Government adopts incentives to boost business creation

Economic governance
Monday, 29 January 2018 09:19
Government adopts incentives to boost business creation

(Togo First) - Togolese Prime Minister, Komi Sélom Klassou, told a press conference at the business formalities center about new reforms undertaken by the government to facilitate business creation and improve business climate in the country.

Facing journalists, and major ministers, the official discussed mainly some major measures initiated by the government. Amongst these: minimum capital’s liberalization for LLCs, the President’s commitment to guarantee at least 20% of public procurement to young people with enhanced support and especially reforms related to the single window of the business formalities center.

In addition to this promise about the 20% guarantee, the leader has also said that young people will benefit from streamlined procedures,” the Prime Minister emphasized. “It’s profound…really, it is an array of measures to accompany young people to be very efficient,” he added.

According to authorities interviewed by Togo First, launching a business has never been as easy as now. It is possible to create a business in less than 24 hours for CFA31,400. Also, it is now permissible to freely define the starting social capital for LLCs.

Today, each young entrepreneur who desires to create its own business can freely set minimum capital to CFA25,000, CFA20,000 or any amount he wishes the starting social capital and even define social shares,” explained Sandra Johnson, head of Business Climate Unit (CCA).

Stephane Afidegnon, a young Togolese entrepreneur who has been operating in the informal sector for three years, assures that he formalized his business thanks to the incentives, especially to the procedure’s cost and delay. “What's good is that when we come for the first time, the following day, we get the business creation card. The cost is also very good,” he said.

In 2017, Togo registered 8199 new businesses, according to CFE’s data. This is a modest performance, attributable to political shocks that marked the second half of last year. But this year, authorities expect a rebound spurred by new reforms underway.

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