20141001 investir togo gb by The Africa Report

INVESTING INVESTIR

INVESTING TOGO 2014

TOGO 2014

Doing Business in Africa

INVESTING TOGO 2014

© The Africa Report – Groupe Jeune Afrique Headquarters: 57bis, rue d’Auteuil, 75016 Paris, France Tel.: (+331) 44 30 19 60 – Fax: (+331) 45 20 08 23 www.theafricareport.com Photography by Jacques Torregano /Jeune Afrique, except where otherwise mentioned. Printer: Léonce Desprez, 62620 France

CONTENTS 6

TOGO 2014 AGRIBUSINESS

KEY POINTS

56 59

POLITICS & SOCIety

Great potential and numerous opportunities FACTFILE AGRIBUSINESS

HistoRY

From prehistoric times to modern Republic Geographic map

SOCIETY

Host country

PolitiCAL LIFE

16 19

Towards a democratic transition FACTFILE POLITICS

20 23

Back in the international arena

34 37

The sector promises growth and prospects FACTFILE AGRICULTURE

MINING AND MINERALS 38 Proven, untapped, mineral resources 39 Economic map 42 FACTFILE MINING

AND MINERALS

International

FACTFILE POLITICS

ECONOMY & BUSINESS ENVIRONMENT

INFRASTRUCTURE 43 Ground, sea and air: Lomé is moving West Africa

POWER AND WATER

60 62

Sharp increase in demand FACTFILE PRODUCTION FACTORS

SERVICES

63 66

Source of growth FACTFILE SERVICES

TOURISM

A roadmap to restored glory

OUTLOOK

26 29

Consolidate economic recovery FACTFILE OUTLOOK

FOREIGN TRADE

30 33

Diversifying international trade FACTFILE FOREIGN TRADE

COMPANIES & MARKETS

TRAVEL DIARY 70 Your trip

COMPANY LIFE 48 Industry and investment get a new start 51 FACTFILE COMPANY LIFE BanKING AND finance

52 55

A booming banking market FACTFILE BANKING AND FINANCE

KEY POINTS At the gateway to a thriving market of over 310 million people, Togo is the natural link between West Africa’s Anglophone and

FOCUS ON THE ECONOMY By the mid-2000s, Togo had overcome the economic and social consequences of a decade-long

Francophone cultures and economies. Its rapidly expanding port hub, its variety of natural and mineral resources and the dynamism of its financial sector are all great

political crisis and is now focused on its objectives of promoting peace and national unity. As a solvent country, enjoying the trust and support of international financial agencies, it has the means to carry out its ambitions

assets that make it indispensable to regional

for economic development.

and international trade.

WEST AFRICAN HUB Having benefited from significant private and public investment, the port

Capitalising on its location, Togo is engaged

of Lomé, which is close to countries with no coastline or deep water port,

in an economic strategy that will enable it to join the ranks of Africa’s fastest-growing countries by 2015. To this end, the government is stepping up reforms to modernise the business environment and strengthen investor confidence in its growth prospects.

is set to become a major hub from 2015. The modern land transport logistics necessary for its efficiency and success are being provided within the framework of public-private partnerships. The Lomé airport is already an important regional platform, from whence the Asky airline company serves West and Central Africa.

TRANSPARENCY AND SECURITY

new policies to promote the

and cement, construction, food

growth of trade and industry.

processing and mechanics

The reforms undertaken

These policies have already

are promising activities. With

to improve the business

proved their effectiveness in the

prospective resources in iron,

environment are working.

agricultural sector, the country’s

manganese and marble, mining

Commercial law is applied by

main provider of jobs.

presents, according to the African Development Bank (AfDB), Togo’s

the new arbitration courts and a new investment code was

INVESTING IN

biggest opportunities for value

adopted in 2012. The time and

• Agriculture

chain development.

cost of business formalities were

The development of agriculture

significantly reduced, such as

was supported by the National

those applied to foreign trade

Agriculture and Food Security

operations. With an exemplary

Investment Plan (NAFSIP), which

Large banking, insurance

record in interstate trade, Togo

is allocated a significant share of

and investment companies

has also proved formidable in

the state budget. Countercyclical

have set up in Lomé. The high

protecting its maritime borders

policies have been implemented

penetration rate of mobile

against piracy.

to boost food crops, livestock,

phones and the record number

fisheries and aquaculture, all

of internet users in the region

INCREASING INVESTMENT

of which are reporting strong

provide a solid foundation

growth. Local processing and

for information technology

Lomé invested in reviving its

export crops are also targeted as

development. The tourism

traditional productive sectors:

profitable sectors for the future.

industry can take advantage of

phosphates and clinker in

• Finance, telecoms and tourism

the country’s unique assets such

mining, and cotton in agriculture.

• Industry and mining

as the beaches, landscapes and

However, far from simply settling

Rapid growth is expected in the

preserved traditions, a dynamic

for the vitality of these export

secondary sector, particularly

capital city and still limited hotel

champions, it is implementing

mining and industry. Phosphates

facilities.

politiCS & sociEtY

10 POLITICS AND SOCIETY

HISTORY

From prehistoric times to modern Republic Centuries of turbulent history before becoming an independent nation.

A monument in Lomé city centre celebrates Togo’s 54th anniversary of independence.

MIGRATION OVER THE CENTURIES

1884 German protectorate

Numerous discoveries such as the rock paintings of Namoudjoga in the Dapaong region in the north of the country, as well as traces of metallurgy and the remnants of a tool making site in the same area, dating back to around 2600 BC, are evidence of ancient human

INVESTING TOGO 2014

activity in present-day Togo. Today, the small country of Togo counts fifty ethnic groups, of which a dozen are presumed to be indigenous, like the Tingedane ("owners of the land"), Tamberma and Sorouba of Atakora and the NakitindiLaré in the Dapaong area. Others moved along the vast stretch of land between

GERMAN CONQUEST At the end of the seventeenth century, the Dutch and the Danish were the first to settle on the coastal strip where Togo is today, quickly followed by the Portuguese, French and Germans. The slave trade flourished from the ports of Agbodrafo (Togo), Aneho (Togo), Ouidah (Benin) and Agoué (Benin). After the abolition of slavery in 1850, the region became the battleground between Britain, which defeated the Ashanti in Ghana, Germany and France. On 5 July 1884 a German protectorate agreement on Togo was signed in Baguida (current eastern suburb of Lomé) with King Mlapa III, who controlled a territory around Lake Togo, and by several other leaders in the days that followed. The Germans introduced the cultivation of coffee and cocoa and built infrastructure of which traces can still be seen today (roads, railway, Lomé wharf).

UNDER FRENCH MANDATE After the First World War, the French and British arbitrarily shared Togo, obtaining a mandate from the League of Nations in 1922. The western part of the country was attached to Ghana in 1956 and French Togo joined French West Africa

PRESIDENT GNASSINGBÉ EYADÉMA

President Gnassingbé Eyadéma governed the country from 1967 to 2005.

On 9 April 1961, Sylvanus Olympio was elected president over Nicolas Grunitzky, supporting a strong alliance with France. As Prime Minister in 1958, Olympio was determined to recover the part of Togo attached to Ghana and to not unite the two countries, as proposed by Kwame Nkrumah, President of Ghana. His increasingly authoritarian regime led to discontent, especially among the soldiers who had fought in the French colonies and whom Olympio refused to integrate into the army. On 13 January 1963 he was assassinated and Africa experienced its first post-independence coup. The military insurrectionary committee instated Nicolas Grunitzky before dismissing him four years later. The military suspended the institutions

1956

Shared by Britain and France

KEY FIGURES ◗ Population: 6.817 million ◗ Area: 56,785 km2 ◗ Population density: 126 people/km² ◗ Gross domestic product (GDP) : $4.339 billion (2012) ◗ Per capita GDP: $574

INVESTING TOGO 2014

(AOF), forming a single constituency with Dahomey (now Benin), but without moving towards unification. In 1956, the Togolese Territorial Assembly acquired more power and Nicolas Grunitzky became prime minister under an autonomous republic associated with France. Four years later, on 27 April 1960, the country gained its independence.

(2013 data, World Bank)

the Ashanti kingdoms, in present-day Ghana, and Dahomey, in what is now Benin. The Adja-Ewé thus travelled through Kétou (Benin) before reaching Notsé (Togo), just as the Ana (Yoruba), who now inhabit Atakpamé, came from Savalon (Benin). The Guin are originally from Accra (Ghana), like the Atchem and Mina, who migrated to Togo after clashes with other tribes. The Temba, originating from Gourma (Burkina Faso), moved and settled in the north during the eighteenth century.

POLITICS AND SOCIETY HISTORY

12 POLITICS AND SOCIETY HISTORY

of the Republic and instated Lieutenant Colonel Etienne Eyadéma as President of the Republic, head of government and defence.

SINGLE PARTY AND NATIONALISATION

27 april

1960 Independence

After banning political parties, President Eyadéma created the Rassemblement du Peuple Togolais (RPT) in 1969, which brought together various organisations (youth, women, workers, etc.) and Togo became a single-party state in 1976. The regime embarked on a policy of industrial nationalisation, starting with the Compagnie Togolaise des Mines du Bénin, of which Togo owned only 35%, and which became the Office Togolais des Phosphates in 1974. He also fostered a policy of authenticity, based on the model practised at that time in Zaire (now the Democratic Republic of Congo). Christian and foreign-sounding names were abandoned in favour of local names. Etienne Eyadéma became Gnassingbé Eyadéma.

NEW BEGINNING In 1979, a new constitution established the Third Republic and empowered the president through an election by universal suffrage. Gnassingbé Eyadéma was re-elected in 1986. In April 1991, after violent protests and hundreds of deaths, the multiparty system was authorised. A few months later, the regime became semipresidential with the nomination of an opposition prime minister. However, once again, the state clamped down, causing international partners to suspend financial assistance. In September 1992, a new constitution was adopted. President Gnassingbé Eyadéma was re-elected in 2003. He died on 5 February 2005, after 38 years in power. Faure Gnassingbé, his son, was brought to power on 3 May 2005. Since then, the young president has focused on promoting development, peace and national unity. He managed to restore the trust of development partners after 13 years of embargo. ■

IN THE HEART OF WEST AFRICA Covering an area of 56,785 km², Togo is one of the smallest countries in West Africa. It extends about 700 km from north to south, where it has 50 km of coastline on the Gulf of Guinea, and is 150 km from east to west at its widest part. The country shares 1,700 km of border with Burkina Faso to the north, Ghana to the west and Benin to the east. The Atakora mountain range runs across it in a north-easterly direction, separating the Mono plain, in the southeast, and the Oti alluvial plain, in the northwest. The highest peak, Mount Agou, rises to 986 metres. Deep valleys form a series of highlands, called "plateaux" or "mounts". The southern plain extends over a small slope, while in the far north, in the Savannah, the floodplain of the Oti, the country's main river and a tributary of the Volta (Ghana), rises to the west to form the Dapaong Plateau.

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POLITICS AND SOCIETY

BURKINA FASO

Sinkassé 11˚ N

11˚ N

Dapaong

Mandouri

Plateau Dapaong

1˚ E

Borgu FOSSE Sansargou AUX LIONS N. P. Tandjouaré

P T

I Naboulgou Koumongou KERAN N. P. Kande Katchamba n

Ch a

Dé fal é

Kara

GuerinKouka

Niamtougou

Pagouda

Kabye Pya Mountains

Kara

AIN

Ka tch a

Kabou

Bafilo 738 m

Tchaoudjo Massif

Tchamba

Koussountou

861 m

Mono

Kpessi

Dan

from 50,000 to 100,000 from 20,000 to 50,000 7˚ N

Kpalimé To djé

Sodo

Adéta

Kra

MountAgou 986 m

Notsé

Si o

Gamé

Agbélouvé Tsévié

1˚ E

National Park

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Tohoun

7˚ N

0 Tabligbo

GO TO Lake LOW Hahotoé Togo Togoville Vogan Aného

LOMÉ

no Mo

Keve

Railway International Airport

Ountivou Amo u

Haho

Secondary road

Atakpamé

Amlamé

COMMUNICATIONS Main road

Mono

Kpété Bena

over 600,000

yi P lat e

Number of inhabitants

916 m

OR IEN TA L

920 m

TOWNS AND CITIES

Anié

Badou

from 0 to 200 Escarpment

BENIN

Elavagnon

Aqaba

Anié

from 200 to 500

Issati

Morétan

Yégué

from 500 to 700

less than 20,000

Blitta

Kpémé

Gulf of Guinea

2˚ E

50 km

GHANA

over 700

Sotouboua e

ALTITUDE in metres

Kambolé

Fazao

Fazao M

RELIEF

9˚ E

Ogou

Sokodé

ountains

9˚ E

Mô

FAZAOMô MALFAKASSA N. P.

Kam

Bassar

Ogo u

Oti

SansanneMango

Oti

14 POLITICS AND SOCIETY

SOCIETY

Host country National identity is based on a wide ethnic and cultural diversity.

The government has been investing over 20% of the state budget in education since 2006.

FIFTY COMMUNITIES

75%

of the population is under the age of 35

Togo comprises fifty ethnic groups, of which the largest, the EwĂŠ, with related groups (Adja, Mina, Ouatchi) and coastal populations account for nearly half of the population. The KabiyĂ¨ are more present in the centre and north, making up a quarter of the population, while the Para-Gourma (north) represent just 16%. As in neighbouring Benin, we

INVESTING TOGO 2014

find descendants of former slaves from Brazil, still using Portuguese names, on the coast.

CULTURE AND RELIGION French is the official language, and is especially used in administration and trade. It is spoken throughout the country, but there are also many local languages spoken in Togo (42 in total).

Ewé and Kabiyè, the two main ones, have been national languages since 1975 and are taught at school. Religion and spirituality are important to people in Togo. It is estimated that more than half of the population practices traditional animist religions, alone or in syncretism with Christianity (about 45% of the population) and Islam (about 20%, mainly in the north).

A YOUNG POPULATION Of Togo’s total population, 75% are under 35 years of age and 35% are between 15 and 35 years old. There is an unemployment rate of 8.1% and underemployment of 20.5% (6.5% and 22.8% nationally) in this age group. The poverty rate has declined significantly, going from 61.7% in 2006 to 58.7% in 2011, but these results are insufficient, far from the ambitious Millennium Development Goals (MDGs), which set this indicator at 30.9%. To remedy the situation, the government has adopted a Strategic Plan for Youth Employment Promotion, covering the 2013-2017 period.

POLITICS AND SOCIETY SOCIETY

to provide opportunities in technical education, which accounted for only 6% of the total number of students in the secondary level in 2011. In the 2012 Finance Act, education accounted for 21.2% of the national budget, while health is at only 6.5%.

TOGO’S DIASPORA There are an estimated 1.5 million Togolese living abroad. Two-thirds are in neighbouring countries, while the others are in Europe, mainly France and Germany, and the United States. Appealing to the Togolese diaspora wishing to contribute to the development of their country, the government introduced a specific programme within the Ministry of Foreign Affairs in 2010. It aims to unite and inform the diaspora within a structure called La Maison de la Diaspora, which has its own website. The first national diaspora conference for those in the European area was held in Lomé on 8 March 2014 and brought together more than 200 people. ■

1.5

MILLION of Togolese live abroad

THE EDUCATION CHALLENGE

MAIN HUMAN INDICATORS ◗ Life expectancy at birth: 56 years ◗ Demographic growth: 2.6% per year ◗ Poverty rate: 58.7% ◗ Urban population: 39% (+4% per year) ◗ Literacy rate: 60.4%

INVESTING TOGO 2014

(World Bank Data)

Between 2006 and 2011, 6,500 new classrooms were built (+25%). Free public primary schooling was established in 2008, and canteens were set up for the most disadvantaged children, to encourage them to attend school. Result: gross enrolment rate in primary education increased from 98% in 2007/08 to 114.5% in 2012/13. However, students are still struggling to complete their education, which is why 85% of job seekers are unskilled. The completion rate is 75.7% in primary school, 50% in junior high and 25% in senior high. Efforts must be increased

16 POLITICS AND SOCIETY

POLITICAL LIFE

Towards a democratic transition

Since 2006, the country has made great strides in the process of reconciliation and political dialogue.

After the democratic reconciliation process, Togo held its first multiparty legislative elections in October 2007.

1946 The first parliament was formed

CONSTITUTIONAL AMENDMENTS Delegates of the presidential majority and the opposition regularly consult on the institutional and constitutional reforms needed to improve Togo’s political functioning. This dialogue

INVESTING TOGO 2014

is driven by the head of state, Faure Gnassingbé, as part of the process of reconciliation and democratisation launched in 2006. It provides for an amendment of the current constitution, the fourth in the history of the

country. Adopted by referendum on 27 September 1992 and revised in 2002, it strengthens the powers of the president, who holds full executive power, can stand for re-election without term limits and has the right to dissolve Parliament, to which he himself is not answerable.

FINDING LASTING SOLUTIONS The need for a permanent political dialogue became obvious after the clashes that followed the death of President Gnassingbé Eyadéma in 2005. It was vital to resolve the repeated cycles of violence that began in 1993 and to find lasting solutions to the ongoing sociopolitical crisis. Negotiations between the government, political parties and representatives of civil society led to the Global Political Agreement (GPA) in 2006, which recommended reforms and established a government of national unity whose main task was to organise the 2007 elections.

RESTORING PARLIAMENTARY TRADITION Dialogue is focused primarily on the country’s long parliamentary tradition. It dates back to 1946, when the Representative Assembly of Togo (ART), which comprised 30 people (24 Togolese and six French), was established. It played a role in the organisation of public services, taxation and customs, and could designate information missions and put any question to the administration. The ART became the Legislative Assembly after Togo became an independent republic in 1956, before being named the Chamber of Deputies in 1958. The current National Assembly is the legislative branch and is composed of 91 members elected by direct universal suffrage for a term

POLITICS AND SOCIETY POLITICAL LIFE

of five years. The 2002 constitutional reform also provided for the creation of a Senate, but this has not yet been done.

STRONG POLITICAL PARTIES Since Togo became a multiparty political system in 1991, two strong parties feature in the political arena: the Rassemblement du Peuple Togolais (RPT), founded in 1969 by President Eyadéma, and Gilchrist Olympio’s Union des Forces de Changement (UFC), established in 1992. In October 2007, the country’s first multiparty elections were won by the RPT (50 seats), followed by the opposition who won 31 seats, split 27 for the UFC and four for the Comité d’Action pour le Renouveau (CAR). After the first time he was elected on 4 May 2005, Faure Gnassingbé was reelected with 60.9% of the vote in the presidential elections of 18 March 2010. He was opposed by Jean-Pierre Fabre, the UFC candidate, supported by an opposition coalition which contested the results, indicating that political dialogue was not yet complete and that trust between parties needed to be consolidated.

GOVERNMENT OF NATIONAL RECOVERY Shortly after this election, Gilchrist Olympio announced that he had signed a "political agreement for participation in a government of national recovery, in a spirit of power sharing with the RPT,” and the UFC were given seven ministerial portfolios. This decision on the part of the UFC’s historical leader caused the party to split and the subsequent forming of Jean-Pierre Fabre’s Alliance Nationale pour le Changement (ANC). The presidential majority formed a new party in 2012 called the Union pour la

INVESTING TOGO 2014

members in the National Assembly

18 POLITICS AND SOCIETY POLITICAL LIFE

République (UNIR). During the July 2013 legislative elections, UNIR won 62 seats, the Collectif Sauvons le Togo (which includes the ANC), 19 seats, the Arc-enCiel coalition, six seats and the Sursaut National independent list, one seat.

ROLE OF THE PRESS In Togo, as in any democracy, the press should contribute to the improvement of political life. However, in Togo, its youth, passion, often partisan stance, variable quality and lack of means diminish this role. The Patronat de la Presse Togolaise (PPT), a professional body founded in February 2014, aims to change this situation by introducing several mechanisms, from strengthening distribution channels to developing new strategies to harmonise the cost of advertising. Its action has already led to the recent launch of several quality general news publications.

ORGANISED CIVIL SOCIETY Civil society organisations, just as young and partisan as the press, possess as many qualities as defects. The Concertation Nationale de la Société Civile, founded in 2002, is a coalition of organisations trying to lead the way. Through dialogue, it sought to prevent violence during the 2007 and 2013 elections, notably through a “citizens’ watch for peace during the legislatives." It also created the SYCED (Citizen Synergy for Democratic Elections in Togo 2012), to bring together organisations specialising in electoral supervision. In 2013 it was given financial help by the Projet d’Appui à la Société Civile et la Réconciliation Nationale au Togo (PASCRENA), a support project set up by the European Development Fund (EDF) and the government of Togo. ■

PRESIDENT FAURE GNASSINGBÉ

Faure Essozimna Gnassingbé President of the Republic

Faure Gnassingbé was born on 6 June 1966 in Afagnan, in the Maritime region in the southeast of Togo. He first served as interim president from 7 to 25 February 2005, after the death of his father Gnassingbé Eyadéma. Faure Gnassingbé did his primary and secondary schooling in Lomé and Kara, before graduating in Economics and Management at Paris-Dauphine University, France, and obtaining an MBA at George Washington University in the United States. Upon his return to Togo, he was elected to Parliament for the Blita constituency in 2002 under the ticket of the Rassemblement du Peuple Togolais (RPT), the party in power. He was appointed Minister of Public Works, Mines and Telecommunications in Koffi Sama’s government on 29 July 2003. Elected President on 4 May 2005, and re-elected on 4 March 2010, he was the architect of strengthening dialogue and the restoration of democracy in his country.

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FACTFILE THE CONSTITUTION of the

Republic of Togo is the fourth in the country's history. Adopted by referendum on 27 September 1992, it was revised in 2002, strengthening the powers of the President and removing the consecutive term limit. The reconciliation and democratisation process includes the development of a new constitution. THE FLAG

was adopted on 27 April 1960 after a competition won by the internationally renowned artist Paul Ahyi (1930-2010). The three colours – red, green and yellow – are the pan-African colours, borrowed from the flag of Ethiopia. Red symbolises the blood shed by martyrs while the white star symbolises hope. The green bands represent the forests, agriculture and promise. The yellow bands represent mineral resources.

LIBERTÉ

PAT RIE

AIL AV TR

NATIONAL MOTTO

Work, freedom, country THE PRESIDENT OF THE REPUBLIC is elected for

five years by direct universal suffrage in a ballot system. He holds full executive power and can dissolve Parliament. The Prime Minister is appointed by the President. The Council of Ministers is appointed by the President and the Prime Minister. THE NATIONAL ASSEMBLY has

91 members elected by direct universal suffrage for five years. It holds legislative power, passes laws and controls government action. The parliamentary elections of 25 July 2013 gave an absolute majority to the President's party (UNIR, 62 seats).

ADMINISTRATIVE REGIONS

Togo is divided into five administrative regions, themselves subdivided into 30 districts. They are, from south

POLITICS

to north, the Maritime region, the most populated with six prefectures, the Plateaux region, second in terms of population (9 prefectures), the Centrale region (4 prefectures), the Kara region (7 prefectures) and the Savannah region (4 prefectures). USEFUL ADDRESSES ●

PORTAL OF THE REPUBLIC

www.republicoftogo.com Online information website created in 1997 ●

GOVERNMENT PORTAL

www.gouv.tg ●

NATIONAL ASSEMBLY

www.assemblee-nationale.tg ●

LEGISLATIVE PORTAL

www.legitogo.gouv.tg

● CONSTITUTIONAL COURT www.courconstitutionnelle.tg ● NATIONAL CIVIL SOCIETY COALITION

www.cnsctogo.org

MAIN MINISTRIES ● OFFICE OF THE PRIME MINISTER Prime Ministerial services

and action www.primature.gouv.tg

● FOREIGN AFFAIRS AND COOPERATION

www.diplomatie.gouv.tg ●

FINANCE

www.finances.gouv.tg ●

PLANNING

www.plan.gouv.tg ●

TOURISM

www.togotourisme.com The old Presidential Palace in Lome.

20 POLITICS AND SOCIETY

INTERNATIONAL

Back in the international arena Togo's diplomacy has enabled it to put the crisis years behind it.

Lomé hosts the headquarters of the ECOWAS Bank for Investment and Development (EBID), the West African institution that finances business and major projects.

2009 Europe establishes resident representation in Lomé, after a 16-year absence

SOLID FINANCIAL PARTNERS When Faure Gnassingbé became President of the Republic of Togo in 2005, his country had been cut off from its main international partners for over a decade, particularly Europe, after the violent political and social crisis in 1993. Upon taking office, he made the return of these financial partners a top priority. The bonds of trust were rapidly restored

INVESTING TOGO 2014

and, today, Lomé has a lot of assistance for its investment in major projects, essential to reviving the economy (infrastructure, mining, agriculture, etc.). The World Bank, International Monetary Fund (IMF), African Development Bank (AfDB), French, German and Japanese development agencies, and Chinese and Gulf donors all feature among Togo’s current partners.

POLITICS AND SOCIETY INTERNATIONAL

Another diplomatic success: Togo served on the UN Security Council as a non-permanent member country from January 2012 to December 2014, elected as the second African country along with Morocco. It has held the rotating month-long presidency twice. Togo brought the voice of Africa to several security issues and led the debate on the political process in Guinea-Bissau and piracy in the Gulf of Guinea, a subject previously introduced by Benin and Nigeria. It was Togolese diplomacy too that drew attention to the impact of transnational organised crime (trafficking in drugs, arms, people, etc.) in West Africa as well as terrorism in the Sahel region. In total, Togo was at the root of a dozen resolutions and presidential statements on all of these questions.

HEAD OF WAEMU Togo has also regained its historical image of strong African cooperation, first witnessed in 1975 with the signing of the "Lomé Agreement" on commercial cooperation between Europe and 46 African, Caribbean and Pacific (ACP) countries. Also the initiator and signatory of several regional cooperation agreements, Togo marked its return in February 2011 with the appointment of its President to the head of the WAEMU Conference of Heads of State and Government (French West Africa) for two terms. Faced with increased armed conflict in the SahelSahara belt and the Côte d’Ivoire and Guinean crises, Faure Gnassingbé agreed, in consultation with his partners, to making peace and security one of the priorities of the sub-regional integration process.

UN SECURITY COUNCIL

Togo’s President with Ban Ki-moon, UN Secretary-General.

PEACE, FOOD SECURITY, FUNDING Other high priority issues on the WAEMU agenda include fighting food insecurity and funding economies. Three High Committees were established for each of these issues, under the responsibility of a Head of State. A report focusing on the prospects for sustainable agriculture in the Union was commissioned by the Conference of Heads of State and Government in June 2012 in Lomé. The High Committee to develop strategies for financing the Union in turn called for measures to increase the rate of savings, channel income to investment, reduce interest rates and increase bank loans. While only 45% of the reforms have been implemented within WAEMU member countries, an annual review of the reforms has been institutionalised to drive the will to act with greater efficiency.

REMOVE TRADE BARRIERS As a country whose economy is based in part on the efficiency of its deepwater port in Lomé and the road corridor

INVESTING TOGO 2014

20122014 Togo sits on the UN Security Council

22 POLITICS AND SOCIETY INTERNATIONAL

Faure Gnassingbé with Barack and Michelle Obama in Washington, July 2014.

connecting landlocked neighbouring countries, including Burkina Faso, Togo decided to lead by example by reducing the red tape that hinders transport

in West Africa. At 13.9%, the average customs tariff is one of the lowest in the region. These efforts were recognised by the Heritage Foundation, one of the most respected US think tanks, in an international ranking that measures tariff and nontariff barriers. According to its 2010 annual report on the operation of the WAEMU, Togo recorded the lowest bribe rate in the region. They accounted for 1,683 CFA francs (2,60 euros) on average per 100 kilometres and per truck in Togo, compared with 6,361 CFA francs for the highest in the region. Similarly, average delays caused by inspections were seven minutes per hundred kilometres per truck against a maximum of 30 minutes in the region. Since the publication of this report, Togo has increased the efficiency of its northsouth corridor (see article p. 43). ■

EBID, THE OTHER AFRICAN DEVELOPMENT BANK Based in Lomé, ECOWAS Bank for Investment and Development (EBID) is an international financial institution founded in 1999 from the transformation of the ECOWAS Fund, itself created in 1975. The Conference of Heads of State and Government of the West African Community made this change to strengthen EBID’s financial resources by opening its capital to non-regional partners. It is composed of two specialised subsidiaries, the ECOWAS Regional Development Fund (ERDF) and the ECOWAS Regional Investment Bank (ERIB). EBID has a division for private sector promotion and another for developing the public sector. Its objective is to contribute to the economic growth of the fifteen ECOWAS member states through the financing of projects and programmes relating to transport, energy, telecommunications, industry, education, poverty reduction and the environment. EBID manages a portfolio of $250 million per year and employs 100 people.

INVESTING TOGO 2014

FACTFILE INTERNATIONAL ORGANISATIONS UNITED NATIONS

The Republic of Togo has been a member of the United Nations since 20 September 1960. It participates in many of its institutions, both financial (World Bank, International Monetary Fund) and social: World Health Organisation (WHO), United Nations Development Programme (UNDP), UN Food and Agriculture Organisation (FAO), etc. AFRICAN UNION

Togo was one of the 32 African founder states of the Organisation of African Unity (OAU) on 25 May 1963. Togo President Sylvanus Olympio was one of those who drafted the OAU Charter. The OAU became the African Union on 9 July 2002.

• Fifteen countries make up ECOWAS: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea, GuineaBissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

INTERNATIONAL ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) ●

128 boulevard du 13 janvier, BP 2704, Lomé Tel.: (+228) 22 21 68 64 www.bidc-ebid.org

●

AFRICAN DEVELOPMENT BANK

• According to the IMF, ECOWAS is, with its 300 million inhabitants and a GDP of $565 billion in 2012, the 25th strongest economic power in the world.

WAEMU

• Created in Dakar in 1994, the West African Economic and Monetary Union (WAEMU) unites eight countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. • WAEMU has over 80 million inhabitants in the CFA franc zone. (CFA Franc 100 = 0.15€). • WAEMU is managed daily by the WAEMU Commission.

Togo head office 68, avenue de la Libération, 01 BP 2722, Lomé Tel.: (+228) 22 22 80 02

CENTRAL BANK OF WEST AFRICAN STATES ●

Togo head office Rue Abdoulaye Fadiga, BP 120, Lomé Tel.: (+228) 22 21 53 84

WEST AFRICAN DEVELOPMENT BANK (BOAD) ●

68 avenue de la Libération, BP 1172, Lomé Tel.: (+228) 22 21 59 06 ●

WORLD BANK

BP 3915, Lomé Tel.: (+228) 22 53 33 00 INTERNATIONAL MONETARY FUND ●

REGIONAL ORGANISATIONS ECOWAS

• Founded in 1975 at the initiative of Nigeria and Togo, the Economic Community of West African States (ECOWAS) aims to promote the cooperation and integration of Member States with the objective of establishing a common market. In 1990, its power was extended to the maintenance of regional stability through the creation of ECOMOG, a military intervention group.

• The monetary policies of WAEMU Member States are managed by the Central Bank of the States of West Africa (BCEAO). USEFUL ADDRESSES MINISTRY OF FOREIGN AFFAIRS AND COOPERATION ●

BP 900, Lomé Tel.: (+228) 22 21 36 01 www.diplomatie.gouv.tg MINISTRY OF ECONOMY AND FINANCE ●

ECOWAS-WAEMU units BP 387, Lomé Tel.: (+228) 22 21 50 10

BP 2702, Lomé Tel.: (+228) 22 21 91 87/88 ●

LA FRANCOPHONIE

West African Regional Office 117 avenue de Sarakawa, BP 7223, Lomé Tel.: (+228) 22 21 63 50

UNITED NATIONS IN TOGO (FAO, HRC, WFP, UNAIDS, WHO, UNDP, etc.) ●

www.tg.one.un.org

eCONOMy & BUSINESS ENVIRONMENT

ECONOMY AND BUSINESS ENVIRONMENT

OUTLOOK

Consolidate economic recovery

ÂŠ N. ROBERT / JA

Togo is creating the means to invest in growth and development.

LomĂŠ deep water port, a rapidly developing regional transport hub.

Growth rate in 2014

CONSTANTLY INCREASING GROWTH At the same time it was renewing contact with the international community and resuscitating donor support, in the mid-2000s, the Togolese government embarked on a policy to boost the economy, and is now seeing results. GDP growth approached 6% per year in 2012 and 2013; it should get there

INVESTING TOGO 2014

in 2014 and continue to grow in the following years, according to analysts at the African Development Bank (AfDB). In fact, economic growth has continued to improve since 2005 (1.24%). The inflation rate is consistent with the 3% limit set by the WAEMU: from 3.6% in 2011, it fell to 2.6% in 2012 and to 1.8% in 2013. Inflation will continue to be controlled

ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK 27

in the medium term, and is expected to reach 2.3% in 2014 (reflecting the 10% increase in fuel prices earlier in the year) and 1.6% in 2015.

partners still have a lot to do to improve agricultural mechanisation, which is still weak, and in the management of agricultural land.

OPTIMUM USE OF NATURAL RESOURCES

TRADE AND BANKING HUB

These results are based largely on the health of the primary sector, which is estimated at 51.8% of GDP in 2013, and the revival of public investment, encouraged by the renewed support of international partners. The government restructured the public cotton and phosphates companies, both of which had been the engines of the economy and exports, despite their deterioration. The Nouvelle Société Cotonnière du Togo and Nouvelle Société des Phosphates du Togo were formed in 2009. Since then, their performance has continued to improve. International investors are now preparing to enter extractive industry operations (including clinker), while tenders for future operations are being launched by the state. Mining’s share of GDP, which was 4.1% in 2013, is expected to rise to 4.3% in 2014 and 4.5% in 2015.

EFFECTIVE AGRICULTURAL POLICIES Agriculture continues to dominate the Togolese economy and increase its contribution to GDP: 47.7% of GDP in 2013, compared with 45.4% in 2008, and nearly 1.3 million livelihoods. To support this sector, the government is maintaining a stable macroeconomic framework and has implemented countercyclical policies that have proved effective: cotton, cereals (especially corn) or food crops have recorded increasing harvests since 2009. The sector could grow by 7.4% in 2014 and 8.8% in 2015, due to state investment in food and cash crops. The state and its

The secondary sector should grow by 8.8% in 2014 and 7.1% in 2015, according to the AfDB, mainly due to the performance of construction, up 9.7% in 2014 and 13.9% in 2015. The tertiary sector is expected to grow by 4.1% in 2014 and 3.7% in 2015, driven by the development of services in banking and insurance (10.3% in 2014 and 4.2% in 2015), transport, warehousing and communications (6.1% in 2014 and 17% in 2015). The tertiary sector looks promising for the Togolese economy, representing 31.8% of GDP. Recent progress is based mainly on the restructuring of the banking system, which allowed for the introduction of new entities and the resumption of public institutions, as well as an increase in trade and a slight reduction in communication costs. Trade and warehousing benefit from the country's geographical location in the heart of the largest West African markets. Togo’s position as a regional transport hub can only strengthen in the future. The deepwater port of Lomé, whose draught is unique in West Africa, acquired a third wharf for containers, and a fourth for transshipment, in 2014. Lomé’s new airport, which will be one of the most modern in the region, will enter into service in 2015.

BETTER DEBT CAPACITY Economic recovery is also enhanced by the country’s low debt. In 2010, Togo reached the Heavily Indebted Poor Countries (HIPC) completion point launched by the G8 in 1999. It benefited

INVESTING TOGO 2014

The BPW sector grew 9.7% in 2014 (13.9% expected in 2015).

51.8%

Primary sector contribution to GDP

28 ECONOMY AND BUSINESS ENVIRONMENT OUTLOOK

14.2 % External debt share of GDP

from the cancellation of 95% of its debt to its creditors at the Paris Club (308.4 billion CFA francs), the World Bank and the AfDB (about 357 billion CFA francs). External debt fell from 51.6% of GDP in 2009 to 14.2% at the end of 2011, allowing it to become solvent in the long term and able to support new external debt, limited to loans at concessional rates. Togo's public debt was 911.7 billion CFA francs in 2013, largely made up of domestic debt (71%). To better maintain its balance of payments, the country benefits from IMF assistance under an Extended Credit Facility (ECF), since November 2013, for a period of three years.

MORE EFFECTIVE TAXATION The level of taxation in Togo, estimated at 16.3% of GDP in 2013, is still below the Community standard set at 17%. However, state revenues are up, rising

from 21.2% of GDP in 2012 to 22.9% in 2013. Sustained efforts by the government to recover its revenue should be further improved by the creation of the Togo Revenue Authority (OTR) which, since February 2014, unites the directorates-general of customs and taxes. Total expenditure and net lending made up 27.5% of GDP in 2013, a slight increase compared to 2012 (27%). The overall fiscal deficit has improved, standing at 4.6% of GDP in 2013, against 5.8% in 2012. In June 2014 Parliament passed a law on public finance transparency, defining the principles and obligations in the management of public finances. This reform will ensure public administration honours its commitments and is accountable while facilitating public understanding of the government’s macro-economic policies. ■

DEVELOPMENT STRATEGY The Strategy for Accelerated Growth and Employment Promotion (SCAPE) is the reference framework for Togo’s government policy for 2013-2017. This is the second instalment of the Poverty Reduction Strategy Paper (PRSP), launched by the government in 2001, with the participation of its technical and financial partners. The SCAPE lays out the strategies and roles of various stakeholders around the common objectives of accelerating growth, strengthening inclusiveness and job creation, especially among young people, in order to reduce poverty, estimated at 61%. Its objective is to increase Togo’s average income by 3- 4% per year over the next five years. The resources allocated to the SCAPE amount to 616.8 billion CFA francs in 2014, 74.3% of the national budget. In the longer term, the SCAPE will evolve into the "Togo Vision 2030" plan to be developed by the Ministry of Economic Prospective and Evaluation of Public Policies.

INVESTING TOGO 2014

FACTFILE

OUTLOOK GROWTH: ON TRACK

2006

2007

2008

2009

2010

2011

2012

2013

2014 (e)

2015 (e)

3.9%

2.1%

2.3%

3.4%

4.8%

5.4%

5.6%

6.1%

Data: AfDB - (e) Estimated

PUBLIC FINANCES (In % of GDP) 2009

2010

2011

2012

2013 (e)

2014 (e)

2015 (e)

Total revenues

16.9

22.9

22.6

21.2

22.9

22.4

23.1

Of which tax revenues

14.6

15.7

16.4

16.5

16.3

16.6

16.5

Total expenditure

19.2

22.6

23.7

27.5

27.7

27.5

Balance

(2.4)

0.3

(1.1)

(5.8)

(4.6)

(5.3)

(4.4)

Data: national administrations, African Economic Outlook 2014

CURRENT ACCOUNT (In % of GDP)

Exports Imports Trade balance

2009

2010

2011

2012

2013 (e)

2014 (e)

2015 (e)

31.3

30.8

31.2

31.7

30.8

30.4

30.5

55.6

45.1

46.7

47.5

47.4

49.5

49.9

(24.3)

(14.3)

(15.4)

(15.8)

(16.6)

(19.1)

(19.4)

Data: national administrations, African Economic Outlook 2014

GDP AND GROWTH

FOREIGN DIRECT INVESTMENT IN TOGO 2010

2011

2012

FDI flows

171

166

FDI stock

565.5

706.8

891.5

(in millions of dollars)

GDP, in billions of $, at current prices (left scale)

Data: UNCTAD

PUBLIC INVESTMENT

Billions of CFA francs

2013

2014

Growth

230.4

260.5

+13.1%

ASSESSMENT CRITERIA

2014 â&#x20AC;&#x201C; 157 2013 - 159th

Doing Business Ranking

2012 - 161th 2011 - 160th 2010 - 165th

Data: AfDB *Estimated **Projected

COFACE rating

Country risk assessment: C Business climate: D

GDP changes, in %, at constant prices (right scale)

30 ECONOMY AND BUSINESS ENVIRONMENT

FOREIGN TRADE

Diversifying international trade Togo exports to the rest of Africa and imports mainly from Europe and Asia.

With over 1,700 m of quay, an oil wharf and a mineral terminal, the Port of Lomé can berth up to ten ships at a time.

63%

Africa’s share of Togo’s exports

CEMENT AHEAD OF PHOSPHATES While the volume and value of Togo’s exports and imports steadily increase, the country's foreign trade product profile is gradually changing. For many years, exports were dominated by phosphates, cotton, coffee and cocoa. Phosphates, which made up nearly half

INVESTING TOGO 2014

of Togo’s revenues in the 1980s, are now in second place (82.6 billion CFA francs in 2013), ahead of cotton fibre (37.6 billion CFA francs). Building materials, mainly cement and clinker, are now in first place and worth 102 billion CFA francs, a quarter of total revenues. The main reason for this is the commissioning

ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

of the WACEM (West African Cement) clinker plant in 1999, which coincided with problems in the phosphate industry and the cotton sector. Note the rise in exports of plastics and articles thereof, which corresponds to products manufactured in the Lomé Free Zone (packaging and plastics, perfumes and cosmetics, etc.).

AFRICA, THE MAIN CUSTOMER Burkina Faso is Togo’s biggest customer, spending 77.3 billion CFA francs on a million tonnes imported in 2012. Benin comes next, with 56.4 billion CFA francs (254,000 tonnes), followed by Nigeria with 47.6 billion CFA francs (91,700 tonnes). In total, 63% of Togo’s products are exported to Africa, of which 61.3% is to the ECOWAS region (282.9 billion CFA francs) and 46% to the WAEMU region (212 billion CFA francs), a significant increase in the past ten years. The rest is divided between Asia (25%) and Europe (8%). Cotton is sold mainly to Asia (Bangladesh, China, Indonesia, Malaysia, Thailand, Taiwan and Vietnam), while phosphates mainly go to India. Clinker and cement are sold to the sub-region, in particular Ghana, Burkina Faso and Niger. West African countries are also the main buyers of agricultural products (oilseeds, vegetables and fruit, etc.), especially the ECOWAS region (Benin, Burkina Faso, Mali, Ghana, Liberia). Europe remains a major customer for coffee and cocoa (Belgium, France, Netherlands, etc.).

IMPORTS FROM EUROPE AND CHINA The Government of Togo’s main expenditure is on "mineral fuels, oils and waxes and bituminous substances" which totalled 184.9 billion CFA francs in 2012. These are followed by "salt, sulphur,

Building materials, mainly cement and clinker, constitute the country’s biggest export revenues.

earths and stone, plastering materials, lime and cement", totalling 52.8 billion CFA francs, and "plastics and articles thereof", purchased for 51.8 billion CFA francs. China supplies Togo with 13.8% of all imports, which totalled 117 billion CFA francs in 2012 (down 5.4% in one year). France is the next biggest supplier (80 billion CFA francs and 9.4% of total imports) followed by the United States (68.7 billion CFA francs). Ultimately, Europe remains Togo’s leading supplier at 39.2% of total imports, with Asia not far behind (32%), followed by Africa (13.4%). Lomé’s main European partner

INVESTING TOGO 2014

39.2% Europe’s share of Togo’s imports

32 ECONOMY AND BUSINESS ENVIRONMENT FOREIGN TRADE

NEIGHBOURING GHANA IS THE MAIN AFRICAN SUPPLIER

Phosphate exports have regained momentum after the sector was restructured in 2007. For many years they accounted for nearly half of export earnings.

13.8%

of imports are from China

is still France, followed at different times by the Netherlands, Italy and Belgium, who supply most of the second-hand cars unloaded at the Autonomous Port of Lomé.

Imports from the WAEMU region represent 4.7% of Togo’s total imports. They showed a slight decrease (6.5%) in 2012, primarily due to a decrease in the value of imported goods. Ghana (86 billion CFA francs, +17%) is Togo’s leading African supplier, followed by Côte d'Ivoire (25.7 billion CFA francs) and Senegal (6.5 billion CFA francs). Imports change according to the country’s needs. For example, in 2011 Lomé imported boats and assembly parts for 72 billion CFA francs from Norway, Iceland and Britain. And when implementing its agricultural programme, it increased imports of agricultural inputs from the sub-region and North Africa. Togo's trade balance is structurally in deficit, but it remains positive with WAEMU countries (172.6 billion CFA francs in 2012, against 125.6 billion the previous year). ■

AUTONOMOUS PORT OF LOMÉ With 8.7 million tonnes of goods traded in 2013, the Autonomous Port of Lomé (PAL) is one of West Africa’s main maritime outlets. Essential at the national level – 80% of traded goods transit here – it is equally important to neighbouring countries. With over 1,700 metres of quay, two piers, a tanker berth and an ore dock, PAL can accommodate between eight and ten ships at once. But its biggest strength is the fact that it is a deep-water port (14 m). It can accommodate the largest ships in the world, an advantage that it is building on: a container terminal, built by Bolloré Africa Logistics, will reach full capacity in 2014. A new transshipment terminal, which will be used mainly by Switzerland’s MSC, the world’s second largest shipping company, will come into service in 2015. PAL projects a net profit of approximately 1.667 billion CFA francs in 2014, up 15.8% compared to 2011. It expects to accommodate 1,150 vessels in 2014 (1,118 in 2013) and handle 9 million tonnes of cargo (8.7 in 2013).

INVESTING TOGO 2014

FACTFILE

FOREIGN TRADE FOREIGN TRADE

(in billions of CFA francs) Exports Of which Clinker

Phosphates

2010

2011

2012

2013

2014 (e)

Changes over 5 years

483.5

553.6

628.9

672.6

684.2

+41.5%

41.9

43.2

51.1

64.2

67.4

+60.9%

46.9

70.6

82.6

65.5

+92.6%

Cement

31.5

38.3

41.8

39.9

+26.7%

Cotton

8.9

23.7

34.2

37.6

+322.5%

708.4

827.2

628.9

941.9

1004.9

+52.9 %

Of which Food products

72.2

81.7

85.4

106.5

+47.5 %

Other consumer goods

115.2

141.8

148.1

165

177.8

+54.3 %

Oil products

57.8

109.9

125.3

130.1

136.6

+136.3 %

-224.9

-273.6

-313

-332.3

-399

Imports

Trade balance Data: national administrations

CHANGES IN TRAFFIC AT PORT OF LOMÉ (in thousands of tonnes) Imports

2009

2011

2013

Change

4,737

5,883

6,575

+38.8%

Togo

3,053

3,282

4,440

+45.4%

Transit

1,683

2,135

+26.9%

Exports

1,738

1,746

1,500

-13.7%

Transshipment

0,850

0,619

0,622

-26.8%

Data: Autonomous Port of Lomé

TOGO’S MAIN EXPORTERS

(in thousands of tonnes)

2009

2011

Ghana

558

1,029

2013 889

Burkina Faso

643

912

850 319

Niger

238

436

Bénin

132

124

Mali

179

Nigeria

112

Côte d’Ivoire

Chad

1,1

0,7

Data: Autonomous Port of Lomé

TOGO’S CUSTOMERS AND SUPPLIERS Three main export destinations Burkina Faso Bénin Nigeria

Three main supplier countries China France United States

• Société Nouvelle des Phosphates du Togo (SNPT) • Nouvelle Société Cotonnière du Togo (NSCT) • Ciments du Togo (CIMTOGO) • West African Cement (WACEM) • ScanTogo-Mines • Pomar-Togo (Pierres Ornementales et Marbres du Togo)

SINGLE WINDOW

After the Société de Gestion de la Zone Franche became the Agence Nationale de Promotion de l’Investissement et de la Zone Franche (API-ZF, National Agency for Investment Promotion and Free Zones), in June 2014, a single window for foreign trade will open in late 2014 . This interactive platform, which can be used in ports, airports and border crossings, will combine customs fees and invoicing in a single document. Intended to streamline logistics operations, the single window was developed by Soget and the Togo subsidiary of Veritas.

Data: Presidency of the Republic

CHANGES IN TRANSIT TRAFFIC AT PORT OF LOMÉ

34 ECONOMY AND BUSINESS ENVIRONMENT

AGRICULTURE

The sector promises growth and prospects

ÂŠ J. du Sordet / JA

Encompassing employment, modernisation and industrialisation, agriculture is a sure bet for Togo.

As the first West African country to apply the "Maputo Commitments", Togo invests 10% of its budget in agricultural development.

47.7% of GDP comes from agriculture

A NATIONAL PRIORITY Agriculture plays a vital role in Togoâ&#x20AC;&#x2122;s economy. It contributes 47.7% of GDP (2013) and supports 1.3 million households (7.5 million people). Its potential is far from being fully developed. Only 45% of the 3.4 million hectares of arable land is currently exploited (a quarter of the land area). Agricultural

INVESTING TOGO 2014

production is still mainly orientated towards on-farm consumption and it is poorly quantified. The development of this sector is a national priority. It has to ensure the country's food security while becoming an area of growth that improves the income of its stakeholders and able to boost the development of a strong agro-industry, due to a surplus

of food crops and exports. To support its agriculture, Togo works closely with international technical and financial partners.

SUBSIDISED INPUTS From improved seeds to fertilisers and pesticides, the state subsidises much of the inputs used by farmers. Producer groups can directly order from the CAGIA, the agricultural inputs supply and management centre. The selling price of a 50kg bag of fertiliser is 11,500 CFA francs (half the direct retail price). In 2012-2013, between two crop years, the quantity of subsidised inputs increased from 35,000 to 42,000 tonnes (+20%), delivered on time due to the use of wellplanned logistics. Executives have been recruited to assist producers. As a result of awareness campaigns more than 95% of the quantities mobilised were used during the 2012-2013 crop year, against 80% the previous year. The government is also attempting to improve the use of farming machinery, which is subsidised up to 20,000 CFA francs per hectare, but there is still much room for improvement.

10% OF NATIONAL BUDGET After the success of the government's agricultural recovery strategy, initiated in 2008, Togo launched the National Agriculture and Food Security Investment Plan (NAFSIP), supported by the World Bank and the International Fund for Agricultural Development (IFAD). It targets an annual growth of 6% for the sector by mobilising at least 10% of the state budget. These commitments, called “the Maputo commitments”, are part of the Comprehensive Africa Agriculture Development Programme (CAADP) whose agenda was adopted in 2003 by the Heads of State and Government in the

ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE 35

capital of Mozambique. Togo is the first country in West Africa and the second on the continent (after Rwanda) to have started implementing the CAADP. Togo’s NAFSIP includes three complementary programmes: the Project to Support Agricultural Development (PADAT), the Agriculture Sector Support Project (PASA) and the Agricultural Productivity Program in West Africa, Togo Project (WAAPP-Togo).

PRODUCT DIVERSIFICATION Alongside export crops such as cotton, coffee and cocoa, efforts are being made to strengthen food crops, livestock, fisheries and aquaculture. For example, as part of the implementation of PADAT (Project to Support Agricultural Development), 15,100 kits containing improved seeds (rice and maize) and fertilisers were distributed to vulnerable farmers in 2013-2014. Farmers should also be able to take advantage of multi-sector programmes such as the National Fund for Inclusive Finance (FNFI, see box on p. 54), intended to reduce financial exclusion by providing loans to disadvantaged people who want to develop projects. The NAFSIP also includes a component to strengthen local processing. This plan has formed the framework for investment in the agricultural sector since the 2011-2012 crop year.

BIGGER HARVESTS IN 2013 While there are still a number of stumbling blocks, most of Togo’s harvests are on an upward trend. Record harvests for corn, especially, are seen in all regions, particularly in Kara (+121%). Rice crops also increased by 43.3% between the 2011-12 and 2012-13 crop years. The production of cotton, which has been a

INVESTING TOGO 2014

3.4

MILLION

hectares of arable land (45% in use)

36 ECONOMY AND BUSINESS ENVIRONMENT AGRICULTURE

Coffee and cocoa production has also bounced back since 2009. Production had been in steady decline for decades, spiralling from a total of 36,000 tonnes in 1970 down to 10,000 tons in 2009.

A DISAPPOINTING 2014

A large majority of farms are family-run and poorly mechanised.

annual growth planned for the agricultural sector

cash crop since colonial times, increased from 28,000 tonnes to 79,000 tonnes of seed cotton between 2010 and 2012. It subsequently dropped by 13%, primarily due to poor rainfall patterns. World prices are another source of concern for this product. However, none of this detracts from Togo’s ambition to at least double its production and bring it to 180,000 tonnes, the level reached in the 1990's.

However the results of the 2013-2014 crop year will not be as good because of the shortage of rainfall in many parts of the country. Like other coastal countries in West Africa, Togo was hit hard by the erratic weather patterns of the Intertropical Convergence Zone (the area encircling the earth near the equator where the northeast and southeast trade winds come together), which triggered a wave of unseasonably cool weather from June to August, followed by a dry period which was especially felt in the southern part of the country. This severely affected crop yields, especially corn. The expected grain surplus in 2014 was only 3,338 tonnes, against the 139,486 tonnes of the previous season. ■

THREE AGRICULTURAL ZONES The south of Togo has two rainy seasons per year (April-June and September-October), average temperatures of 24°to 30° C and an annual rainfall of 890 mm(coastal region). The north has only one rainy season (June to September), with rainfall of 100-800 mm/year and high temperature ranges. In central Togo the average rainfall is 1,200 mm/ year, usually over four months. This geographical and climatic diversity, ranging from the coastal plain to the Sahelian landscape, offers the possibility of producing different crops. These range from coffee and cocoa in the southwest, to cotton, farther north. In the Plateaux region, in the centre, several tree species are produced, such as teak and iroko. This region concentrates the largest share of acreage under food crops (36%, against 20% in other regions), including pulses, while the Maritime region does well with tubers (60% of the area).

INVESTING TOGO 2014

FACTFILE

AGRICULTURE FOOD CROPS

In tonnes per crop year

2007-2011 (average)

2011-2012

2012-2013

2013-2014

(projected)

Grains

998,899

1.015 million

1.207 million

1.153 million

Of which Maize

615,371

650,831

825,710

696,610

Sorghum

229,432

243,267

250,892

285,316

Rice (hulled)

101,919

69,584

99,781

107,249

1.57 million

1.75 million

1.85 million

1.6 million

Of which Cassava

874,297

998,540

959,889

902,860

Pulses

120,594

130,869

195,171

178,727

Of which Beans

71,058

76,465

132,636

116,602

43,398

47,369

43,636

43,226

Tubers

Peanuts

Data: Direction des Statistiques Agricoles, de l’Informatique et de la Documentation (DSID)

CASH CROPS 2012-2013

2013-2014

Cotton

80,729

76,000

Coffee

10,843

10,950

Cocoa

6,126

7,020

In tonnes

Data: DSID

CULTIVATED AREA In hectares Grains

2012

Increase

1.176 million

+36%

Of which Maize

682,645

+30%

Rice

102,000

+129%

Tubers

367,000

+52%

Pulses

455,937

+61%

Data: Ministry of Agriculture

AGRICULTURAL WORKERS • Rural households: 531,068 (3.8 million people) • Agricultural households: 508,599 (3.7 million people) • Farm workers: 1.311,659, of which 53.3% women • Average age of head of household: 45 years, 46% illiteracy Data: Ministry of Agriculture

LIVESTOCK

Per household • Poultry: 30 birds (15.3 million total, of which 83% chickens) • Goats: 5 head • Sheep: 2.2 head per household • Pigs: 1.9 head (950,000 in total) • Cattle: 0.8 head (430,000 in total) Data: DSID, 2012

38 ECONOMY AND BUSINESS ENVIRONMENT

MINING AND MINERALS

Proven, untapped, mineral resources

Togo has great ambitions for several new mining products.

Lomé’s fully operational mineral terminal promotes increased exports of mineral resources.

BIG MINING SECTOR DREAMS

largest producer of phosphates in the world

Since the 1960s, Togo’s mining operations were traditionally limited to phosphate, of which it is currently the fifth largest producer in the world. In 2010, the government reported that it had received nearly $60 million in mining royalties and related taxes from 17 mining companies, which makes

INVESTING TOGO 2014

up 10% of total government revenues (including water, as groundwater is considered an extractive industry, up to 39%). In many areas of the country, the geological conditions are ideal for gold and diamond deposits. Already proven and, as yet, untapped resources are encouraging Togo to nurture big dreams for its mining sector.

›››

ECONOMY AND BUSINESS ENVIRONMENT MINing and MINERals 39

Dapaong FOSSE AUX LIONS N. P.

Sansargou Oti SansanneMango

Koumongou KERAN N. P. Kara

O ti

Kande

AGRICULTURE

Kara

Subsistence crops and livestock farming Ka tch a

Kabou

Extensive livestock farming: cattle, sheep, goats

Bafilo

Bassar

Mô

Predominantly cassava and maize, yams, rice, beans

Tchamba

Sokodé

Ogou

Kam

Predominantly millet and sorghum, also yams, cassava, beans

Oil palms Cotton

Cocoa

Coffee

Groundnuts

Mono

FAZAOMALFAKASSA N. P. Fazao

Cash crops

Blitta

Ogo u

Fishing Traditional fishing (deep-sea and inshore) Anié

Elavagnon

Anié Badou

Agribusiness

Timber

Iron

Gold

Cotton ginning

Chromium ore

TOURISM Craft centre National park, reserve

S io Tabligbo

Diamonds

ENERGY

Alokoegbe

Tsévié

Thermal power station Thermal power station under construction Hydroelectric plant

o on M

Maritime traffic

Notsé

Haho

Metallurgy

Titanium (rutile) Marble

Nangbeto Dam

Kra

Kpalimé

jé Tod

Textiles

Kpimé

Attapulgite

Cement works

Chemicals

Dadja Am ou Kra

Phosphates

Mono

Brewery

Atakpamé

MINING RESOURCES

Hahotoé

Agoényivé Kpémé

LOMÉ

Oil refinery Planned gas pipeline

INVESTING TOGO 2014

Ganavé

Aného Gulf of Guinea

50 km

INDUSTRY

40 ECONOMY AND BUSINESS ENVIRONMENT MINing and MINERals

›››

• PHOSPHATES In 2007, the government of Togo dissolved the Office Togolais des Phosphates and International Fertilizers Group Togo to replace them both with the Société Nouvelle des Phosphates du Togo (SNPT). An equipment upgrade and rehabilitation programme will bring the annual production capacity to over 2.5 million tonnes (1.5 million in 2013). SNPT is now the sole operator of the Vogan site, located 30 km north-east of Lomé. The company opened a new mine, Dagbati, a few kilometres further north.

• CLINKER

MILLION T. Estimated clinker production by 2015

1970s. Pomar, a Spanish-owned company, has invested a hundred billion CFA francs in the project, including 20 billion for the construction and rehabilitation of the processing plant, and the reopening of four quarries. Ultimately, about 3,500 direct jobs will be created. A certain amount of the marble extracted must be processed on site at the plant that Pomar will put into operation in 2014.

• CARBONATED PHOSPHATE Togo is in the process of seeking partners to exploit this mineral, in particular the Kpémé deposit in the southeast of the country. The goal is to create a processing plant to produce fertiliser and phosphoric acid. The project involves the mining of more than two billion tonnes of phosphate rock and a total investment of two to three billion dollars, depending on whether there is a need to build a dedicated port.

Togo is one of the few countries in West Africa with large deposits of high quality limestone for the production of clinker. Clinker is a component of cement, produced by sintering a mixture made up of 75% limestone and 25% silica. For several years, this has been Togo’s main mining product (1.6 million tonnes in 2013). With assistance from the International Finance Corporation (IFC), a subsidiary of the World Bank, the international giant Heidelberg Cement is investing $254 million in a new plant with a capacity of 1.5 million tonnes in the context of mining operations being carried out by its subsidiary ScanTogo Mines, in Sika-Kondji in southern Togo. It is due to be commissioned in 2015.

The government is investigating the quantity of iron ore in the country’s subsoil in order to gauge the mining opportunities. An Indian mining company, MMining, already operates the Bassar mine, a small scale deposit in the north. Togo’s iron reserves are currently estimated at between 500 million and one billion tonnes.

• MARBLE

• MANGANESE

In the spring of 2012, Togo’s Head of State officially opened the first marble quarry (10 planned) in Pagala, in the centre of the country, 260 kilometres from Lomé. The company, Pomar-Togo (ornamental stones and marble), takes over from the Société Togolaise de Marbrerie (SOTOMA), an Italian- and Togo-owned company that quarried marble in the

Togo has issued five manganese exploration licenses to the Ferrex mining company for a deposit in Nayega, 600 kilometres north of Lomé. Specialising in African iron ore and manganese, this company has found a quantity of manganese – revised upwards in September 2013 – which it considers commercially exploitable at a

INVESTING TOGO 2014

• IRON

ECONOMY AND BUSINESS ENVIRONMENT MINING AND MINERALS 41

low cost. It is now negotiating with the authorities on the terms of this operation and hope to go into production in 2014.

• OIL Togo is determined to continue research into the possible presence of oil in its subsoil, especially off its coast, so that it can plan operating terms and conditions with potential partners. Major Italian multinational ENI, which withdrew in 2014, had been conducting surveys since 2010 and drilled two wells, both of which proved dry. Fewer than ten wells have been drilled in Togo; neighbouring Ghana had to drill 24 wells before striking oil, which is now being lucratively operated.

• BUILDING MATERIALS The production of crushed aggregates (sand, gravel) is a new industry that is attracting more and more investors to Togo, in a context of intense construction industry activity, with major housing

The booming mining sector accounted for over 10% of state revenues in 2010.

and infrastructure projects underway in the country and West Africa. German multinational Heidelberg Cement, a global market leader in aggregates, could increase its investment in this sector. ■

NEW MINING CODE Togo is implementing a series of measures aimed at developing an integrated mining sector, able to effectively support the economy and benefit the people. The first of these measures is to conduct a comprehensive study of available geological wealth. Then comes the overhaul of the mining code, which must attract mining companies by offering sound conditions for investment, while preserving the interests of the country. Togo’s Ministry of Mines and Energy hopes that the mining code on which it is working will go before the Council of Ministers before the end of 2014. The current code was revised in early 2000. Togo has been a member of the Extractive Industries Transparency Initiative (EITI), which declared it a "compliant country", since October 2010. This is a way for Lomé to meet the transparency conditions advocated by the African Union and its development partners. Togo is striving to better train its employees in the negotiation and monitoring of contracts, to ensure they are correctly implemented.

INVESTING TOGO 2014

BILLION

Togo’s marble reserves

FACTFILE

MINING AND MINERALS

ANNUAL MINERAL PRODUCTION 2009

2010

2011

2012

2013

Limestone

1,704

1,656

1,923

1,919

1,607

Phosphates

725

695

865

1,100

1,213

In thousands of tonnes

Iron ore Aggregates (m3)

113

128

273

1,166

N/A

Data: Directorate of Mining Development and Inspection (N/A not available)

PROVEN RESERVES Iron ore > 500 million tonnes

Limestone > 350 million tonnes

Chromate

Manganese

Phosphates

50,000 tonnes

15 million tonnes

> 100 million tonnes

Barite

Dolomite

60,000 tonnes

> 500,000 tonnes

USEFUL ADDRESSES ● MINISTRY OF MINES AND ENERGY Rue des hydrocarbures, BP 4227, Lomé Tel.: (+228) 22 21 20 04 www.mme.tg ● SOCIÉTÉ NOUVELLE DES PHOSPHATES DU TOGO (SNPT) Immeuble BTCI, BP 379, Lomé Tel.: (+228) 22 21 39 01 www.snptogo.com ●

CIMTOGO (Ciment du Togo, subsidiary of Heidelberg Cement) Zone portuaire, BP 1687, Lomé Tel.: (+228) 22 27 07 45 cimtogo@hcafrica.com

● WACEM (West African Cement) BP 159, Tabligbo Tel.: (+228) 22 27 90 62 wacem@cafe.tg ● POMAR-TOGO 61, rue Soolou, BP 14067, Lomé Tel.: (+228) 22 22 23 20 www.pomartogo.stonecontact.com ● TOGO QUARRIES Boulevard du Mono, BP 4296, Lomé Tel.: (+228) 22 25 75 75

ECONOMY AND BUSINESS ENVIRONMENT 43

INFRASTRUCTURE

Ground, sea and air: Lomé is moving West Africa

A policy of major public works to strengthen its status as a regional logistics hub.

The road programme aims to rehabilitate the entire network and build new roads essential to economic development.

STRATEGIC POSITION Transport infrastructure is one of the engines of development on which Togo’s growth strategy depends. Already a transit hub for cargo to and from neighbouring countries, especially landlocked countries (Burkina Faso, Mali, Niger and all the way to northern Nigeria), Lomé intends to strengthen this strategic position through the

creation of a 760 km-long north-south road corridor running from the Port of Lomé to Cinkassé, on the Burkina Faso border. When it comes into service, it will have a positive effect on the national economy while contributing to West African market integration. Several other projects are under development – including a brand new airport – while others have yet to be defined based on

INVESTING TOGO 2014

631

MILLIon EUROS The cost of roadworks underway

44 ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE

Commissioned in 2014, the Port of Lomé’s 3rd wharf (here underway) can handle up to 1.5 million containers a year. A new extension is planned for 2015.

the findings of studies carried out with Japanese cooperation.

2.5

MILLION Annual air passenger traffic by the year 2015

THE PORT OF LOMÉ, A COMPETITIVE ADVANTAGE Due to its water depth of up to 15 metres, the Autonomous Port of Lomé (PAL) is able to accommodate large ships, offering economies of scale unique in the region. The Togo government and its partners are working to strengthen its role as a hub and transshipment port for the sub-region. In 2014, a third container ship wharf, measuring 450 metres, came into service. It was built by Bolloré Africa Logistics (BAL) for an investment of 300 billion CFA francs, creating 500 direct jobs. Offering a 15 metre draught, this new wharf is able to accommodate super container ships from Asia. These new facilities, where cargo handling is ensured by five shipto-shore (STS) gantries, will host a million TEUs (Twenty-foot equivalent) per year (1.5 million when complete).

GREAT AMBITIONS The capacity of the Port of Lomé will be further increased in 2015, with the entry

INVESTING TOGO 2014

into operation of a new 1,050 metre transshipment terminal, with a 16 metre draught. It is being built for Lomé Container Terminal (LCT), a 50-50 joint venture between Global Terminal Limited (GTL) and China Merchants Holdings International (CMHI). The Swiss group MSC (Mediterranean Shipping Company), the world’s second largest container shipping line (more than 450 container ships in operation), has committed to being the anchor customer for the terminal. An investment of €324 million, largely supported by the International Finance Corporation (a subsidiary of the World Bank). The PAL master plan, developed to the year 2025, in partnership with German firm Lackner, includes the extension of the ore dock to accommodate two ships simultaneously. The free zone, which is attached to the port, will help PAL consolidate its position as a trade hub. Recognised for the security of its waters, the port was equipped with a scanner that quickly resulted in the interception of illicit goods, including ivory.

OVER 500 KM OF REHABILITATED ROADS From north to south and east to west, the total cost of all roadworks completed or nearing completion in 2013 amounted to 414 billion CFA francs (631 million euros). A total of 530 kilometres of roads have been rehabilitated, equipped and tarred and 1,750 km have benefited from other maintenance work. Togo’s road programme aims to rehabilitate the entire national network, while building new roads essential to the economic development of all areas of the country. National Highway 1, which connects the capital to Cinkassé, on the border with Burkina Faso, is the most important.

ECONOMY AND BUSINESS ENVIRONMENT INFRASTRUCTURE 45

Funding for this work is provided by the State and its development partners, such as the African Development Bank (AfDB), World Bank, West African Development Bank (BOAD), ECOWAS Investment and Development Bank (EBID), China Eximbank and the Islamic Development Bank (IDB).

Togo is also trying to rehabilitate and expand what will become one of the most modern airports in West Africa. The construction of a new 21,000 m2 airport, financed by a loan from China Eximbank, began in August 2012. It is due for completion by the end of 2014. Gnassingbé Eyadéma International Airport in Lomé will accommodate 2.5 million passengers a year by 2017 and process 50,000 tonnes of cargo annually (600,000 passengers and 15,000 tonnes in 2013). The regional airline, Asky, has already made Lomé

REGIONAL AIR HUB

Lomé International Airport’s new terminal (here underway) will handle four times as many passengers a year.

its platform, from where it operates 174 weekly flights (9,000 passengers per year on average) to 22 destinations and 19 countries in West and Central Africa. Its strategic partner, Ethiopian Airlines (73 destinations, including 36 in Africa) has made Lomé its starting point for flights from West Africa to Brazil.■

TOGO INVESTMENT CORPORATION Launched in May 2013, Togo Invest Corporation will help achieve Togo’s largest projects, including the transport corridor linking the Port of Lomé to the border with Burkina Faso. This state corporation, with a capital of 20 billion CFA francs, is "responsible for forging public-private partnerships for the construction of a railway, a viable road network, an ore terminal and other infrastructure that will accelerate economic and social development along the corridor," state the company’s articles of association. A thermal power plant and a broadband telecommunications network, running alongside the railway, will complement this. Everything will be financed by mining resource revenues. The organisation and operation of Togo Invest Corporation are modelled on those of OECD country public companies, which insist on transparency and stringent management. The Head of State himself sits on the Presidential Council for Investment, composed of Togolese and international business personalities, including Nigeria’s Aliko Dangote and Ghana's Sam Jonah.

INVESTING TOGO 2014

countries

in Africa served by Asky from Lomé Airport

COMPANIES & MARKETS

48 COMPANIES AND MARKETS

COMPANY LIFE

Industry and investment get a new start

Develop local processing while promoting foreign investment.

Alongside the Port of LomĂŠ, the free zone hosts 66 businesses, mainly industrial, employing 13,500Â people.

FOCUS ON RECOVERY

1 day

to register a company (89 days in 2010)

Emerging from a long period of turmoil, Togo's economy is now on the path to growth. As with other countries, Togo was caught in the global crisis of the 1970s, when the decline in world commodity prices coincided with rising oil prices. It cost the country its first public investment in industrialisation (textile, chemical, food processing, refineries, construction

INVESTING TOGO 2014

materials), at the time financed through borrowing against its exports (phosphates, cotton, coffee and cocoa). The country then went through a domestic, political and social crisis, which finally ended in the mid-2000s. Upon the return of its financial partners, the government decided to revive its historical business activities, essential to exports: cash crops, like cotton, and mining (phosphates and clinker).

EXPORT CHAMPIONS In 2007, the state restructured existing entities and put its export champions, phosphates and cotton, back on track. The public enterprise Office Togolais des Phosphates (OTP) and its public-private partner Fertilizers Group-Togo (IFG-TG), founded in 2002, were liquidated to form the Société Nouvelle des Phosphates du Togo (SNPT). With over 1,500 employees, it is responsible for processing and marketing Togo’s phosphate extracts in Vogan, about thirty kilometres north-east of Lomé. Tens of millions of euros have been invested in equipping it, including the purchase of new excavators, in order to optimise its performance. That same year, the Nouvelle Société Cotonnière du Togo (NSCT) replaced SOTOCO (Société Togolaise du Coton), founded in 1974. The state is a shareholder with 60%, the remaining 40% being held by producer organisations. This partnership, along with state support (inputs, seeds), helped boost cotton production, which had been in free fall since the beginning of the millennium.

MINING INDUSTRIES AND VALUE CHAIN Togo’s industrial productivity is led by mining, with the phosphate and cement production process going from extraction to finished product. Extractive industries contribute 62% of added value (in 2012), followed by agricultural product processing (25%), the services sector (11%) and manufacturing (3.8%). As Togo’s main source of added value and jobs, mines are the subject of several international tenders, ranging from the development of mining settlements (schools, health facilities, etc.) to the setting up of new sites. In this field, as in others, the country intends demonstrating that it is making

COMPANIES AND MARKETS COMPANY LIFE

private investment and the introduction of competition its engines of development. In parallel, it is doing the necessary to establish a business environment capable of attracting investors and protecting investments.

SPEEDING UP PROCEDURES In 2013, the government improved the functioning of the Centre for Business Formalities, created two years ago to make it a one-stop business registration centre. The time and cost required for registering a company have been greatly reduced. In 2010, it took 89 days to complete this operation. This period was reduced to 19 days three years later (29.7 days on average in sub-Saharan Africa). Today, the Chamber of Commerce and Industry of Togo (CCIT) ensures that it takes only one day if the founder has all the necessary documents. To complement this, the Single Window for Foreign Trade (GUCE), will come into service in late 2014. Designed to streamline operations (over one hundred formalities for an import or export business), it is being set up by SOGET and the Togo subsidiary of Veritas.

NEW LEGAL STRUCTURES Another important reform to improve the business environment was the creation of the Togo Court of Arbitration, Mediation and Conciliation (CATO) in 2011. Linked to the CCIT, it provides a cheaper, faster and less cumbersome means of resolving business conflicts. Specialised chambers of commerce, created in 2013 in the Lomé Court of First Instance, are intended to facilitate the enforcement of contracts. In total, the 2014 World Bank Doing Business Report cites Togo amongst the top twenty economies of the world with the most reformed business regulation since 2009.

INVESTING TOGO 2014

companies in the Lomé Port Free Trade Zone

50 COMPANIES AND MARKETS COMPANY LIFE

A number of reforms to boost the private sector have been made since 2011.

13,500 people

work in Free Trade Zone companies

RESPECTING THE FREE TRADE ZONE In order to boost exports by developing a local industry in new fields of activity, a free zone was created in 1991 in the vicinity of the port of Lomé for investors looking to capitalise on Togo’s geographical position. It is run by the Société d'Administration des Zones

Franches (SAZOF). In 2013, this free zone hosted 66 companies employing nearly 13,500 people and had a combined turnover of 256 billion CFA francs. Shareholders in the zone are 40% Asian, 34% West African (mostly from Togo) and 27% European. The demand is such that there is no more land available near the port, and a new area north of the capital has therefore been developed, where some thirty companies are being installed. However, alongside these positive results, the African Development Bank notes that the added value of SAZOF businesses dropped to 18% of turnover in 2012, compared to 51% in 2001 (36% in 2008). Moreover, the share of domestic inputs to total inputs fell to 12.3% in 2012 (32% in 2000). This shows that most companies are not complying with the agreement requiring them to use local raw materials and labour-intensive equipment in return for the advantages associated with the FTZ. ■

INVESTMENTS AND FREE ZONE: NEW FEATURES The Investment Code, adopted in 2012 by the National Assembly, should encourage the creation of sustainable and skilled jobs, as well as activities with high value added to make the most of local natural resources. It includes a series of customs and tax exemptions for investments of more than 50 million CFA francs (over 600 million for the "licensing system"), with the majority of permanent jobs being reserved for Togo nationals. The Code covers agriculture, industry, commerce and services (mining and hydrocarbons, banking and insurance, arms and trading are not concerned). The new law pertaining to the Free Zone promotes, more specifically, the industrial development of the country. For a business to be eligible it must be labour-intensive and use local raw materials. These businesses are exempt from customs duties and taxes on the equipment necessary for their operation, as well as the export of manufactured products. Both laws will come into effect before the end of 2014 and the National Agency for Investment Promotion and Free Zones (API-ZF) will be responsible for the administration of the Investment Code and the status of the Free Zone. It will be the primary contact for any investor and the facilitator during setting up and for the duration of its existence.

INVESTING TOGO 2014

FACTFILE

COMPANY LIFE TOGO’S TOP TEN COMPANIES

Company

Sector

Togo Télécom (2)

West African Cement Co.

Togo Cellulaire (4)

Société Nouvelle des Phosphates du Togo

Brasserie BB Lomé (3)

Port Autonome de Lomé

Société Générale des Moulins du Togo

Groupe CFAO Togo (1)

Nouvelle Industrie des Oléagineux du Togo

Nouvelle Société Cotonnière du Togo (2)

(3)

(4)

(1)

(4)

Turnover*

Telecoms

235,610

BPW, construction

234,931

Telecoms

127,435

Mining

103,614

Agrifood industries

93,743

Transport

50,905

Agrifood industries

37,863

Diversified

31,870

Agribusiness

32,011

Agribusiness

16,858

Data: Jeune Afrique, 2012 turnover, except for (1) 2011, (2) 2010, (3) 2009, (4) 2008

LOMÉ FREE TRADE ZONE IN FIGURES 2009 Number of companies

2011

2013

9,087

11,116

13,234

Investments (millions of CFA francs)

126,378

161,295

212,300

Turnover (millions of CFA francs)

171,076

243,626

256,554

92%

91%

89 %

Employees

Share of turnover in exports

JOBS IN THE MODERN SECTOR

COMPANY REGISTRATION (2010 – 2014)

94,000 permanent employees

2013

7,445

60,000 in public administration

2012

5,848

21,000 in the market sectors of the customs territory

2011

4,581

13,000 in the Free Zone

2010

3,836

Data: AfDB, 2012

(Number of companies ) 3,979

at 31 May

Data: Centre for Business Formalities

USEFUL ADDRESSES ●

●

MINISTRY OF TRADE AND PRIVATE SECTOR PROMOTION BP 383, Lomé Tel.: (+228) 22 21 05 52 ministereducommercetogo@ yahoo.fr CHAMBER OF COMMERCE AND INDUSTRY OF TOGO (CCIT) • Centre for Business Formalities (CFE) • Togo Court of Arbitration (CATO)

●

Angle avenue de la présidence, avenue Georges Pompidou BP 360, Lomé Tel.: (+228) 23 23 29 00 www.ccit.tg

NATIONAL AGENCY FOR INVESTMENT PROMOTION AND FREE ZONES (API-ZF) 2564, avenue de la Chance, BP 3250, Lomé Tel: (+228) 22 53 53 53 www.zonefranchetogo.tg

●

AUTONOMOUS PORT OF LOMÉ Zone portuaire, BP 1225, Lomé Tel.: (+228) 22 27 47 42 www.togoport.tg EXHIBITIONS AND TRADE FAIRS CENTER OF TOGO (CETEF) Route de l’aéroport, BP 10056, Lomé Tel.: (+228) 22 35 07 27 www.cetef.tg

*thousands of dollars

Ranking 1

52 COMPANIES AND MARKETS

BANKING AND FINANCE

A booming banking market Increasingly competitive, it offers investors a wider range of opportunities.

Now a financial centre of choice, Lomé hosts the headquarters of numerous banks and institutions, such as the West African Development Bank (BOAD).

+48% increase in bank deposits in 2013

STILL A FINANCIAL CENTRE OF CHOICE In the 1970s, the strong international demand for Togo’s phosphate and agricultural products (coffee, cocoa, cotton, palm oil, etc.) and, in the 1980s, the booming local and informal trade

INVESTING TOGO 2014

of the "Nana Benz" – vendors of brightly coloured cloth that were hugely successful at the Lomé market, earned Togo the nickname "Little Switzerland of Africa". A name that also referred to its size, green landscapes and prosperity. It has retained its reputation as a financial

COMPANIES AND MARKETS BANKING AND FINANCE

centre of choice in West Africa. Togo’s capital city hosts the headquarters of the West African Development Bank (BOAD), WAEMU’s financial arm and that of its ECOWAS equivalent, the ECOWAS Bank for Investment and Development (EBID). The country has a booming banking sector – reliable, modern and increasingly competitive.

SHARP RISE IN DEPOSITS AND LOANS The official opening of Ecobank’s new headquarters in Lomé, in June 2011, confirmed this powerful professional banking group’s confidence in Togo. Ecobank currently operates in 34 African countries, including the large neighbouring market of Nigeria. It also reflects regional and international financial institutions’ growing interest in the country. At the end of June 2013, the twelve banks and two financial institutions comprising the Togo banking network had 175 branches there. The cumulative amount of bank deposits soared by 48% in one year, growing from 785 billion CFA francs in 2011 to 1.166 billion in 2012. Loans have been increasing steadily since 2009, growing 26% from 298 billion CFA francs in 2011 to 376 billion CFA francs in 2012. The ratio of loans to the non-government sector to GDP increased from 28.5% in 2011 to 32.1% in 2013.

REMEDIATION PROGRAMME To achieve these excellent results, the Togolese banking sector has had to undergo a remediation programme, initiated in 2008. The goal was to get state-owned banks back on track, some of which had seen their longterm existence weakened by bad loans and sometimes unorthodox practices. Provided with technical and financial

Electronic payment systems are developing rapidly in Togo’s growing banking sector.

support from the World Bank to the tune of $4.4 million, the programme aimed to restructure three state-owned banks – BTCI (Banque Togolaise pour le Commerce et l’Industrie), the BIA-Togo (Banque Internationale pour l’Afrique au Togo) and UTB (Union Togolaise des Banques) – and to identify strategic private partners for them. It also helped raise the capital adequacy ratio of the sector, getting it up from -4.1% in 2008 to 13% in 2013.

STATE DIVESTITURE AND INCREASED COMPETITION The sale of a 55% stake in BIA-Togo aroused great interest amongst the international banking community. Ultimately, it was the Moroccan giant, Attijariwafa Bank (the leading African bank outside South Africa), that won the bid against serious competition. The Togolese government, which remains a minority shareholder, presented it with its shares in September 2013. While two other public banks included in the initial programme have yet to be privatised (BTCI and UTB), another

INVESTING TOGO 2014

175

bank branches in the country

54 COMPANIES AND MARKETS BANKING AND FINANCE

microfinance institutions in Togo

public institution, the Banque Togolaise de Développement (BTD), saw a private group enter its capital in 2013. At the end of a process initiated in December 2012, Oragroup, which is expanding in Francophone Africa, acquired 56% of the BTD to create Orabank Togo. Others have chosen to set up directly on the market, like Bank of Africa, the other major pan African bank, which opened its first branch in Lomé in October 2013. The example of Nigeria’s Diamond Bank is inspiring confidence; its Togo branch, created in 2011, was able to triple its total results in a year.

REGIONAL AND CONTINENTAL GROUPS Recent arrivals and the emergence of new financial institutions in Togo have allowed the country to facilitate financial transactions regionally, continentally and

globally. Among those banks that are contributing to making Togo’s banking system more professional and reliable are Côte d’Ivoire’s Banque Atlantique, now allied with Morocco’s Banque Centrale Populaire, and insurance groups such as NSIA (Côte d’Ivoire) and Colina (a subsidiary of the Saham Group, Morocco). The increasingly strong competition amongst these groups will accelerate the improvement of product lines and services. Internet (e-banking) and phone (mobile banking) transactions and the increased use of international credit cards (MasterCard, Visa, American Express, etc.) are gradually replacing the traditional counter transactions and classic cheque book. Engaged in a healthy race for market share, banks operating in Togo are consolidating their bases and offering increasingly diversified choices to public and professionals alike. ■

NATIONAL FUND TO GROW MICROFINANCE An effective network of microfinance institutions complements the investment capacity of smaller companies. At 31 December 2012, 92 microfinance institutions operating in Togo involved 1.9 million beneficiaries, according to the AfDB, of which nearly 20% are small and very small enterprises. Total outstanding loans amounted to over 108 billion CFA francs and total savings to around 121 billion. This represents 28.7% of total bank loans and 10.4% of their deposits. Since 2010, the microfinance sector in the WAEMU has its own safety regulations, developed by the BCEAO (Central Bank of West African States). Togo wants to increase the penetration of microfinance to reduce financial exclusion, particularly among the poorest populations and, in 2014, launched the National Fund for Inclusive Finance (FNFI). The purpose of this financial instrument is to look for resources in the form of credit lines to be made available to microfinance institutions. The FNFI aims to reach about two million beneficiaries in five years.

INVESTING TOGO 2014

FACTFILE

BANKING AND FINANCE

THE TOP TEN COMMERCIAL BANKS Total assets

In millions of CFA francs

GNP

2012

2010

2012

2010

Ecobank Togo

290,431

195,869

28,189

22,748

Union Togolaise de Banque

189,818

150,286

18,184

13,689

Orabank

170,808

39,097

15,018

3,283

Banque Togolaise pour le Commerce et l’Industrie

126,860

126,452

17,528

13,124

Banque Togolaise de Développement

114,527

76,355

12,481

8,693

Banque Atlantique

111,247

80,425

11,341

7,603

Diamond Bank

104,961

29,561*

3,440

1,756*

Banque Internationale pour l’Afrique au Togo

91,108

78,688

128,951

91,387

Banque Populaire pour l’Épargne et le Crédit

38,634

37,707

10,541

4,524

B. Sahélo-Saharienne pour l’Investissement et le Commerce

35,557

28,912

4,287

3,079

* 2011 data – Source: BCEAO (2012 Bank balance sheets and income statements)

USEFUL ADDRESSES ●

●

ECOBANK TOGO 20, avenue Sylvanus Olympio BP 3302, Lomé Tel.: (+228) 22 21 72 14 www.ecobank.com UNION TOGOLAISE DE BANQUE boulevard du 13 janvier Nyekonakpoè BP 359, Lomé Tél. : (+228) 22 23 55 00 www.btci.tg ORABANK TOGO 11, avenue du 24 janvier BP 325, Lomé Tel.: (+228) 22 21 62 21 www.orabank.net BANQUE TOGOLAISE POUR LE COMMERCE ET L’INDUSTRIE 169, boulevard du 13 janvier BP 363, Lomé Tel.: (+228) 22 23 55 00 www.btci.net

●

BANQUE TOGOLAISE DE DÉVELOPPEMENT Angle avenue des Nimes et Nicolas-Grunitzky, quartier administratif BP 65, Lomé Tel.: (+228) 22 21 36 41 www.btd.tg BANQUE ATLANTIQUE TOGO Place du Petit marché, Rue Koumore BP 3256, Lomé Tel.: (+228) 22 23 08 00 BANQUE INTERNATIONALE POUR L’AFRIQUE AU TOGO 13, rue du commerce BP 346, Lomé Tel.: (+228) 22 21 32 86 www.biat.tg

● BANQUE POPULAIRE POUR L’ÉPARGNE ET LE CRÉDIT 23, avenue Kleber-Dadjo

quartier Wétrivi, Lomé Tel.: (+228) 22 21 04 60 www.bpec.gao.tg ●

●

DIAMOND BANK TOGO 3519, boulevard du 13 janvier, BP 3925 Doulassamé, Lomé Tel.: (+228) 22 53 10 01 www.diamondbank.com BANQUE SAHÉLO-SAHARIENNE POUR L’INVESTISSEMENT ET LE COMMERCE 3802, boulevard du 13 janvier BP 3296, Lomé Tel.: (+228) 22 20 21 98 www.bsicbank.com

● BANK OF AFRICA - TOGO Boulevard de la République BP 229, Lomé - Togo www.bank-of-africa.net

56 COMPANIES AND MARKETS

AGRIBUSINESS

Great potential and numerous opportunities Ambitious plans to modernise and industrialise all aspects of agriculture.

Brasserie BB LomĂŠâ&#x20AC;&#x2122;s main brewery. The company celebrated its 50th anniversary in 2014.

GRAIN SURPLUS

91% of cultivated plots are under a hectare

The agriculture recovery policy initiated in 2008 and strengthened in 2012 obtained satisfactory results. Some crops generated surpluses which today are destined for international markets and will ultimately lead to the creation of agro-industrial units. This is particularly the case of grain, which

INVESTING TOGO 2014

has recorded largely positive yields since the 2008-2009 crop year, with the exception of the 2013-2014 harvest, affected by adverse climatic conditions. Since 2011, the World Food Programme (WFP) has made Togo its rear base for the supply of grains to the Sahel where there are serious food shortages. Tens of thousands of tonnes of corn were sold to

the UN agency by the Agence Nationale de la Sécurité Alimentaire Togolaise (ANSAT), responsible for the storage and marketing of grain.

COMPANIES AND MARKETS AGRIBUSINESS

BATIK IS BACK

Around the world, scientists continue to find new uses for soybeans, making it a crucial crop for many countries. Togo is riding its own soybean boom, with the gradual establishment of small industrial units across the country processing this pulse into various derivative products (oil, milk, cheese, cakes, etc.), and thereby significantly increasing the area under cultivation. It reached 170,030 hectares during the 2013-2014 crop year, even more than that under rice and peanuts, other oilseeds. Excellent results for a crop that was initially considered to be of lesser importance.

In the 1970s and 1980s, there was a group of women known as the "Nanas Benz" which held the monopoly in selling Dutch wax (batik) print fabric all over West Africa, making Lomé the nerve centre for the sale of these cotton fabrics. While globalisation and Asian competition have changed that, Togo still has plans to open an industrial unit producing quality cotton cloth that slots in with its broader policy of promoting its crafts and fashion expertise. As part of this strategy, the Chamber of Commerce and Industry of Togo (CCIT) held an event showcasing these fabrics called "Pagne en Fête" in Lomé in April 2014. The NSCT played its part when, in February 2014, it ran a large campaign to mobilise cotton farmers and encourage them to expand their fields and produce more cotton.

THE CASE OF COTTON

LAND REFORM

As Togo’s biggest agricultural export, the cotton industry employs 275,000 farmers who provide a livelihood for almost 2.5 million people. It contributes between 2.4% and 4.3% to GDP, depending on the year. In 2013, Togo produced 80,729 tonnes of seed cotton against 28,000 tonnes in 2010. This increase in production is the result of the restructuration carried out in 2009, when the State created the Nouvelle Société Cotonnière du Togo (NSCT), and ceded a 40% stake to producers. In the medium term, the state is pushing to more than double production and bring it to 180,000 tonnes, which is what it was producing in the 1990s. Achieving these goals requires improved yields, currently at 0, 7 tonnes per hectare, while the threshold deemed acceptable for maintaining a sustainable collaboration between the State and producers is 1.3 tonnes per hectare.

The small size of cultivated plots limits the scope of the drive to improve agricultural productivity and slows the expansion of processing units. Three quarters of the plots are no larger than half a hectare and only 1% exceed 10 ha. The government is therefore committed to reforming land law in order to remove barriers to property access. Only 2% of cultivated land was acquired by purchase or lease while 54% is passed on through inheritance. Even though the plots remain small in size, great efforts have to be made to rehabilitate or improve rural roads to open up agricultural areas and reduce transport costs for small producers.

SOYBEAN BOOM

MECHANISATION The low level of mechanisation in the agriculture sector is a stumbling block to Togo’s progress. According to the Ministry of Agriculture, 89% of the land is

INVESTING TOGO 2014

58 COMPANIES AND MARKETS AGRIBUSINESS

seeds, fertilisers, pesticides and labour, of which nearly 10 billion CFA francs was for seeds and 14 billion CFA francs for fertiliser.

BUILDING THE FISHING INDUSTRY

For the past 10 years, fisheries production has increased by 15% per year.

89%

of farming land is tilled by hand

tilled by hand, 10% with a drawn plough (4% animal) and 1% with motorised equipment. Ploughing represents 43% of the overall cost of labour, which amounts to 21 billion CFA francs. Investment opportunities abound in agricultural equipment, as in agricultural engineering. The same goes for access to inputs, where there is an urgent need for merchants, traders, chemists and specialists in soil science. Togo farmers, partly subsidised by the state, are creditworthy customers. In 2012, they spent 45 billion CFA francs on

The fishing industry also offers interesting opportunities for development. The country covers only 50% of its needs, with an estimated fisheries production of 26,296 tonnes in 2011, of which 80.6% was from artisanal marine fisheries, 0.1% industrial marine fisheries, 19% from the river and lagoon system and 0.3% from fish farms. Increasing by 15% per year between 2001 and 2011 (compared with 1.5% for sea fishing), fish farming is clearly a solution to reducing the need for imports, which accounted for an expenditure of 11 billion CFA francs in 2010. Under the National Agriculture and Food Security Investment Plan (NAFSIP), the Ministry of Agriculture also focuses on training, as well as on the modernisation of equipment (insulated containers, refrigerated trucks, etc.), and even the building of transport platforms for fishery products. ■

INNOVATIVE SCHEMES Given the rapid development of African cities, urban purchasing power is the first and main source of funding of local agriculture. Provided that it is competitive with imports. Les Entreprises de Service et Organisations de Producteurs (ESOP), launched by the agriculture-related NGO Entreprises, Territoires et Développement (ETD), demonstrates the ability to develop cost-effective local activities. There are fifteen in Togo that facilitate market access for producers, signings contracts with them for the marketing of their products (usually white or parboiled rice). Farmers are also encouraged to improve the quantity and quality produced. In return, the ESOP pays a bonus for quality rice by buying at 10% to 15% above the market price. The "Riz Délice" rice produced by the network in Togo is the only local product on urban markets. The country’s demand for rice is around 90,000 tonnes per year. Other products are expected to be included in these schemes: honey, pineapple juice, flour, edible oils, and meat, etc.

INVESTING TOGO 2014

FACTFILE

AGRIBUSINESS AGRICULTURAL SURPLUS

In tonnes per crop year

2010-2011

2011-2012

2012-2013

76,489

107,439

1,207 million

Grains

2013-2014 (projected) 139 ,486

Of which Maize

58,623

81,495

160,425

- 182

Sorghum

29,527

29,664

- 17,377

24,066

Rice (hulled)

- 11,661

- 3,720

- 3,561

- 20,545

Tubers

639,137

765,294

717,382

454,036

Of which Cassava

409,518

508,050

395,412

326,251

Pulses

40,412

44,953

82,172

68,370

Of which Beans

21,160

22,553

66,120

50,187

19,252

22,401

16,052

3,150

Peanuts

Data: Direction des Statistiques Agricoles, de l’Informatique et de la Documentation (DSID)

BREAKDOWN OF FOOD CROPS % of food crops 62%

Grains Of which Maize

40%

Pulses

24%

Tubers

14%

Data: Ministry of Agriculture

BREAKDOWN OF PLOT SIZES (food crops) • Less than 0,50 hectare: 76% • Between 0,5 and 1 ha: 15% • Between 1 and 2 ha: 5% • More than 10 hectares: 1% Data: Ministry of Agriculture

FARMING LOAN STATISTICS (2011-2012 crop year) • Loans obtained by farmers: 15.5 billion CFA francs • Cash loans: 10 billion CFA francs (65% of the total, 59% men, 41% women) • 47% of loans come from NGOs and cooperatives (4% of farmers had access to bank loans) • Loans are largely dedicated to inputs (33% cash and 56% in kind) • Loans for equipment in very low demand Data: Ministry of Agriculture

USEFUL ADDRESSES ●

●

MINISTRY OF AGRICULTURE, FISHERIES AND AQUACULTURE Avenue de Duisburg, BP 385, Lomé Tel.: (+228) 22 20 54 73 www.maeptogo.tg FAÎTIÈRE DES UNITÉS COOPÉRATIVES D’ÉPARGNE ET DE CRÉDIT DU TOGO (FUCEC-TOGO) The oldest apex organisation for savings and loans cooperatives (Coopec) Rue Bretelle, BP 3541, Lomé Tel.: (+228) 22 21 06 32 www.fucec-togo.com ENTREPRISES, TERRITOIRES ET DÉVELOPPEMENT (ESOP projects) Quartier Agbalépédo, 06 BP 61 192, Lomé Tel.: (+228) 22 51 94 81 etd@etd-ong.org

60 COMPANIES AND MARKETS

POWER AND WATER

Sharp increase in demand

Togo prepares to deal with an explosion in energy consumption.

The 100 MW capacity thermal power plant in Lomé was commissioned in 2010.

JOINT VENTURE WITH BENIN

is covered by Contour Global Togo

Since 1968, a joint venture between Togo and Benin, the Communauté Électrique du Benin (CEB), has been responsible for the generation and transmission of electricity in both countries. Distribution is handled by two separate companies, one of which is the Compagnie d’Énergie

INVESTING TOGO 2014

Électrique du Togo (CEET). All the energy managed by the CEB initially came from Ghana until, in 1984, the joint venture opened its first hydroelectric plant (Nangbéto), with an installed capacity of 65 megawatts (MW). This proved to be a great step towards reducing both countries’ power imports from Ghana,

COMPANIES AND MARKETS POWER AND WATER

Nigeria and Côte d'Ivoire. In 1998, the CEB was equipped with two gas turbines of 20 MW each. In total, it currently covers about 20% of the electricity needs of both countries.

LOMÉ GAS POWER PLANT To meet the forecast soaring electricity demand, the state decided to build its own power plant in Lomé. With a capacity of 100 MW, this gas-fired thermal power plant was built at a cost of $192 million as part of a 25-year concession agreement with the American company Contour Global. Commissioned in October 2010, it has largely contributed to reducing load shedding in Togo’s capital, despite still working at only 25% or 30% capacity. It is supposed to be supplied with natural gas from Nigeria via the West African Gas Pipeline (WAGP) which is being built by a consortium, West African Gas Pipeline Company (WAGPCo), and is encountering endless delays. While awaiting this project to come online, the plant is using heavy fuel oil (HFO) that meets environmental standards issued by the World Bank.

ANOTHER 200 MW While the electricity supply has more or less stabilised in Togo, there is a new challenge on the horizon as industrial and private demand is expected to explode in the light of all the major projects underway. The state is considering the installation of a coal plant with a capacity of 200 MW, expandable to 500 MW. Plans to improve the quality of delivery by rehabilitating dilapidated facilities and expanding the network are on the cards. With the support of German cooperation, Togo and Benin will invest 15 million euros in the rehabilitation of the Nangbéto hydroelectric power plant.

Electricity distribution is handled by La Compagnie d’Énergie Électrique du Togo (CEET).

After government subsidies to CEET were reduced, electricity tariffs increased by 7% to 20% in 2011 and are now higher than those in neighbouring Ghana and Côte d’Ivoire, but more or less on a par with those in Benin and Burkina Faso.

UPGRADING TOGO’S WATER SUPPLY COMPANY Togo’s public water supply company, La Togolaise des Eaux, responsible for the distribution of drinking water and sanitation in urban areas, is determined to make up for time lost during the country’s political crisis. From 2007 to 2010, the rate of access to drinking water had stagnated at 34%, far from the UN Millennium Development Goal of 66% access. This underperformance is mainly due to the poor functioning of waterworks equipment. With the technical and financial assistance of the French Development Agency (€11 million of the required €13.2 million), La Togolaise des Eaux is upgrading its infrastructure, improving its services and production capacity and strengthening its workforce skills. ■

INVESTING TOGO 2014

FACTFILE

PRODUCTION FACTORS

CHANGES IN THE DEMAND FOR ENERGY (In GWh) 2008 1200 1150 1100 1050 1000 950 900 850 800 750 700

2009

2010

2011

998

2012

1,056

929 869 784

Data: Electricity Regulatory Authority

ELECTRICITY CONNECTION: TOGO WELL-POSITIONED IN WEST AFRICA (Country rankings in the 2014 Doing Business Report ) Ranking (out of 189 countries) Ghana

POWER SOURCE • Communauté Électrique du Bénin (CEB): 92% • Contour Global Togo: 7% • CEET own production: 1% Data: Compagnie des Énergies Électriques du Togo, 2013

85th

Togo

96th

Mali

118th

Sub-Saharan Africa average

135th

Burkina Faso

141st

Côte d’Ivoire

153rd

Benin

160th

Senegal

182nd

SALARIES AND WORKING CONDITIONS • Minimum wage Monthly amount: 35,000 CFA francs • Working hours ◗ Legal number: 40 hours per week ◗ Overtime: ◆ 15% from the 41st to 48th hour, 40% beyond that ◆ 60% for night shifts (22h to 5h) and public holidays ◆ 100% for night shift on public holiday

USEFUL ADDRESSES ●

●

COMPAGNIE D’ÉNERGIE ÉLECTRIQUE DU TOGO (CEET) 426, avenue Mama Fousséni Tel.: (+228) 22 21 27 44 www.ceet.tg AUTORITÉ DE RÉGLEMENTATION DU SECTEUR DE L’ÉLECTRICITÉ (ARSE) Rue des hydrocarbures BP 3489, Lomé Tel.: (+228) 22 22 20 78 www.arse.tg

● TOGOLAISE DES EAUX 53, avenue de la libération, BP 1301, Lomé Tel.: (+228) 22 21 34 81 ● DIRECTION NATIONALE DE L’EMPLOI Boulevard du 13 Janvier, Lomé Tel.: (+228) 22 22 12 97 ● CAISSE NATIONALE DE SÉCURITÉ SOCIALE Avenue de la Nouvelle-Marche, BP 69 Lomé, Tel.: (+228) 22 21 21 43 ● CAISSE DE RETRAITE DU TOGO Route de Klikame, Tokoin, Lomé Tel.: (+228) 22 25 21 13

COMPANIES AND MARKETS

SERVICES

Source of growth

Better use of physical and virtual markets related to the country’s advantageous geographical location.

Since 2011, Ecobank has managed its activities in 34 African countries from its new headquarters in Lomé.

SECTOR WITH A FUTURE The tertiary sector represents 31.8% of GDP in Togo but its contribution to economic momentum remains limited. Service sector growth is expected to reach 4.1% in 2014 and 3.7% in 2015,

mainly due to the development of financial services (10.3% in 2014 and 4.2% in 2015), transport and communications (6.1% in 2014 and 17% in 2015). Too few of Togo’s companies make the most of the comparative advantages available

INVESTING TOGO 2014

31.8%

tertiary sector contribution to GDP

64 COMPANIES AND MARKETS SERVICES

The pan African airline Asky is based in Lomé.

4 MILLION mobile phone customers

Togo Cellulaire owns half the market share.

to them by operating at the gateway to a market of 300 million people. For example, by developing competitive transport services on routes between the Port of Lomé and neighbouring countries. The contribution of transport and communications to GDP fell from 5.7% in 2008 to 5.3% in 2013. The same goes for trade and tourism, which decreased from 10.3% to 7.9% of GDP during the same period. Reforms underway, especially the new law pertaining to the Free Trade Zone and the new Investment Code, will ensure the revitalisation of these activities.

SETTING THE EXAMPLE Togo’s capacity for economic innovation is manifest in positive developments such as the establishment of Ecobank, the creation of the Free Trade Zone and the recent success of Asky airlines. Founded in 1985, Ecobank has become a heavyweight pan African banking champion. At its launch in 1989, the Lomé Export Processing Zone (EPZ) was the first of its kind in West Africa. Asky airlines, founded in 2008

INVESTING TOGO 2014

and operational since 2010, carries up to 10,000 passengers per week and provides 174 weekly flights to 19 countries in West and Central Africa. Because of the tax advantages offered in Togo, it set up its head office in Lomé, where it was joined by its shareholder and technical partner Ethiopian Airlines, operating out of its hub at Gnassingé Eyadema International Airport, where passenger traffic is expected to increase fivefold in the coming years.

NEW VISION FOR TELECOMS Since May 2012, Togo has been connected to the West Africa Cable System (WACS) submarine fibre optic cable via Afidenyigba landing point, just a few kilometres from Lomé. The connection to this 14,500 km long cable, with a capacity of 5.12 terabits/s, which connects several West African coastal countries to Europe and South Africa, had an instant impact on Togo Telecom’s tariffs and connection speed. Competition is being encouraged in order to further reduce costs and expand access to the international

COMPANIES AND MARKETS SERVICES

bandwidth. These objectives are contained in a May 2011 sector policy statement, supplemented by a new Law on Electronic Communications (LCE), adopted on 17 December 2012. These two texts have resulted in the updating of the regulatory framework to attract investment, while infrastructure is being strengthened to cover most of the country and connect it to neighbouring countries.

A WEST AFRICAN PROGRAMME This national policy is part of the broader framework of the West Africa Regional Communications Infrastructure Programme (WARCIP), supported by the World Bank to the tune of $56.6 million. WARCIP aims to increase the density of broadband networks throughout the region to improve the performance of electronic communications. The infrastructure as a whole should be operational by the end of 2015. In Togo, the project will include the construction of a network operator hosting centre. The various ICT stakeholders in the country will be able to house their servers in cutting edge facilities. A national platform for managing the flow of bandwidth is also planned to provide an alternative to the current operator, Togo Telecom. Eventually WARCIP-Togo will have to release resources to launch a call for tender for the acquisition of international communication capacities among neighbouring coastal countries.

ADAPTING THE REGULATORY FRAMEWORK Two implementing decrees adopted in 2014 confirm the governmentâ&#x20AC;&#x2122;s decision to open the telecom sector and promote the entry of new companies.

Apart from a few recently established companies, modern distribution channels are underdeveloped.

The first defines the operational framework of the various ICT activities while the second governs access to electronic communications networks, interconnection and reciprocal benefits between operators and service providers. It also defines the functions and powers of the Regulatory Authority. All this should lead to the creation of a technology park that has the best infrastructure and that is open to economic operators wishing to develop ICT services in excellent competitive conditions.

DEVELOPING E-ADMINISTRATION Within the framework of public administration reform and modernisation, the government of Togo is continuing its electronic administration project, initiated with the support of development partners. It aims to make ICT the basis of the functioning of public administration. Among other objectives, it involves the implementation of online public services available to citizens, businesses and civil services. â&#x2013;

INVESTING TOGO 2014

FACTFILE

SERVICES MOBILE OPERATORS Number of customers

Turnover (billions of CFA francs)

Togo Cellulaire (GSM and 3G)

2 ,026 ,791

83,570

Atlantique Télécom (Moov, GSM)

1 ,687, 117

46,894

299 ,730

47,292

Togo Télécom (CDMA) 2013 data: ARTP

TELECOMS PENETRATION RATE % population Landline

0.97%

Mobil

60.06%

Internet

5.21%

2013 data: ARTP

USEFUL ADDRESSES ● MINISTRY OF POSTS AND DIGITAL ECONOMY Avenue Abdoulaye-Fadiga, BP 3679, Lomé Tel.: (+228) 22 21 25 28 www.minpostel.gouv.tg

●

REAL ESTATE REVOLUTION The gap between supply and demand for housing is widening in Togo, particularly in the capital. The Chamber of Commerce and Industry of Togo (CCIT) clearly distinguishes real estate as a very promising sector. Largely managed by private contractors, the property market is struggling to cope with the rise of the middle class and, as a result, many young creditworthy households are unable to find homes. In April 2014, the president announced the construction of a thousand affordable homes as part of a pilot project. Financing will be driven by Shelter Afrique – a pan African finance institution created to exclusively support the development of the African real estate and housing sector – and supported by 44 African States, the African Development Bank (AfDB) and the African Reinsurance Corporation. Shelter Afrique is also a shareholder of the Caisse Régionale de Refinancement Hypothécaire (CRRH-UEMAO), a Secondary Mortgage Institution whose other partners are the regional development banks BOAD and EBID and the commercial banks operating in West Africa. The CRRH-UEMOA has its headquarters in Lomé.

POSTS AND TELECOMMUNICATIONS REGULATORY AUTHORITY (ARTP) Boulevard L. S.-Senghor, BP 358, Lomé Tel.: (+228) 22 23 63 63 www.artp.tg

● TOGO CELLULAIRE 219 avenue du 24 Janvier, BP 924, Lomé Tel.: (+228) 22 22 66 11 www.togocel.tg ● ATLANTIQUE TÉLÉCOM TOGO (MOOV) 22 boulevard du 13 Janvier, BP 14 511 Lomé Tel.: (+228) 22 20 13 20 www.moov.tg ● TOGO TÉLÉCOM Place de la Réconciliation, BP 333, Lomé Tel.: (+228) 22 21 44 01 www.togotelecom.tg

●

CAISSE RÉGIONALE DE REFINANCEMENT HYPOTHÉCAIRE (CRRH-UEMOA) 68, avenue de la Libération, BP 1172, Lomé Tel.: (+228) 22 23 27 51 www.crrhuemoa.org

INVESTMENT IN TELECOMS Billions of CFA francs 2011

37.8

2012

44.6

2013

42.1

Data: ARTP

COMPANIES AND MARKETS

TOURISM

A roadmap to restored glory Lomé wants to be a business tourism destination while Togo becomes a land of adventure.

One of Africa’s tallest buildings, the Hotel 2-Février is a landmark monument in Togo’s capital.

A NEW REASON TO SMILE Togo's tourism industry flourished until the 1990s (10% of GDP in 1989), due to a policy of sustained promotion and private sector investment in tourism infrastructure and accommodation.

Unfortunately, the socio-political crisis put an end to this, resulting in a significant drop in the number of tourists visiting the country. The Hôtel 2-février in Lomé, near the Place de l’Indépendance, is a symbol of this past splendour and the

INVESTING TOGO 2014

7% of GDP by the year 2020

68 COMPANIES AND MARKETS TOURISM

From the Aledjo Fault in the heart of the country (left) to the seaside town of Aného, Togo offers some of West Africa’s finest and most diverse scenery.

fall of the tourism industry. The whole city is reflected in the glass walls of this 36-storey, 102-metre high building, now but a ghostly shell of its former self. It opened in 1980 under Accor Group management, and was then taken over in 2000 by the Libyan investment fund LAICO and managed by Corinthia Hotels International, before finally closing its doors in 2007. Today, under the slogan "The smile of the Africa ", the portal www. togo-tourisme.com reflects the revival of Togo tourism.

BACK ON THE MAP Business and conference tourism is already putting the capital back on the map, with rapidly increasing interest from the business community. The demand for hotel facilities is high and visitors are likely to seek alternatives in the many establishments that no longer warrant their stars. Onomo, a pan African group with operations in Abidjan, Dakar and Libreville, seized the opportunity and began construction of a three-star, 120room hotel in November 2013. Joining the rush, Spain’s Pefaco group is aiming for the four- or five-star category for its

INVESTING TOGO 2014

hotel complex in Lomé. With 162 rooms, 36 bungalows and an international conference centre, the complex is being built right in front of the new Ecobank building on the seafront, alongside its competitor, the Sarakawa.

7% of GDP by 2020 To stimulate activity across the country, the Ministry of Tourism is developing a 2014 Tourism Development Master Plan (PDDAT), supported by UNDP to the tune of 225 million CFA francs, and setting medium-term objectives and actions to be implemented. The rehabilitation of site access roads, development of tourism-related infrastructure, retraining of hotel staff and international marketing of the destination will be the main components. This master plan will provide the perfect roadmap to restoring Togo’s tourism industry so that it contributes 7% of GDP by 2020 (at about 2% in 2011). According to the latest figures released by the Ministry of Tourism, the number of tourists quadrupled between 2008 and 2011, increasing from 87,587 to 325,633 visitors, with revenues reaching 20 billion CFA francs in 2011. ■

TRAVEL DIARY

70 TRAVEL DIARY

Your trip

The Palm Beach Hotel boasts sea and city views.

The Sarakawa Hotel, a shady haven close to the city centre.

HOTELS IN LOMÉ

autonomous port. With 200 rooms,

PALM BEACH

boasts an Olympic-size pool, two

Lomé’s one and only five-star address for now, it enjoys a unique location, one side facing the sea and another overlooking the city centre, and near the main market and business centres. Palm Beach has sixty rooms and seven suites. The "Deluxe" rooms have both sea and city views. 1 boulevard de la République, Lomé Tel.: (+228) 22 21 85 11

7 suites and a few bungalows, it also tennis courts, a golf course and an equestrian centre. Boulevard du Mono, Lomé Tel.: (+228) 22 27 65 90

EDA OBA Easily recognisable with its massive rounded buttresses, its beige facade and blue edging, the three-star Eda Oba Hotel is located in the city heights

www.palmbeachtogo.com

going towards the national highway

SARAKAWA

country. It offers 178 rooms, three

A still-prestigious four-star, even though it hasn’t been renovated for a long time. Its huge lobby and retro look give it a certain charm. With a great position on the beach, amidst a 25-hectare coconut plantation, it’s also close to the city centre and the

1 that links Lomé to the north of the restaurants, a pool, a tennis court, a bar/ club and several conference rooms that can accommodate up to 800 people. Boulevard Eyadéma, Lomé Tel.: (+228) 22 20 18 18 www.edaoba.com

TRAVEL DIARY

The distinctive Eda Oba Hotel.

Continental breakfast.

M’RODE

LE NEW TRISKELL

LE PRIVILÈGE

The M'Rode is one of those modest

Le Triskell used to be a very famous

Billed as the "Biggest Nightclub in

sized establishments, designed as

pancake place and pizzeria. It was

West Africa", Le Privilège really comes

an alternative to larger hotels. Also

taken over by a chef who had worked

to life at weekends. Annexed to the

located in the heart of Lomé, it’s listed

in Saudi Arabia for ten years and now

Palm Beach Hotel, it offers three clubs

as one of the nicest hotels in the

offers distinguished, mixed cuisine

(disco, zouk and VIP). The rest of the

capital, and has 26 spacious rooms and

that borrows from Africa, Europe and

week, its doors are open for drinks, a

several studio apartments.

Asia. The setting, inside and out, is

game of pool or casino games.

Rue d’Assoli, Lomé

very pleasant.

Avenue Pompidou, Lomé

Tel.: (+228) 22 20 70 00

Boulevard du 13 janvier, Lomé

Tel.: (+228) 22 20 85 58

www.hotel-lome-mrode.com

Tel.: (+228) 90 78 14 90

www.privilege-togo.com

CÔTÉ JARDIN

LE MONTECRISTO

A real institution in Lomé and well-

One of Lomé’s hippest nightclubs.

known to the business community,

Mixed clientele and theme-party

LE PÊCHEUR

Côté Jardin is half classic French

evenings.

This pleasant seaside restaurant serves

restaurant and half African bush café.

Avenue du 24 Janvier, Lomé

mainly fish and seafood dishes as well

It serves grilled meat, fish and seafood,

Tel.: (+228) 22 29 29 09

as paella. Most of the cooking is done

as well as typical French dishes and

a la plancha.

pizza.

Boulevard du Mono, Lomé

5 rue Simon Dogdé, Lomé

Tel.: (+228) 23 36 28 46

Tel. : (+228) 22 22 02 20

RESTAURANTS AND BARS

www.cotejardin.tg

72 TRAVEL DIARY

L'Oasis, a small hotel-restaurant in Aného.

Lake Togo offers fishing and water sports.

24 HOURS OR MORE

ANÉHO Located on the eastern end of the

NOT TO BE MISSED IN LOMÉ

Togo coast, towards the border

A manageable city, with cobbled, often winding streets and smallish buildings, Lomé offers a varied architecture that still bears traces of its Anglo-Saxon (from neighbouring Ghana), German and Portuguese influences. You’ll enjoy strolling along the Marina, near the old port (Boulevard de la République, more or less a hundred metres from the border with Ghana). Lomé is also famous for its fetish market, with stalls offering objects supposedly imbued with magical qualities. There is an entry fee (3,000 CFA francs + another 2,000 to take pictures). For lazing on the beach, you need to go a few kilometres further to the eastern suburbs, where Lomé’s citizens enjoy spending their Sundays. There are lots of places to relax with a drink.

with Benin and about 50 kilometres from Lomé, Aného was the first post of German administration and then Togo’s first capital city. It has become a peaceful town of fishermen and farmers. Many relics of the past are still visible, one of which is the ancient city, founded in the late seventeenth century by the Guin immigrants. There are also buildings that recall its history under European colonisation, in a city that was a centre of the slave trade. An urban development project (doublelane highway, a second bridge) recently changed the face of the town without detracting from its charm and its relaxed lifestyle.

TRAVEL DIARY

Sculpture in Togoville.

LAKE TOGO Surrounded by small villages, Lake Togo is actually a 64 km2 lagoon thirty miles east of Lomé. It is full of fish and attracts hordes of fishermen who fish with nets from the water’s edge or from canoes that are rowed with oars made of branches. Water sport businesses offer visitors the opportunity to go swimming, sailing or water skiing, while others provide the perfect place to just sip a cocktail on its peaceful shores.

AGBODRAFO Situated near the sea, between Lomé and Aného, Agbodrafo is a quiet little town that extends to the edge of Lake Togo. It’s an old Portuguese town (formerly Porto Seguro), and was also one of the collection points for slaves about to be shipped to Europe or the United States. One can see some traces

Notre-Dame du Lac Togo church in Togoville. of that dark past, such as the Slave House (Woold Home) or the Puits des Enchaînés (Well of the Chained).

TOGOVILLE Accessible by road or by boat from a pier at nearby Agbodrafo, Togoville is no more than a big village. But it’s full of history. It is here that the German explorer Gustav Nachtigal was sent by Chancellor Bismarck to negotiate the establishment of a protectorate with King Mlapa III in 1884. And it was during this time as a protectorate that the NotreDame du Lac Togo church was built. Togoville is now best known as a centre for animist religious practices. Devotees come here from all over southern Togo to study and practice their religion and fetishes can be seen in front of many houses.

74 TRAVEL DIARY

Practical information ●

Visa

A visa is required for citizens of the European Union. The application can be done online and the visa may be available the same day. ECOWAS member state nationals do not require a visa. ●

HEALTH

Yellow fever vaccination required. Typhoid and hepatitis A and B vaccinations, as well as preventive malaria treatment, are recommended.

CLIMATE The southern half of the country has two rainy seasons, from April to June and September to October, with an average annual rainfall of 890 millimetres and temperatures ranging from 24°C to 30°C. The northern half has one rainy season, from June to September, and great variations in temperature.

ON THE ROAD The coastal road from Lomé to Benin, in the east, is in good condition. Heading north, the state of the road is fairly good towards Kpalimé in the West, but deteriorates along the Lomé-Dapaong section. In the rest of the country, and despite the efforts made to improve the road network, road conditions vary, and are very poor in some places. A 4x4 is needed to travel any dirt road.

GETTING THERE The main airlines serving Lomé International Airport are: Asky, which operates out of this hub, Ethiopian Airways (Asky parent company), Air France, Royal Air Maroc, Brussels Airlines, Air Burkina, Air Côte d’Ivoire and Sénégal Airlines.

CURRENCY CFA franc – 1 euro = 655.96 CFA francs

USEFUL LOMÉ NUMBERS International dialling code: 228 TOKOIN HOSPITAL Tel.: 22 21 25 01 CAMPUS HOSPITAL Tel.: 22 25 77 68 ou 22 25 47 39 FIRE BRIGADE Tel. : 118 ou 22 21 67 06 NATIONAL POLICE Tel.: 117 ou 22 22 21 39 PARAMEDIC POLICE Tel.: 177 CENTRAL POLICE STATION Tel. : 22 21 28 71

AIRLINES LOMÉ INTERNATIONAL AIRPORT Tel.: 22 23 60 60 aeroportdelome.com AIR FRANCE Tel. : 22 23 23 23 Asky Tel.: 22 23 05 05 BRUSSELS AIRLINES Tel.: 22 21 25 25 ETHIOPIAN AIRLINES Tel.: 22 21 70 74 ROYAL AIR MAROC Tel.: 22 23 48 48