Although American private investment in Togo and bi-lateral trade remains very limited, there are encouraging signs for companies looking to do business in Togo. Economically, Togo is enjoying a period of steady expansion that is fueled both by the return of international investors after years of political instability, and by a concerted effort to modernize the country’s commercial infrastructure. The annual GDP growth rate is projected to average 5.5 percent between 2016 and 2018. In January 2017, the IMF signed a three-year Extended Credit Facility for $238 million in a sign that the country is willing to engage in more macro-economic reforms. Togo became eligible for a Millennium Challenge Corporation Threshold Program in December 2015 in recognition of government’s efforts to make improvements in the areas of political rights, economic freedom, and investments in human capital.
Togo invested heavily in recent years in several ambitious, large-scale infrastructure improvements. Through these improvements, especially to its seaport and airport facilities, Togo is attempting to develop and leverage Lomé’s position as a regional trading center in an effort to accelerate its economic performance. Over the last few years, Togo has embarked on a large-scale modernization and expansion project at the port, and the new facility has the potential to eclipse the capacity of all other ports in Sub-Saharan Africa. Additionally, Togo recently inaugurated a new, modernized airport terminal in Lomé which is projected to accommodate five times the passenger traffic of the former terminal. On July 3 2016, Ethiopian Airlines opened a direct flight between Lomé and Newark.
If you are interested in exploring opportunities to do business in Togo, please reach out to the Embassy’s economic section.
Africa Growth and Opportunity Act: The African Growth and Opportunity Act (AGOA) is a United States Trade Act, enacted on 18 May 2000 as Public Law 106 of the 200th Congress. AGOA was renewed in 2015 and extended until 2025. The legislation significantly enhances market access to the United States for qualifying Sub-Saharan African (SSA) countries. Qualification for AGOA preferences is based on a set of conditions contained in the AGOA legislation. In order to qualify and remain eligible for AGOA, each country must be working to improve its rule of law, human rights, and respect for core labor standards. More information can be found here: https://agoa.info/about-agoa.html
Millennium Challenge Account: The Millennium Challenge Corporation (MCC) is an innovative and independent U.S. foreign aid agency that is helping lead the fight against global poverty. MCC provides these well-performing countries with large-scale grants to fund country-led solutions for reducing poverty through sustainable economic growth. MCC grants complement other U.S. and international development programs. There are two primary types of MCC grants: compacts and threshold programs. Togo was declared eligible for the MCC Threshold program in 2015 and the government continues to pursue reforms for eventual Compact program eligibility. More information can be found here: https://www.mcc.gov/where-we-work/country/togo