Countries of the World/COUNTRYS.BIN/dp/0370/03703.txt

Text File | 1991-06-25 | 26KB | 651 lines

$Unique_ID{COW03703}
$Pretitle{443}
$Title{Togo
Economic Opportunities in Togo}
$Subtitle{}
$Author{Embassy of Togo, Washington DC}
$Affiliation{Embassy of Togo, Washington DC}
$Subject{togo
west
lome
togo's
epz
code
investment
africa
economic
million}
$Date{1990}
$Log{Children*0370301.scf
Monument to Independence*0370302.scf
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}
Country:     Togo
Book:        Togo A Trade and Investment Guide
Author:      Embassy of Togo, Washington DC
Affiliation: Embassy of Togo, Washington DC
Date:        1990

Economic Opportunities in Togo

     Ideally situated on the West African coast, Togo boasts an annual (1989)
GDP growth rate of 3.6%, a youthful and eager work force, a pro-Western,
market-oriented government, and a liberal investment code. These factors,
along with a well-developed infrastructure, one of the lowest costs of living
in Africa, and political stability, make investment and trade opportunities in
Togo particularly attractive for American investors.

     Togo was a founding member of the Economic Community of West African
States (ECOWAS), a 16-country community that stretches from Mauritania to
Niger. With a total population of over 200 million people, ECOWAS promotes
development of a single West African market. Togo serves as Headquarters for
the ECOWAS Investment Fund. Togo offers special advantages to North American
investors seeking access to European and West Africa markets. These include:

      An Export Processing Zone (EPZ) which allows foreign manufacturers to
set up operations in Togo and export to the European Community, U.S. and West
Africa under highly favorable conditions.

      A productive, readily trainable labor force and a highly competitive
wage structure.

      A liberal investment code for new business ventures including financial
incentives, streamlined regulations and repatriation of earnings in
convertible currency.

      A well-developed highway network linking its capital and principal
port, Lome, with neighboring Benin, Ghana, and Burkina Faso.

      One of the most efficient ports in the region, capable of handling all
types of cargo. A 173-acre free port area and 1,581-acre industrial park make
it an attractive regional base.

      The third largest airport in West Africa, with daily flights to Europe
and the U.S.

      Modern satellite telecommunications service to Europe and the U.S.

      Most of Lome's commercial banks are linked with major financial
centers, and all have correspondent U.S. banks.

      Sophisticated facilities for visitors to West Africa, including luxury
hotels, European-style nightclubs, and many first class restaurants serving
everything from French and Chinese to gourmet West African cuisine.

     Togo has an excellent history with U.S. businesses. Many America
corporations, including Ford Motor Company, General Electric, Mobil Oil, Wang
Laboratories, Xerox Corporation, and Arthur Anderson & Company, presently do
business there. Togo is known as the "Switzerland of Africa" because of its
stability, amenities and commitment to free-enterprise.

U.S. Economic Activity in Togo

     U.S. Exports to Togo: US$27.9 million

     U.S. Imports from Togo: US$2.9 million

     Principal U.S. Exports to Togo: Wheat, used clothing, chemicals, aircraft
parts, fabric

     Principal U.S. Imports from Togo: Agricultural products, art and
antiquities

     U.S. Market Share of Togo Imports: Less than 1%

     U.S. Investment in Togo: Over US$30 million, with more than a dozen
companies, chiefly in steel, textiles, heavy machinery, and oil

ECONOMY

     About 80% of Togo's three million inhabitants derive their incomes from a
diversified rural sector producing foodcrops as well as coffee, cocoa, and
cotton for export. The economy is also sustained by a robust, small-scale
commercial sector and a phosphate mining operation. It's banking system serves
the entire subregion. In 1989, Togo had an average per capita GNP of US$390.

     Due to poor world market prices for Togo's exports there was a reverse in
the economy in the late 1970s and early 1980s. In 1983, Togo initiated a
far-reaching economic adjustment program resulting in renewed vigor in the
economy.

     The Government's development strategy for 1988-90 further aims at
continuing improvement in all sectors of the economy, closely focusing on the
growth of the key sectors of agriculture and industry as well as export
sectors.

WHY INVEST IN TOGO?

     - Togo is blessed with one of the most stable government systems in
Africa and provides a safe haven for investment capital.

     - Labor is productive and readily trainable. Skilled labor rates are
around 60 cents per hour.

     - Togo has an open, liberal economic policy, based on non-discrimination.

     - Togo's EPZ can give U.S. manufacturers easy access into the European
community of 320 million consumers. Togolese products enter Europe duty and
quota free.

     - Togo has a liberal investment code providing for free entry and
repatriation of capital and profits. The government also has special tax
incentives for foreign investors.

     - Togo has a market oriented economy with top priority given to private
initiative.

     - Togo is an excellent regional base for West African Markets. The modern
port of Lome is a favored port of entry for neighboring land-locked countries.

     - Togo's telecommunications and transportation systems are second to none
in West Africa.

     - Man-power and energy are inexpensive and readily available.

     - Togo has one of the lowest costs of living in Africa.

     - Togo's bank network is very good, with a number of banks linked with
major financial centers throughout the world.

     - In one of the friendliest countries in the world, the Togolese people
readily welcome both foreign business people and tourists.

PRIVATIZATION OPPORTUNITIES

     Encouraged by the World Bank, in 1984 Togo became one of the first
countries in Africa to turn to privatization of state industries. By the end
of 1990, 47 of the 73 companies in state hands will have been disposed of (10
liquidated, 14 sold or leased off, and another 23 readied for sale or lease).

     The first and arguably most successful of these projects has been the
privatization of Togo's steel mill, Societe Togolaise de Siderurgie (STS).
Leased to American entrepreneur John Moore in 1984, the mill has operated at a
profit since 1985. Mr. Moore attributes STS's success to the Togolese people's
"professional qualities, their efficiency and their dedication to the
development of their enterprises."

     The government is actively seeking foreign investors for many of its
former state-owned and parastatal companies. Among the larger companies still
available for privatization are a transportation company (with a large fleet
of trucks and tractors), and a galvanized roofing company. The government is
also seeking investors for many smaller companies including a recording
studio, an ocean-front hotel, and a poultry farm.

ECONOMIC SECTORS

     Togo's economy can be divided into three major segments: agriculture,
industry and services. Agriculture provides employment for approximately 80%
of Togo's labor force. Coffee, cocoa and cotton are the major cash crops
accounting for 30% of Togo's export earnings.

     The industrial sector employs 2.5% of the labor force, with phosphates
accounting for 40% of the export earnings. More than 100 other industrial
enterprises are concentrated around Lome including the steel mill, plastics
industry, sugar refinery, marble and building materials, edible oils
factories, and textile factories.

     The service sector of the economy - which includes commerce, tourism,
transportation, and communications services - accounts for almost 50% of the
GDP and 20% of the employment. Commerce is the most important economic
activity in Togo after traditional agriculture.

     Lome has long been known as an important region