SMEs: IFC Invests €15M in Several Countries, Including Togo

Investments

Friday, 15 September 2023 15:19

SMEs: IFC Invests €15M in Several Countries, Including Togo

(Togo First) - The International Finance Corporation (IFC) has invested €15 million in the Joliba Fund I, which is managed by Abidjan-based private equity firm Joliba Capital. The World Bank’s private sector arm announced the investment on September 13.

In its press release, IFC noted that most (80%) of the facility should support SME growth in several countries, including Togo. Other countries to receive the support are Benin, Burkina Faso, Cameroon, Côte d’Ivoire, Mali, Senegal, and Gabon. The source emphasizes that at least 80% of the investment will go to IDA-eligible countries.

In detail, the IFC's contribution includes a €7.5 million equity investment from its SME Ventures program, plus €7.5 million from the International Development Association's (IDA) Private Sector Promotion Window's Blended Finance Facility, designed to reduce the risks associated with investments in low-income countries.

Overall, Joliba Fund I has raised a total of €55 million from commercial investors and development funders such as France's Proparco and the Netherlands' FMO.

In Togo, the IFC has directly poured $300 million into various private projects, spanning sectors such as energy, telecommunications, and urban mobility. More recently, the Corporation signed an agreement with the Association of Large Enterprises of Togo (Association des Grandes Entreprises du Togo or AGET), to support SMEs/SMIs, to help them secure more financing.

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.