Research and consulting in Togo

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Research and consulting in Togo

Country overview:

IOA has conducted extensive research and consulting on various aspects of Togo, a West African nation. With over 5% economic growth in 2024, IOA economists attribute this progress to strong economic fundamentals, including sustained foreign investment, robust consumer spending, and revenue from manufacturing and mineral extraction. Togo is one of the world’s leading phosphate producers, and its economy is further diversified by agricultural processing, cement production, and globally valued indigenous handicrafts. The country’s recent admission to the Commonwealth of Nations has opened new trade and development opportunities.

Despite importing all its fuel, energy-scarce Togo maximizes its resources, with refined petroleum products ranking as its top export. Its agricultural exports are equally varied. As a regional transportation hub, Togo benefits from increased connectivity but also faces security challenges, including money laundering and drug trafficking.

Key opportunities in Togo:

  • The mining sector is bolstered by significant phosphate production and the extraction of other minerals
  • Agricultural products are vital exports, supported by Lomé’s role as a major regional port
  • Togo’s diversified economy benefits from a higher degree of economic freedom compared to many other African nations

Key concerns/risks in Togo:

  • Development is heavily concentrated in the southern regions, creating a geographic disparity and leaving the northern areas underdeveloped
  • Petty crime, often targeting foreigners, has hindered the growth of the tourism industry
  • Deforestation poses a significant environmental challenge, with indigenous forests nearly depleted due to slash-and-burn agriculture and reliance on wood for domestic fuel
Togo

Tips on doing business in Togo:

Starting a business:

  • Foreigners are permitted to own property in Togo, provided they obtain the necessary licenses from the Ministry of Urban Planning and Housing. French citizens benefit from unique exceptions due to historic agreements between the two governments. In contrast, foreign investors can fully own a Togolese company or establish a wholly owned subsidiary
  • There is no requirement for foreign investors to partner with local stakeholders. New businesses must register with the Centre de Formalités des Entreprises (CFE)
    (Read more at: https://togoinvest.tg/en/)

Doing business:

  • Togo provides attractive opportunities for foreign investors in designated free export zones, including a 10-year corporate income tax exemption, followed by a reduced rate of 15%
  • Investors also enjoy exemptions from customs duties, no restrictions on foreign ownership, and a streamlined approval and licensing process
  • However, challenges include an unclear legal system, lack of well-defined land titles, and government interference in certain sectors. Corruption continues to be a prevalent issue

Culture and society:

  • French is the primary language for administration and business, so it is recommended to use an interpreter if one is not familiar with investing in a Francophone market
  • There have been reports of militant activity along the northern border, and travel to this area is not recommended

A sample IOA research report on Togo: