Togo’s economic growth rate forecast falls to 1%, from 5.5%

Investments

Monday, 20 April 2020 10:50

Togo’s economic growth rate forecast falls to 1%, from 5.5%

(Togo First) - Already scaled down a few weeks ago to 3% (from 5.5%), the growth forecast for the Togolese economy this year has been further reduced to 1%. This is as sub-Saharan Africa braces for its first recession in 25 years.

This is bad news for the national development plan which was set to take off a little after the presidential elections. However, the tides could turn next year in the event the coronavirus pandemic ends soon. Still, Togo -being a leading business center and logistics hub- is highly exposed to external shocks.

Given its strong trade ties with China and Europe, its weak health system, and dependency on tourism, Togo, the IMF foresees, will greatly suffer from the Coronavirus pandemic.

Indeed, in its latest update of growth forecasts for sub-Saharan Africa, the IMF said Togo’s budgetary balance, which was in surplus at end-2019, should widen to 4.1% while the rate of inflation should grow to 2%, against 0.7% in 2019.

According to the institution’s resident representative, Sampawendé Jules Tapsoba, who presented the document on April 17, the effects of the crisis can already be felt in the retail and leisure industries. Between January and February 2020, way before Togo reported its first Covid-19 case, traffic in retail stores, markets and recreational areas had fallen by one-third.

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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.