Togo’s Business Climate Reforms: A Comprehensive Overview of Progress and Ambition

In the dynamic landscape of global economics, few nations have demonstrated as remarkable a commitment to reform as Togo. Over recent years, this West African nation has embarked on an ambitious journey to transform its business environment, climbing international rankings and attracting attention from investors worldwide. The comprehensive reforms span multiple sectors, from simplifying business registration to modernizing judicial processes, all aimed at positioning Togo as a premier investment destination in Africa.

Starting a Business: Leading the African Charge

Togo’s performance in the Starting a Business index of the 2020 Doing Business ranking speaks volumes about its reformative momentum. Achieving the fifteenth position globally and securing the top spot in Africa represents a significant accomplishment for a nation determined to shed bureaucratic hurdles. But what exactly has driven this impressive ranking?

The government’s approach has been multifaceted, focusing on streamlining procedures, reducing processing times, and embracing digital solutions. Rather than resting on these laurels, Togo continues to build upon this foundation with additional reforms designed to make business initiation even more straightforward. The question isn’t whether Togo will maintain its position, but how much further it can climb in the global standings.

Enforcing Contracts: From Laggard to Leader

Perhaps one of the most dramatic transformations has occurred in contract enforcement. Not long ago, Togo languished near the bottom of global rankings in this critical area. Today, the country stands as a testament to what focused reform efforts can achieve. The improvements didn’t happen overnight but resulted from sustained commitment to creating a more predictable and efficient legal environment for business disputes.

The creation of specialized commercial courts in Lomé and Kara represents a fundamental shift in how business conflicts are handled. By establishing dedicated chambers for small debts and ensuring commercial cases receive specialized attention, Togo has addressed one of the most significant concerns for foreign investors: legal predictability.

Contract Execution: Specific Measures Making a Difference

The reforms in contract execution demonstrate Togo’s attention to detail in improving its business judiciary:

The establishment of special chambers for small debts ensures that minor commercial disputes don’t get bogged down in overloaded court systems. The creation of chambers of commerce at the Court of Appeal provides specialized oversight for commercial matters at higher judicial levels. The separation of civil and commercial cases through distinct clerks has streamlined processing and reduced confusion. Commercial courts in Lomé and Kara now provide geographic accessibility for businesses across different regions. The FORSETI COMMERCIAL platform grants lawyers and bailiffs digital access to case information, reducing delays. Most significantly, the implementation of a maximum 100-day period to settle commercial disputes creates predictable timelines for resolution.

Trading Across Borders: Digitalization Drives Efficiency

In our increasingly interconnected global economy, the efficiency of cross-border trade can make or break a nation’s competitiveness. Togo recognized this reality and embarked on comprehensive reforms focused on digitization and delay reduction for both import and export procedures. The results have been transformative, with the country significantly improving its position on the “Trading across borders” index.

The digital transformation of customs procedures has reduced opportunities for corruption while accelerating processing times. By implementing automated systems for documentation and clearance, Togo has made substantial progress in creating a more transparent and efficient trading environment. These changes benefit not only large corporations but also small and medium enterprises that previously struggled with complex border procedures.

Construction Permits: Building a Foundation for Growth

The construction industry serves as a bellwether for overall economic health, and Togo’s improvements in this sector reflect broader positive trends. Moving from 133rd to 127th place in the 2020 Doing Business construction permit index might seem modest, but it represents important progress in an area known for bureaucratic complexity.

The government’s approach has focused on streamlining approval processes, clarifying requirements, and reducing unnecessary delays. These changes have tangible impacts on development timelines and costs, making Togo increasingly attractive for real estate investment and infrastructure development. With additional reforms introduced this year, the country appears poised for further improvements in upcoming rankings.

Getting Electricity: Powering Economic Development

Reliable access to electricity remains a critical factor for business operations, particularly in manufacturing and technology sectors. Togo’s consistent improvement in the Doing Business “Getting electricity and water” indicator over the past two years reflects serious commitment to addressing infrastructure challenges.

The reforms implemented have focused on reducing connection times, improving reliability, and expanding access beyond urban centers. By making it easier for businesses to secure stable power sources, Togo enhances its attractiveness for energy-intensive industries. The planned additional reforms suggest that the government views energy access as an ongoing priority rather than a one-time initiative.

Registering Property: From Weakness to Strength

Property registration represents perhaps the most dramatic area of improvement in Togo’s business environment reforms. After years of languishing at the bottom of global rankings, the country has made astonishing progress, now setting its sights on surpassing Rwanda as Africa’s top performer in this category.

The transformation stems from comprehensive reforms addressing documentation requirements, processing times, and transparency in property transactions. Secure property rights form the foundation of many business activities, from securing loans using property as collateral to facilitating real estate development. Togo’s rapid ascent in this area signals to investors that the country takes property rights seriously and has created systems to protect them effectively.

Public Procurement: Modernizing Government Contracts

Togo’s public procurement framework has undergone significant modernization, moving toward greater professionalization, digitization, and regulatory clarity. These changes benefit the private sector directly, as government contracts represent substantial business opportunities for many companies.

The reforms align with the objectives of Togo’s National Development Plan, which emphasizes private sector development as a driver of economic growth. By creating more transparent and efficient procurement processes, the government not only improves its own operations but also creates fairer competition for private enterprises seeking government business.

Paying Taxes and Duties: Creating an Attractive Fiscal Environment

Taxation policies significantly influence investment decisions, and Togo has implemented thoughtful reforms to create a more favorable fiscal environment. The changes include replacing certain taxes, eliminating others, and creating exemptions designed to stimulate specific types of investment.

Digitalization has been a key strategy in tax reform, reducing opportunities for informal payments while increasing efficiency in revenue collection. The objective remains clear: to offer one of Africa’s most attractive tax frameworks without compromising necessary government revenue. This balanced approach demonstrates sophisticated policy thinking that recognizes both investor needs and public financing requirements.

The Road Ahead: Sustaining Momentum

Togo’s comprehensive reform agenda represents more than just isolated policy changes—it reflects a fundamental shift in how the country views its role in the global economy. By systematically addressing barriers to business activity across multiple sectors, Togo has positioned itself as a serious contender for investment in a competitive region.

The success of these reforms ultimately depends on consistent implementation and continued refinement. The government’s apparent commitment to ongoing improvement suggests that the progress seen in recent years may be just the beginning of Togo’s transformation into a regional economic hub.

For investors and development partners, Togo’s story offers a compelling case study in how focused reform efforts can yield tangible results. As the country continues its journey toward economic modernization, the world will be watching—and many will likely be joining in its growth story.