According to IMF, in 2019, Togo’s debt level should fall below 70% if…

Public finance

Monday, 05 November 2018 17:37

According to IMF, in 2019, Togo’s debt level should fall below 70% if…

(Togo First) - Togo’s debt level should fall below 70% of GDP next year, in line with WAEMU’s macroeconomic convergence criteria. This was forecasted by the IMF's mission that stayed in the country from October 18 to 31, 2018.

Similarly, the mission said Lomé’s budget deficit should stand below 3% of GDP. “We believe that in 2019, Togo’s budget should meet WAEMU’s macroeconomic convergence standards, that is budget deficit below 3% of GDP and debt level below 70% of GDP,” said the head of the IMF's mission.

Considering the country’s debt/GDP ratio which is still high, even if it has improved over the past years, Togo will only achieve the forecast if it keeps reforms it recently implemented and effectively implement the ones planned for the next six months, the mission indicates.

“Structural reforms advance as planned. For example, OTR’s reforms to improve revenue mobilization and those to reinforce treasury’s single account (directing all commercial banks’ accounts to the treasury’s). These reforms should ensure a better management of treasury and decrease loan rates. There also, everything is going well,” the mission declared.

Regarding public investment management, the mission commented saying: “Reforms are being implemented to make sure that under the 2019 budget, projects are selected based on some criteria that, for example, require that only new or ongoing projects, and also projects for which feasibility studies have been conducted, are developed.”

Togo, leveraging reforms, aims to contain its debt level at 52.8% of GDP by 2021.

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.