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Presentation of the political and economical context 

Political context 
The democratization process started in the early 90’s and was marred by the social and political troubles that lead to the rupture of the cooperation with the our principal development 

Political and economic context 

The democratization process engaged by the Togolese authorities in the early 90s was marked by many social and political troubles that led to the suspension of the bilateral cooperation on development between its main partners. 
In the face of such situation, the government signed an agreement with the European Union in April 2004 in order to restore a peaceful democracy in Togo. 
After the presidential election in 2005 and general elections in 2007, the European Union announced the resumption of its cooperation with Togo. 

The conference of development partners for Togo held in Brussels in September 2008 was the sign of the complete and total resumption of the cooperation. 


Macroeconomic reforms engaged since 2006 

In reference to the program of IMF, the government had begun a reform essentially for the improvement of the governance of the public finances and the public services. Also, other measures were taken to ensure the revenue taxes from the customs services and fiscal administrative are properly handled and control other expenditures that could be detriment to the good function of the program. 
This program had helped so amazingly for the reduction of the poverty level and to the sustainable growth of the economy. 


Macroeconomic agreement 
This was based on careful steps aimed at stabilizing and reinforcing the national capacities. It focused on a real BIP growth of 3% in 2008 and more than 4% in 2009 and 2010. The priority was on the budgetary governance, the reorganization of the financial sector and public societies precisely in the cotton and phosphates sector and also in the basic infrastructure for development. 

Structural reforms 
In order to achieve its goals, the government centered the reform on three structural axes: the governance of the budgetary system, the public sector and the social infrastructure. 

In the public sector 
Strategic audits are routinely conducted in order to determine the necessary reforms required for a long and a short term. The capacities in the management and the production were also reinforced. The contracts of performance were signed between the companies and the state. 

In the private sector development 
The actions were concentrated around the priority strategic axes that are: 
- Dynamism of the process of disengagement of the state from the public companies 
- Reinforcement and reorganization of the legal, judicial environments. 
- Elaboration and implementation of political promotion of small and medium enterprises and small and medium industries. 

Potentialities of Togo 

Our country has tremendous natural resources in potentiality. Above those potentialities, it enjoys a reasonable basic infrastructure that allows easy transportation of energy and other goods. 

Mines 
Togo has a lot of natural resources that are currently exploited such as phosphate, iron and limestone as well as other that are to be exploited. 

Agriculture and poultry 
Togo has a vast fertile land adaptable for staple foods such as corn, sorgho, beans, yam and cassava, basically for consumption. 
Other products, for exportation, such are coffee and cacao are also cultivated. 

Electrical energy 
Almost 90% of the electrical energy consumed in Togo is imported, practically from the neighboring Ghana’s hydraulic dam on the lake Volta. 
In order to reduce that dependence of electrical energy, Togo had constructed a dam called Nangbeto on the lake Mono. Its construction has permitted the diversification of the sources of energy. There are other dams such as Adjalla, also on the lake Mono. 

Hydraulic infrastructures 
In the field of hydraulic infrastructure, the problem of drinkable water still persists in rural areas despite the abundance of rivers and lakes. This phenomena offers an opportunity for the operators specialized in supplying services and equipments for potable water. 

Transportation infrastructure 
Togo has an important road network. Investments for its improvement and renovation are needed. Now the constructions of by-passes to the faults of Aledjo and Defale in order to facilitate the flow of goods to the enclave countries like Niger and Burkina-Faso. 
There is also a plan to arrange a modern terminal at the port for more depots and stocking of containers. 

Business environment 

Legislations of companies 
Companies are administrated by the uniform accord signed by 16 African Francophone States on 17th October 1993. That uniform accord draws its principles from the French legislation for the right of companies. 
There is no restriction to the right of foreign nationals to manage local companies. The foreign investor can even create a branch at 100%. 

The means offered in case of litigation between an investor and the Togolese government. 

l Friendly settlement 
l Arbitrage 
- Arbitrage court for the Chamber of commerce of Togo. 
- Common court of arbitrage and justice/ OHADA (Abidjan) 
- International Center for the settlements of misunderstandings related to the Investments. 
- Arbitrage court for the International Chamber of Commerce in Paris. 

Tribunals 
The state has undertaken a huge reform in order to give the judiciary system all the necessary means in terms of human and materials that will facilitate the treatment of any conflicts related to businesses. 

Transfer and convertibility of funds 
In general, any business or any foreigner realizing an investment in Togo, has all the full right to transfer the benefits or capitals freely in the legal statutory of exchange. This guarantee covers all products sold for exportation. 

Internal revenue 
The Togolese fiscal legislation on the communities covers the followings domains: 
The principal taxes are: 
Taxes on the revenue 
- Taxes on the companies: 33%(trade and service) and 30%(industry) 
- Minimum taxes on contracts 
- Professional taxes: Calculated on the basis of the business indication and the locative worth. 
- Consumption tax which is 18% 
- Income tax: 7% 
- Asset taxes (local taxes to pick up garbage) 

Every person physically and morally fit has seen a relief of taxes this year. 
- Taxes for companies decreased from 37% to 30% for the industries and from 40% to 33% for other sectors. 
- Taxes on physically fit individual is down by 10points 

Indicative measures 
Some exemptions on fiscal and customs taxes are anticipated for: 
- the law creating free zone 
- mining code 
- the general code of taxes 

Regime of zone franche 

Fiscal advantage 

- Exemption of consumption tax during the first 10 years on the goods and services exclusively indispensable for the installation and the function of the companies. 

  • Stabilizing the taxes on companies at reduction rates 

- 5% of benefit realized during the first 5 years 

- 10% of benefit realized between 6th and 10th year 

- 15% of benefit realized between 11th and 20th year 

- Common right from the 21st year (normal rate of 30%) 

- Stabilizing of the taxes on the income which is reduced by 2% throughout the year of operation of the company (normal rate is 7%) 

 -5% of taxes from 2nd to 5th year 

-10% of taxes from 6th to 10th year 

-15% of taxes from 11th year to 20th year 

- normal rate from 21st year 

-5% from 2nd to 5th year 

-10%from 6th to 10th year 

-15%from 11th to 20th year 

-normal rate from 21st year 

The chamber of commerce and industry of Togo (CCIT) 

The chamber of commerce and industry of Togo which organs have been renovated is an institution of first order that helps and create a climate of harmony between Togolese business people and their foreign partners. It is an organization that facilitates the procedures of business creation between local or foreign economic operators and the public authorities. 

Formalities center for the enterprises 

The chamber of commerce and industry of Togo has a formalities center for enterprises in form of an office window that takes in charge all the paper works for the creation, the modification or radiation of companies. The normal period for those formalities is 14 days for a creation of company. But the dispositions are taken by the chamber to reduce this period to 5 days. 

Administration of the zone franche (SAZOF) 

It is an institution that receives and follows up all those investors willing to settle at the zone franche. It has also an office window. 

National agency for promotion and guarantee on finances for small and medium enterprises/small and medium industries

 

This national agency’s mission is: 

- To help small businesses which are facing financial difficulties in getting loans with relatively low interest from financial institutions accredited by the authorities. 

- To find and mobilize other sources of loans for small businesses. 

Country of peace and stability 

After the elections of 2005, the country had regained its legendary tradition of peace and stability. 

Natural gifts 

Located in West Africa along the coast of Atlantic Ocean, Togo is an ideal place for industrial development and commercial exchanges within the West African sub region, with Europe and North America. 

Infrastructures 

The port of Lome 

It is a modern port well known for its status of frank port with huge potentialities that make it a pillar center in West Africa. It is a port with deep waters. It offers exceptional nautical conditions and favorable services with a high degree security maintenance carried out by private companies. 

The Lome port hugely contributes to the economic development of enclave nations such as Niger, Burkina Faso and Mali for their logistics in a system called “ Solidarity on the sea” 

With its capacity of 7 million goods handled in 2008 alone and the extension work going on right now to expand the docking area, a construction of a new wharf (the third one) and a new terminal for containers demonstrate how hard the port of Lome is trying to give investors and entrepreneurs a comfortable environment for business. 

Gnassingbe Eyadema International Airport 

The quality of its services made it one the most advanced and modern airports in the region. It deals with roughly 11000 tones of merchandises and about 800 000 passengers a year. 

Niamtougou international airport 

Located at about 45 minutes fly from the Burkina Faso capital of Ouagadougou, it is a transit airport that links the mainland to the big cities around the globe. 

Quality of the road network and its length 

Togo has about 7500km roads with 1600km asphalted and 544km of railways. This network links the port of Lome to the neighboring enclave countries and allows the transit of goods and other activities. 

Telecommunications 

Togo Telecom is the operator of the fixed lines and has a network entirely digital in commutation and transmission. It covers more than 136 localities in the country. 

A highly qualified labor force 

The education rate now reaches 73% in Togo and is one the highest in Africa. On the professional level, the country has a lot of schools that form and train a highly qualified manpower. 

The training centers often receive the financial back up in order to reinforce the competence of their training personnel. 

Thanks to these efforts, Togo has a very qualified and disciplined manpower and where the right of employment is fully guaranteed. 

The new code of employment adopted in 2006 is very flexible and suits to the needs of the moment. 

Investments opportunities 

Togo has some tremendous investment opportunities to offer in the following sectors: 

Mining sector 

Togo has a lot of mineral resources. Among them, phosphate and limestone are the most relatively important in quality and quantity. 

There are other resources such as diamond, platinum, gold, manganese, bauxite, many kinds of clay and more. 

Geophysics research carried on offshore indicated the existence of oil. 

Many more investment opportunities for exploration and exploitation in those fields are offered to different technical and economic partners. 

Agro sector 

The agriculture sector constitutes the economic growth engine for the country. 

In every region of the country, there are vast fertile lands still unexploited. So many projects can be carried out on those soils like: 

. Constructing of facilities that could keep cassava flour or other local products for long period of time. 

. Supplying agro products 

. Manufacturing foods for poultry and diary. 

- Creating agriculture credit trust 

- Creating of centers that can make and maintain the infrastructures for irrigation 

- Creating of centers for an improved seeding orientation 

 

The government has placed an importance in its declaration on development of agro pastoral policies by promoting the breeding of short term species. 

The agro pastoral sector also offers various opportunities for investment and transformation. 

 

Handicraft sector 

Creation of private enterprises network system that could promote the marketing of local arts made of high quality such as blacksmith, braid and others. 

 

Service sector 

The government has progressively disengaged from the services and goods production activities. It has liberalized this sector and promoted a policy for it to develop economically. 

Others development activities can be created depending on the geographical position of Togo and its traditional turning plate of commercial and financial activities. A battlement of information and technologies communication constitutes a great opportunity also. 

 

Transport sector 

This sector offers very tremendous opportunities notably in the fields of public and interurban transportation systems. 

The rehabilitation of the road network and the construction of news ways to facilitate the transportation to Mali, Niger and Burkina Faso can be explored. 

 

Tourism sector 

Togo has an important potential in tourism and this constitutes one the main revenue resources of the country. The tourism sector is very dynamic and offers a lot of opportunities for investments and business. The hotel bed has an estimation of 350 hotels in all categories. The group Accor manages two big hotels in Lome. 

Many state owned hotels are, currently, undergoing a privatization process and can be a great chance of investments for businesses. 

There are also many investments opportunities in the fields of hotel constructions, holiday villages or entertainment parks like Disneyland or Eurodisney. 

Other projects of creation for tourism circuits and leisure complexes exist in Togo. 

Togo has many historical and cultural heritages such as Koutammakou listed on the World Cultural Heritage of UNESCO as well as falls, national parks, caves, beaches, lakes, mountains and picturesque sceneries. 

The arrangement of these sites could easily help the flourish of tourism for spa, circuit discovery, eco-tourism, trekking and safari. 

 

Energy sector 

In the fields of water and electricity, the government is working on promoting the private investment and management of the sector in order to supply the population with a better service. 

At the same time, the government is looking for ways to resolve the problems facing the sub region in terms of water and electricity (Togo, Ghana, Benin and Nigeria) 

The increment of the electrical energy production is short term policy for the government to reduce the energy dependence on importation. There is project on the construction of a new dam on the lake Mono. 

Housing sector 

There are many opportunities for the social housings. 

 Professional training sector 

There are projects in the following fields: 

. Creation of jobs for new graduates 

. Training of the trainers 

. Renewal of the working tools, the information equipments and supplying of other items to the training centers as well as technical high schools 

  Industry sector 

The Togolese industrial sector is at its young age. There are efforts to encourage the industrialization and the renewal of the production infrastructure in order to reinforce the competition in the field. 

Other projects on investments in the industrial infrastructure for the transformation zones for exportation and the creation of industrial areas are to be explored. 

Useful addresses 

Chamber of commerce and industry of Togo (CCIT) 

Angle Avenue de la Presidence, Avenue Georges Pompidou 

BP : 360 Tel (228) 223 29 00 / 221 70 65 

Fax (228) 221 47 30 

Email : ccit@ccit.tg / ccitogo@gmail.com / cci.togo@laposte.net 

URL : www.ccit.tg 

Centre de Formalites des Entreprises (CFE) s/c CCIT 

cfe@ccit.tg 

Societe d’Administration de la Zone Franche (SAZOF) 

BP :3250 

Tel (228) 226 13 74 / 253 53 53 

Fax (228) 226 52 31 / 251 98 98 

Email : sazof@zonefranchetogo.tg / sazof@togo-imet.com 

URL : www.zonefranchetogo.tg 

Port Autonome de Lome (PAL) 

BP : 1225 

Tel (228) 227 47 42 

Fax (228) 227 26 27 / 227 02 48 

TELEX : 5243 TOGOPORT 

Email : togoport@logoport.tg 

URL : www.togoport.tg 

Presidence du Togo : 

BP : 382 

TEL (228) 221 27 01 / 221 19 51 

Fax (228) 221 18 97 

URL: www.presidence-togo.com

 

 

 

 

  • Business Opportunity Doing Business in Togo
  •  National Documents
  •  Chamber of Commerce
  •  The Port of Lome

 

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