Togo’s economy in 2018 recovered after a political crisis in 2017 slowed growth. The economy had been expanding for several years after a long period of political and economic isolation in the late 1990s and early 2000s. The government of Togo implemented various business reforms and completed several large infrastructure projects over the last five years to attract investment. In 2018, the government launched its five-year National Development Plan (PND) with three major axes. The plan’s first goal is to leverage the country’s geographic position by transforming Lome into a regional trading center and transport hub. Togo has already completed hundreds of kilometers of refurbished roadways, expanded and modernized the Port of Lome, and inaugurated in 2016 the new Lome international airport that conforms to international standards. The second goal is to increase agricultural production through agricultural centers (agripoles) and increase manufacturing. The third goal is improving social development, including electrification of the country. The government is seeking private sector investment to fulfill these PND goals.
In September 2017, the government established the Business Climate Unit (CCA), which aims to “put in place the optimum conditions for the effective implementation of reforms”. The CCA is composed of a national coordination and three committees dedicated to the public and private sectors and civil society. The CCA has improved Togo’s World Bank Doing Business ranking, and starting a company in Togo is deemed straight forward.
Foreign investors, however, claim that challenges remain for improving the business climate for the private sector. Challenges being reported include a weak and opaque legal system, lack of clear land titles, and government interference in various sectors. Some report corruption remains a common problem in Togo, especially for businesses. Companies have noted that often “donations” or “gratuities” result in shorter delays for obtaining registrations, permits, and licenses, thus resulting in an unfair advantage for companies that engage in such practices. Although Togo has government bodies charged with combatting corruption, some report corruption-related charges are rarely brought or prosecuted.
With an improving investment climate and modern transportation infrastructure, Togo’s steadily improving economic outlook offers opportunities for U.S. firms interested in doing business locally and in the sub-region.
Table 1: Key Metrics and Rankings
|TI Corruption Perceptions Index||2018||129 of 180||http://www.transparency.org/research/cpi/overview|
|World Bank’s Doing Business Report||2019||137 of 190||http://www.doingbusiness.org/en/rankings|
|Global Innovation Index||2018||125 of 126||https://www.globalinnovationindex.org/analysis-indicator|
|U.S. FDI in partner country ($M USD, stock positions)||2017||N/A||http://www.bea.gov/international/factsheet|
|World Bank GNI per capita||2017||$610||http://data.worldbank.org/indicator/NY.GNP.PCAP.CD|
1. Openness To, and Restrictions Upon, Foreign Investment
Policies Towards Foreign Direct Investment
Attracting foreign direct investment (FDI) is a priority for Togo, and the government hosted several high-profile international events in 2018 to display the economic reforms and infrastructure investments the county has taken over the last several years. Investment opportunities are available in transportation, logistics, agribusiness, energy, banking, and mining. FDI increased to USD 146 million in 2017 (UNCTAD Report 2018 on world investment). The launch of the National Development Plan and continued focus on improving the business environment should facilitate an increase in FDI in the coming years.
Togo doesn’t have any laws or practices that discriminate against foreign investors. In January 2012, the National Assembly adopted a new investment code, which prescribes equal treatment for Togolese and foreign businesses and investors; free management and circulation of capital for foreign investors; respect of private property; protection of private investment against expropriation; and investment dispute resolution regulation. The new code meets West African Economic and Monetary Union (WAEMU) standards.
Togo’s investment promotion agency, Togo Invest Corporation, focuses on investments involving the government through Public-Private Partnerships. Although Togo prioritizes investment retention, the government does not maintain a formal dialogue channel with investors.
Limits on Foreign Control and Right to Private Ownership and Establishment
There is a right for foreign and domestic private entities to establish and own business enterprises and engage in all forms of remunerative activities. The foreign investor can also create a wholly owned subsidiary. It has no obligation to associate itself with a local investor. This right is contained in “le Code des Investissements” (Investment Code) and there are no general limits on foreign ownership or control. Section 4 of the Investment Code states that any company established in the Togolese Republic freely determines its production and marketing policy, in compliance with the laws and regulations in force in the Togolese Republic. Additionally, there are no formal investment approval mechanisms in place for inbound foreign investment nor rules, restrictions, limitations or requirements applied to private investments.
Other Investment Policy Reviews
Togo has significantly reduced the costs and procedures required to establish a business in recent years. In 2013, Togo established a one-stop center for starting new businesses – the “Centre de Formalite des Entreprises” – that manages new business registration with an online business registration process. Only seven hours are necessary for registering a company: . In 2014, Togo made starting a business easier by permitting the one-stop-shop to publish notices of incorporation, as well as eliminating the requirement to obtain an economic operator card.
Togo has enacted reforms to improve the process for obtaining construction permits. First, Togo removed a cumbersome and costly bureaucratic hurdle by eliminating the requirement of providing a certificate of registration from the National Association of Architects as a condition precedent to receiving a construction permit. Second, Togo has streamlined the entire procedure by establishing one-stop windows where applicants may drop off their applications and retrieve their permits, thus eliminating the need to visit multiple administrative offices in order to process paperwork. Despite these efforts, The World Bank Doing Business 2019 places Togo at 133 of 190 for the “Dealing with Construction Permits” indicator, below the Sub-Saharan Africa regional average.
The government created a Business Climate Unit in the Presidency in late 2017. The unit is committed to improving operating conditions for business, especially young entrepreneurs and women. The World Bank Doing Business Report 2019 places Togo at 74 of 190 for the “Starting a Business” indicator, in comparison to 121 of 190 in 2018.
Togo does not promote outward investment, nor does it restrict domestic investors from investing abroad.
2. Bilateral Investment Agreements and Taxation Treaties
The United States and Togo signed the U.S. – Togo Treaty of Amity and Economic Relations in 1966, which entered into force a year later in 1967. This Treaty provides for protections of U.S. and Togolese investors. Togo has signed many economic, commercial, cooperation, and cultural agreements with its foreign aid donor countries, including France, Germany, Canada, the Netherlands, Belgium, Switzerland, Japan, and more recently with China, India, Iran, Saudi Arabia, and Israel.
Togo does not have a bilateral investment or taxation treaty with the United States.
3. Legal Regime
Transparency of the Regulatory System
In January 2012, the National Assembly adopted a new investment code, which prescribes equal treatment for Togolese and foreign businesses and investors; free management and circulation of capital for foreign investors; respect of private property; protection of private investment against expropriation; and investment dispute resolution regulation. The new code meets West African Economic and Monetary Union (WAEMU) standards. There are no informal regulatory processes managed by nongovernmental organizations or private sector associations and the rule making and regulatory authority is located at the Ministry of Commerce.
As a member of West African Economic and Monetary Union (WAEMU), Togo participates in zone-wide plans to harmonize and rationalize regulations governing economic activity within the Organization for the Harmonization of Business Law in Africa (OHADA – Organisation pour L’Harmonisation en Afrique du Droit des Affaires). OHADA includes sixteen African countries, including Togo, and one of the principal goals is a common charter on investment. Togo directly implements WAEMU and OHADA regulations without requiring an internal ratification process by the National Assembly.
Although the government does not make draft bills and proposed regulations available for public comment, ministries and regulatory agencies in Togo generally give notice of and distribute the text of proposed regulations to relevant stakeholders. Ministries and regulatory agencies also generally request and receive comments on proposed regulations through targeted outreach to business associations and other stakeholders.
Togo is a member of UNCTAD’s international network of transparent investment procedures . Foreign and national investors can find detailed information on administrative procedures applicable to investment and income generating operations including the number of steps, name and contact details of the entities and persons in charge of procedures, required documents and conditions, costs, processing time and legal bases justifying the procedures. The site is generally up-to-date and useful.
The Public Procurement Regulatory Authority (ARMP) ensures compliance and transparency with respect to government procurements. Each responsible ministry ensures compliance with its regulations which are developed in conformity with international standards and agreements such as WTO or WAEMU norms. Regulations are not reviewed on the basis of scientific or data-driven assessments. The government has not announced any upcoming changes to the regulatory enforcement system.
International Regulatory Considerations
Togo is a member of the World Trade Organization (WTO). It is not known if the government notifies all draft technical regulations to the WTO Committee on Technical Barriers to Trade (TBT).
For the most part, in economic terms, the Togolese legal and administrative framework is aligned with the community texts of UEMOA, ECOWAS or larger groups.
On the financial side, Togo depends on sub-regional institutions, notably the Central Bank of West African States (BCEAO) whose head office is in Dakar. The Regional Council for Public Savings and Financial Markets (CREPMF), headquartered in Abidjan, regulates financial markets.
The Togolese insurance market is subject to the rules of the CIMA zone (Interafrican Conference of Insurance Markets).
With regard to intellectual property, Togo relies on OAPI (African Intellectual Property Organization).
The main laws and directives of these different legal and administrative areas are available, among others, on the website www.droit-afrique.com under the heading Togo.
More broadly, Togo is a member of the United Nations (UN), the World Trade Organization (WTO), and the International Renewable Energy Agency (IRENA).
At the African level, the country is also party to the Council of the Agreement, the Benin Electric Community (CEB), the African Peer Review Mechanism (APRM), the Alliance Zone and the Co-operation Zone for Prosperity (ZACOP), and the African Union.
Legal System and Judicial Independence
Togo practices a code-based legal system inherited from the French system. The judiciary is recognized as the third power after the executive and the legislative (the press being the 4th) and thus remains independent of the executive branch. Togo, as a member of the OHADA, has a judicial process that is procedurally competent, fair, and reliable. Regulations or enforcement actions are appealable like any other civil actions and are adjudicated in the national court system.
A Court of Arbitration and Mediation created in 2011 legally enforces contracts. The main law covering commercial issues is the Investment Code adopted in 2012. In 2013, Togo created three commercial Chambers within the Lome tribunal with specialized magistrates who have exclusive trial court level jurisdiction over contract enforcement and business disputes.
Laws and Regulations on Foreign Direct Investment
The 2012 Investment Code allows the resolution of investment disputes involving foreigners through: (a) bilateral agreements between Togo and the investor’s government; (b) arbitration procedures agreed to between the interested parties; or (c) through the offices of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. The OHADA also provides a forum and legal process for resolving legal disputes in 16 African countries.
Togo is a member of UNCTAD’s international network of transparent investment procedures . Foreign and national investors can find detailed information on administrative procedures applicable to investment and income generating operations including the number of steps, name and contact details of the entities and persons in charge of procedures, required documents and conditions, costs, processing time and legal bases justifying the procedures.
Competition and Anti-Trust Laws
The Public Procurement Regulatory Authority (ARMP) ensures compliance and transparency for competition-related concerns.
Expropriation and Compensation
The government can legally expropriate property through a Presidential decree submitted by the cabinet of ministers and signed by the President.
There have been only two major expropriations of property in Togo’s history. The first was the February 1974 nationalization of the then French-owned phosphate mines. The second was the November 2014 nationalization of the Hotel du 2 Fevrier after it had ceased operations for several years. Shortly after the nationalization of the hotel, Togo announced it was establishing a commission to determine the fair market amount owed as compensation to the hotel’s Libyan owners/investors. Setting aside the case of the Hotel du 2 Fevrier as an isolated example, there is little evidence to suggest a trend towards expropriation or “creeping expropriation.” The government designed the 2012 Investment Code to protect against government expropriations. There are some claimants from lands expropriated for recent road construction, however, and the procedure to investigate and resolve those claims is considered to be slow.
ICSID Convention and New York Convention
Togo is not a party to the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. Togo is, however, a party to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention – also known as the Washington Convention), which it ratified in 1967.
Investor-State Dispute Settlement
Togo does not have a Bilateral Investment Treaty (BIT) or a Free Trade Agreement (FTA) with an investment chapter with the United States.
Togo does not have a history of extrajudicial action against foreign investors, notwithstanding the two historical examples above. There do not appear to be any investment disputes involving U.S. persons from the past ten years. Local courts recognize and enforce foreign arbitral awards issued against the government.
International Commercial Arbitration and Foreign Courts
The dispute resolution alternative is the Court of Arbitration of Togo (CATO), which conforms to standards as established by The Investment Climate Facility for Africa (ICF). Local courts recognize and enforce foreign arbitral awards and there are no known state-owned enterprise (SOE) investment disputes that have gone to the domestic court system.
The World Bank’s International Finance Corporation (IFC) worked with the Government of Togo to improve commercial justice through the strengthening of alternative dispute resolution mechanisms. The aim of the project was to increase the speed and efficiency of settlement of commercial disputes through the procedures used by the CATO.
As a result of the project, 30 new arbitrators and 100 magistrates and professionals received training in mediation/arbitration techniques. Further, the new CATO procedure manual is explicit that the time between filing and judgment shall be a maximum of six months as per article 36 of the ruling procedures.
Togo uses the standards set forth under the Organization for the Harmonization of Business Law in Africa (OHADA). That law states that if bankruptcy occurs, the competent jurisdiction designates an expert that concludes an agreement with creditors and stakeholders (preventive arrangement). The Manager (or managers) can be put under “patrimonial sanctions”, meaning they can be personally liable for the debts of the company. The manager is then forbidden to do business, to manage, administer, or control an enterprise, or hold political or administrative office, for three to ten years. Bankruptcy is criminalized, but generally as a last resort.
According to data collected by the World Bank, insolvency proceedings take three years on average and cost approximately 15 percent of the debtor’s estate, with the most likely outcome being that the company will be sold off in pieces. The average recovery rate is 27.9 cents on the dollar. The World Bank’s Doing Business 2018 places Togo at 81 of 190 for the “Resolving Insolvency” indicator, well above the Sub-Saharan Africa regional average.
4. Industrial Policies
Investment incentives are available to foreign investors that invest more than USD 100,000. Incentives include exemption from value added tax (VAT) and Customs Duties on new imported plant and materials, reduced income taxes for up to five years, and depending on the number of permanent jobs created for nationals, reduction on salary taxes during an approved period of time. Incentives are also available in the Export Processing Zone (EPZ).
Foreign Trade Zones/Free Ports/Trade Facilitation
The 2011 law modifying the 1989 law creating the Export Processing Zone (EPZ) provides an advantageous taxation scheme for companies based in the EPZ with a reduced tax bill on their profits for their first 20 years of operation, including a five percent tax on profits for the first five years. The law also exempts companies from customs duties and VAT on imported equipment and inputs, as well as an exemption from VAT on goods and services purchased locally. It also provides EPZ companies the freedom to repatriate capital, including dividends and other income. The law also exempts companies within the EPZ from providing workers with many legal protections, including protection against anti-union discrimination with regard to hiring and firing.
Performance and Data Localization Requirements
Firms are required by law to employ Togolese nationals on a priority basis, and after five years foreign workers cannot account for more than 20 percent of the total workforce or of any professional category. In practice, the Togolese government strongly encourages large foreign employers outside of the EPZ to hire as many Togolese nationals as practical. These encouragement schemes do not typically apply to senior management level employees.
There are reports that foreigners seeking to legalize their status for long-term work and residence purposes have encountered significant administrative obstacles and delays, although the steps for receiving residence permits are well defined. Issuance of such permits is the responsibility of the National Police.
There are no government-imposed conditions on permission to invest and there is no policy on “forced localization.” Foreign IT providers are not required to turn over source code and/or provide access to encryption and there are no measures that prevent or unduly impede companies from freely transmitting customer or other business-related data outside the economy/country’s territory.
5. Protection of Property Rights
Property rights and interests are enforced, although nearly 80 percent of court cases are reported to involve land title disputes. Mortgages and liens exist but land titles are precarious and often subject to litigation. Most land does not have a clear title, especially outside of urban areas. The government is attempting to fix this issue through various commissions that will issue recommendations but it will take years to resolve. In 2017 the government invested human and material capital into land sector reform, reducing transfer of ownership time from 20 days in 2017 to eight days in the beginning of 2018.
In Togo, only Togolese citizens, French citizens, foreign governments, and those granted citizenship by the judiciary are allowed to possess real property. Other foreigners must request permission from the Prime Minister, which is usually granted for investors who will develop the land. Land speculation is discouraged by the government. Property legally purchased that remains unoccupied will not be reverted to other owners under the law; however, in practice, unused land that is not protected will likely be occupied or used by others and potentially subject to lengthy court battles to prove ownership.
Intellectual Property Rights
The regional African Intellectual Property Organization (OAPI) and National Institute for Industrial Property and Technology (INPIT) are the two agencies that protect intellectual property rights (IPR) in Togo. No new IPR laws or regulations have been enacted in the past year. There are no official figures available on how the country tracks and reports on seizures of counterfeit goods. The country may prosecute IPR violations, but there are no known cases.
Togo is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List. For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at .
6. Financial Sector
Capital Markets and Portfolio Investment
Togo and the other West African Economic and Monetary Union (WAEMU) member countries are working toward greater regional integration with unified external tariffs. Togo relies on the West African Economic and Monetary Union (WAEMU) Regional Stock Exchange in Abidjan, Ivory Coast to trade equities for Togolese public companies.
WAEMU has established a common accounting system, periodic reviews of member countries’ macroeconomic policies based on convergence criteria, a regional stock exchange, and the legal and regulatory framework for a regional banking system. The government and central bank respect IMF Article VIII and refrain from restrictions on payments and transfers for current international transactions. Credit is generally allocated on market terms. With sufficient collateral, foreign investors are generally able to get credit on the local market. The private sector in general has access to a variety of credit instruments when and if collateral is available.
Money and Banking System
The penetration of banking services in the country is low and generally only available in major cities.
The government and the banking sector have worked to restore Togo’s reputation as a regional banking center, which was weakened by political upheavals from 1991 to 2005, and several regional and sub-regional banks now operate in Togo, including Orabank, Banque Atlantique, Bank of Africa, Diamond Bank, International Bank of Africa in Togo (BIAT), and Coris Bank.
Additionally, Togo is home to the headquarters of the ECOWAS Bank for Investment and Development (EBID), the West African Development Bank (BOAD – the development bank of the West African Economic and Monetary Union), Oragroup, and Ecobank Transnational Inc. (ETI), the largest independent regional banking group in West Africa and Central Africa, with operations in 36 countries in Sub-Saharan Africa.
The banking sector is generally healthy and the total assets of Togo’s largest banks are approximately USD 25-30 billion, including Ecobank, a very large regional bank headquartered in Lome.
Togo’s monetary policy and banking regulations are managed by the Central Bank of West African States (BCEAO). No known correspondent relationships were lost in the past three years. No known correspondent banking relationships are in jeopardy.
Foreign Exchange and Remittances
There are no restrictions on the transfer of funds to other FCFA-zone countries or to France. The transfer of more than FCFA 500,000 (about USD 1,000) outside the FCFA-zone requires justification documents (e.g. pro forma invoice) to be presented to bank authorities.
The exchange system is free of restrictions for payments and transfers for international transactions. Some American investors in Togo have reported long delays (30 – 40 days) in transferring funds from U.S. banks to banks located in Togo. This is reportedly because banks in Togo have limited contacts with U.S. banks to facilitate the transfer of funds.
Togo uses the CFA franc (FCFA), which is the common currency of the eight West African Economic and Monetary Union (WAEMU) countries. The currency is fixed to the euro at a rate of 656 FCFA to 1 euro.
The 2012 Investment Code provides for the free transfer of revenues derived from investments, including the liquidation of investments, by non-residents.
Sovereign Wealth Funds
Togo does not maintain a Sovereign Wealth Fund (SWF) or other similar entity.
7. State-Owned Enterprises
The government does not publish a list of state-owned enterprises (SOEs), but there are approximately 16 wholly or majority owned SOEs, and the government owns shares in approximately 25 other large domestic companies. These SOEs may enjoy non-market based advantages received from the host government, such as the government delaying private enterprise investment in infrastructure that could disadvantage the market share of the SOE.
All SOEs have a Board of Directors and Supervisory Board, although the Togolese government has not specified how it exercises ownership in the form of an ownership policy or governance code. The SOEs also have auditors who certify their accounts. Once certified by these auditors, the accounts of these companies are sent to the Court of Auditors, Togo’s supreme audit institution, which verifies and passes judgment on these financial statements and reports to the National Assembly. The Court publishes the results of its audits annually, including at .
SOEs control or compete in the fuel, cotton, telecommunications, banking, utilities, phosphate, and grain-purchasing markets. The government monopolizes phosphate via the state-owned New Phosphate Company of Togo (SNPT).
Domestically produced cotton is bought and sold by the state-controlled (60 percent government-owned) New Cotton Company of Togo (SNCT), which was organized in 2009 following the bankruptcy and dissolution of the 100 percent state-owned Togolese Cotton Company (SOTOCO).
In September 2012, Togo sold the formerly state-owned Togolese Development Bank to Orabank Group. Likewise, in March 2013, Togo sold the formerly state-owned Banque Internationale pour l’Afrique au Togo to the Attijariwafa Bank Group of Morocco.
Following these sales, Union Togolaise de Banque (UTB) and Banque Togolaise pour le Commerce et l’Industrie (BTCI) are now the only two state-owned banks. Togo’s first call for tenders for these two banks, completed in 2011, was unsuccessful. Togolese authorities are working in consultation with the IMF to either merge the two banks into a single entity, or try to privatize one or both. These two remaining state-owned banks hold weak loan portfolios characterized by high exposure (about one-third of total bank credit) to the government, as well as to the cotton and phosphate industries.
In the telecommunications sector, the government combined in 2017 the two state-owned entities Togo Telecom and TogoCell into a holding company, Togocom. The new entity stills directly competes with a private cell phone company, Moov Togo. Atlantique Telecom, a subsidiary of Emirates Telecommunications Corporation (Etisalat), owns and controls Moov Togo. The Government of Togo has licensed Togocom and Moov for 4G. Private company CAFE Informatique also offers satellite-based internet access and other services, mainly to the business sector. Two new internet service providers, Teolis and Vivendi Africa Group (GVA-Togo), entered the market in 2018 and the government is installing new fiber optic cable in the country.
Public utilities such as the Post Office, Lome Port Authority, Togo Water, and the Togolese Electric Energy Company (CEET) hold monopolies in their sectors.
The National Agency for Food Security (ANSAT) is a government agency that purchases cereals on the market during the harvest for storage. When cereal prices increase during the dry season, it is ANSAT’s task to release cereals into the markets to maintain affordable cereal prices. When supplies permit, ANSAT also sells cereals on international markets, including Ghana, Niger, and Gabon.
Previous privatization in Togo covered many sectors, such as hotels, banking, and mining. Foreign investors are encouraged to compete in new privatization programs via a public bidding processes. The government publishes all notifications in the French language, but unfortunately, a relevant government website is not available.
8. Responsible Business Conduct
Responsible Business Conduct (RBC) is not officially addressed in Togo by the government, other than as it relates to corruption and criminal activity. RBC and its variants such as “Fair Trade” is known by independent NGOs and businesses which promote these practices and are able to do their work freely.
Some American-owned companies follow generally-accepted RBC principles, and participate in outreach programs to local villages where it supplies, among other things, school buildings, water, electricity, and flood abatement resources. In accordance with a law passed in March 2011, new construction projects must now address environmental and social impacts.
Togo joined the Extractive Industries Transparency Initiative (EITI) in 2009, and has been officially recognized as EITI-compliant since 2013. Togo’s EITI Secretariat carries out a yearly verification of financial statements relating to the extractive industry.
The Ministry of Civil Service, Labor, Administrative Reform, and Social Protection sets workplace health and safety standards and is responsible for enforcement of all labor laws. There have been no high-profile, controversial instances of private sector impact on human rights or resolution of such cases in the recent past.
Togolese law provides workers, except security forces (including firefighters and police), the right to form and join unions and bargain collectively. There are supporting regulations that allow workers to form and join unions of their choosing. Workers have the right to strike, although striking healthcare workers may be ordered back to work as necessary for the security and well-being of the population. While no provisions in the law protect strikers against employer retaliation, the law requires employers to get a judgment from the labor inspectorate before it may fire workers. If workers are fired illegally, including for union activity, they must be reinstated and compensated for lost salary.
The law recognizes the right to collective bargaining; representatives of the government, labor unions, and employers negotiate and endorse a nationwide agreement. This collective bargaining agreement sets nationwide wage standards for all formal sector workers. For sectors where the government is not an employer, the government participates in this process as a labor-management mediator. For sectors with a large government presence, including the state-owned companies, the government acts solely as an employer and does not mediate.
The government follows OHADA recommended rules and regulations on corporate governance, accounting, and executive compensation.
The Togolese government has established several important institutions designed in part to reduce corruption by eliminating opportunities for bribery and fraud: the Togolese Revenue Authority, the One-Stop Shop to create new businesses, and the Single Window for import/export formalities.
In 2015, the Togolese government created the High Authority for the Prevention and Fight against Corruption and Related Offenses (HAPLUCIA), which the government designed to be an independent institution dedicated to fighting corruption. The government appointed members in 2017. HAPLUCIA encourages private companies to establish internal codes of conduct that, among other things, prohibit bribery of public officials. HAPLUCIA presented on February 7, 2019, its strategic plan for the period 2019-2023; it set up a toll-free number, the “8277” to receive complaints and denunciations.
Anti-corruption laws extend to family members of officials, and to political parties and the government does not interfere in the work of anti-corruption NGOs.
In 2011, the government effectively implemented procurement reforms to increase transparency and reduce corruption. The government announces procurements weekly in a government publication. Once contracts are awarded, all bids and the winner are published in the weekly government procurement publication. Other measurable steps toward controlling corruption include joining the Extractive Industries Transparency Initiative (EITI) and establishing public finance control structures and a National Financial Information Processing Unit.
Togo signed the UN Anticorruption Convention in 2003 and ratified it on July 6, 2005.
Resources to Report Corruption
Contact at government agency or agencies are responsible for combating corruption:
President of the High Authority for the Prevention and Fight against Corruption and Related Offenses
Telephone: +228 90 21 28 46 / 90 25 77 40
Mohamed Nour-Dine Assindoh
Office Togolais des Recettes (OTR)
41 Rue des Impôts 02 BP 20823
Telephone: +228 – 22 53 14 00
Contact at “watchdog” organization
Regional Coordinator, West Africa
Telephone: +49 30 3438 20 773
10. Political and Security Environment
After a period of sustained political instability and economic stagnation from 1990 to 2007, the government started the country along a gradual path to political reconciliation and democratic reform. Togo has held multiple presidential and legislative elections that were deemed generally free and fair by international observers. Despite those positive moves, political reconciliation has moved slowly. A political crisis erupted in 2017 regarding the failure of the government to implement political measures, such as presidential term limits. After international facilitation between the government and opposition parties, the government promised electoral reforms. The government is planning to hold local elections in 2019, the first since 1986.
Political protests still occur on occasion and can often lead to tire burning, stone throwing, and government responses include the use of tear gas and other crowd control techniques.
The political crisis in 2017 negatively affected the economy. Togo’s 2017 GDP growth slowed to 4.4 percent. The opposition demonstrations and government countermeasures resulted in delayed purchases, investments, and production as consumers, investors, and local companies waited for the political crisis to end. The international facilitation of the crisis helped the economy recover, as GDP grew 4.9 percent in 2018, according to the IMF.
There are no known examples over the past ten years of damage to projects and/or installations pertaining to foreign investment due to political violence.
11. Labor Policies and Practices
The labor market is predominately unskilled and there is a shortage of skilled labor and English speaking employees. There are some migrant farm workers from Ghana and Benin based on familial ties. There is widespread underemployment and large portions of the non-agricultural workforce participate in the informal economy.
In general, government labor policy favors employment of nationals.
Workers are hired with time specific contracts that include severance requirements. The labor code, and regulations called the “Convention Collective” differentiate between layoffs and firings, but both require severance payments. Free Trade zones offer different labor law provisions to encourage investment.
Public employees unions (school teacher, judicial clerks, etc) use collective bargaining, and are willing to take to the streets in non-violent, but noisy protests, to raise the profile of their demands. Labor disputes appear to be resolved on an ad-hoc basis, usually with the intervention of parliamentarians.
No labor laws or regulations were enacted in 2017.
12. OPIC and Other Investment Insurance Programs
The United States and Togo have an OPIC agreement in place. OPIC provides political risk insurance and financing for ContourGlobal’s 100-megawatt power plant in Togo. The plant began operation in the fall of 2010 providing base-load electricity for the country. OPIC also provides insurance for the West African Gas Pipeline Company Limited through Steadfast Insurance Co. The French government agency COFACE provides investment insurance in Togo under programs similar to those offered by OPIC. Investment insurance through the Multilateral Investment Guarantee Agency (MIGA) is an option to explore.
13. Foreign Direct Investment and Foreign Portfolio Investment Statistics
Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy
Table 3: Sources and Destination of FDI
Note: U.S. based ContourGlobal built a 100 megawatt power plant in Togo in 2010. This FDI is not recorded in official U.S. government statistics.
|Direct Investment From/in Counterpart Economy Data|
|From Top Five Sources/To Top Five Destinations (US Dollars, Millions)|
|Inward Direct Investment||Outward Direct Investment|
|Total Inward||$2,815||100%||Total Outward||$2,777||100%|
|“0” reflects amounts rounded to +/- USD 500,000.|
Table 4: Sources of Portfolio Investment
Data not available.
14. Contact for More Information
US Embassy, Lomé
4332 blvd Eyadéma – BP 852, Lomé, Togo
Telephone: +228 2261 5470, ext4466