Togo’s Ambitious Business Reforms: Positioning as Africa’s Leading Investment Destination

In the competitive landscape of global business, few nations have demonstrated the remarkable transformation witnessed in Togo over recent years. This small West African nation has embarked on an ambitious reform agenda that has positioned it as a continental leader in business-friendly policies and practices. From streamlining business registration to revolutionizing contract enforcement, Togo’s comprehensive approach to economic reform offers valuable lessons for developing economies worldwide.

Starting a Business: From Bureaucratic Hurdles to African Leadership

Togo’s most impressive achievement lies in its remarkable ascent in the World Bank’s Doing Business rankings for starting a business. Climbing to the fifteenth position globally and securing the top spot in Africa in the 2020 rankings represents nothing short of an economic revolution. How did this transformation occur? Through sustained commitment to reformative dynamics that have simplified procedures, reduced processing times, and eliminated unnecessary bureaucratic barriers.

The government’s approach has focused on creating a one-stop shop for business registration, digitizing application processes, and significantly reducing the time and cost associated with launching new ventures. This progressive stance has not only attracted domestic entrepreneurship but has also positioned Togo as an attractive destination for foreign investment seeking a foothold in the West African market.

Enforcing Contracts: Building Judicial Reliability

Not long ago, Togo languished near the bottom of global rankings for contract enforcement—a critical concern for investors who require predictable legal environments. Recognizing this weakness, the government embarked on a comprehensive overhaul of its commercial justice system. The results have been nothing short of transformative, with Togo achieving one of the most significant improvements globally in contract enforcement capabilities.

Contract Execution: Specific Reforms That Made the Difference

The cornerstone of Togo’s judicial reforms has been the creation of specialized commercial courts and chambers designed specifically to handle business disputes efficiently. The establishment of commercial courts in Lomé and Kara, along with special chambers for small debts, has created a specialized judiciary capable of understanding complex commercial matters.

Perhaps most importantly, Togo implemented a maximum 100-day resolution period for commercial disputes—a bold commitment that provides businesses with certainty regarding dispute resolution timelines. The introduction of the FORSETI COMMERCIAL platform, which grants lawyers and bailiffs digital access to case management systems, represents another leap forward in judicial modernization.

Trading Across Borders: Digitalization and Efficiency Gains

In our increasingly interconnected global economy, efficient cross-border trade procedures are essential for economic competitiveness. Togo recognized this reality and implemented sweeping reforms to its import and export processes. By focusing on digitalization and process simplification, the nation has dramatically reduced delays and costs associated with international trade.

The introduction of electronic documentation, pre-arrival processing, and coordinated border management has transformed Togo’s ports and border crossings into models of efficiency. These improvements have not only benefited large importers and exporters but have also created opportunities for small and medium enterprises to participate in international trade—a critical component of inclusive economic development.

Construction Permits: Streamlining Urban Development

Urban development and infrastructure growth represent key indicators of economic vitality, and Togo has made significant strides in improving its construction permit processes. Moving from 133rd to 127th in the Doing Business rankings might seem incremental, but it reflects a broader commitment to creating an environment conducive to physical development and investment in infrastructure.

The reforms have focused on reducing approval times, clarifying requirements, and eliminating redundant procedures. For developers and investors, these changes translate into faster project initiation, reduced holding costs, and greater predictability in the development process—all essential factors for encouraging investment in built infrastructure.

Getting Electricity: Powering Business Growth

Reliable access to electricity represents perhaps the most fundamental requirement for modern business operations. Togo’s consistent improvements in the “Getting Electricity” indicator reflect a strategic understanding of this reality. Through targeted reforms, the nation has made it easier, faster, and more affordable for businesses to connect to power grids.

The government’s approach has included streamlining application procedures, standardizing connection costs, and improving coordination between different agencies involved in electricity provision. These efforts have been complemented by broader investments in generation and distribution infrastructure, ensuring that connection reforms are supported by adequate capacity and reliability.

Registering Property: From Weakness to Strength

Property rights form the foundation of market economies, and Togo’s remarkable transformation in property registration represents one of its most significant reform achievements. After years of poor performance in this critical area, Togo has implemented reforms that have positioned it as a potential challenger to Rwanda—Africa’s longstanding leader in property registration efficiency.

The reforms have focused on creating a transparent, efficient, and accessible property registration system that provides certainty to investors and homeowners alike. By reducing processing times, clarifying documentation requirements, and digitizing records, Togo has created a system that supports rather than hinders property transactions and development.

Public Procurement: Professionalization and Transparency

Government procurement represents a significant portion of economic activity in any country, and reforms in this area can have substantial impacts on business opportunities and corruption reduction. Togo’s approach to public procurement reform has embraced three key pillars: professionalization, digitization, and legislative modernization.

These efforts have created a more transparent, competitive, and efficient procurement system that benefits both the government and private sector participants. By reducing opportunities for corruption and increasing competition, these reforms have improved the quality and cost-effectiveness of public projects while creating fairer opportunities for businesses of all sizes.

Paying Taxes and Duties: Creating an Attractive Fiscal Environment

Tax policy represents a delicate balancing act between generating necessary government revenue and creating an environment attractive to investment. Togo’s reforms in this area have focused on simplification, predictability, and digitalization. The replacement of certain taxes, elimination of others, and introduction of targeted exemptions have created a more competitive fiscal environment.

The digitization of tax processes has perhaps been the most significant improvement, reducing compliance costs, increasing transparency, and minimizing opportunities for corruption. For businesses, these changes mean less time spent on tax compliance and greater certainty regarding fiscal obligations—key considerations for investment decisions.

The Big Picture: Togo’s Comprehensive Reform Strategy

What makes Togo’s reform agenda particularly impressive is its comprehensive nature. Rather than addressing individual issues in isolation, the government has pursued a coordinated approach across multiple sectors simultaneously. This holistic strategy recognizes that business climate improvement requires attention to the entire ecosystem in which businesses operate.

The results speak for themselves: dramatic improvements in global rankings, increased foreign investment, and growing entrepreneurial activity. Perhaps most importantly, Togo’s reforms demonstrate that with political will, strategic planning, and consistent implementation, rapid improvement in business environments is achievable even in challenging contexts.

Lessons for Other Developing Economies

Togo’s experience offers valuable lessons for other nations seeking to improve their business environments. First, comprehensive reform covering multiple sectors simultaneously can create synergistic effects that amplify individual improvements. Second, digitalization represents a powerful tool for reducing corruption, improving efficiency, and increasing transparency. Third, setting specific, measurable targets (such as the 100-day limit for contract disputes) creates accountability and focus.

Finally, Togo’s experience demonstrates that improvement is possible even from a low starting point. The nation’s journey from poor performance to continental leadership in several areas shows that determined reform efforts can yield dramatic results in relatively short timeframes.

As Togo continues its reform journey, the world will be watching. If the nation maintains its current trajectory, it may well become not just a regional example but a global model for business environment transformation. For investors, entrepreneurs, and policymakers alike, Togo’s story offers both inspiration and practical lessons in the art of economic reform.