Interview with Rose Kayi Mivedor, Minister of Investment Promotion. Since November 2020, this lawyer has been responsible for making Togo a preferred destination for domestic and foreign investors.
What is the current dynamic of investments in Togo?
Since 2014 to 2018, Togo has implemented a public investment policy increasing from 202 billion FCFA in 2018 to 394 billion FCFA in 2020 in order to strengthen strategic infrastructure, necessary for the modernization of the economy, preserve social gains and promote better growth of the private sector, synonymous with job creation and collective wealth; during the same period, private investments have grown from 513 billion FCFA to 635 billion FCFA.
The investment environment is very positive, as evidenced by recent performances; in 2020, Togo stood out as the best performing country in terms of investment attraction in the world, relative to its size, according to the Greenfield Performance Index. Foreign Direct Investment (FDI) also increased from nearly 191 billion FCFA (346 million FCFA) in 2019 to more than 352.5 billion FCFA (639 million FCFA) in 2020; a growth of 851 million FCFA over the year.
Since 2020, the national investment policy has evolved with the new government roadmap 2020-2025, which identifies several sectors of interest for private sector investments estimated at more than 1,500 billion FCFA. The inauguration of infrastructures in 2021 such as the Data Center, the Kékéli thermal power plant, the Blitta solar power plant, the commissioning of the Adétikopé Industrial Platform, projects estimated at more than 385 million Euros are examples of structuring partnerships made with the private sector, favored by the State.
What new areas are being developed to consolidate investment attractiveness?
The Ministry of Investment Promotion is working to operationalize the Investment Promotion and Free Zone Agency; a public institution of the State in charge of missions related to attracting investors, facilitating their activities and administering the two economic incentive regimes: the Free Zone regime and the Investment Code. One of the main objectives of the agency will be to offer a unique experience in terms of information and support for the realization of investment projects, the promotion of sectors with investment potential to investors, and to contribute to the promotion of the country's image by emphasizing Togo's assets. A new bill on public-private partnership contracts was adopted at the end of 2021 by the National Assembly, in order to accelerate the implementation of projects included in the government's roadmap by facilitating private investment and optimizing state spending for the development of new infrastructure in key sectors of the economy.
The business climate unit is also working to recommend new reforms to improve the business climate and simplify administrative, legal and tax procedures, in order to consolidate Togo's momentum, which is positioning itself as one of the best reforming countries in Africa.
At the same time, the Government maintains a structuring relationship with the private sector through the State-Private Sector Consultation Framework, in order to be aware of the issues and challenges that could hinder investment/reinvestment decisions and to find, in partnership with the private sector, appropriate solutions.
What are the major growth sectors?
Several sectors are promising for investment in Togo, including agriculture, energy, construction, infrastructure and logistics, health, water, services, etc.
Agriculture:
Agriculture, one of Togo's most important sectors of activity, with a contribution of approximately 291% of the total growth rate to Togo's GDP, is structured into several sectors full of potential. These sectors include soybeans, coffee, cocoa, cotton, corn, cassava, fruits, shea butter, and cashew nuts.
Energy:
The energy sector, through our ambitions to improve access to electricity, which is a priority for achieving 75% of electrification, is also promising. Since 2015, electricity production activities can be carried out in Togo by any public or private entity subject to compliance with the legal conditions provided. The State is focusing on the development of sustainable and reliable production capacities, particularly in solar and hydroelectric power, and the corresponding strengthening of the transmission and distribution network to meet domestic demand.
Construction:
The Togolese government aims to create a supply of decent, affordable housing by 2025 to address the housing deficit and improve housing quality. The Togolese government aims to create a supply of decent, affordable housing by 2025. The goal is to create 20,000 units to address the housing deficit of 120,000 in Lomé and improve housing quality. There is also a growing demand for multifunctional recreational, cultural, and sports platforms.
Infrastructure and Logistics:
The government's 2020-2025 roadmap includes investments in the infrastructure and logistics sectors to make Togo a logistics hub of excellence and a privileged and secure access platform from the Gulf of Guinea to the hinterland countries. With its strategic geographical location and 56 km of coastline, Togo has a port economic zone with high potential. The Autonomous Port of Lomé is home to companies that are world leaders in the logistics sector.
Health:
The health sector is modernizing in Togo. Since 2017, a policy to strengthen the health and social protection sector has been implemented; a key reform is the implementation of contract management in public hospitals, leading to improvements in service delivery. The country aims to extend universal health coverage to the entire population and build health centers close to the population. The government is working on a public project to develop and implement a health emergency response plan that aims to strengthen the health system to cope with future crises.
Water:
The Government aims to improve the rate of access to drinking water by 2025, specifically 95,000 people in rural areas, 85,000 people in semi-urban areas, 75,000 people in urban areas outside Lomé, and 80,000 people in Greater Lomé. Expanding residential real estate is creating a strong demand for drinking water, primarily in urban areas but also, to a large extent, in rural areas. Projects to strengthen village water supply and water supply are planned.
Services (Finance and BPO):
The services sector has been growing rapidly in Togo for the past two years, particularly with the arrival of major players in the field of outsourced customer relationship management and the provision of high-speed internet services. The strengths of this sector are the presence of a Tier III data center, the availability of a substantial employment pool composed of young graduates with good speech and communication skills, the ongoing development of new telecommunications infrastructure and a portfolio of buildings that can be adapted to the Business Process Outsourcing (BPO) activity.
Can you summarize Togo's main assets?
Togo has a financial hub, a logistics hub, and industrial potential, all within a context of a constantly improving business climate with attractive economic regimes for investment and an economy undergoing rapid digitalization.
Our vision of being a logistics hub of excellence is reflected in our annual logistics performance; our natural deep-water port, a key infrastructure serving as a gateway for products to hinterland markets, was ranked 1st in West Africa and 4th on a continental scale according to the Lloyds' list, Top hundred ports. Lomé International Airport, with a capacity of 2 million passengers annually, offers direct connections to several capitals in Africa, Europe and North America.
With 3.8 million hectares of arable land, half of which remains to be exploited, and natural mineral resources (phosphate, limestone and clay transformed into clinker, iron) and agricultural resources (coffee, cocoa, cotton), Togo offers development potential for several industries; moreover, the industrialization strategy is structuring with anchoring elements such as the agropole development project to boost national production in agricultural sectors, the construction of the Adétikopé Industrial Platform for the local processing of raw products, and the securing of energy production to support the needs of the private sector and the population.
Togo also has a large youth workforce (701,000 of the population is under 35 years old) necessary for industrial development. Anticipating future needs, the government has launched projects for Alternating Training Institutes for Development to accelerate the training and specialization of young people and make them available.
Our financial hub is dynamic with the presence of 14 banks and 3 financial institutions, including the largest African financial institutions, such as the West African Development Bank (BOAD), the ECOWAS Bank for Investment and Development (EBID) and the headquarters of pan-African banking groups such as Ecobank and Oragroup.
In addition, Togo offers investors three types of tax regimes adapted to their activities:
• A common law customs regime based on a modernized general tax code.
• An attractive investment code adopted in 2019 which offers investors non-refundable carry-forward tax credits and tax exemptions for any investment in Togo of an amount greater than or equal to 50 million FCFA (76,000 Euros).
• A particularly attractive free zone regime for companies of which at least 70% of production is intended for export.
Togo is one of the most stable countries in the West African subregion, politically and security-wise. We are resolutely forward-looking, with bright growth prospects and a business environment where it is easy to do business and find both national and international partners. We offer every investor personal peace of mind and security for invested capital.