Togo gains 18 places in the 2020 economic freedom index

Economic governance

Tuesday, 06 October 2020 16:10

Togo gains 18 places in the 2020 economic freedom index

(Togo First) - Togo gained 18 places in the 2020 economic freedom index published by the Heritage Foundation. The country is the 140th freest country (over 180 countries worldwide) and 29th out of 51 countries in Africa.

Despite still being considered as mostly unfree by the Foundation, the economic freedom score of Togo increased by 3.8 points to stand at 54.1 points.

economic freedom 1

The index covers 12 freedoms regrouped into four big categories: Rule of law (property rights, judicial effectiveness, government integrity); Government size (tax burden, government spending, fiscal health); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); Open markets (trade freedom, investment freedom, financial freedom).

Overall, Togo made progress in most of the areas covered, due to the recent reforms introduced to improve its business climate.

economic freedom 2

In Africa, Mauritius came first (29th freest country in the world) with a score of 74.9 points. In West Africa, Côte d’Ivoire and Ghana respectively ranked 101st and 104th worldwide with scores of 59.7 points and 59.4 points.

However, Togo is ahead of others like Egypt (142nd in the world), Brazil (144th), Cameroon (145th), Ethiopia (146th), and Malawi (152nd). It should be noted that most African countries are in the lower part of the index.

Singapore tops the rankings, followed by Hong Kong (2nd), New Zealand (3rd), Australia (4th), and Switzerland (5th). They are considered by the Heritage Foundation as truly free.

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)

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.