World Bank and Togo Sign $298 Million in New Financing Agreements

Investments

Monday, 15 July 2024 06:41

World Bank and Togo Sign $298 Million in New Financing Agreements

(Togo First) - The World Bank and the Government of Togo signed three new financing agreements last Friday, July 12. Totaling $298 million, the funds will help Togo boost access to electricity, improve public service delivery, and foster social cohesion.

1 Worldbank

The deals were inked by the World Bank’s Resident Representative and Togo’s Minister of Finance, Fily Sissoko and Sani Yaya, respectively. The signing ceremony was chaired by Sandra Ablamba Johnson, Minister Secretary General of the Togolese Presidency and World Bank Governor for Togo. Other officials present include the ministers of energy, civil service, social action, and universal healthcare.

Three Deals, Three Projects

The three deals are for three projects, including the Inclusive Development through Access to Electricity project (IDEA), the Togo Public Sector Strengthening for Service Delivery Operation

(PforR), and the Gulf of Guinea Northern Regions Social Cohesion Project (COSO). Respectively $200 million, $75 million, and $23 million were disbursed for the projects.

Funds allocated to IDEA will be used to build 161kV transmission lines, providing electricity to over 1.5 million people, mainly in rural areas. The project also aims to strengthen the sector's institutional capacity and reduce greenhouse gas emissions by expanding renewable energy.

The second project, the PMAPDS will improve the management of human resources and public finances, modernize public administration, digitize tax revenue collection, and increase digital payments.

The $23 million disbursed for the COSO project will support refugees and their host communities.

"I am grateful to the World Bank Group for supporting our determination to tackle our major roadblocks to sustainable development," said Sani Yaya, Minister of Economy and Finance.

Over $600 Million Combined

Besides the three deals, thanks to a special waiver, Togo also secured an additional $315 million from the World Bank Group's Prevention and Resilience Window, resulting in cumulative funding of over $600 million for the country.

Commenting on the development, Sandra Johnson declared: "Emphasis should be placed on the impact for which these projects were initiated. This is why I am inviting us to greater celerity, a sense of urgency and realistic planning in the delivery of services, and greater efficiency in spending to achieve the goals set for our people’s good…These impacts must be felt in the daily lives of Togolese, whether women, young people, farmers, artisans, or any citizen."

New Country Partnership Framework

The signing ceremony took place on the sidelines of the presentation of the World Bank's new Country Partnership Framework (CPF) with Togo for 2025-2029, which aims to reduce poverty, increase shared prosperity, and promote sustainable development through the creation of quality jobs, improvement of human capital, and inclusive and sustainable territorial development.

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.