May 19, 2024

Togo’s Economic Growth Potential Linked to Private Sector Involvement, Says World Bank Report

Faure Gnassingbé
President Faure Gnassingbé of Togo

A report published today by the International Finance Corporation (IFC) and the World Bank reveals that Togo could transform its economy, create more jobs, and reduce poverty by increasing private sector participation in agriculture, transport, and logistics, as well as by improving its energy and digital infrastructure.

The Togo Private Sector Diagnostic (CPSD) examines challenges and opportunities related to private sector development, identifying key sectors and reforms to encourage greater economic involvement.

As Togo recovers from the COVID-19 pandemic crisis and faces new challenges such as surging inflation, the country aims to create jobs and offer better prospects for its growing population by relying more on the private sector. Recent reforms have focused on improving the investment climate and supporting telecommunications and energy sector development, with the government also transferring public assets to the private sector in telecommunications, banking, and agriculture.

The CPSD report emphasizes the potential of commodities such as cotton, soy, cashew nuts, and pineapple to support local value chain development, promote agri-food processing, and boost exports. It suggests that Togo’s agricultural sector would benefit from private investments in both production and processing, highlighting the need for farmers to access quality seeds and fertilizers.

Furthermore, the report recommends implementing reforms to strengthen and modernize Togo’s air, road, and maritime transport networks, customs procedures, and the regional corridor served from Lomé. These measures would increase private investments, enhance productivity, and support Togo’s ambition to become a logistics and trade hub in West Africa.

Additionally, the CPSD advises Togolese authorities to increase access to financing for individuals and micro, small, and medium-sized enterprises. It also calls for further reforms and partnerships to attract private investments in the energy, finance, and telecommunications sectors, enhancing competitiveness, inclusion, and economic opportunities across the country.

In line with the report’s findings, the World Bank Group’s strategy for Togo focuses on agro-industry, infrastructure, energy, ICT, manufacturing, transport, and logistics.

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