A review of economic relations between Togo, Mali, and Burkina Faso

Economic governance

Monday, 31 January 2022 18:04

A review of economic relations between Togo, Mali, and Burkina Faso

(Togo First) - After imposing heavy sanctions on Mali, ECOWAS heads of state met on Friday to discuss the recent putsch in Burkina Faso, which led to the exit of Roch Marc Christian Kaboré. Unsurprisingly, they decided to suspend Burkina Faso from the sub-regional bodies. It is in this context of tensions between these two Sahel states and ECOWAS that we (Togo First), based on the latest economic data available, decided to review trade relations between Togo, Mali, and Burkina Faso. From trade and diaspora remittances to foreign direct investment (FDIs) and tourism, here, we look at all of it.

In recent years, trade between Togo and its two Sahelian neighbors, Mali and Burkina, has grown steadily. That is a fact validated by data from both the BCEAO and the UN’s Comtrade aggregator.

Mali

In 2020, trade between Mali and Togo was estimated at CFA85 billion, with Togo selling more than it bought. Indeed, despite its size, Togo is Mali's third-largest supplier of goods in the WAEMU region, behind Senegal and Côte d'Ivoire. Fuel, fertilizers, basic food products, and pharmaceuticals ... Togolese exports to Mali stood at CFA75 billion in 2020, compared to about CFA10 billion for imports.

Diaspora transfers

Remittances are another key component of economic relations between Togo and Mali. And just like in the case of trade, Togo seems to be winning on that ground as well.

In 2019, Malian migrant workers living in Togo sent CFA2.5 billion home (latest BCEAO figures). In the opposite direction, the Togolese diaspora living in Mali sent home CFA9.8 billion, almost four times more than the Malian diaspora did.

rty4

A source of FDI for Mali

Since 2017, foreign direct investments (FDIs) from Togo to Mali remained robust, year after year. Truly, except for 2020 when they dropped to CFA785 million, in part because of the pandemic, the FDIs stood above CFA3 billion over the period.

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.