Following an estimated growth rate of 5.0% in 2012, the forecasts for 2013 and 2014 are favourable (about 5.3% and 5.5%), thanks to reform and investment.
Constraints weigh heavily on the business environment, in particular for creation of companies and land ownership.
Togo is working to bring its extractive industries in line with international standards in 2013 and to improve the sustainable management of natural resources.
The primary sector dominates the Togolese economy, contributing 38% to gross domestic product (GDP) in 2012, ahead of the tertiary sector (23%) and secondary sector (21%). Agriculture as a share of GDP remains a mainstay of the sector at 27%. Estimated growth of 5.0% for 2012 will come mainly from the primary and secondary sectors, in particular cotton, phosphate, and construction and public works, up from 2011. Together, these two sectors added 4.1% to real growth in 2012 (1.6% and 2.5% respectively), compared to 2.8% in 2011 (1.9% and 0.9% respectively). A public investment programme continues, which includes investment in roads and, combined with the revival of the phosphate and cotton sectors, is expected to support growth in 2013 and 2014, which could reach 5.3% and 5.5% respectively.
In 2012 the government prioritised investments and improving the macroeconomic situation. Despite increased fiscal revenue (+4.2% over 2011), at about 16.9% the tax burden remains lower than the 17% standard set by the West African Economic and Monetary Union (WAEMU). The deficit in the overall balance widened from -1.2% in 2011 to -3.1% in 2012. The expected 2.3% inflation rate for 2012 – under the community ceiling of 3% – is due to an estimated 4.5% fall in the price of communication services.
Politically, the conduct of legislative elections initially planned for the end of 2012 and postponed until 2013 will be a determining factor in maintaining calm in the country.
Togo’s population is very young, with 60% aged under 25. Youth unemployment and underemployment are particularly high at 8.1% and 20.5% respectively. Progress has been made on the Millennium Development Goals (MDGs), but it is unlikely that many will be met by 2015. The most notable progress has been made in primary education for all, with the primary school net enrolment ratio increasing from 74.6% in 2006 to 81.8% in 2011. Poverty fell by three percentage points over the same period, but extreme poverty rose from 28.6% to 30.4%, and a greater focus must be placed on growth to help the poor.
As for natural resource management, reforms linked to the Société nouvelle des phosphates du Togo (SNPT), the state-run phosphate company created in 2009, have begun to produce results. Production expanded by 28.4% in 2012. Improved governance in the cotton sector also helped production jump by 49.4% in 2012. Clinker and cement achieved an annual growth rate of over 5%.
Figure 1: Real GDP growth 2013 (West)
Table 1: Macroeconomic indicators 2013
|Real GDP growth||4.9||5||5.3||5.5|
|Real GDP per capita growth||2.8||2.9||3.2||3.4|
|Budget balance % GDP||-1.2||-3.1||-3.6||-3.9|
|Current account % GDP||-6.4||-6.2||-3.9||-4.7|
Recent Developments & Prospects
Table 2: GDP by Sector 2013 (percentage of GDP)
|Agriculture, forestry & fishing||-|
|Agriculture, hunting, forestry, fishing||40.3|
|Electricity, gas and water||3.5|
|Electricity, water and sanitation||-|
|Finance, insurance and social solidarity||-|
|Finance, real estate and business services||6.6|
|General government services||-|
|Gross domestic product at basic prices / factor cost||100|
|Public Administration & Personal Services||-|
|Public Administration, Education, Health & Social Work, Community, Social & Personal Services||8|
|Public administration, education, health & social work, community, social & personal services||-|
|Transport, storage and communication||10.5|
|Transportation, communication & information||-|
|Wholesale and retail trade, hotels and restaurants||12.5|
|Wholesale, retail trade and real estate ownership||-|
Following 15 years of economic stagnation (1990-2005) due to socio-political issues, Togo has achieved continual growth since 2007: real GDP is expected to increase by 5.0% in 2012, compared to 4.0% in 2010 and 4.9% in 2011. This good performance is linked to the country's abundance of mineral resources and good agricultural climate. Countercyclical policies implemented by the government also helped support the agricultural sector and create a relatively stable macroeconomic environment characterised by moderate inflation (2.3%), despite the worsening of the budget balance in 2012 (-3.1%).
Estimates for 2012 show that Togo’s economy benefited from real growth across all sectors, although the growth rate for the primary sector was lower in 2012 (4.1%) than in 2011 (5.1%). Investment in construction and public works and in the extractive industries, along with reforms undertaken in the mining sector, contributed to significant improvement in the performance of the secondary sector in 2012, which reached an estimated growth rate of 13.0% (versus 4.5% in 2011). Growth in the tertiary sector also picked up, increasing from 1.0% in 2011 to 4.6% in 2012. This was largely due to restructuring in the banking system, the recovery of trade activities and reduced costs of communication.
The primary sector continues to dominate the Togolese economy, and is expected to contribute 38.1% of GDP in 2012, ahead of the tertiary sector (23.4%) and secondary sector (20.7%). Agriculture is still predominant within the primary sector, at 27.7% of GDP for 2012, and has strong potential for expansion: only 45% of the 3.4 million hectares of arable land are currently farmed, and the country's very diverse climate opens the door to a wide range of potential crops. The sector’s growth is nevertheless slowed by weak agricultural productivity, owing to small farm sizes, low levels of mechanised production, poor use of irrigation, landlocked rural regions, and obstacles to land ownership.
Efforts to restructure the cotton sector, in particular through the creation of the Nouvelle société cotonnière du Togo (NSCT) in 2009, a cotton company of which 40% is owned by producers, contributed to a significant increase in production (161.3%) between 2008 and 2011. A rise of more than 40% in 2012 confirmed this trend. The coffee-cacao sector, on the other hand, has declined continually over the past 20 years, due to a fall in international prices, ageing plantations, lack of upkeep, and most obviously climatic factors.
The secondary sector’s contribution to real growth expanded in 2012, reaching 2.5% (compared to 0.9% in 2011). The extractive industries, dominated by phosphates and clinker, added 4.4% to GDP and experienced growth of 15.8%. The creation of the SNPT and of a new strategy for recovery spurred on the phosphate sector in 2012, adding 1.5% to GDP and achieving real growth of 20.0%. Government efforts to improve the urban road network and rural highways also gave a boost to the construction sector in 2012, contributing 3.8% to GDP. The development of the telecommunications sector also spurred growth, driven by lower prices due to reforms and to Togo joining the world fibre optic network in 2012 through the West Africa Cable System (WACS).
As a result of improvements to the macroeconomic situation and the vitality of certain key sectors, forecasts predict a growth rate of 5.3% in 2013 and 5.5% in 2014. The forecasts also rely on continued reforms to revive economic activity and on the implementation of strategy for accelerated growth and employment (SCAPE 2013-2017).
The primary sector is expected to grow by 4.1% in 2013 and by 4.0% in 2014, in particular due to the positive performance of cash crops, growing at 12.2% in 2013 and 20.7% in 2014. Increases are also forecast for the secondary sector: 10.5% for extractive industries (23.8% in 2013 and 18.4% in 2014) and 9.8% for construction (7.5% in 2013 and 14.4% in 2014). In the tertiary sector an increase of 4.8% for 2013 and of 6.1% for 2014 is expected, thanks to the development of banking and insurance services (15.5% and 13.9% respectively for 2013 and 2014) that emerged following restructuring in the banking sector.
Togo is structurally dependent on external capital contributions, with internal demand continually higher than GDP since the 1990s. From 2008 to 2011, the share of consumption grew to nearly 97% of GDP on average (87% of which was for private consumption). In 2012 a figure of 95.5% of GDP is expected, 83.6% for private consumption and 11.9% for public consumption. A decline is expected to begin in 2013, down to 92.6%. This is due to declining private consumption (forecast at 81.2% of GDP), while public consumption will remain stable at 11.4%. The share of investment in GDP grew from 17.8% in 2008 to 19.8% in 2012, pulled along by public investment (which rose from 4.7% to 10.1% over the same period), while private investment fell (from 13.1% to 9.8%). Investments are expected to stabilise in 2013 and 2014 at around 20% of GDP.
Government revenue fell slightly from 23% of GDP in 2011 to 22.2% in 2012. At 16.9%, the tax burden was up slightly compared to 2011 (16.7%), but still under the 17% limit set by the WAEMU. Little change is expected for 2013 and 2014 (16.6% and 16.5%, respectively). Aid received by Togo fell in 2012 to 3.8% of GDP versus 4.9% in 2011, and that decline is expected to continue in 2013 (3.3%) before rising slightly in 2014 (3.5%).
The wage bill to tax revenue ratio fell from 35.9% in 2011 to 34.3% in 2012, moving closer to the WAEMU community standard of 35%. Government efforts to streamline the wage bill and to bring public-sector employment under control means that it is likely this downward trend will continue, with the share of the wage bill in GDP expected to represent 5.5% in 2013 and 5.3% in 2014, compared to 5.8% in 2012.
Current spending and net loans represent 25.3% of GDP for 2012, slightly up from 24.2% in 2011. This is due to the increase in current spending, representing 16.7% of GDP in 2012 (compared to 15.9% in 2011). Combined with the slight drop in tax revenue (including aid), this caused the deficit in the overall balance to widen from ‑1.2% of GDP in 2011 to ‑3.1% in 2012.
The 2013 finance law provides for a budget increase of more than 200 billion XOF (CFA franc BCEAO) over 2012, with forecasts for revenue and expenditure set at 779.8 billion XOF and 786.4 billion XOF respectively. Priority sectors will get allocated 49.1% of the budget as follows: 19.4% for road infrastructure, 13.8% for education, 6.6% for agriculture, 5.9% for health, 1.7% for water and sanitation and 1.7% for the public investment programme.
Table 3: Public Finances 2013 (percentage of GDP)
|Total revenue and grants||21.2||22.9||23||22.2||21.3||21.5|
|Total expenditure and net lending (a)||21.8||22.6||24.2||25.3||25||25.4|
|Wages and salaries||6.3||5.3||6||5.8||5.5||5.3|
The WAEMU monetary environment for 2012 was marked by a 25 basis point decline in the key interest rates of the Central Bank of West African States (BCEAO). Togo’s principle monetary aggregates comply with WAEMU standards and financial intermediation seems to have been strengthened by the restructuring of the banking system, which also led to an 11.4% increase in deposits from 2011 to 2012. The money supply grew at an estimated rate of 11.4% for 2012, but at a lower rate than in 2011 (20.3%). Domestic credit was up 12.9% compared to 2011 and loans to the economy rose by 17.2%, while import coverage was at 4.5 months compared to the community standard of six months.
The rise in the prices of fuel, electricity and imported foodstuffs caused inflation to jump to 3.6% in 2011, up from 1.4% in 2010. This is slightly higher than the WAEMU community standard of 3.0%. The drop in price of communication services (estimated at 4.5%), allowed for an overall recovery reflected in the inflation rate of 2.6% for 2012. This trend is expected to continue through 2013 and 2014 with respective rates of 2.4% and 2.7%.
The financial market is still in its embryonic stages. Togo has only one company (Ecobank Togo) listed on the regional stock exchange (BRVM). The State is the largest Togolese actor on the regional market, and has only issued bonds since 2006 and Treasury bills since 2008. Compared to bonds issued by all WAEMU governments in 2012, Togo ranks sixth, at 88 billion XOF out of a total of 1 409 billion XOF (Treasury bills and bonds).
Economic Cooperation, Regional Integration & Trade
Togo has signed and ratified nearly all agreements and protocols in this field, in particular with the World Trade Organization (WTO), the European Union (EU) for ACP countries (Africa, Caribbean and Pacific), the Economic Community of West African States (ECOWAS) and the WAEMU. Its trade policy is largely governed by regional agreements, in particular with ECOWAS and the WAEMU, which both defend free trade between member states as a way of boosting their respective economic activity. Togo took a significant step forward toward regional economic co-operation by adopting the common external tariff (CET) set by the WAEMU-ECOWAS customs union.
External trade has been relatively stable in recent years with the country running a trade deficit, in particular due to the import of equipment, energy goods and foodstuffs. The balance of trade nonetheless improved slightly in 2012, with the deficit falling to 12.6% of GDP, down from 13.4% in 2011. This was due to a boost in phosphate and cotton exports, which jumped by 111.9%. Imports also increased from 43.3% of GDP in 2011 to 44.4% in 2012.
The balance of trade is expected to continue its recovery in 2013, reaching ‑11.0% of GDP, before again expanding slightly to ‑11.5% of GDP in 2014. The reduction of the trade deficit should lead to an improvement in the current accounts deficit in 2013, with a projected balance of ‑3.9% of GDP (compared to ‑6.2% of GDP in 2012 and ‑6.4% in 2011).
Table 4: Current Account 2013 (percentage of GDP)
|Exports of goods (f.o.b.)||31||28.5||30.8||29.9||31.8||32.9||33|
|Imports of goods (f.o.b.)||44.1||41.6||45.1||43.3||44.4||43.9||44.5|
|Current account balance||-10.6||-5.6||-6.3||-6.4||-6.2||-3.9||-4.7|
Upon completion of the Heavily Indebted Poor Countries (HIPC) Initiative in December 2010, Togo benefited from the Multilateral Debt Relief Initiative (MDRI), under which 95% of the debt owed to its Paris Club creditors (308.4 billion XOF) was forgiven. The World Bank and the African Development Bank (AfDB) also cancelled about 357 billion XOF of debt. External debt, which had reached 51.6% of GDP in 2009, was therefore brought down to 16.6% at the end of 2010 and 14.2% at the end of 2011. This helped restore Togo’s solvency as well as the sustainability of the country’s external debt, which is expected to represent 20.4% of GDP at the end of 2012.
Domestic debt made up about 66.7% of government debt at the end of 2010, and 68.1% at the end of 2011. With the repayment of about 14.7 billion XOF at the end of 2012, domestic debt is expected to be down to 22.6% of GDP for 2012, compared to 30.4% in 2011.
Debt relief helped reduce Togo’s national debt significantly, falling from 84.5% of GDP at the end of 2009 to 46.7% at the end of 2010 and 44.4% at the end of 2011. The figure expected for December 2012 is 43.0% of GDP. Forecasts are banking on the volume of national debt stabilising below the 40% bar, due to both declining domestic debt in 2013 and 2014 (16.7% and 12.4% of GDP respectively) as well as of external debt (21.1% and 24% respectively).
Figure 2: Stock of total external debt and debt service 2013
Economic & Political Governance
Since 2011 Togo has promoted business creation: it has reduced the costs of registering a business and replaced the obligatory criminal record check with a sworn statement upon registration. In 2011 a one-stop shop for the creation of businesses opened (the Centre de formalités des entreprises), cutting the number of days necessary for the legal establishment of a company by more than 50% (from 84 days in 2010 to 38 days in 2013) and fixing the number of administrative procedures at six (compared to an average of eight procedures and 34 days for sub-Saharan Africa). These advances helped Togo move up five places in the World Bank report Doing Business 2013, coming in 156th out of 183 countries (compared to 161st in 2012).
Despite the progress made in terms of business creation and improved solvency, certain constraints continue to have a negative effect on the business environment. The total number of days needed to transfer property is 295, versus an average of 65 days in sub-Saharan Africa, 33 days in North Africa and the Middle East, and 26 days in OECD countries. Togo in fact holds the unwanted record for African countries in this area. In addition, legal fees for registering property deeds remain very high (12.5% of the value of the property, compared to 9.4% in sub-Saharan Africa and 4.5% in OECD countries).
The current legal and regulatory provisions governing land ownership and access to land date back to 1906 and were envisioned for an exclusively rural environment. A review of those provisions is provided for in SCAPE 2013-2017. In January of 2013, discussions began in Lomé on how to deal with societal urbanisation and how to introduce legal security for private investment and transactions. The reform process should eventually lead to the adoption of a new land ownership code as well as the creation of a one-stop shop for property deeds by the end of 2017.
Togo is ranked 167th in terms of tax payment. In December 2012 parliament adopted a law that brings together all the different customs and tax administrations within a single autonomous government body, the Office togolais des recettes (OTR), in order to improve and to provide better-quality services to taxpayers. This is an innovative reform in French-speaking West Africa but has proven successful elsewhere, particularly in Ghana.
By end-2012, the 11 banks and two financial establishments offered a banking network consisting of 157 branches. Postal deposits (8.3 billion XOF) and bank deposits (629.3 billion XOF) were up from the end of December 2011 by 6.6% and 3.5% respectively. Key interest rates fluctuated between 3.5% and 4.5% and borrowing rates stood around 10%.
Credit has grown steadily since 2009, which is an encouraging sign. The ratio between loans to the non-governmental sector and GDP has also continued to rise from 25.8% in 2010 to an expected 27.2% in 2013. As for the ratio between loans to the non-governmental sector and bank deposits, that will likely remain around 70%. The World Bank report Doing Business 2013 does indicate, however, a slight fall in loans granted, and Togo has moved down two places to 129th. Its score remains sub-par compared to the average for sub-Saharan Africa.
As of 30 June 2011, the 83 microfinance institutions (MFIs) present in Togo had more than 969 000 direct beneficiaries and 400 000 active borrowers, 20% of which were micro and small enterprises (MSEs). Total outstanding credit as of that same date amounted to 76.8 billion XOF while outstanding savings totalled 95.8 billion XOF. Loans granted by MFIs represent 16.3% of all bank loans, while deposits represent 15.3% of the total. One of the objectives of SCAPE 2013-2017 is to increase the microfinance penetration rate from 30.2% in 2011 to 48% in 2017, although rapid expansion of the sector has also caused the authorities to strengthen monitoring.
In 2006, the Togolese banking system was practically insolvent due to the accumulation of unproductive loans granted during the previous socio-political crisis, in particular to public enterprises. At the end of 2008, the State completely recapitalised the country’s five largest banks at a cost of 87.9 billion XOF, or 6.2% of GDP. Financial streamlining of public banks and action taken to increase minimum share capital has produced results. The Cooke ratio (the ratio between capital and outstanding credit in the overall banking system) jumped from ‑4.1% in 2008 to 12.0% in 2009, 14.4% in 2010 and 13.3% as of the end of June 2012. At the end of December 2012, the privatisation of three public banks was still pending: these are the Banque togolaise pour le commerce et l’industrie (BTCI), the Banque internationale pour l’Afrique au Togo (BIA-Togo) and the Union togolaise de banque (UTB). The State is a significant shareholder in Togolese banks, which entails a certain amount of risk.
Public Sector Management, Institutions & Reform
Since 2009, significant steps have been taken to fight corruption through the establishment of external control bodies, such as the Court of Auditors, and through the strengthening of the inspectorate of public finances and the government general inspectorate. However, as of right now neither the parliament nor the Council of Ministers has planned to discuss the reports on the government management accounts. Togo’s corruption index improved in 2012 to 3.0, compared to 2.8 in 2009 and 2.4 in 2010 and 2011. Although Togo moved up 15 places in the latest Transparency International report, from 143rd in 2011 to 128th in 2012, it is still generally perceived to be a corrupt country.
At the end of 2011, the government undertook a broad census of public-sector employees (50 498 were counted), in order to create a single paper file to serve as the basis for an electronic reference file. This exercise was part of an effort to streamline staff numbers, bring the wage bill under control, and clean up public finances. The objective is to redefine and to clarify the State’s missions, in particular by revising the legal framework for the public sector, and by creating an electronic administration system as well as one for the co‑ordination of government action. In November of 2012 the government adopted a bill that created a new general statute for the public sector (replacing the one that had been in place since 1969); this now awaits adoption by parliament. SCAPE 2013-2017 provides for an increase in the ratio of wage bill to current spending: estimated at 35% for 2012, this ratio should gradually increase to 41% by 2017.
In the telecommunications sector, a licence has yet to be granted to a third operator, preventing true competition and the diversification of available mobile services. Elsewhere in the sector, the State plans to open up the capital of Togo Telecom to private investors.
Natural Resource Management & Environment
Despite its abundant hydraulic resources, access to drinking water remains problematic: service rates countrywide rose from 34% in 2007 to 42% in 2012, still below the MDG goals of 49% for 2011 and 75% for 2015. In urban areas, the state-run company Société togolaise des eaux (TDE) is responsible for distribution, but it is having trouble expanding its network and also faces severe financial difficulties. Access to drinking water has deteriorated as a result, falling from 39% in 2007 to 34% in 2011. In rural and semi-urban areas however, where the directorate general for water and sanitation (DGEA) is responsible for distribution, the situation improved: for the period 2007 to 2011, rates climbed from 30% to 47% in rural areas and from 29% to 35% in semi-urban areas.
The proportion of the population with access to an improved sanitation system rose from 31.7% in 2006 to 34.9% in 2011. The low coverage rate for latrines (11.7% in 2010) is due to the fall in the number of public toilets built since 2009 (3 004 units were built in 2009 while only 563 were built in 2011).
Severe pressure has been placed on the country’s natural resources, which is linked to an increase of extreme poverty in rural regions. This is translated by deforestation, which is estimated at 15 000 hectares per year, with a rate increasing from 4.5% in 2005 to 5.5% in 2011. Coastal areas are also affected (human and industrial waste, waste water, etc.), and are experiencing considerable erosion. Governance of the sector has nonetheless been improving for some time now, with an updated national environmental policy aimed at tackling emerging challenges (natural disasters and climate change). A national strategy for sustainable development has also been adopted, as has a strategy to develop renewable energies. Both of these have helped improve governance. The national agency for environmental management (NGE), operational since 2011, has also proven valuable in terms of formalising environmental evaluations. However, a lack of waste disposal standards and the poor monitoring of environmental management plans has complicated attempts to bring pollution under control at all levels. Given the current situation, it is unlikely that the MDG relating to the environment will be reached by 2015.
The overhaul of the political landscape in 2012 has been a source of tension and much debate. The Togo People’s Rally (RPT), the ruling party created in 1969, was dissolved in April 2012 in order to form a new party, the Union for the Republic (UNIR). The 50 RPT representatives formed a parliamentary majority group (GMP) and succeeded in maintaining the RPT majority obtained during the legislative elections of October 2007 (the National Assembly has 81 seats). In response to the postponement of elections scheduled for 2012, six opposition parties joined together in the Rainbow Coalition in August 2012. For similar reasons, the Let’s Save Togo Movement (CST), comprising seven opposition parties and civil society organisations, has held protests which have often degenerated into confrontation with police forces.
In this new political environment, the government has opened negotiations with the opposition regarding institutional and constitutional reforms, in order to determine the length of the president’s term in office and to set electoral districts. The extent to which the upcoming legislative elections unfold peacefully will be a determining factor in maintaining calm in the country.
Thematic analysis: Structural transformation and natural resources
Togo is one of the largest phosphate producers in Africa. It also has significant iron ore reserves and large deposits of marble and calcareous rock. Mining in Togo began in 1961 with the industrial exploitation of phosphate, which was the country’s main natural resource at the time. In 1989, production reached 3.3 million tones, fully justifying the central economic role played by the Togolese Phosphate Office (OTP). The OTP did not, however, use the resulting profits or significant bank aid received to renew the equipment necessary for operation. In the end, suspected criminal activity and the absence of efficient production methods pushed the company into near bankruptcy, with production falling to 750 000 tonnes in 2007.
In 2001, as part of the structural adjustment reforms, the International Fertilizer Group (IFG-Togo), equally owned by the Togolese government and the group BRIFCO Limited, took over management of the OTP. However, this public private partnership was not successful: following a conflict between the government and the Franco-Tunisian Holding BRIFCO, the IFG and the OTP were dissolved in 2007. That same year, the government created a new state-run company, the SNPT. It also simultaneously carried out a strategic audit and drew up a business plan, linked to a new recovery strategy for the sector. Reforms have begun to bear fruit, with production up to 865 616 tonnes in 2011 and 1.1 million tonnes in 2012.
Togo also mines limestone (with its clinker factory producing 1 200 550 tonnes in 2011), marble (although production has not yet really begun) and iron (about 100 000 tonnes in 2012). In 1996 the clinker and cement sector was privatised. Along with benefits from the free zone created in 1989, this has boosted production, and annual growth is over 5%.
In October 2010, ENI Togo was granted a licence to search for offshore oil, and has now begun prospecting. The government has also granted seven licences to search for gold, diamonds, manganese, nickel, zinc, bauxite and platinum.
In addition to its mineral resources, Togo produces cotton (79 000 tonnes in 2011), maize and rice. Like in the phosphate sector, the cotton sector suffered from poor governance and outdated infrastructure and production equipment, leading to a fall in production from 187 000 tonnes in 1999 to 28 000 tonnes in 2009. The dissolution of the state-run SOTOCO and the creation of a joint venture company, the NSCT (40% of which is owned by the Federation of Cotton Producers), along with the implementation of a transparent and concerted system for setting cottonseed prices and for strengthening producer groups, has led to a jump in production, which reached 118 055 tonnes in 2012.
Coffee and cacao production declined significantly over the last 20 years, affected by a fall in international prices, lack of adequate inputs, and the absence of a working framework for producers. Maize and rice production, on the other hand, increased from 1980 to 2011 thanks to a strong subsidy policy for inputs, going from 139 000 tonnes to 651 000 tonnes for maize and from 15 000 tonnes to 112 000 tonnes for rice.
The country’s productive landscape has changed significantly over the past 20 years, both in terms of goods produced and in terms of export destinations. Phosphates, the basis of Togo’s economy since the 1970s and responsible for more than half of all export revenue in 1989, were overtaken by cotton for the first time in 1995. Cotton remained the main export until 2001, but from 2002 onward was displaced by clinker and cement (27%), while phosphates and cotton fell respectively to 15% and 14%. Clinker production rose to 1.18 million tonnes in 1999 following the privatisation and modernisation of the West Africa Cement Company (CIMAO).
In recent years the government has taken encouraging steps to ensure greater sustainability in natural resource management. For example, a law passed on 5 May 2011 requires all mineral resource operators to contribute to local development. Togo has also committed to transparency, and became a candidate country to the Extractive Industries Transparency Initiative (EITI) on 20 October 2010. The deadline for compliance is set for May 2013, which means the authorities must implement their detailed action plan swiftly.
The legal framework governing the environment has also improved considerably since 2006, in particular thanks to the adoption of texts that stipulate that all mining operations, whether industrial or semi-industrial, must be systematically preceded by an environmental and social impact assessment and approved by the issuance of an environmental compliance certificate. The existing regulatory framework (the mining code) remains ill-adapted, however, preventing real profits from being made from extractive activities (fees per km2, for example, are 150 XOF for prospecting and 2 250 XOF for exploration).
With SCAPE, the government committed to actively promoting the mining sector, in particular by developing its potential through the use of private capital and by undertaking in-depth, institutional and structural reforms in the extractive industries. The revision of the mining code and of the existing legislation is already underway, with a view to attracting major investments. A mining policy is also being drawn up. Last but not least, the government intends to produce updated geological relief maps and make geophysical data available, and to introduce new fiscal rules for the mining sector.