Togo’s Business Reforms: A Blueprint for Economic Transformation in West Africa

In the competitive landscape of global business, nations are constantly vying for attention, investment, and growth. For Togo, a small yet ambitious West African nation, the journey toward economic revitalization has been nothing short of remarkable. Over recent years, Togo has emerged as a standout performer in Africa’s business reform arena, implementing sweeping changes that have not only improved its Doing Business rankings but have also set a new standard for regulatory innovation on the continent.

From streamlining business registration to modernizing its judicial and tax systems, Togo’s government has demonstrated a clear commitment to creating an environment where entrepreneurship can thrive. This article delves into the key reforms that have positioned Togo as a leader in Africa’s economic transformation—a story of political will, strategic planning, and relentless execution.

Starting a Business: Leading the Pack in Africa

When it comes to ease of starting a business, Togo isn’t just competing—it’s leading. Ranked 15th globally and first in Africa under the Starting a Business index of the 2020 Doing Business report, the country has made it simpler, faster, and more affordable for entrepreneurs to formalize their ventures. But what does this actually mean for a local business owner or a foreign investor?

Gone are the days of bureaucratic red tape and endless paperwork. Togo’s reforms have introduced digital platforms, reduced the number of procedures, and slashed the time required to register a business. This isn’t just about climbing rankings; it’s about sending a clear signal to the world: Togo is open for business.

And the momentum isn’t slowing down. With continued focus on digitization and process simplification, Togo is poised to not only retain its top spot in Africa but also climb even higher in global standings. For a country once overlooked in economic discussions, this is a transformative achievement.

Enforcing Contracts: From Laggard to Leader

Not long ago, Togo languished near the bottom of global rankings for contract enforcement. Today, it tells a different story—one of dramatic improvement and renewed confidence in its judicial system. The reforms in this area have been particularly impactful, addressing long-standing issues that previously deterred investment and hindered commercial dispute resolution.

So, what changed? The government undertook a comprehensive overhaul of its commercial justice system, recognizing that reliable contract enforcement is fundamental to business confidence. New specialized courts, digital platforms, and streamlined procedures have transformed how commercial disputes are handled, making the process faster, more transparent, and more predictable.

Contract Execution: A System Reimagined

The creation of special chambers for small debts, commercial courts in key cities like Lomé and Kara, and the introduction of the FORSETI COMMERCIAL digital platform represent just some of the concrete steps taken. Perhaps most significantly, Togo now mandates that commercial disputes be resolved within a maximum of 100 days—a stark contrast to the previously protracted timelines that could stretch for years.

These changes matter because they directly impact business decisions. When companies know that contracts will be honored and disputes resolved efficiently, they’re more likely to invest, partner, and expand operations. Togo’s progress in this area demonstrates how judicial reform can serve as a catalyst for broader economic development.

Trading Across Borders: Breaking Down Barriers

In our interconnected global economy, the ability to move goods across borders efficiently can make or break a nation’s competitiveness. Togo has made impressive strides in this domain, implementing reforms that have significantly reduced the time and cost associated with import and export procedures.

The focus has been squarely on digitization and process optimization. By moving documentation online, eliminating redundant steps, and improving coordination between border agencies, Togo has created a more seamless trading environment. For businesses that rely on international supply chains, these improvements translate to lower costs, fewer delays, and enhanced competitiveness.

Considering Togo’s strategic position as a regional trade hub, these reforms take on even greater significance. The country is not just improving its own trading environment but potentially elevating the entire West African region’s connectivity to global markets.

Construction Permits: Building a Foundation for Growth

The construction sector often serves as a bellwether for economic health, and here too Togo has made notable progress. Moving from 133rd to 127th in the Construction Permit index might seem incremental, but it represents meaningful improvement in a complex area that involves multiple agencies, regulations, and approvals.

By streamlining procedures, clarifying requirements, and reducing approval times, Togo has made it easier for developers to undertake construction projects—from residential buildings to commercial infrastructure. This not only stimulates immediate economic activity through job creation and investment but also lays the physical foundation for long-term growth.

Getting Electricity: Powering Business Operations

Reliable access to electricity remains a critical challenge across much of Africa, and Togo has tackled this issue head-on. Consistent improvements in the “Getting Electricity” indicator reflect a multipronged approach that includes infrastructure investment, regulatory reform, and process optimization.

Businesses now benefit from more transparent connection procedures, reduced costs, and faster turnaround times for electricity access. These improvements are particularly important for manufacturing and industrial operations that require stable power supply to remain competitive. As Togo continues to expand and upgrade its energy infrastructure, the benefits for businesses—and ultimately for consumers—will only multiply.

Registering Property: Securing Rights, Unlocking Value

Perhaps no area demonstrates Togo’s reform momentum more clearly than property registration. From previously languishing at the bottom of global rankings, the country has made such dramatic progress that it now aims to surpass Rwanda—Africa’s top performer in this category.

Secure property rights form the bedrock of a market economy, enabling individuals and businesses to use property as collateral for loans, transfer assets efficiently, and invest in improvements with confidence. Togo’s reforms have simplified registration processes, reduced costs, and enhanced the reliability of property records—changes that unlock significant economic value for property owners and the economy at large.

Public Procurement: Transparency and Efficiency

Togo’s public procurement system has undergone comprehensive modernization, moving toward greater professionalism, digitization, and regulatory clarity. These changes matter because public procurement represents a significant portion of economic activity—and when done well, it can stimulate private sector growth while ensuring taxpayer funds are used effectively.

The reforms align with Togo’s National Development Plan, which recognizes the private sector as the engine of economic growth. By creating a more transparent, efficient, and fair procurement system, the government is not only improving governance but also creating better opportunities for businesses to participate in public projects.

Paying Taxes and Duties: Simplifying Compliance

Tax compliance has long been a burden for businesses in many developing economies, but Togo has taken significant steps to lighten this load. Through a combination of tax reforms, exemptions, and digitization, the country has created a more attractive fiscal environment for investors and entrepreneurs.

The replacement of certain taxes, elimination of others, and introduction of digital platforms for tax filing and payment have made compliance simpler, faster, and more predictable. For businesses, this means less time spent on administrative tasks and more resources available for investment and growth.

The Bigger Picture: Togo’ Economic Vision

These individual reforms collectively paint a picture of a nation serious about economic transformation. But beyond the specific changes in each sector lies a broader vision—one that recognizes that business climate improvement isn’t about isolated fixes but about creating a coherent, supportive ecosystem where enterprises can flourish.

Togo’s progress demonstrates how targeted reforms, consistently implemented, can yield significant results. The country’s rise in various Doing Business indicators reflects not just technical improvements but a fundamental shift in how government approaches its role in the economy—as an enabler rather than an obstacle.

What Other Nations Can Learn

For other developing economies looking to improve their business environments, Togo’s experience offers valuable lessons. The success factors appear to include: political commitment at the highest levels, focus on implementation rather than just planning, willingness to learn from global best practices while adapting them to local context, and use of technology as an enabler of reform.

Perhaps most importantly, Togo’s approach has been comprehensive rather than piecemeal—recognizing that businesses operate in an ecosystem where improvements in one area (like contract enforcement) reinforce gains in another (like property rights).

Looking Ahead: The Future of Togo’s Reform Agenda

While celebrating past achievements is important, Togo’s reformers appear focused on the road ahead. The country continues to identify new areas for improvement and refine existing reforms based on feedback from the business community.

The challenge now is to ensure that these regulatory improvements translate into tangible economic benefits for all Togolese—through job creation, increased investment, and broader participation in the formal economy. If the recent past is any indication, Togo’s commitment to continuous improvement suggests the country will remain at the forefront of Africa’s business reform movement for years to come.

In a region often characterized by economic challenges, Togo’s story offers a refreshing narrative of progress and possibility. Through thoughtful reforms and determined implementation, this West African nation is rewriting its economic story—and inviting the world to take notice.