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Togo: Lomé experiments privatization of parking spaces’ management
According to a statement Central has been authorized to temporarily take charge of the technical management and exploitation of parking spaces in Lomé by Fongan Adegnon, president of the special delegation of Lomé.
For the time being, this contractual approach to the management of parking spaces is experimental. According to the statement, the reason for outsourcing the management of these public spaces to companies can be justified by the “need to find an adequate solution to the congestions and uncontrolled parking of vehicles and other machines”.
However, without regular communication and sensitization, incidents and misunderstandings can arise due to the fact that it is a private company which manages the parking spaces.
To avoid such situations, uncomfortable for the company in charge of the works and for the citizens of Lomé, Fongan Adegnon, invited the population to welcome the contractors warmly.
If those public spaces are properly managed, by the end of this experimental phase whose duration is yet to be specified, Lomé could favor such approach for the long term.
Togo: A road overload impact assessment to be carried out
WAEMU wants to eradicate road overload through the adoption of its 14/2005 regulation on harmonization of standards and procedures for checking template, weight and axle load of heavy goods vehicles in its Member States.
Togolese government, in order to assess real impact of road overload, will carry out an impact assessment as of March 2018 over 6 months, with AfDB’s financial support.
The consultant in charge of this mission will have to assess traffic flows not only on international roads in the country but also on platforms generating more than 200,000 tons of goods. He will also evaluate the loading level vis-à-vis WAEMU’s 14 regulation and the overload’s impact on roads, subsequently.
Togo: Private sector to grow by 10% in 2018-2019, according to AfDB
As of this year 2018, Togo economy will start benefiting from the numerous reforms initiated by the government.
According to the African development bank (AfDB), the reforms initiated to improve the business climate and support the private sector, the incentives measures for transfer of ownership rights notably, should help boost private investments in 2018 and 2019.
These private investments should increase by 2% in these years as it did from 2015 to 2017 and, they will reach 62% and 64% respectively.
Togo’s government is counting on the private sector to revitalize the economy which has been hit hard by the global fall in commodity prices. The declining tax revenues which resulted from this greatly affected budget balance. Since then, the government is trying to rely on two measures to fill the gap. These are the reduction of public expenses and incentives to encourage entrepreneurship. These initiatives seem to have been the basis for AfDB’s forecast which projects a strong growth of 10% for the private sector in 2018 and 2019.
Let’s note that according to Doing Business, in terms of transfer of ownership rights, Togo has advanced by 0.17% in 2017.
Fiacre E. Kakpo
In Togo, online legal advertisements’ cost has been reduced to CFA1000
Togolese government continues its reforms and, in this regard, has considerably lowered the cost of online legal advertisements. While it was CFA5000, it has been recently reduced to CFA1000, thus reducing by 80%.
Indeed, the government materialized a reform aiming to transfer to the business formalities center (CFE), exclusivity for legal advertisements on its website http://cfetogo.com/cfe/.
This reform aims to simplify access to information on existing companies in Togo. It is part of the major reform program initiated by the Togolese government, to improve business climate.
Togo: Firms registered at Centre de Gestion Agréé to benefit from tax incentives
Still in line with its strategy to improve business climate, Togo’s government has announced tax incentives for companies registered at the Centre de Gestion Agréé (CGA).
Indeed, under its 2018 finance bill, article 1478, it provides tax incentives, not only to businesses registered under the single tax business regime but also to those registered under the real regime.
In effect, individual entrepreneurs or legal entities, registered at the CGA and subjected to the single business tax benefit from a 30% reduction on this tax, from the first to the third year of their activity, and 15% in the fourth and fifth years. This tax will be levied only starting from the sixth year of activity, the finance bill states.
In the same framework, Togo’s government granted entities subjected to the single business tax but that prefer real regime, a tax reduction which equals CGA registration fees and account management fees for five years, with a limit of CFA300,000 per year. However, charges taken into account under the tax reduction measure will no more be considered as deductible charges.
Besides, entrepreneurs with annual turnover ranging between thirty and sixty million CFA will benefit from the government’s kindness as well. Indeed, the latter plans to cut by 50% business tax from year 1 to year 3 of operation; by 30% income tax over the same period; by 20% alternative minimum tax during the second and third year of activity; by 30% business tax in the fourth and fifth year.
Moreover, the government, still under its 2018 finance bill, will reduce by 15% income tax during fourth and fifth years of activity; by 10% alternative minimum tax to be paid in the fourth and fifth years. Here also, the government will implement measures falling under the common law system, starting from the sixth year.
So, it appears that the government has walked half the way. Now let us hope that youth, and populations generally, will take hold of this opportunity and walk the other half.
Togo: Number of firms established by private deed has almost doubled over the past two years
In Togo, the number of firms established by private deed, that is without resorting to an authentic deed, has almost doubled, soaring from 947 in 2015 to 1339 in 2017 (+40%).
Last year, 76% of firms that were established were LLC (limited liability companies), against 54% in 2015. A boom fostered by the reduction of minimum share capital to create an LLC, to CFA100,000.
In addition, other incentives were initiated to improve business climate in Togo. Amongst these, cancellation of minimum capital required for LLC, reforms related to construction permits and transfer of ownership rights. All these fall in line with the government’s strategy to make private sector the economy’s driver.
Other reforms, it should be noted, have been announced, also to boost private sector. A sector which according to the African Development Bank (AfDB) should record a two-digit growth rate in 2018 and 2019.
Fourth country in the region to approve the creation of a firm by private deed, Togo still awaits the reform’s validation by World Bank.
Fiacre E. Kakpo
2018 Finance bill: Government leverages on tax relief to foster economic growth
Last December 20, Togo’s parliament has approved the 2018 finance bill. The latter was amended slightly, in regards to taxes, compared to last year’s.
In fact, the government, this time, is betting on tax relief to efficiently tackle poverty, unemployment and boost consumption and investment in the country.
Lomé’s new strategy involves a battery of measures which should provide both local and foreign investors with a more attractive regulatory framework.
Amongst new incentives planned under the move, SMEs that are regularized will benefit exoneration of single business tax during their first year of operation. Togolese entrepreneurs will also no more pay stamp and registration fees imposed under the 2017 budget, when launching their businesses.
Moreover, the government decreased by 3% registration fees for land titles, from 5% to 2%. These various measures aim to provide SME and SMI with the needed safety net to easily secure loans from lenders.
Besides these, the 2018 finance bill restructured the General Tax Code to foster business creation in the country, which is WAEMU’s second most performing economy, in terms of growth, over the past 5 years.
Also, in 2018, import and sale of IT material and renewable energy production equipment will benefit from Value Added Tax exoneration. Another major incentive adopted is the cancellation of minimum capital requirement for LLC creation, this since January 1st.
All these measures should bear fruits by the end of the year. It is in sight of these that the World Bank said Togo’s GDP should grow by 5.3% in 2018.
Official data shows that in 2017, 10,000 new businesses were created in the country. The establishment of an attractive regulatory framework should help boost public earnings in years to come, thus significantly reducing budget deficit.
Fiacre E. Kakpo
Togolese government to put limit on age of imported used cars
Government wants to limit age of imported used cars in the country. This is the main substance of the decree adopted during a ministers council held on January 10, 2018. The limit itself is however yet to be disclosed.
Uncontrolled import of used cars, not meeting standards, and their use are causing health and environmental issues. Among others, there is noise pollution, pollution by chemicals also which harm the people.
The absence of applicable regulation to these cars import and use in fact accelerates roads degradation, generating substantial expenses for their maintenance and rehabilitation. The newly adopted decree should palliate this.
In the long term, authorities aim to renew Togo’s car park, preserve environment, people’s health and most importantly save lives, as many car accidents are often due to the dilapidated condition of these used cars.
Togo: Faure Gnassingbé promises to provide at least 20% of public procurements to young entrepreneurs
In its New Year’s message, President Faure Gnassingbé has promised to award 20% of public procurements to young local entrepreneurs. “I plan to set aside up to 20% of public procurements to young entrepreneurs and women, who by the way will benefit from simplified procedures,” the president said.
This commitment aligns with the government’s will to boost socio-economic inclusion of youth in the country, as entrepreneurship is expanding.
“Togo’s youth, whose dynamism and involvement must be supported, will be at the center of the State’s actions. I am convinced that the answers to the issues of education, employment and youth insertion will be found by the youth themselves, through their contributions and thinking,” noted Faure Gnassingbé.
Expectations for the commitment are high, in Lomé especially. Ismaël Tanko, managing director Togo Timati, quoted by TogoTopInfos, said in this regard: “We are excited about this promise given that, if this measure, which is already in the SME/SMI charter, is concretized, it would be a true breath of air for young entrepreneurs and an additional mean to promote enterprises and local products. Moreover, the measure will push young entrepreneurs, desiring to benefit from it but who still operate in the informal sector, to regularize their business, subsequently generating tax income.
For some months now, Togolese government has implemented multiple measures to attract both local and foreign investors such as in the case of the card, the recent cancellation of minimum capital for LLC. Impacts of this decision are much anticipated during this quarter.
Fiacre E. Kakpo
University of Lomé to get mining information center
Soon, the University of Lomé will have a mining information center. Its establishment will be part of a project to rehabilitate buildings and practical training rooms of the departments of chemistry and geology, at the faculty of science of Lomé.
The government will pay works for the project with a loan it secured from the International Development Association under the mining governance and development project (PDGM).
It has in fact launched a call to tender in this framework.