Togo: Over 30% of the government’s spending in 2019-2021 went to public investments

Investments

Wednesday, 20 July 2022 15:27

Togo: Over 30% of the government’s spending in 2019-2021 went to public investments

(Togo First) - The Togolese government dedicated nearly a third (32%) of its budget spending to public investment over the past three years, according to data compiled by Togo First.

From CFA241.2 billion in 2018, capital expenditures rose to CFA379.8 billion in 2019 and peaked at CFA394.2 billion in 2020. This represents an average increase of 59.8% over the period. It is, however, below what the government was aiming at in its 2021-2023 state program budget. In 2019, Lomé planned to devote CFA241 billion to capital expenditures, 474 billion in 2020, and 431 billion last year.

The government claims that the surge was driven mainly by “spending on the rehabilitation of health centers, the construction, and rehabilitation of roads and rural tracks, as well as on spending to get the equipment needed to fight the coronavirus pandemic.”

On its Public Investments Program (PIP), the country spent a little over CFA890 billion, with over 47% of this amount or CFA423.8 billion coming from internal resources. The remaining monies were external loans and grants (466.5 billion).

Meanwhile, spending excluding the PIP more than doubled to a total of CFA125 billion. Togolese authorities attribute this unforeseen situation to defense and security expenditures, spurred by the jihadist threat which has grown in the northern part of the county in recent years.

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)

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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.