Togo Emerges as West Africa’s Transport Powerhouse, Capturing Nearly One-Third of UEMOA Revenue
In a remarkable economic achievement, Togo has positioned itself as the dominant force in West African transport, securing approximately 30% of the entire West African Economic and Monetary Union’s (UEMOA) transportation revenue for 2024. This commanding market share underscores the nation’s strategic investments in infrastructure and business climate reforms that are paying substantial dividends.
Business Reforms Fuel Economic Transformation
Togo’s ascent to transport dominance didn’t happen overnight. The country has been systematically implementing comprehensive business environment reforms across multiple sectors, creating fertile ground for economic growth and investment.
Starting a Business: Regional Leadership
Ranked fifteenth globally and first in Africa for Starting a Business in the 2020 Doing Business report, Togo continues to build on this foundation with ongoing initiatives that streamline business creation processes. This welcoming environment has particularly benefited the transport and logistics sectors, enabling rapid company formation and expansion.
Contract Enforcement: Building Trust in Commerce
Previously struggling with contract enforcement, Togo has made substantial progress through dedicated judicial reforms. The establishment of specialized commercial courts in Lomé and Kara, along with the FORSETI COMMERCIAL digital platform accessible to legal professionals, has created a more predictable business environment. The implementation of a maximum 100-day resolution timeframe for commercial disputes has significantly improved business confidence.
Cross-Border Trade: Digital Transformation
Togo’s strategic focus on digitalization and reducing delays in import-export procedures has yielded impressive results in the “Trading across borders” category. These reforms have directly benefited the transport sector by streamlining customs processes and reducing transit times, making Togo an increasingly attractive hub for regional trade.
Infrastructure and Regulatory Advancements
Construction and Utilities: Building Foundations
Improvements in construction permit processes and consistent enhancements in electricity and water access have supported the development of transport infrastructure. These reforms have enabled faster development of logistics facilities, ports, and supporting infrastructure critical to the transport sector’s growth.
Property Registration: From Bottom to Top Performer
Property registration represents one of Togo’s most dramatic turnaround stories. After years at the bottom of international rankings, the country now aims to surpass Rwanda as Africa’s top performer in this category. Secure property rights have been essential for transport companies seeking to establish and expand operations.
Supporting Business Operations
Modernized Public Procurement
Through professionalization, digitalization, and legislative updates, Togo’s public procurement system has undergone continuous modernization. These improvements have particularly benefited private sector transport companies participating in infrastructure projects and government contracts.
Tax Reforms: Competitive Framework
Togo has implemented significant tax reforms aimed at creating an attractive investment climate. By replacing certain taxes, eliminating others through exemptions, and leveraging digitalization, the country has developed one of West Africa’s most competitive tax frameworks for businesses, including those in the transport sector.
The convergence of these reforms across multiple sectors has created a virtuous cycle, with improvements in one area reinforcing progress in others. Togo’s capture of nearly one-third of UEMOA transport revenue demonstrates how comprehensive economic reforms can translate into tangible sectoral dominance and regional economic leadership.
Source: Original report from TogoFirst