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– The Free Zone
Created in 1989, this free zone provides a favorable framework for export-oriented, agricultural, industrial and service activities, using local labor.
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It provides a framework for the establishment of factories for the processing of local products by guaranteeing the best conditions of competitiveness and simplifying formalities for investors. It has benefited from the decisive support of cooperation organizations such as UNDP, UNIDO, OPIC and USAID since its inception. Previously managed by the Société d'Administration de la Zone Franche (SAZOF), the free zone has, since June 2019, been administered by the Agency for the Promotion of Investment and the Free Zone (API-ZF).
Granted the status of an industrial free zone, the new 2011 law is more attractive and offers exporting companies the best business conditions in West Africa. It has now become a destination of choice for foreign and Togolese investors thanks to its very flexible eligibility conditions and the tax and customs benefits it offers.
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The Togo Free Zone currently has 82 active companies and 25 companies in the process of being established, spread across various sectors: food, agri-food, plastics, wood and construction, pharmaceuticals, clothing and synthetic hair, metal, horticulture, cosmetics and services. 16,200 Togolese employees work there.
Since its creation, the Togo Free Zone alone has attracted cumulative investments of 374.4 billion CFA francs. It has generated a total turnover of 268 billion. Specifically, the amount of annual exports, further diversified since Togo's eligibility for the African Growth Opportunities Act (AGOA), amounts to 242 billion CFA francs, and the annual contribution to the Gross Domestic Product (GDP) is estimated at 67 billion.
Free zone products are primarily exported to ECOWAS countries, Central Africa, and Europe. With Togo's AGOA eligibility and the upcoming AfCFTA, the export market for Togolese companies is more unlimited than ever and can benefit from the advantages of the American market. Approval is required to obtain definitive free zone company status.
To be eligible, the company must meet three criteria:
– Carry out an activity of production of goods and services
– Guarantee the export of the production of goods and services
– Reserve permanent jobs for nationals as a priority.
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