Foreign Investment: Togo secured over CFA43 billion in Q4 2022

Investments

Wednesday, 08 March 2023 19:01

Foreign Investment: Togo secured over CFA43 billion in Q4 2022

(Togo First) - In the last quarter of 2022, the Togolese Approval Committee examined 13 projects and approved 12 of them, for a total amount of CFA43 billion. Several sectors have attracted investment, notably the textile industry, wood and construction, agribusiness, mechanics, and services.

Foreign direct investments contributed 99% of the total amount of approved projects, with Indians and Singaporeans as leading investors; they spent CFA11 billion respectively, on four and two projects. Only one Chinese project was approved for an investment of CFA172 million. Only a small percentage of the approved projects were domestically financed, thus underscoring the need to bolster domestic investments.

Regardless, the government is happy with the performance and stressed how important investments are for Togo’s economic growth. Last December, the Ministry of Investment Promotion announced that the country had accumulated 24 new investment projects–valued at CFA107.1 billion, by the end of Q3 2022. Ten (10) out of the twenty-four (24) projects were admitted to the Free Zone regime, and 14 aligned with the Investment Code. This is proof that more foreign investors are seeing Togo.

In 2020, FDIs to Togo soared 85% YoY, from CFA191 billion to CFA352.5 billion. In 2021, 38 projects were approved for a total planned investment of CFA277 billion, consequent with the opening of the Adétikopé Industrial Platform (PIA).

It is worth stressing that investors invest mostly in the Maritime regime for now. Therefore, the government should increase its efforts to attract them to other parts of the county.

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.