Togo: More firms were created in October than in any other month this year

Economic governance
Tuesday, 06 November 2018 16:52
Togo: More firms were created in October than in any other month this year

(Togo First) - Since 2017, never has the number of firms created over a month been as high as that recorded in October 2018. Last month, a total of 1,281 new companies were created. A true record that confirms a dynamic entrepreneurship which was spurred by the many incentives introduced by the government, and also because of the quick recovery of the economy from a political crisis which it tried to overcome since mid-2017.

Compared to September where the number of firms created was the lowest since January, last month’s record is 65.7% up. Let’s emphasize also that the number of firms created over the first 10 months of this year, 9,241, is far greater than that recorded throughout the whole 2017 year, knowingly 8,199. From January to October 2017, this number stood at 7,243, thus representing a 27.5% year-to-year growth.

Togolese more and more interested in entrepreneurship

Statistics show that 80.39% of firms established during the first three quarters of this year (7,429 firms to be exact) are owned by Togolese. That is 55% more than the figure recorded the previous year over the same period. Togolese had only created 4,769 at the time.

Meanwhile, foreigners created less firms this year, as compared to the last. From 1,912 firms in the first three quarters of 2012 (28.62% of all firms created), foreigners created 1,812 firms (19.61%) this year, over the period reviewed.

Result of multiple reforms introduced by business climate cell

The impressive figures are partially due to the favorable macroeconomic context that prevailed in Togo, during this second half of the year, but also to government’s conscious efforts to improve things since the year began. Most importantly, the improvements must be attributed to reforms implemented by authorities to improve business climate, reforms coordinated by the Business Climate Cell. Major reforms that pushed entrepreneurs to formalize their business include suppression of registration fees and stamp duties, liberalization of minimum capital, slight reduction of e-payment procedures, legal online ad cost brought down to CFA1,000. Beside these reforms, the government’s decision to set aside 20% of public procurements for youth and women also fosters business formalization.

Praised by the 2019 Doing Business

These efforts to improve business climate helped Togo’s image improve under the Doing Business 2019 which ranks it as the top reformist economy of the WAEMU, and the second in Africa. The country’s overall rank on the index surged 19 places and this enabled it to be among the top fifteen sub-Saharan African countries, and top 75 countries worldwide, where creating a firm is easy.

Togo also achieved this year its entry into the top 10 countries around the world to have the most simplified regulatory framework for businesses.

Fiacre E. Kakpo

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