Togo: IMF to disburse a fourth financing of $35M under ECF-backed program

Public finance

Tuesday, 11 December 2018 16:32

Togo: IMF to disburse a fourth financing of $35M under ECF-backed program

(Togo First) - On Monday, the International Monetary Fund (IMF), pleased with Togo’s macroeconomic framework, approved during a board meeting the disbursement of a fourth financing tranche of $34.9 million for the country.

“The program’s return is very satisfying. All quantitative return criteria and three of the five structural benchmarks were met. The assessment’s completion enables the disbursement of 25.17 million SDR (around $34.9 million), thus bringing total sum disbursed since the agreement’s beginning to 100.68 million SDR (around $139.5 million),” World Bank indicates.

Approved in May 2017, the three-year ECF-backed program valued at $241.5 million has strengthened Togo’s economy which was suffocating in 2016 due to a rampant public debt; a debt that became unbearable for authorities

More than a year after the program started, IMF estimates that the Togolese economy shows signs of stabilization, despite a “difficult environment” sustained by socio-political protests. According to the Fund, growth should quicken while inflation aligns with WAEMU standards.

The Bretton Woods institution lauds Lomé’s efforts in bringing public debt to viable levels and advance budget reforms. It did the same for the projected debt-reprofiling operation. However, IMF urges Togolese authorities to stand by their macroeconomic adjustment and reforms program, in order to remain on the right path.

Regarding the move to privatize UTB and BTCI (public banks), the Washington-based institution says it is convinced that “implementing safeguard measures agreed on will be an important step toward ensuring that the lenders’ privatization align with the best international standards”.

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)

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.