Togo’s public debt should fall below 70% this year

Public finance

Thursday, 08 February 2018 16:12

Togo’s public debt should fall below 70% this year

(Togo First) - In Togo, the government’s operation to improve public finances started at the beginning of 2017, and aiming to bring debt down to a bearable level, should bear fruits this year. According to Coface’s report on the country’s economy, “public debt should continue decreasing to stand below the WAEMU’s standard”, namely 70% of GDP.

At the end of 2017, public debt was at 77.3% of GDP against 81.5% at the end of December 2016.

According to Coface, capital expenditures which drove growth over the past five years should drop to a more bearable level. Meanwhile to boost public revenues, the government, through various reforms initiated at the beginning of this year is working to improve business climate and attract more private investments. In this regard, AfDB predicts a two-digit (+10%) growth for private investment in 2018, a trend that should continue in the years to come.

Another objective of the government this year is to increase public earnings paired with less investments financed on internal resources (in % of GDP). “Tax reforms, including the creation of Togolese Revenue Office in 2015, should help boost these public earnings,” says Coface.

In addition, the credit-insurer believes that this increase in revenues will also be spurred by “a more favorable economic situation, across the sub-region, and recent investments made in infrastructures and transport”.

By 2019, Togo plans to reduce its budget deficit to 4.7% of GDP, against 9.8% in 2016.

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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.