo $100 million (CFA59 billion) financing. Disclosed by the Bretton Woods institution last Thursday, the facility should help the country support its inclusive growth program and tax reforms.

In addition, the disbursement–the second in a series of programmatic development policy support operations– will help Togo improve financial sustainability and service delivery in its energy and water sectors.

Concretely, the funds will finance measures aimed at raising tax revenues, making investment spending more efficient, and better managing public debt as well boosting transparency. They will also foster the sustainable management of water resources and make them more accessible to the most vulnerable–notably, by backing measures relating to the financial viability of the public water service. In the energy sector, the funds will be used to improve the financial performance of the national power utility, Compagnie Energie Electrique du Togo (CEET).

Explaining why it disbursed the money, the World Bank said it was encouraged by "significant progress in domestic resource mobilization" achieved in recent years by the Togolese government, in line with the 2025 Togo Roadmap.

In August 2021, the financial institution had approved a disbursement of $60 million, or just over CFAF 33 billion from the International Development Association (IDA) to support Togolese education, specifically the implementation of the "Basic Education Quality and Equity Improvement Project" 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.