Doing business in Togo: PRESIDENCY OF THE REPUBLIC Business Climate Unit - February 2019 - Togo Embassy in London
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PRESIDENCY OF THE REPUBLIC
Business Climate Unit
Doing business in
Togo:
February 2019
1
Key Points
View on Togo
Key Points
Overview on business environment in Togo
Investment opportunities
TOGO – Partie prenante d’une nouvelle Afrique 2
View on Togo
View on Togo Population Official language :
7. 798 millions French
Literacy / Employment PIB/hbts
66.5% / 77.7% 612 dollars per hbts
Exchange rate Govt and Parliament:
1euro = 655F CFA Presidential System
Parliamentary System
Gender promotion : in 2018 Agreements:
for the first time a woman
AGOA (USA)
has been elected as the EBA(EUROPE) ACP/UE
president of the parliarment
TOGO – Partie prenante d’une nouvelle Afrique 3
View on Togo
Energy: The most dynamic sector in 2018;
Togo: the 33th out of 103 countries in the world in terms of clean energy
promotion ;
A program on energy which ally classic sources and green energy (4 hydropower
dam ,a thermal coal station , two solar station , regional and international
connections of 6 lines for transmission)
A very attractive legislation for the private sector .in terms of renewable energy
The 1st container port in west Africa (1,1 millions tones/ year);
Togo: The 2nd country the most integrated in international sea trade, in sub
Saharan Africa
Togo: the 5th most connected economy by sea route in Africa ;
A transhipment hub , a strong improvement of its connectivity index on sea
transportation since 2010.
TOGO – Partie prenante d’une nouvelle Afrique 4
A view on Togo
Togo is... The only regional platform with a deepwater port of the west
African coast ;
A Regional The 3rd country in Africa in terms of visa to foreigners ;
Platform The country where are established the major financial institutions
of the region;
The 4th most attractive economy in theECOWAS region
... Ease of Doing The 2snd top performer in Africa in terms of Doing Business;
Business
The 7th country in sub-Saharan Africa in terms of access to
energy ;
Less than 24h to establish a company ;
A land that the sub-soil contains Phosphate (millions of tons),
...Raw Materials limestones, raw marble, iron, gold;
…Security The 10th in ECOWAS area in terms of peace and security
And Safety Managed by a competent and efficient government that rised
the country to the 11th place in Africa in terms of governance
TOGO – Partie prenante d’une nouvelle Afrique 5
A view on Togo
Infrastructures: routes & aéroport Infrastructures: port
Direct access to the Hinterland (Burkina Only deep-water port and ranked the first
Faso – Niger – Mali) container port in West Africa with1.193.800
Logistic corridor projects Lome-Ouaga and EVP/year
Abidjan-Lagos The port can be connected to the Hinterland in
International class airports with a 24h
construction of a new terminal Strenghening projects of the Port (3rd quai –
with Lome Container Terminal)
A resolved government A new development strategy
engaged to an inclusive oriented on the private sector
developpement
Accès aux marchés internationaux
Free exchange with USA thanks to AGOA accord
Preferential regime agreements ACP-UE and OMC
Free exchange agreement within ECOWAS
TOGO – Partie prenante d’une nouvelle Afrique 6
Une vue sur le Togo
Togo real GDP growth , 2010-2022 P Messages clés
8,0%
A dynamic and robust growth with a
7,0% constant evolution which stood at 5%
6,0%
Togo despite the slowdown of the world
Emerging market and developping
economy and should continue to grow in
5,0%
economies the future ;
4,0% World
3,0%
Real GDP / habitant of Togo, 2010-2022 P
850
This growth is strongly felt ton the
GDP/hbts which should improve over the
next 5 years GDP/hbt= 612$ against 530
in 2015
650
450
2010 2011 2012 2013 2014 2015 2016 2017 P 2018 P 2019 P 2020 P 2021 P 2022 P
TOGO – Partie prenante d’une nouvelle Afrique 7
Overview on business environment in Togo
TOGO – Partie prenante d’une nouvelle Afrique 8
Overview on business environment in Togo
Government Vision :
Create an environment Allow the private sector
conducive to investment growth
Promote a strong, durable,
inclusive, resilient, job-creating
economy
Allow more investment? Help to create productive jobs
Export regionally and globally. so that the majority of the
Substitute imports for local population comes out of the
manufacturing subsistence farming
TOGO – Partie prenante d’une nouvelle Afrique 9
Overview on business environment in Togo
Limproving the business climate requires efficient cooperation within the
institutional ecosystem for implementing reforms .
President of the Republic
Give the impetus and sense of urgency
Monitoring
commitee
Strategic and Decision Making direction
Business Climate Unit
Coordinate interdepartmental efforts to
ensure synergy and effectiveness of
government action, ensure widespread
dissemination of reforms
Sectoral Commitees
Monitor indicators specific to each
committee in collaboration with
representatives of the private sector with
Competitiveness & Economic & judicial technical and financial partners
Infrastructures
trade governance
TOGO – Partie prenante d’une nouvelle Afrique 10Overview on business environment in Togo
Commercial hub and An open and Leadership
Togo has et business center stableconomy
adopted an global
approch to
improve its
business
environment.
Modernization of Régulatory and business-
friendly institutions Safety and security
the existing
structure
TOGO – Partie prenante d’une nouvelle Afrique 11Overview on business environment in Togo
Reform process : from strategy to actions
Strategic Planning Implementation process
Annual DB action plan developed by all actors: private sector, public
sector, civil society
the world bank
DB frame –
Doing Business
report Plan approved by sector committee and the government
+ Reforms, key Weekly following-up by the monitoring committee composed of the
actions , President , the chamber of commerce and the employers; chaired
National priorities responsible by the SG/PR
institution
Close monitoring of various implementation bu the Business Climate
Unit team (CCA)
TOGO – Partie prenante d’une nouvelle Afrique 12Overview on business environment in Togo
general index, Doing Business
55 +17
points Top 10
48 With the best
performances in the
38
2ème World
Reformer in Africa
1er Reformer in the
2010 2018 2019 WAEMU zone
Rang mondial, Doing Business
(sur 190 pays classés)
137 1. Ease to strat a business ,
2019 6 key indicators 2. Cost and time to transfert ownership,
157 +38 have allowed Togo to
places
join the top 10 of 3. Obtention of buildind permit,
2018
175 best Doing Business 4. Access to energy ,
reformator in the 5. Payment of taxes,
2012
world:
6. Contract enforcement.
SOURCE: World Bank
TOGO – Partie prenante d’une nouvelle Afrique 13Overview on business environment in Togo
Creation of a dedicated business climate unit
Reforms on the under the direct leadership of the President of
Reforms on contract building permit (new the republic
enforcement; the creation decree) on access to
Drastic reduction of of business (reduction of credit (law on the More than 20 reforms in six indicators,
the process and cost registration fees and credit bureau), Single including ownership transfer, business
of a business creation abolition of the Notary Window of Transfer of creation, building permit, business creation,
, Establishment of a mandatory) Ownership contract enforcement and access to energy
single counter
Today
2012 2013 2014 2015 2016 2017
Reforms on the protection of Togo 2nd best reformer in Africa
Reduced delays in
minoority investors, taxes, 19 places won, the biggest increase
obtaining building
cross-border trade (Single insub-Saharan Africa
permits, Reductions in
counter for foreign Trade)
land registration fees
TOGO – Partie prenante d’une nouvelle Afrique 14Overview on business environment in Togo
Improvement of the business environment with multiple reforms implemented since 2011
Legal Reforms Istitutional Reforms Automating
• Law on cybercrime • Creation of the business climate • Télé déclaration and telepayment of taxes
• Law establishing commercial courts; unit at the level of taxes and the CNSS;
• Law establishing the high Authority • Creation of the Center for • Automation of commercial chambers
against corruption and related corporate formality(CFE) • Automation of the issuance of planning
offenses (HALCIA) labor code • Single counter for foreign trade acts;
• Law on secure transactions • Establishment information and • Electronic platform for land, tax and
• Land code credit Bureau (BIC) customs complaints;
• Tax Code • Establishment of commercial • Digitized database of almost all land
• Law Electronic transactions Act Act Chambers titles(99%)
on Access to credit les transactions • Creation of Togolese Revenue • Digitized database of Trade and Credit
électroniques office (OTR) (customs and Taxes Register (RCCM)
• Law on Access to credit merged) • Dematerialization of customs procedures
• Law on intellectual property • Establishment of the HALCIA
• Right of arbitration
• OHADA Uniform Acts
TOGO – Partie prenante d’une nouvelle Afrique 15Overview on business environment in Togo
Before the reforms After the reforms
The reforms
Creation of a company with recourse Creation of a company at 29 250 fcfa in 24
implemented, Togo has to the notary,capital stock minimum hours, capital and shares now freely fixed by
jumped 19 places, 2nd amount equal to 100 000 FCFA; the statutes and reduction of procedures .
top perfomer in Africa, 4 Manual declaration and filling of Téle-declaration and payment of corporate
th most attractive taxes; taxes and value-added tax via mobile and
A very long and costly land bank;
economy in the
registration process, Free online access for all citizens to
ECOWAS regoin and 2nd information on cadastral plans and ownership
most attractive 283 ays for registration of a property; of land titles ;
economy in the UEMOA Property registration fees equal to Transfer of Ownership 10 days (average time)
area . 9,2% of the property value; .
An Act respecting urban planning and Property transfer fee of 35000 F CFA+6,3% of
obsolete building permit; the land value;
Commercial chambers with manual Automation of the building permit
procedure for processing files; Establishment of commercial courts and
automation of the proocessing of commercial
2 World Bank Doing Business Report files
TOGO – Partie prenante d’une nouvelle Afrique 16Overview on business environment in Togo Welcoming
EASE
TO CREATE
A BUSINESS Establishment of the one- Cost: 29250 FCFA
shop for business (without recourse to a
creation (less than notary )
24hors)
Capital and social parts are
liberalised
TOGO – Partie prenante d’une nouvelle Afrique 17Togo, Investment
opportunities
TOGO – Partie prenante d’une nouvelle Afrique 18Togo, opportunités d’investissement
The government aims to achieve these goals through a set of basic fuction
Investments Exportations Tourism
Mining Industry Marketing touristique
Export promotion
Agribusiness Développement de produits
Blue Economy; Export Market Analysis touristiques
Financial Services ; Conservation and sustainable
Distribution et Logistics Export growth tourism
Infrastructure
Export facilitation Supervision of the national parks
Energy and water Sale and reservation for the national
Construction and real estate parks
Skill development
Entrepreneurship TOGO – Partie prenante d’une nouvelle Afrique 19Togo, Investment opportunities
Agricultural potential
2,2 millions hectares farmeland are available
Value chains focused on cashew, rice,
sesame, fish, corn, soybean, chicken
Establishment of a risk sharing mechanism :
MIFA
Providing business opportunities to the
private sector in terms of technological
innovation across the value chain from land
use to production and from conservation to
processing and marketing
TOGO – Partie prenante d’une nouvelle Afrique 20Togo, Investment opportunities
Customs cordon, on imported materials and equipment:
• Exemption from custom duties (new equipment)
• 5% Customs Duties (Used equipment )
Imports
• VAT exemption
• Exemption Withholding from IS-IRPP ; BIC class
• Within the limit , de 15% of the CIF value of equipment and materials
• Tax abatement base for the IS of an amount corresponding to 50% the CIF value of equipment and
Direcs Taxes materials up to limit of 50% of the net taxable profits for the fiscal year in which were incurred one
(Exploitations) or more phases of the investment program during the 5 fiscal years of the operating phase
Directs Taxes
• Exemption IS, Minimum Flat Tax, Professional Tax, Property Tax
(Installation)
Wages • Tax on wages at a reduced rate 2% on wages of all permanent jobs created
Reduced IS rate
Corporation • 2% if the company employ between 20 et 50 employees
Tax • 3% if the company employ between 51 et 100 employees
• 4% if the company employ between 101 et 500 employees
• 5% if the company employ more than 500 employees
TOGO – Partie prenante d’une nouvelle Afrique 21Togo, Investment opportunities
50%reduction in the cost of establishing resisdence permits for foreign emplyees recruited with the status of
Resident
supervisory executive officer
permit
30% reduction on business tax and property tax
Investsment zone • The first 3 years of operation for zone 2
• The first 5 years of operation for zone 3
• The first 7 years of operation for zone 4
Nature of the 30% reduction on the business tax during the first 3 years of operation for companies valuing only local
Activity raw materials
Intangible 5% reduction in the business tax during the first 5 years of exploitation of the said rights for a company
assets and whose investment is based on the use of inventions or technological innovations protected by an
Innovation intellectual title
An additional 5% reduction in corporation tax if the share of the export turnover is greater than or equal
Exportations to 25% of the company’s overall turnover (excluding VAT)
TOGO – Partie prenante d’une nouvelle Afrique 22Togo, Investment opportunities
-Start a
business http://www.cfetogo.org/guide-de-l-operateur/2/creer-une-societe-8.html
-Get your
licence https://construireautogo.gouv.tg/index.php?id=6
Togo Invest https://togoinvest.tg/
corporation
Free Zone http://www.zonefranchetogo.org/fr/
(Office Togolais des
recettes) Custom and taxes: https://www.otr.tg/index.php/fr/; https://www.segucetogo.tg/
Land Tittle Land register : http://www.dadc.gouv.tg/
Chamber of
commerce
Video on the port of Lome: https://www.youtube.com/watch?v=7aZCQAHzBlQ&t=5s (Français) :
Resources in
Togo https://www.youtube.com/watch?v=OaldqThlQuQ&t=134s (english)
Informations on the PND: https://www.republiquetogolaise.com/pnd
Video on the PND :https://www.youtube.com/watch?v=nbwoceKXC74
Togo on the move : https://drive.google.com/file/d/1yDhmKZkR9rfa6FvMfrrC1rdDM7qJb8Id/view
TOGO – Partie prenante d’une nouvelle Afrique 23Togo, Investment opportunities
Several major global and
regional brands have
alreardy invested in Togo
TOGO – Partie prenante d’une nouvelle Afrique 24key lessons learned from the business climate reform process
1 A strong political will essential to advodate for reforms, align government agencies responsible of the
reforms and strengthen accountability for implementation;
A clear governance and coordination structures to monitor and implement reforms ; For example,
2
setting up the Business Climate cell to monitor and coordinate inter-ministerial actions
3 A bold reform program showing the importance for proactively reaching countries with best practices
and planning ambitious reforms.
Reformes are an endless business. The private sector is dynamic and evolving and the government
4
must continually meet its ever-changing needs .
5
Proactively engage international ranking organizations such as the world bank to provide technical
assistance on the reforms needed to improve the business environment and best practices .
TOGO – Partie prenante d’une nouvelle Afrique 25You can also read
