世界发展银行-Togo-_-Future-Sources-of-Growth_156页_2mb

Summary of the Togo Economic Growth Report

Core Content

This report, Future SOURCES OF GROWTH, is a comprehensive analysis of growth opportunities in Togo, focusing on key sectors such as agriculture, manufacturing, transport and logistics, mining, and tourism. It outlines the necessary reforms and strategies to enhance the country's economic performance and support the World Bank Group's twin goals of poverty reduction and economic growth. The report is structured into several chapters and annexes, providing detailed insights and recommendations.

Main Viewpoints

• Economic Growth: Togo has experienced steady but modest growth, averaging 5.0% annually since 2006. However, this growth has not been sufficient to improve the well-being of the population significantly.
• Debt and Financial Constraints: Public debt reached 76% of GDP in 2018, and the country needs to reduce this level. The finance sector is also under pressure due to rising non-performing loans and a lack of private sector access to credit.
• Investment Climate: The private sector identifies taxes, access to finance, and poor infrastructure as major constraints. Togo ranks poorly in global indicators for tax compliance and logistics performance.
• Export Performance: While goods and services exports grew until 2013, they have stagnated or declined since. Exports as a share of GDP have fallen from 41.5% to 34.8%.
• Spatial Solutions: Special Economic Zones (SEZs), industrial parks, and agropoles are proposed as mechanisms to support growth. These solutions can help improve the business environment and attract investment.
• Logistics and Transport: Togo's port and strategic location make it a potential regional hub, but weaknesses in logistics services and transport infrastructure limit its potential. There is a need for reform and modernization of the sector.
• Mining and Agriculture: Mining remains a key sector, but it has stagnated. Agriculture, especially export-oriented sectors like cotton, coffee, cocoa, and cashew, has growth potential, though it faces challenges in value addition and market access.
• Tourism: The tourism sector is underdeveloped and has not been a significant contributor to growth. The report emphasizes the need to focus on business tourism, particularly MICE (Meetings, Incentives, Conferences, Exhibitions), and to improve the regulatory and institutional framework.

Key Information

Economic Overview

• Togo's economy has grown at an average rate of 5.0% since 2006.
• Public debt reached 76% of GDP in 2018.
• Exports of goods and services have declined in real terms since 2013.
• The government is working on the National Development Plan (2018–2022) with three strategic orientations: logistics hub, growth poles, and social development.

Investment Climate Challenges

• Taxes: The total tax burden is estimated at 90% of pre-tax profits, with 30 different taxes and frequent tax inspections.
• Access to Finance: The private sector has limited access to credit, with non-performing loans increasing and private sector credit share dropping from 27% to 20% of total bank assets.
• ICT and Telecommunications: Togo ranks 156th globally in ICT development. High costs and poor quality are attributed to limited competition and state ownership.
• Electricity: Electricity tariffs are high, and the distribution network is inefficient and poorly maintained.

Trade Logistics and Transport

• Togo's port is a key asset but suffers from poor logistics performance.
• The "Trading Across Borders" indicator highlights cumbersome regulations and long delays in customs and border compliance.
• The Logistics Performance Index (LPI) shows Togo lagging behind its regional neighbors.
• Transshipment has increased significantly, but it lacks value addition and has not improved the overall port performance.

Spatial Solutions

• Togo has one existing SEZ near the port and is exploring others.
• A new SEZ is being developed at Adétikopé and should be a priority.
• Private management is recommended for SEZs, with a focus on infrastructure and services rather than fiscal incentives.
• Industrial parks are easier to establish and offer potential benefits, but they do not improve the business environment significantly.
• Agropoles are seen as a growth pole strategy but require careful planning and limited public resources.

Mining Sector

• Mining is a key sector, particularly in phosphates, but has stagnated.
• The sector is subject to regulatory and institutional challenges.
• There is a need for improved governance and policy frameworks to enhance mining performance.

Agriculture

• Export-oriented agriculture has potential, especially in cotton, coffee, cocoa, and cashew.
• Value addition and market access are critical for agricultural growth.
• The horticulture sector is growing but faces challenges in informal practices and data collection.

Tourism

• Tourism has been neglected and has not contributed significantly to growth.
• The MICE market is underdeveloped and requires targeted strategies.
• The report recommends focusing on business tourism and improving the value proposition of multi-country tours.
• Institutional and regulatory reforms are necessary to support tourism development.

Recommendations

• Improve Export Measurement and Monitoring: Better data collection is essential for effective policy design.
• Enhance the Investment Climate: Address tax policy, access to finance, and infrastructure issues.
• Develop Spatial Solutions: Prioritize SEZs and industrial parks with private management and efficient infrastructure.
• Reform the Mining Sector: Improve governance and policy to enhance competitiveness and sustainability.
• Boost Agricultural Exports: Focus on value addition and support export-oriented activities.
• Revitalize Tourism: Develop MICE tourism and improve the regulatory framework to attract investment.

Conclusion

Togo has the potential for growth through strategic reforms in key sectors. The report emphasizes the importance of improving the business environment, enhancing logistics and transport infrastructure, and leveraging spatial solutions to attract investment and support export growth. The government needs to prioritize these areas and work closely with the private sector to achieve sustainable development.