Backed by EU, IMF will help Togo better manage its public finances

Public finance

Thursday, 12 July 2018 17:35

Backed by EU, IMF will help Togo better manage its public finances

(Togo First) - Last Tuesday in Lomé, a convention for a project to provide technical assistance regarding public finances management was signed by the Togolese government, the International Monetary Fund (IMF) and the European Union.

The agreement was initialed in the presence of the minister of finance, Sani Yaya, the acting Chargé d’affaires of the European Union Delegation in Togo, Vincent Vire, and the head of mission and head economist of the IMF’s public finance division, Lewis Murara.

Financed by the European Union and implemented by the IMF, the project backs the various “major reforms” initiated in the past years by the government of Togo. This project will help Togo better prepare its budgets, improve quality of budget-related information and treasury management, all to ultimately improve public debt management, so that it exceeds WAEMU standards.

Managing public funds well is vital to ensure that collected revenues, actions undertaken by the government and public institutions efficiently contributes to economic and social development, said Vincent Vire.

Sani Yaya for his part reiterated the government’s desire to implement more reforms to boost public funds collection while improving their management. He also emphasized on the importance of transparency in regards to budget-related data, a factor that is key to attract private investments and get citizens more engaged, fiscally.

Determined to streamline its public finances, Togo has initiated some years ago a process to modernize financial management. This project aligns with guidelines adopted by the WAEMU’s ministers’ council in 2009. These guidelines aims for the country’s public finance management methods to meet 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.