More than 4,000 new businesses were registered in Q1 2021

Economic governance

Thursday, 08 April 2021 16:03

More than 4,000 new businesses were registered in Q1 2021

(Togo First) - In Q1 2021, 4,087 new businesses were registered, against a little more than 3,600 businesses over the same period last year. The 11% increase reflects an ongoing economic recovery amidst the Covid-19 pandemic.

In detail, out of the newly registered businesses in the past quarter, 3,280 or 80% of the total were registered by Togolese and the rest (807 businesses) were registered by foreigners. On a gender basis, 27% of the figure reported in Q1 2021, or 1,104 businesses, were registered by women. This is a great performance considering it equals the number of businesses registered by businesswomen throughout 2020.

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Significant performances but a hardly measurable impact

While there are improvements regarding the number of newly registered businesses in the country, the impact - in terms of job and wealth creation - that these businesses had on the economy in the past five years is hardly measurable. However, according to a recent study by the Centre de Formalités des Entreprises (CFE, Center for Business Formalities) the ratio of businesses that are effectively operational stands at 52.5%.

Moreover, still comparing Q1 2021 and Q1 2020, the number of businesses registered as legal entities was up by 3%, compared to businesses registered by natural persons. Nevertheless, the latter make up 60% of all businesses registered in the quarter under review (Q1 2021). Regarding LLCs, 1,425 of them were registered between January and March this year. Out of these, 91% were registered under private seal.

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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.