Business climate: Togolese authorities improve judiciary and legal procedures for business owners

Economic governance

Friday, 22 March 2019 17:39

Business climate: Togolese authorities improve judiciary and legal procedures for business owners

(Togo First) - After rising in the previously released Doing Business 2019, Togo now aims to be among the top 100 of the global ranking in the next release. To this end, it implemented various reforms focusing on key indicators.

There is for example the execution of commercial contracts to ease access to allow business owners to access commercial courts more easily. The information was disclosed by the Togolese cell for business ease.

Origin: Law N° 2018-028 of December 10, 2018

The adoption of this law aimed at allowing Togo’s commercial courts better resolve commercial disputes.

Distinct commercial courts depending on conflict’s importance

Subsequently, distinct commercial courts have been put in place, each solving disputes based on amounts involved. For example, a chamber for minor sums, not exceeding XOF1 million has been created. Procedures at this court is simplified and allows no appeal. Fees to submit a case have also been reduced from XOF20,000 to XOF9,000.

Possible to self-represent

For parties involved in minor conflicts (small amounts involved), they are free to hire a lawyer or not. Actually, to speed up processes, previous dismissals serving as delay tactics are suppressed for such conflicts.

A call to mediation and voluntary conciliation

In line with international practices, Togo calls for mediation and voluntary conciliation. For those opting for mediation, they will be reimbursed their case submission fees. This reform intends to avoid parties in conflict to avoid a tedious trial.

A maximum of 100 days!

Still to ensure commercial conflicts are resolved rapidly, the number of hearing referrals has been capped to three, and under no circumstances, should procedures at a commercial court exceed hundred (100) days starting from the day the case is submitted, reads Article 23 of the law n° 2018-028 of December 10, 2018.

Digital operations now possible

In the past, while it was solely used by judges and clerks, the FORSETI digital platform for commercial disputes procedures is now accessible to lawyers and bailiffs. Thus, lawyers can submit complaints, access laws, rules and jurisprudence in place as well as pay fees for their cases online and even follow up remotely.

As for judges and clerks, they can now issue orders online, schedule suits, and randomly assign cases to judges at the chamber of commerce of Lomé’s First Instance Court.

Séna Akoda

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.