ECOWAS to launch its Fund for Energy and Transport before year ends

Investments

Monday, 08 April 2024 15:43

ECOWAS to launch its Fund for Energy and Transport before year ends

(Togo First) - The ECOWAS Development and Financing Fund for the Transport and Energy Sectors (FODETE) should come online by the end of this year. According to the Ecofin Agency, which reported the news, Sediko Douka, the ECOWAS Commissioner for Infrastructure, Energy, and Digitalisation, mentioned the possibility on April 4, on the sidelines of the first ECOWAS Investment Forum (EIF) in Lomé.

Approved for implementation in June 2009, the FODETE was delayed by several issues. However, recent regional tensions between 2020 and 2022 have injected new momentum into the project.

According to Sedikou Douka, the Fund will be fueled by export taxes levied in ECOWAS States: mining, oil, gas, and agricultural exports will provide the needed tax revenues. According to recent estimates, these revenues could reach $450 million yearly.

The FODETE will help improve infrastructure in the transport and energy sectors, crucial for economic growth and regional integration. It will be managed by the Lomé-based ECOWAS Bank for Investment and Development (EBID). The latter has allocated $4 billion or half of its financing for 2024 to integration infrastructure projects.

However, there are still issues of the regional consensus on the tax levy and the levy rate. Still, the FODETE should significantly help tackle the ECOWAS’ growing needs for infrastructure, estimated at an annual investment deficit of $12 billion.

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)

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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.