Togo is the best FDI performer in the world, given its economy’s size

Economic governance

Friday, 04 September 2020 15:30

Togo is the best FDI performer in the world, given its economy’s size

(Togo First) - According to the 2020 Greenfield FDI Performance Index released this month, Togo is the world’s top performer in terms of foreign direct investments, with a score of 10.83 and 11 FDI projects attracted last year.

Togo “attracts more than 10 times the amount of greenfield FDI that might be expected given the size of its economy.” It thus exceeds the annual average of the performance index, despite being a newcomer in the rankings (only countries that attract 10 FDI projects or more are featured in the index).

The largest share of FDIs Togo attracted in the period under review was a double partnership inked with Africa’s richest Aliko Dangote. Signed in November 2019, the partnership covers the establishment of a $2bn phosphate fertilizer processing facility and a $60m cement factory. Another major FDI project announced in the country is the construction of the Blitta solar plant ($33.5m) by Amea Power.

This performance could be attributed to an improved business climate due to reforms introduced by the business climate cell which is headed by Sandra Ablamba Johnson, Minister Delegate, Adviser to the President of Togo.

In the rankings, after Togo, Rwanda is next with a score of 10.6. Singapore is the 10th best performer in terms of attracting FDIs.

On the other side of the coin - the 10 countries that attracted the least FDIs in 2019 given their economy’s size - Japan is first with 211 projects and Ecuador is the 10th.

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.