Togo : AfDB forecasts economic growth at 5.3% this year, driven by agriculture

Agriculture

Monday, 03 February 2020 15:38

Togo : AfDB forecasts economic growth at 5.3% this year, driven by agriculture

(Togo First) - Driven by agriculture, Togo’s economy is expected to grow to 5.3%, a recent report by the African Development Bank (AfDB) showed.

“Economic outlook is encouraging and growth should reach 5.3% in 2020 and 5.5% in 2021,” according to the document. This positive trend should be spurred by “good results in agriculture and healthy monetary management.”

In fact, debt should fall below 70% of GDP this year, with an average budget deficit of 2.1% of GDP, and a current account deficit expected at 5.2% of GDP in 2020, and 5% in 2021.

AfDB then lauded recent “public investment that improved basic infrastructure as well as road and power infrastructure.” It also praised Togo for having organized, last year, its first legislative and local elections in more than 30 years.

Talking about headwinds, the institution mentioned an uncertain political situation, low financing rates in agriculture (less than the 0.5% average for internal loans) even though it employs most people than any other sector. Moreover, the AfDB points out Togo’s urgent need to industrialize (a key challenge the national development plan aims to tackle).

“Bank loans to growth sectors require a systematic dialogue between public and private actors,” authors of the report wrote.

Also, taxes, according to the AfDB, should be a powerful tool in improving its revenues and thus its growth.

Ayi Renaud Dossavi

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)

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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.