Togo’s Business Environment Transformation: A Model for Reform in Africa

Togo has secured a leading position in Africa under the 2020 Doing Business index, making significant strides in enhancing its business environment through extensive reforms across various sectors, including starting a business, enforcing contracts, trading across borders, and taxation.

Togo has made notable strides in enhancing its business environment as reflected in its ranking in the 2020 Doing Business index, where it secured the fifteenth position globally and the first place in Africa under the Starting a Business category. This advancement is a result of a series of reforms aimed at simplifying procedures and promoting entrepreneurial activities in the country. In the area of enforcing contracts, Togo has significantly improved its position from previous years, moving away from its earlier status as one of the lowest-ranked countries. Efforts have been concentrated on enhancing the business climate, evidenced by the establishment of various mechanisms such as special commercial chambers for resolving small debt disputes, the creation of chambers at the Court of Appeal, and the introduction of specific judicial clerks for distinct civil and commercial cases. Moreover, the newly established commercial courts in Lomé and Kara have facilitated a maximum dispute settlement duration of 100 days. Improvements were also noted in the trading across borders indicator, where Togo has implemented multiple reforms focused on digitizing processes and reducing delays for import and export procedures. The introduction of technology has yielded significant results, streamlining these crucial operations and enhancing Togo’s competitiveness in international trade. In the construction sector, Togo’s ranking has improved from 133rd to 127th in the construction permit index, with further reforms anticipated to boost this ranking in future evaluations. The government remains committed to regulatory changes that facilitate faster and more efficient access to construction permits. The energy and utilities sector has seen consistent improvements in Togo’s performance as the country strives to enhance access to electricity and water. These enhancements are attributed to ongoing reforms designed to simplify the process for businesses in acquiring essential utilities. Togo is also making significant headway in property registration, having made notable progress since 2018. With ambitious goals to surpass Rwanda, which currently leads Africa in this area, the government is enacting numerous reforms to streamline the property registration process. Reforms have been implemented in the public procurement domain as well, focusing on modernizing practices through professionalization and digitization. This modernization effort aligns with the objectives of the National Development Plan to foster a more beneficial environment for the private sector. In regard to taxation, Togo has introduced significant reforms to enhance its attractiveness for investors. Changes have included the replacement and cancellation of certain taxes, alongside exemptions designed to create a more favorable tax landscape. The government continues to emphasize digital solutions to streamline tax payments and compliance for economic operators.

The Republic of Togo, located in West Africa, has embarked on a series of reforms aimed at improving its business climate and economic environment. These initiatives align with the World Bank’s Doing Business framework, which provides measurable indicators that enable countries to assess areas of improvement to enhance the ease of doing business. Through strategic reforms in various sectors—from starting a business to tax payment—Togo aims to capitalize on its potential as a viable destination for investment, bolster economic growth, and support its development objectives.

In summary, Togo’s efforts to reform its business environment have yielded significant improvements across multiple indicators in the Doing Business framework. From enhancing the ease of starting a business to streamlining tax processes, each reform initiative reflects Togo’s commitment to fostering a supportive atmosphere for entrepreneurs and investors. The trajectory of progress established in recent years positions Togo as a leader in reform in Africa, setting an example for other nations striving for economic advancement.

Original Source: www.togofirst.com