Togo Allocates CFA10 Billion for Local Development in 2025

Public Management

Friday, 10 January 2025 15:20

Togo Allocates CFA10 Billion for Local Development in 2025

(Togo First) - Togo will allocate CFA10 billion to the Local Authorities Support Fund (FACT) in 2025, up 42% from CFA7 billion in 2024. The figure was outlined in the 2025 finance law, which has a total budget of CFA2,397 billion.

The increase follows a monitoring mission at the end of 2024 that assessed how communes used their 2023 funds. According to the Ministry of Land Planning and Development, this mission’s findings will help bolster the government's commitment to enhancing financial support for local authorities.

The CFA10 billion to the FACT is part of a broader government strategy to enhance local authorities' resources and capabilities while compensating for expected cuts in investment grants from external partners between 2023 and 2026.

Besides the FACT, Lomé still directly supports communities, through cash transfers and targeted investments. The Faîtière des communes du Togo (FCT) reported that over CFA30 billion has been allocated to Togolese communes from 2020 to 2024, helping them meet local needs and drive development.

Overall, the government seeks to help all 117 municipalities be more autonomous and achieve sustainable management. In this regard, the municipalities have been drawing plans to guide their actions and diversify funding sources. This aligns with decentralization goals, enabling local authorities to improve their financial stability and resource management.

Esaïe Edoh

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.