Togo: KfW Provides CFA13 Billion to Support Local Development

Economic governance

Wednesday, 20 August 2025 17:05

Togo: KfW Provides CFA13 Billion to Support Local Development

(Togo First) - In Togo, the government and Germany officially launched the Communes Financing Support Program (PAFC) on August 14, in Lomé. The initiative is backed by €20 million, or roughly CFA13 billion.

The program marks a turning point for local governance. For the first time, an international partner is contributing to the Local Authorities Support Fund (FACT), which has so far relied solely on the national budget. “This is a significant advancement reflecting the trust of our partners,” said Siangou Koumtchana, Technical Secretary of the FACT Management Commission.

The first stage of PAFC will benefit 60 communes across the Kara, Centrale, and Plateaux regions, with projects centered on education, healthcare, and boosting local economies. A second stage, estimated at €12 million, is planned to scale the program up to all 117 communes nationwide.

German authorities view the initiative as proof of their commitment to advancing credible and inclusive decentralization. Johannes Kinzinger, head of the KfW office in Lomé, highlighted “the central role of transparency and good governance” in the way resources will be managed.

The PAFC distinguishes itself by introducing assisted project management: communes will present initiatives aligned with their Communal Development Plans, while receiving stronger technical backing to maximize investment impact.

“This marks a turning point,” said Joseph Koami Gbloekpo Gomado, Minister of Land Use and Territorial Development and mayor of Golfe 1. He underlined that the program gives local governments a new instrument to tangibly improve the daily lives of their citizens.

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.