London, United Kingdom–(Newsfile Corp. – November 07, 2023) – In our comprehensive study Togo will be a prominent nation by the year 2030, we delve into the critical role Foreign Direct Investments (FDIs) play, serving as a pivotal avenue for the infusion of private capital.
The Togolese government prioritises FDIs, aiming to fast-track investments in both infrastructure and social sectors. This aligns with the vision of Togo’s President, Faure Essozimna GNASSINGBE, to transform Togo into a nation where wealth is generated and equitably distributed, underpinned by a robust educational system and a dynamic economy.
The private sector, consequently, remains a cornerstone in the structural transformation of the Togolese economy, catalysing wealth and job creation that’s not only substantial but also inclusive. To this end, Togo has, for years, been instituting reforms to enhance its business environment and appeal to potential investors, laying the foundation for major infrastructural initiatives.
The 2021 inauguration of the Adétikopé Industrial Platform stands as a testament to this robust political commitment towards FDIs. This establishment offers an enticing opportunity for foreign investors aiming to penetrate the African continental market. Even today, this infrastructure is a pivotal job creation engine for the youth.
The concurrent launch of Togo’s inaugural data center, along with the construction of the Blitta solar plant and Kékéli Efficient Power in Baguida, underscores Togo’s earnest political endeavour to foster FDIs within its borders.
Regarding FDIs’ contribution to the Togolese economy, recent astounding figures were shared by the Permanent Secretariat for Monitoring Policy Reforms and Financial Programs. In the fourth quarter of 2022, FDIs into Togo were assessed to exceed 43 billion FCFA. This outcome stems from the Togolese government’s proactive investment strategies.
Such strategies, buoyed by policies that facilitate a conducive business environment, tax incentives, and infrastructural development, have endowed the nation with other dividends. By capitalising on FDIs, Togo has witnessed technological transfers. Moreover, these policies have fostered domestic market competition and employee training during the establishment of new enterprises, bolstering human capital development in Togo. Thus, the revenues accruing from FDIs contribute significantly to the country’s corporate tax collection.
This enables the Togolese government to fund extensive projects, fostering development in the sub-region and combating poverty. According to a report by UNCTAD published this year, Togo is experiencing one of the most vibrant economic growths in West Africa, largely attributed to significant bank investments.
Post the global economic slowdown due to the Covid-19 pandemic, Togo intensified its endeavours to seek optimal strategies for promoting FDIs. In March 2023, Lomé hosted a workshop on revitalising FDIs in Sub-Saharan Africa amid the health crisis. Numerous international investors converged in the Togolese capital, aiming to bolster investments across diverse sectors, driving development in the sub-region, and poverty alleviation.
It’s evident from our study that Togo is ardently working to amplify its potential, striving to be a linchpin for investment in the West African region and maintaining an annual growth that averaged 5.2% between 2012 and 2021.