World Bank Approves $600 Million in Loan Facilities for Togo under New CPF Deal

Economic governance

Tuesday, 28 May 2024 14:31

World Bank Approves $600 Million in Loan Facilities for Togo under New CPF Deal

(Togo First) - Under its new Country Partnership Framework (CPF) for Togo, the World Bank approved three loans totaling $298 million (180 billion CFA francs) on May 23, 2024. For Sandra Johnson, Minister Secretary General to the Presidency, this first loan series is a milestone for Togo. "This agreement marks a decisive turning point for Togo, and together, we are building a country where every citizen can benefit from the progress made through these innovative and transformative projects," she said. The new CFP spans from 2024 to 2029.

Nous tenons à exprimer notre déférente gratitude à tous les acteurs de la @Banquemondiale, de l'Association Internationale de Développement (IDA), et plus particulièrement à @ousmane_diagana, @SPimentaIFC , Ethiopis Tafara et Fily Sissoko, ⤵️https://t.co/Z8dEieW64H
— Sandra ABLAMBA JOHNSON (@SandraA_JOHNSON) May 24, 2024

The three loans break down into a $200 million loan, a $75 million loan, and a $23 million loan.

The first will help bolster inclusive development through a power supply project. The latter targets more than 1.5 million people, mostly in rural areas.

The second loan, $75 million, will help develop the public sector by improving human resources and public finance management. It will also help digitize tax revenue collection.

The third loan, $23 million, will support the Social Cohesion Project in the Gulf of Guinea Northern Regions (COSO). The project aims to support refugees and host communities in Northern Togo better.

Besides these three facilities, the World Bank will provide Togo with $315 million to prevent and weather crises better. The funds will be made available through the Bank’s Financing for Prevention and Resilience window.

Togo will therefore secure $613 million under its new CPF deal with the World Bank.

New CPF: $1.5 billion target for Togo

These funds represent the first milestones of the new Country Partnership Framework, under which the multinational institution intends to mobilize more than $1.5 billion (907 billion CFA francs) for Togo. "With this Country Partnership Framework, the World Bank is intensifying its commitment to Togo and plans to mobilize more than $1.5 billion to support reforms and investments in strategic sectors, such as agriculture, energy, connectivity, and the development of secondary cities. Youth and women will be the main beneficiaries of this partnership framework," said Fily Sissoko, World Bank Country Representative for Togo.

The new CPF targets three goals: creating quality jobs through the private sector, improving human capital, and promoting inclusive and resilient territorial development. Areas of focus are agricultural productivity, logistics, and connectivity. Several institutions, including the World Bank’s arms dedicated to concession loans and the private sector, the IDA and IFC, as well as the Multilateral Investment Guarantee Agency, will contribute to the initiative.

According to Sergio Pimenta, “the IFC will work closely with the World Bank and MIGA to stimulate private sector participation in several promising sectors, such as agribusiness, infrastructure, digital, manufacturing, transport, and logistics”. As for the MIGA, its Vice President, Ethiopia Tafara, said it “will provide guarantees that could boost agriculture, public-private partnerships in infrastructure, digital investments, and the energy sector”.

Fiacre E. Kakpo

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.