a) Monetary Poverty

People experiencing monetary poverty have living standards below a threshold called the poverty line. The methodology for measuring this type of poverty comprises two factors: the aggregate living standard and the poverty line. In the monetary approach, the well-being indicator is based on consumption. Poverty lines were calculated for Togo’s five regions and for Lomé on the basis of satisfaction of essential needs. The 2011 poverty lines are based on the 2006 poverty line adjusted to reflect the inflation rate between 2006 and July/August 2011 when data were being collected for the latest QUIBB survey. These lines are indicated in the table below.

Table 4:

Change in the Poverty Line between 2006 and 2011

(in CFAF)

Source: Poverty Profile, 2006 and 2011 QUIBB.

Table 4:

Change in the Poverty Line between 2006 and 2011

(in CFAF)

Region	2006	2011
Lomé	276,400	323,388
Maritime	178,278	208,585
Plateaux	176,896	206,968
Centrale	205,365	240,277
Kara	176,896	206,968
Savanes	179,660	210,202
National	276,400	323,388

Source: Poverty Profile, 2006 and 2011 QUIBB.

View Table

Table 4:

Change in the Poverty Line between 2006 and 2011

(in CFAF)

Region	2006	2011
Lomé	276,400	323,388
Maritime	178,278	208,585
Plateaux	176,896	206,968
Centrale	205,365	240,277
Kara	176,896	206,968
Savanes	179,660	210,202
National	276,400	323,388

Source: Poverty Profile, 2006 and 2011 QUIBB.

The variations in the poverty line are due to regional price disparities.

According to survey results, the national incidence of poverty (P₀) fell three points between 2006 and 2011 (from 61.7 percent to 58.7 percent). In addition, as Table 5 indicates, poverty declined in both rural and urban areas. In fact, the incidence of monetary poverty fell by 2.3 points in Lomé and by 1.7 points in other areas (urban and rural). Despite this overall drop, poverty remains higher in rural areas. In 2011, 73.4 percent of the rural population lived below the poverty line, compared to 28.5 percent of people in Lomé and 44.7 percent in other urban areas. Moreover, taking into account demographic weight that is much higher in rural areas, the vast majority of poor people live in rural areas. In fact, 78.9 percent of poor people live in rural, while 21.1 percent live in urban areas (Lomé included).

Table 5:

Change in Monetary Poverty in Urban/Rural Areas

(percent)

Source: Poverty Profile, 2006 and 2011 QUIBB

Table 5:

Change in Monetary Poverty in Urban/Rural Areas

(percent)

				Contribution to
		Poverty
	Indicators			National Poverty
Area	P0	P1	P2	C0	C1	C2
	2006
Lomé9	30.8	8.2	3.2	10.5	7.3	5.9
Other
Urban	46.4	14.2	5.9	10.6	8.5	7.1
Rural	75.1	30.6	15.6	78.9	84.2	87.0
Total	61.7	23.6	11.6	100.0	100.0	100.0
	2011
Lomé	28.5	6.9	2.6	11.4	6.6	4.6
Other
Urban	44.7	15.3	7.1	11.0	9.1	7.9
Rural	73.4	33.1	18.4	77.6	84.3	87.5
Total	58.7	24.4	13.1	100.0	100.0	100.0

Source: Poverty Profile, 2006 and 2011 QUIBB

View Table

Table 5:

Change in Monetary Poverty in Urban/Rural Areas

(percent)

				Contribution to
		Poverty
	Indicators			National Poverty
Area	P0	P1	P2	C0	C1	C2
	2006
Lomé9	30.8	8.2	3.2	10.5	7.3	5.9
Other
Urban	46.4	14.2	5.9	10.6	8.5	7.1
Rural	75.1	30.6	15.6	78.9	84.2	87.0
Total	61.7	23.6	11.6	100.0	100.0	100.0
	2011
Lomé	28.5	6.9	2.6	11.4	6.6	4.6
Other
Urban	44.7	15.3	7.1	11.0	9.1	7.9
Rural	73.4	33.1	18.4	77.6	84.3	87.5
Total	58.7	24.4	13.1	100.0	100.0	100.0

Source: Poverty Profile, 2006 and 2011 QUIBB

However, the depth (P₁) and severity (P₂) of poverty worsened during the period. The former rose from 23.6 percent to 24.4 percent, and the latter rose from 11.6 percent to 13.1 percent. This attests to a widening gap between the average expenditure of the poor and the poverty line, and to a rise in extreme poverty. In addition, the depth and severity of poverty as well as the incidence of poverty are greater in rural than urban areas.

Despite what this overview of poverty in urban and rural areas suggests, poverty has not declined in all regions. The poverty rate declined in Greater Lomé (down from 32.8 percent in 2006 to 27.2 percent in 2011), in the Kara region (down from 74.2 percent to 68.4 percent), and especially in the Maritime region (down from 67.1 percent to 53.9 percent). However, between 2006 and 2011, the poverty rate rose in the Plateaux region (up from 61.1 percent to 64.7 percent), the Centrale region (up from 74.6 percent to 80.2 percent), and the Savanes region (up from 86.7 percent to 90.8 percent).

Table 6:

Change in Monetary Poverty by Region

(percent)

Sources: Poverty Profile, 2006 and 2011 QUIBB

Table 6:

Change in Monetary Poverty by Region

(percent)

	Poverty Indicators			Contribution to National Poverty
	P0	P1	P2	C0	C1	C2
	2006
Greater Lomé10	32.8	9.2	3.8	12.4	9.1	7.6
Maritime	67.1	22.6	9.8	22.5	19.8	17.5
Plateaux	61.1	21.7	9.9	21.3	19.7	18.3
Centrale	74.6	29.1	14.1	11.8	12.1	11.9
Kara	74.2	32.0	17.4	16.3	18.3	20.3
Savanes	86.7	44.2	25.4	15.7	21.0	24.5
Total	61.7	23.6	11.6	100.0	100.0	100.0
	2011
Greater Lomé	27.2	6.4	2.4	12.1	6.9	4.8
Maritime	53.9	19.1	9.3	13.7	11.7	10.6
Plateaux	64.7	26.7	13.7	25.8	25.6	24.5
Centrale	80.2	34.1	17.8	14.1	14.5	14.1
Kara	68.4	29.2	15.7	15.0	15.4	15.5
Savanes	90.8	50.7	31.9	19.3	25.9	30.4
Total	58.7	24.4	13.1	100.0	100.0	100.0

Sources: Poverty Profile, 2006 and 2011 QUIBB

View Table

Table 6:

Change in Monetary Poverty by Region

(percent)

	Poverty Indicators			Contribution to National Poverty
	P0	P1	P2	C0	C1	C2
	2006
Greater Lomé10	32.8	9.2	3.8	12.4	9.1	7.6
Maritime	67.1	22.6	9.8	22.5	19.8	17.5
Plateaux	61.1	21.7	9.9	21.3	19.7	18.3
Centrale	74.6	29.1	14.1	11.8	12.1	11.9
Kara	74.2	32.0	17.4	16.3	18.3	20.3
Savanes	86.7	44.2	25.4	15.7	21.0	24.5
Total	61.7	23.6	11.6	100.0	100.0	100.0
	2011
Greater Lomé	27.2	6.4	2.4	12.1	6.9	4.8
Maritime	53.9	19.1	9.3	13.7	11.7	10.6
Plateaux	64.7	26.7	13.7	25.8	25.6	24.5
Centrale	80.2	34.1	17.8	14.1	14.5	14.1
Kara	68.4	29.2	15.7	15.0	15.4	15.5
Savanes	90.8	50.7	31.9	19.3	25.9	30.4
Total	58.7	24.4	13.1	100.0	100.0	100.0

Sources: Poverty Profile, 2006 and 2011 QUIBB

b) Extreme Monetary Poverty

Households in extreme poverty cannot afford the cost of meeting basic nutritional needs, even spending their entire consumption budget on food. In these cases the poverty line is set at the level of the food poverty line.

Extreme poverty cannot be defined solely on the basis of quantitative food deficiencies. As advised by the Committee on Economic, Social, and Cultural Rights (CESCR), the qualitative aspect must also be taken into account. According to the CESCR, to meet food needs diets must include a combination of nutrients necessary for physical and mental growth, the development and subsistence of individuals, as well as for a physical activity that meets the physiological needs of human beings at all stages of life, and on the basis of gender and level of activity. Therefore, measures are needed to ensure, adapt, or improve food diversity, as well as consumption and eating habits (including breastfeeding).

The national incidence of extreme poverty rose by nearly 2 points between 2006 and 2011 (up from 28.6 percent to 30.4 percent), which offsets the drop in poverty.

The breakdown of results by urban and rural areas indicates that extreme poverty is highest in rural areas where the rate rose from 38.8 percent in 2006 to 43.4 percent in 2011.

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Change in Extreme Poverty in Urban/Rural Areas

(percent)

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: Poverty Profile, 2006 and 2011 QUIBB

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The results by region (Figure 2) paint a similar picture to that of general poverty. If the food poverty line is taken into account, incidences of extreme poverty drop significantly in Greater Lomé and the Maritime and Kara regions while increasing in the Plateaux, Centrale, and Savanes regions.

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Change in Extreme Monetary Policy by Region

(percent)

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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a) Inequality in Access to Education

Regarding inequality in access to education, the gross primary enrollment rate is almost the same across all poverty quintiles in urban areas. However, in rural areas, in spite of the rise in the gross primary enrollment rate from 2006 to 2011 (thanks to the Government’s elimination of tuition fees), the gross primary enrollment rate of the two poorest quintiles dropped more than the others. This indicates that work remains to be done to improve access to primary school for poor children in rural areas.

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Gross Primary Enrollment Rate by Quintile in Urban/Rural Areas

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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Although the gross secondary enrollment rate has improved, the gap between urban and rural areas has widened. This indicates the need to continue working to improve access to secondary school in rural areas, particularly for children from poor households.

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Gross Secondary Enrollment Rate by Quintile in Urban/Rural Areas

(percent)

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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b) Inequalities in Health Care Access

Health care access has improved less in rural areas than urban areas, and the gap has widened between the poorest quintiles and the richest ones in urban and rural areas alike. In addition, health-care access dropped sharply in the poorest quintile in both urban and rural areas. This is undoubtedly due to recent economic crises, which have forced some households to resort to street medicines and traditional healers.

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Use of Hospitals to Treat Illnesses by Well-being Quintile

(percent)

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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c) Inequalities in Access to Drinking Water

According to the data, poverty does not affect access to drinking water in both rural and urban areas. However, access rates are much higher for urban than for rural households. This suggests that the problem of drinking water access is related more to geographical factors than financial ones.

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Percentage of Households with Drinking Water Access by Quintile in Urban/Rural Areas, 2006 and 2011

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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d) Inequalities in Access to Electricity

Access to electricity has risen significantly across all poverty quintiles in urban and rural areas alike. However, substantial disparities exist between urban and rural areas and between poverty quintiles.

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Percentage of Households with Electricity by Quintile in Urban/Rural Areas, 2006 and 2011

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2006 and 2011 QUIBB surveys

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a) Location of Monetary Poverty

A geographic breakdown of poverty reveals that the poorest prefectures are located in the northern part of Togo and, to a lesser extent, in the central part. Of the 10 poorest prefectures, nine are located in the northern and central areas, including the five prefectures of the Savanes region—Kpendjal (96.2 percent), Tandjoaré (94.5 percent), Oti (91.7 percent), Tone (87.6 percent), and Cinkassé (85.0 percent); three of the five prefectures in the Centrale region—Mô (87.9 percent), Blitta (79.6 percent), and Tchamba (78.0 percent); one of the seven prefectures of the Kara region—Dankpen (78 percent); and one of the 12 prefectures of the Plateaux region—Akébou (77.5 percent). However, prefectures with less poverty do exist in the northern part of the country—such as Kozah (57.9 percent). All the same, it is important to note that the 10 wealthiest areas are located in the southern part of the country.

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Poverty Incidence

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2011 QUIBB survey and 2010 GPHC, DGSCN

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b) Areas with Lowest Access to Education

The map of gross primary enrollment rates indicates that the prefectures with the lowest education access rates are in four regions: Savanes—Kpendjal (60.2 percent), Oti (63.3 percent), and Cinkassé (74.2 percent); Kara—Dankpen (61.9 percent), Kéran (70.6 percent), and Bassar (72.4 percent); Centrale—Mô (61.4 percent); and Plateaux—Haho (71.1 percent), Anié (72.9 percent), and Moyen Mono (73.4 percent).

As with poverty, low access to education exists in many areas in the northern and central parts of the country. The Savanes region has the lowest gross enrollment rate (see map below).

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Gross Primary Enrollment Rates

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2011 QUIBB survey and 2010 GPHC, DGSCN

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c) Areas with Lowest Access to Drinking Water

In contrast to incidences of poverty and low access to education, drinking water access is much lower in the southern parts of the country, particularly in the Plateaux and Maritime regions (with drinking water access rates of 39 percent and 30 percent respectively). In fact, of the 8 prefectures with the lowest drinking water access rates (<30 percent), 4 are in the Plateaux region—Amou (24 percent), Anié (8 percent), Akébou (7 percent), and Wawa (29 percent); and 4 are in the Maritime region—Lacs (12 percent), Afagnan (16 percent), Vo (13 percent), and Yoto (19).

Drinking water access rates are much higher in the five arrondissements of Lomé and the Golfe prefecture (>80 percent) than in other areas (< 66 percent) (see map below).

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Drinking Water Access Rates

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2011 QUIBB survey and 2010 GPHC, DGSCN

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d) Areas with Lowest Access to Improved Sanitation Facilities

The map on access to improved sanitation facilities indicates that the prefectures with the lowest access rates are in the Kara and Plateaux regions. Of the 10 prefectures with the lowest access rates, 5 are in the Kara region—Dankpen (2.3 percent), Kéran (6.9 percent), Doufelgou (9 percent), Bassar (9.4 percent), and Binah (12.1 percent); 3 are in the Plateaux region—Moyen Mono (8.3 percent), Anié (10.6 percent), and Est Mono (11.4 percent). The 2 remaining prefectures are the sub-prefecture of Mo (2.2 percent) in the Centrale region and the prefecture of Kpendjal (6.2 percent) in the Savanes region.

Like drinking water access, the access rates to improved sanitation facilities are much higher in the arrondissements of Lomé (>96 percent) than inland areas of the country.

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Access Rates to Improved Sanitation Facilities

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2011 QUIBB survey and 2010 GPHC, DGSCN

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e) Areas with Lowest Access to Electricity

The prefectures with the lowest electricity access rates are in the Savanes, Kara, and Plateaux regions. Two (2) of the 10 prefectures with the lowest access rates are in the Savanes region—Kpendjal (1.1 percent) and Tandjoare (1.3 percent). The other 8 are in the Kara region—Dankpen (3.2 percent), Kéran (5.9 percent); and the Plateaux region—Akébou (4.1 percent), Est Mono (4.3 percent), Moyen Mono (6.1 percent), and Danyi (7.8 percent).

Electricity access rates are much higher in the 5 arrondissements of Lomé and the Golfe prefecture (83 percent and 68 percent respectively) than in other areas (< 47 percent).

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Electricity Access Rates

Citation: IMF Staff Country Reports 2014, 224; 10.5089/9781498332408.002.A001

Sources: 2011 QUIBB survey and 2010 GPHC, DGSCN

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a) Overall Objective

The SCAPE aims to increase the economic growth rate to reduce poverty and inequalities and create jobs, with multiplier effects for income, quality of life, and when the MDGs are achieved.

b) Specific Objectives

Following the base scenario, the specific objectives of the SCAPE for the 2013–2017 period are to:

• (i) Bring the average real growth rate up to 5.9 percent per year, starting from 5.6 percent in 2012, to reach 6 percent in 2015, and 6.1 percent in 2017; this should lead to a growth in per capita GDP of around 3 percent per annum;

• (ii) Increase the total gross investment rate to an average of 20.9 percent per year, starting from an average of 18.6 percent over the course of the past three years (2009–2011);

• (iii) Reduce the incidence of monetary poverty from 58.7 percent in 2011, to 50.9 percent in 2015, and to 47.3 percent in 2017, i.e., a significant reduction of 11.4 percent in six years;

• (iv) Reduce underemployment from 22.8 percent in 2011, to 20.5 percent in 2015, and to 19.3 percent in 2017.

Accelerated growth scenario: Nonetheless, the Government envisions the alternative, accelerated growth scenario allowing the major challenges outlined above to be addressed while placing Togo on a development path that reaches economic emergence by 2030.

The accelerated growth scenario, which requires robust mobilization of the nation’s resources and strengths, has more ambitious specific targets for the 2013–2017 period, namely to:

• Achieve real economic growth of 8.1 percent in 2017, or an average annual growth of 7.1 percent for the period, which will lead to growth in per capita GDP of 4.1 percent per year;

• Reach an average total gross investment rate of 24.7 percent per annum;

• Reduce more significantly the incidence of monetary poverty to 43.7 percent in 2017, i.e., a reduction of 15 points;

• Reduce the underemployment rate to 18.3 percent in 2017.

c) Economic Policy Considerations in Relation to SCAPE Objectives

The base scenario was drawn up in consultation between the Government and the IMF, as well as on the guidelines in the Government’s Policy Statement. As described above, the base scenario is aligned with trends in Togo’s economy over the past three years, with emphasis henceforth on the effective implementation of the many reforms already initiated. This is a wise effort, but it is sustained by addressing a shortfall with regard to Togo’s development infrastructure and by the continued strengthening of the macroeconomic context.

To maintain an average rate of public investment of 10.7 percent of GDP, Government is aiming to raise public investment to an average of 42.5 percent of the total national budget for the duration of this period. It should be noted that Togo already underwent a period of rapid development in the past (1960–1980), marked by a doubling of per capita income, based on agriculture, the port, and services. All these assets are still present and their potential still intact.

In addition, the country has demonstrated over the course of the past three years that agriculture can also be a powerful engine for growth, particularly farming of food crops (maize, millet, rice, etc.) and cash crops (cotton, coffee, cocoa).

As regards the agricultural sector, if the base scenario keeps an average growth rate of 4.2 percent for the period, an average growth of 6 percent remains possible if implementation of the National Program for Agricultural Investment and Food Security (PNIASA—Programme National d’Investissement Agricole et de Sécurité Alimentaire) and the approach for expediting achievement of MDG 1 are successful.

As regards the industrial sector, achieving accelerated growth will follow improving the attractiveness of the country significantly, which will be achieved in particular by implementing the recommendations of a Diagnostic Study on Commercial Integration (EDIC—Étude Diagnostique sur l’Intégration Commerciale) in general, and those pertaining to the business climate in particular.

As regards the mining sector (phosphate, limestone, and iron), the Government will pay particular attention to implementation of a modern, transparent, legal, and institutional framework that attracts more foreign and domestic private investment. In the phosphate sector specifically, accelerated reform and determined implementation of the business plan of the New Phosphate Company of Togo (SNPT—Société Nouvelle des Phosphates of Togo) will allow, based on a massive, 80-billion-CFAF investment plan, a substantial increase in production—which should increase from 1.1 million tons in 2012, to 2.93 million tons in 2017—as well as in reported revenues.

As regards energy, the target for access to electricity is to generate an increase from 23 percent in 2010, to 42 percent in 2020, in urban areas, and from 15 to 18 percent in rural areas. Achieving this goal will require implementation of a large program to develop capacity for production, transmission, and distribution of electrical power, including, specifically, construction of the Adjarala hydroelectric dam, restoration of the Kpimé microhydro plant, restoration of the Nangbéto dam, and purchase and repair of generating sets in centers that have already been electrified.

As regards telecommunications, the aim is to reach a penetration rate of 63 percent for fixed and mobile telephone use in 2017 (60 percent in 2015), and 15 percent for Internet coverage. This will require carrying out an ambitious national investment plan in information and communication technologies (ICTs).

As regards accelerated growth, this will require: (i) quality human capital to realize assets in sectors where Togo has comparative advantages (or could create them); (ii) quality infrastructure to sustain growth and contribute to the emergence of regional development hubs (linked to the trade and development corridor); (iii) an international-class business climate to boost investment by the domestic private sector and attract FDI; (iv) implementation of mechanisms to facilitate access to domestic and foreign markets.

As regards inclusive growth, this will require: (i) better access to basic social services to expedite achievement of MDGs 2, 4, 5, and 7; (ii) mechanisms that incentivize hiring of young people and support small-scale rural farmers to accelerate achievement of MDG 1; and (iii) a social protection system that strengthens the resilience and productive capacity of poor and vulnerable households.

Growth that leads to job creation demands improvement in the business climate and diversification of the economy toward job-creating subsectors, particularly in the Free Zone, services (especially transport), and agricultural exports.

For all these factors, Togo considers it reasonable to hold onto the alternative, ambitious scenario of accelerated growth with an average rate of 7.1 percent per annum, and will work determinedly to lift constraints on finance and human resources that could hinder its realization.

A) Strategies for Increasing Agricultural Productivity, Diversifying Income in Rural Areas, and Inclusion

Togo has significant agricultural potential, despite its small land area. There is a large amount of arable land—nearly 3.4 million hectares, of which just 45 percent is currently farmed. Togo’s varied climate, which covers multiple agro-ecological zones, allows a diverse range of agricultural activities. Irrigable land is estimated at 86,000 hectares, and cultivatable bottomlands at 175,000 hectares. Nonetheless, a growing number of areas are experiencing land pressure, which indicates that the phase of extensive growth is coming to an end, and that the choice of farming methods should now be based on the need to gradually intensify production. Moreover, the farming population is aging due to the massive exodus of young people from rural areas toward urban centers.

Many constraints hinder realization of the potential outlined above and explain the low agricultural productivity. Basically these are due to the: (i) small size of farms; (ii) rudimentary nature of the technology used and the poor level of mechanization; (iii) poor use of water management for crop irrigation; (iv) lack of organization by producers; (v) aging of plantations, especially for coffee and cocoa; (vi) export sector favoring traders over producers; (vii) lack of accessibility to rural areas; (viii) difficulties in accessing land, especially by women and young people, which acts as a brake on agricultural investment; (ix) growing land pressure in some areas and consequent soil degradation; (x) low rate of agricultural product processing, which prevents retention of a significant portion of the value added; (xi) negative impacts of natural hazards such as flooding and drought on agricultural production, fisheries, and livestock farming; and (xii) lack of funding for agricultural research.

Agriculture is a sector with strong potential for economic growth, given that it offers a strong potential for providing more products for export and that increased agricultural revenue will increase demand for consumer goods and services from other sectors. For this reason the PNIASA and the framework for expedited achievement of MDG 1 were implemented to address the following 11 key challenges:

• To establish Planned Agricultural Development Zones (ZAAPs—Zones d’Aménagement Agricole Planifiées): Increasing the number of planned agricultural development zones appears to be a solution that will allow the gradual increase of average farm size in Togo’s agriculture sector, introduce customized mechanization, improve farms’ productivity and competitiveness, and increase farmers’ income. The aim is to increase cultivated sites by at least 2,500 hectares per year.

• To develop animal-draft and motorized cultivation that is environmentally sustainable: The labor associated with crop farming is generally manual (just 10 percent of farmed land is plowed using draft animals, and 1 percent with motorized equipment), which limits agricultural productivity. In 2009 the Government deployed around 100 tractors in all regions of the country. The challenge is thus to continue the process of agricultural mechanization, restore farmers’ confidence, and encourage rapid increase in the use of plows and tractors to improve agricultural productivity. The aim is to reach a level of agricultural mechanization of at least 5 percent between now and 2017.

• To improve water management: Water management is an essential factor in the development of intensive agriculture with high added value. In the past, Government efforts focused primarily on building large irrigated plots. Now, the aim is to give priority to small, village-scale developments (6–10 hectares), with an emphasis on grassroots organization and support to farmers to address the challenge of water management.

• To structure rural areas and professionalize agriculture: Agricultural trade associations (ATAs) play a major role in farming development and professionalization of agriculture, offering services, representing farmers’ interests, or acting as reliable points of contact for financing systems. For this reason, particular attention will be paid to building their capacity, particularly through management and organizational advice and support for acquiring equipment. Strong ATAs that are truly representative (that include women and young people) are particularly necessary if Togo is to break into export markets, as they provide their members with essential information and support.

• To distribute information on markets and stabilize prices: Togo has capacity for boosting investment in ICT, allowing the development of agricultural market information systems (AMIs) to provide operators real-time access to information they need to take advantage of market opportunities and improve their productivity and competitiveness. The Government plans to promote these information systems and develop purchase mechanisms so as to improve agricultural investment by small producers. Further, it will contribute to the emerging e-marketplaces for agricultural products, based on best practices used in most Southern African countries.

• To create export opportunities: The majority of exporters belong to the informal sector and, without specific support, are not able to develop their operations beyond the traditional trade networks. Experience has shown that developing non-traditional exports often requires the input of competent foreign investors with trading connections and financing. The challenge here is for the Government to support exporters over a long period of time, thus enabling the gradual acquisition of skills necessary for: (i) capacity-building for individual operators and their associations; (ii) setting up institutional and physical infrastructure; (iii) developing services (market information, assistance with business plans and export plans, support in quality management); and (iv) providing financial support to project holders.

• To restore rural infrastructure: Togo enjoys a favorable geographic location for regional trade, centered in the WAEMU market and close to potential growth markets. However, due to the economic crisis, road maintenance, and in particular the maintenance of feeder roads, was suspended for a number of years. For the Government, construction, restoration, and maintenance of feeder roads are one of the high-priority investments in Togo’s agricultural recovery, with a goal of working on 1,500 km of feeder roads per year.

• To secure land tenure: Conservation of Togo’s natural resources and modernization of agriculture depend on appropriate agricultural land-tenure reform with a view to guaranteeing land-tenure security for agricultural operators. There is currently a dual system, with traditional systems superimposed on the “modern” legal land-tenure system established by the Order of February 6, 1974, on agricultural land-tenure reform, which aimed at harmonious economic development in the country by regulating agricultural land tenure regimes and the conditions for transfer of land rights. The law will be revised on a largely participative basis for more secure access to land ownership and to facilitate land access by women, young people, and agricultural investors. As regards women and young people, the Government will pursue the formalization of rural leasing contracts to secure land.

• To process agricultural products: Togo exports its commodities (and especially its agricultural commodities) in an unprocessed state, and is therefore at the mercy of global price fluctuations. As part of its new program to improve sector competitiveness, the Government is planning to develop value chains in the agri-food sector for crops such as maize, cassava, etc.—agro-industry deserves sustained attention with a view to increasing its activities and its access to technology adapted to the processing of agricultural raw materials and to satisfying the strong domestic demand. The primary processing, which often takes place where the food is produced, will be strongly encouraged on a large scale so as to provide additional income for small-scale rural producers, and the Government will increase financial support for this. For the further processing stages, the Government will oversee conditions and take measures that incentivize the private sector to set up factories for processing agricultural surpluses and then market the products.

• To deal with the impact of climate change, natural disasters, soil degradation, and various forms of pollution in the agricultural sector: Agriculture in Togo, largely rain-fed, is dependent on the climate. Natural hazards such as flooding and droughts have a lasting impact on agricultural production, fisheries, and livestock. The decrease in annual growth in food production from 8.1 percent in 2009, to 2.4 percent in 2010, attributable to adverse rainfall conditions, illustrates this point. Equally, intensive use of agricultural inputs, especially pesticides and chemical fertilizers, has significant impact on land and water ecosystems. This situation presents a significant challenge, and the Government will take steps to inform and raise awareness with the population and bring about changes in behavior as it works to identify response measures to improve the situation.

• To generate enthusiasm for research on agricultural production: Making such resources available allows the most successful crop varieties, with the highest added value, to be selected by the economic sectors with the highest growth potential. These new varieties should also generate substantial savings on annual fertilizer subsidies and be adaptable to adverse effects of climate change in Togo. Priority action to be implemented includes: (i) identifying crops best suited to each agro-ecological zone; (ii) supporting research institutions’ efforts to select varieties with short growing cycles and resistance to pests and disease; (iii) research on improved storage and preservation systems for crops and on processing of agricultural products; and (iv) further research on climate change and its impact on development sectors.

In the long term, the Government is counting on the North-South corridor to boost agricultural development, as it generates exploitation of the comparative advantages of Togo’s various natural and eco-climatic regions by offering technical and logistical support to local producers. The aim to make Togo an agro-sylvo-pastoral powerhouse in the subregion, with the agricultural subsector one of the engines of economic growth, ensuring food and nutrition security, and producing jobs and income, particularly for small-scale producers and vulnerable populations.

In the medium term (2013–2017), the success of Togo’s agricultural policy depends on increased capacity to mobilize and manage resources, as well as on successful PNIASA implementation, on the one hand; and improved, stronger policies and structures for agri-food processing and marketing of agricultural products, on the other.

The strategic objective is to increase production sustainably, and to improve productivity through access to quality seed, restoring degraded soil and increasing soil fertility, improving equipment available to farmers, building irrigation systems, and promoting small-scale irrigation and capacity-building among small producers.

Specifically, this will involve taking action to:

• - Increase agricultural mechanization to at least 3 percent in 2015, and to 5 percent by 2017;

• - Increase cultivated land area by at least 2,500 hectares per year;

• - Increase irrigated land area by more than 500 hectares per year;

• - Increase the quantity of fertilizers distributed from 32,000 tons in 2012, to 58,500 tons in 2015, and to 69,500 tons in 2017, benefiting at least 500,000 small producers;

• - Establish financing for the agricultural sector (including a support fund for the processing of agricultural products for at least 500,000 small producers);

• - Construct 1,500 km of feeder roads per year.

Togo aims to ensure an agricultural growth rate that averages at least 4 percent (base scenario) but increases to over 6 percent (accelerated growth scenario), so as to achieve by 2017 cereal production levels from at least 1 million tons and to more than 2 million tons respectively. To finance this strategy the Government aims to dedicate at least 10 percent of the State’s budget to agriculture.

Other factors likely to increase growth include: (i) clusters of growth industries; (ii) improved feeder roads for accessibility for agricultural and rural areas with strong agro-economic growth potential; (iii) developing infrastructure (transport, energy, telecommunications, etc.), which will have a knock-on effect on the agricultural sector; (iv) increased population in general, and the urban population in particular, which will increase the demand for food; (v) increased population in the subregion, as well as a foreseeable increase in income and demand for food; (iv) increased agriculture-related economic activity that will generate income and have advantages for new financial opportunities—better penetration by and interaction with the banking and financial sector in the agriculture and rural sectors; (v) development of agri-food industries and stronger interactions with agriculture.

To increase and diversify sources of income in rural areas, the Government will increase lending to farmers. Recent studies have shown that effective access to credit at the right interest rate substantially reduces incidences of poverty, but the current, strict, conditions for access to credit exclude poor people, especially women and young people. This is why the Government will pursue conditions favorable to expanded coverage by decentralized financial systems, creating financial mechanisms to strengthen their operational capacity and guarantee funds at the level of other financing institutions. Particular attention will be paid to the needs of food-crop producers, who are the poorest and the most vulnerable.

Finally, inequality and disparity must be addressed if economic growth in agriculture is to be inclusive, and poverty effectively reduced. Given their economic and precarious social situation, and their important role in agro-pastoral activity, small producers (at least 500,000 of them) will be paid particular attention, as will vulnerable groups (women, unemployed youth, landless farmers). The Government will play a significant role in this, particularly in improving their access to: (i) improved fertilizers and seed for food crops (cereals, pulses, tubers and roots, and horticulture) and breeding stock for small livestock; (ii) small-scale water management for irrigation; (iii) storage infrastructure for storage (at least 1,000 warehouses) and for small-scale processing; (iv) improved breeding stock, veterinary coverage, and supplying family livestock farming; (v) support and advice programs and information on markets (training of at least 100 technicians per year); and (iv) literacy services, reproductive-health-care services, protecting farmers against HIV/AIDS.

With respect to the national employment policy, new programs for establishing young farmers, herders, and fishers will be created in the regions according to local context. These programs will be for young people from rural areas, who will receive assistance to establish themselves on their land and be given opportunities to make a more productive contribution to development of the country. This will require training and professionalization for them, and gain them access to means of production (land, financing, technology, etc.). These programs will also be for young people from urban areas (often educated but unemployed), which would require establishing a connection to the land, thus leverage for increasing agricultural productivity. In addition to using better quality inputs, the education of these young people and their improved ability to adopt new technologies will improve productivity by introducing modern work methods and new growing techniques. Settling young people in rural areas can be achieved through the ZAAP framework. The Government, using the PNIASA framework, will initiate action to achieve this (development of land earmarked for young people, providing greater accessibility, public facilities, and access to financing), prior to which, field schools will train them in farming and entrepreneurship. This will help (i) achieve the agro-ecological potential of the areas in which they settle; (ii) prefigure future entrepreneurial development in rural areas; and (iii) facilitate substitution of food imports and development of industries with growth potential for export. The founding of non-agricultural services around these industries through the promotion of entrepreneurship in rural areas will also be involved.

Finally, it will be necessary to strengthen the processing of agricultural products to bring about significant reduction in youth underemployment between growing seasons. An experiment in entrepreneurship in rural areas is currently underway, as rural young people are in training at three (3) Centers of Excellence (OIC, CIPAD, and INFA). Concluding training, they drew up their business plans for crop farming (maize, soya, rice, cassava, yam, vegetables), livestock farming (pigs, bees, broilers, laying hens, Guinea fowl, egg production), and processing and marketing of products. They are monitored as they implement their plans, which must be evaluated before they are promoted to a higher level.

B) Agricultural Subsectors with Strong Growth Potential

For Togo, there are three categories of agricultural products with strong growth potential: (i) products that substitute imports; (ii) products for non-traditional export destined for the international and regional markets; (iii) traditional Togolese exports.

C) Strategies for Improving Food and Nutrition Security

In line with the PNIASA, the Government has adopted a national food security program (PNSA—Programme Nationale de Sécurité Alimentaire), to ensure food and nutrition security, without discrimination, for every sector of the population in Togo. Programs have been implemented that focus on nutritional monitoring and education, and on food production.

During the 2013–2017 period the right to food and good governance around food and nutrition security will be promoted. The Government plans to: (i) set up an early warning system equipped with a geographic information system (GIS) on food security; (ii) create food reserves; (iii) set up social and nutritional safety nets; (iv) strengthen testing laboratories so that international food standards are met; (v) improve food distribution networks and strengthen the cold chain; (vi) inspect for food safety and water quality; (vii) support the establishment of school cafeterias and school vegetable gardens; (viii) help remedy micronutrient deficiencies, and support the creation and equipping of rehabilitation centers; and (ix) promote nutrition education.

The focus will be on intensive production of cereals, in particular maize, rice, and sorghum, and roots and tubers, prioritizing cassava and yams. Annual cereal production will reach around 2,000,000 tons in 2015; 2,090,000 tons in 2016; and 2,184,000 tons in 2017—growing 4.5 percent per year. For root and tuber crops, estimates for required production levels are 1,726,000 tons by 2015; 1,777,780 tons in 2016; and 1,831,113 tons in 2017—relative growth of 3 percent.

The overall strategy will, first, call for intensification of farming methods—dealing with soil degradation and managing water to secure production—and then for a better-performing system for storage and processing, improving logistics, and marketing practices for cereals and derivative products.

As regards livestock, the projects identified with regard to traditional livestock practices concern poultry farming, small ruminants, cattle, pigs, and other specialist breeding (rabbits, cane rats, and bees). Depending on the species, growth targets for the 2013–2017 average 6.8 percent. To achieve this, the focus will be on restoring and building centers for improving animal breeds, with other action directed at developing watering points, grazing areas, and transhumance routes and corridors to improve livestock productivity nationally. Finally, to ensure good monitoring of animal diseases, capacity-building is to be provided for stations and agents.

Further, the Government will set up an incentivizing regulatory framework and logistical support to promote the development of SME agribusinesses in the egg, meat, and dairy industries. Projected estimates for annual production by these industries by 2017 are 230 tons of milk, 8,000 tons of eggs, and 8,910 tons of meat. Investment will be directed toward infrastructure development for livestock production, support in supplying feed and veterinary products, and promotion of semi-industrial and agribusiness processing. The target is 10,600 SMEs.

As regards fisheries products, the objective is to improve coverage of domestic need for fisheries products through, on the one hand, fish farming, and on the other, freshwater and saltwater fishing. Intensified fisheries production mainly entails construction and development of ponds, and production and distribution of alevins (young fish) and feed. It is projected that in 2017, a target population of more than 8,500 fish farmers will be active, with an expected annual production of 5,000 tons. Support to freshwater and saltwater fisheries will focus on providing facilities and equipment for fishing, processing, packaging, and marketing fish products, and sustainable management of fisheries resources, and will affect 5,000 fishers. The production targets envisioned for 2015 are 39,590 tons, with 44,900 tons in 2017—an increase of 13.7 percent for the 2015–2017 period.

As regards sustainable management of natural resources and the environment, Togo is facing numerous challenges, principally: (i) deforestation, clearing of vegetation, and degradation of plant cover; (ii) soil degradation and declining soil fertility; (iii) degradation of protected areas and wildlife, human encroachment on protected areas; (iv) silting up of waterways and the lagoon, contamination and deterioration in fresh water sources quality; (v) degradation of coastal resources; (vi) all kinds of pollution; (vii) coastal erosion; (viii) recurrent natural disasters such as flooding and droughts; and (ix) climate change.

The strategy to address these challenges is to: (i) implement an environmental and social management framework, a pest and pesticides management plan, and a policy framework for resettlement according to the needs of the population; (ii) introduce measures for assisting farmers with sustainable management of natural resources, the environment, and soil fertility to limit the impact of agricultural activities; (iii) promote agroforestry and forestry; (iv) fight invasive water plants; (v) provide support to collective actions at the local level for joint management of natural resources; (vi) promote community forests; (vii) support riparian populations by restoring and developing forest remnants and uncultivated savannas; (viii) identify and promote options for adapting agriculture to climate change; (ix) promote sustainable consumption and production; (x) support local government in conservation and sustainable management of biodiversity of the mangroves in the southeast of Togo; (xi) plant teak along the edge of some main and secondary roads, and on the banks of some rivers.

A) Industrial Development Policy

The vision embodied in Togo’s new industrial policy is to “develop and sustain domestic industry that is integrated, internationally competitive, environmentally friendly, and capable of significantly improving the standard of living of the country’s population by 2030.” The main priorities for this vision are to: (i) upgrade existing firms so as to make them more competitive; (ii) find opportunities to diversify domestic industrial production and constantly increase the percentage of raw materials and local products processed to reach an average of 20 percent in 2030; and (iii) promote industrial SMEs.

As regards industrial development, the first step will be to revise and adapt the context in which industrial activity is carried out in Togo, specifically through supportive measures to: (i) create a more favorable climate for private investment, with the Government bolstering existing legislative, normative, and regulatory mechanisms, and in particular completing decisive judicial reform; all these being moves to hasten enforcement of court decisions, anti-fraud efforts, and attract and secure domestic and foreign private capital for the purpose of generating profitable investment; (ii) continue implementation of reform through completion of the privatization program; (iii) strengthen institutions supporting the private sector and build capacity of companies (especially SMEs). Supported by its partners, the Government plans to improve the efficiency of private-sector support programs, by strengthening the CFE, and the founding of the Togo Business Center (MET—Maison de l’Entreprise du Togo); (iv) strengthen the private sector’s role through regular, ongoing consultation between Government and the private sector in various industries on issues of competitiveness; and (v) promote a suitable partnership framework between universities and firms, with firms contributing to financing university research, results of which may be useful in increasing firms’ productivity—within this construct, there are plans to set up a representative council of business people to assess and propose curricula in higher education and technical and vocational training.

For the 2013–2017 period, the Government will mainly act to develop and implement:

1. Programs to improve competitiveness by sector: In close consultation with the private sector, a list of priority sectors will be compiled. These sectors will be the subject of integrated development strategy and competitiveness studies, with a view to making optimal use of the value chain in each of the sectors involved, establishing joint-trade organizations, and creating decent jobs. Once the studies are concluded, the Government and each sector’s joint-trade organization will be able to discuss medium-term competitiveness programs, which will, where necessary, and based on agreements, receive multiple forms of support from the State. The aim is to run competitiveness programs with approximately half a dozen sectors each year and, after 10 or 15 years, to have covered all the market sectors in the economy. A competitiveness committee, comprising representatives from Government and the private sector and, where needed, involving representatives from the financial sector, will be appointed to guide this process.

2. A national program for updating existing companies: This program anticipates boosting the output of industries and services, promoting investment and job creation, and improving the competitiveness of the Togo economy at the regional and international level. It completes and performs as an operational framework for the competitiveness programs for the various market sectors. Its implementation, which will favor companies that adhere to a sector-based program for improving competitiveness, is intended to give these companies the means to: (i) update technical production tools and boost private investment; (ii) take advantage of development opportunities offered by the crisis that the global economy is currently experiencing by creating value added; (iii) strengthen managerial skills and human resources in domestic companies so that they are better positioned to take advantage of technological innovation. To achieve this, the Government will appoint a suitable institutional structure to manage the program.

3. An action plan for making the industrial site viable to facilitate establishment of industrial units.

4. The structures of the framework law should work toward improving companies’ competitiveness by promoting quality and compliance with international standards.

5. Innovation incentivizing by establishing prototype manufacturing units.

B) Subsectors with Strong Growth Potential

Increasing industrial productivity depends heavily on the extractive/mining industry’s productivity. Other opportunities exist in the construction and public-works sector and in craft trades to accompany industrial development. Assistance measures such as training company staff on the prevalence of HIV/AIDS, occupational health and safety, gender equity and equality, and implementation of environmental management plans will also boost sector productivity.

A) National Trade Policy

Trade activities are poorly diversified in Togo and characterized by a preponderance of informal operators. Domestic trade generally involves imported products and external trade is dominated by export of agricultural and mining products. There is also a transit trade with landlocked countries and trade by re-exportation via road or sea. Women play a key role in trade and are present in the import-export business, particularly in clothing and fabrics, food products, and cosmetics. They are very active in commercial exchanges between urban and rural areas.

Nonetheless, the trade sector has certain weaknesses that undermine its reach. Specifically these are: (i) a lack of skills in technical management of the sector and a lack of qualified human resources for providing high quality services; (ii) lack of an effective sector information-management system; (iii) absence of a single center for trade regulation (domestic and international); (iv) absence of a market-information system for domestic and foreign markets; (v) poor capacity of statistical services; and (vi) a lack of an agency to promote foreign trade.

Therefore, in view of these weaknesses, Togo’s vision is to develop a successful trading system by 2030, that is, one that makes a significant contribution to reducing poverty and provides competitive support to sectors with growth potential. This will involve making Togo a reference country for transit and re-exportation over the next 20 years.

To achieve this, the general aim is to establish a legal, institutional, and operational system that will allow distribution, import, and export activities to respond to the needs of consumers, and to contribute to competitiveness of firms and poverty reduction.

Specific set goals include measures that:

• - Ensure a regular supply of mass-consumption products to the domestic market, and healthy competition so that prices do not become hyperinflated;

• - Diversify exports from Togo through a combination of new pairings (products/markets), and oversee optimization of existing export sectors;

• - Optimize local and international supplying of the Togo economy, and contribute to the competitiveness of firms;

• - Promote trade entrepreneurs, giving them tools and modern technologies used in global trade;

• - Support other sectors of the economy (agriculture, industry, services) by bringing value added in trade of their products and services.

The focus will be on efforts to: (i) strengthen legal and institutional reforms; (ii) develop skills in the public and private sectors; (iii) assure quality of products and services destined for domestic and/or international markets and in services to market actors; (iv) facilitate access to suitable financing for trade operators to ensure the security and durability of their activities; (v) strengthen the use of ICTs and set up an economic information and intelligence system accessible to operators and users.

Strengthening legal and institutional reform is expected to: (i) further domestic trade activities and respect for competition regulations by improving trade law; (ii) increase exports from Togo, by instituting a coordination mechanism for all public services to promote exports, and by reviving the National Trade Negotiation Committee (Comité national de négociations commerciales); (iii) improve economic supply to Togo by making support structures in supply chain management more effective and more efficient; (iv) foster entrepreneurship in the trade sector by opening the Central Office for Foreign Trade (Guichet unique du commerce extérieur), improving support by expediting set-up of authorized management centers and implementation of the Charter for SMEs/SMIs, and reducing formalities required for business start-ups; (v) bring value added to other sectors (agriculture, industry, and services) by structuring and rationalizing their support.

Improving the business climate for trade should significantly contribute to the economy’s competitiveness by allowing Togo to reduce the costs of supply and increase its market share at a regional and international level while ensuring the sector’s contribution to growth and poverty reduction. To achieve this, the Government will focus on three (3) areas:

Domestically, liberalization of the market, development of an MIS, and promotion of SMEs/SMIs with a view to sustaining trade activity as a vector of production growth (especially in agriculture) and of support to food security policy, thanks to adequate supplying of all parties in the country.

Regionally, Togo’s development of the North-South corridor could have an accelerator effect on the development of trade, to the extent of encouraging massive investment in setting up trade corridors to achieve more flexible transportation networks that run more smoothly internally and between Togo and its neighbors.

Internationally, Togo advocates for fair trade in line with the provisions and regulations of international trade. The nature of its mainly agricultural export products calls for this approach; for example, cotton, which, given its externalities, is in fact a source of growth as well as income for thousands of Togolese, thus contributing to combating poverty.

Capacity-building in the public and private sectors will be based in particular on better organization of the technical directorates of the ministries, which must, now more than in the past, demonstrate the ability to conduct trade negotiations and develop PPPs with no conflicts of interest.

Seeking quality assurance in products and services destined for domestic and/or international markets, and in services to the actors, should translate into: (i) respect for standards in trade operations (awareness campaigns, creation of “Made in Togo” label, etc.); and (ii) coordination and optimization of work by agencies involved in quality-control of goods and services.

Financing of trade falls within the difficulty SMEs have in obtaining financing, a well-known problem particularly with respect to the fact that SMEs often lack the guarantee demanded by commercial banks. Access by trade operators to suitable financing requires: (i) better organization of merchants and trade cooperatives; (ii) promotion of financing for export (creation of general warehouses for export and re-export, creating awareness among operators of the option of applying to the GARI Fund, etc.); (iii) financing for the supply chain in Togo (creation of purchase centers, for example); and (iv) a financing mechanism for projects that modernize trade and offer guarantees for microbusinesses engaged in trade.

Implementation of an ICT action plan will have a positive impact on areas of focus of the national trade policy. This calls for measures to: (i) computerize the Ministry of Trade; (ii) provide information on domestic markets through domestic and foreign trade MISs; (iii) digitize customs clearance procedures by setting up an electronic (e-) single point of contact for foreign trade operations; (iv) offer tax incentives for the development and use of ICT and teleservices; and (v) make e-trade a tool for developing export of non-traditional products and for tourism.

B) Development of a New Tourism-Based Economy

Tourism’s contribution to the national economy is very small, as the achievements of the 1970s and 1980s diminished during sociopolitical crisis periods and continued to decline with the decreasing quality of hotel and tourist infrastructure. Nonetheless, Togo’s natural assets (sandy beaches, varied flora and fauna, sites attractive to tourists, museums, historical and archaeological remains, arts and traditions, etc.) are still exploited to varying degrees. Therefore, the Government plans to develop a new tourism-based economy that realizes cultural potential—by taking advantage of the construction of the North-South corridor.

To improve sector performance so as to be a stalwart proponent of economic growth, the Government’s new tourism policy will promote ecotourism, business tourism, beach tourism, and cultural tourism; by pursuing efforts to: (i) complete the financial stabilization of public hotels (privatizing partly state-owned hotels); (ii) outline a development plan for tourist sites based on a master plan for tourism development; (iii) outline various strategies for promoting leading tourist products; (iv) update laws regulating the sector and ensure their enforcement; (v) promote and market tourism actively in Togo (advertising, posters, brochures and documentaries on Togo’s tourism potential; participation in tourism fairs abroad; etc.); (vi) raise awareness, on the benefits as well as the need, among the local authorities to develop local tourism, thereby creating value from the rural hospitality infrastructure construction policy in the most remote areas; this will simultaneously promote travel by consumers and development of tourism hubs, and create value from traditional festivals and other cultural representations; and (vii) create a successful training institute to provide credentials in tourism.

Further, a set of incentives will be created to: (i) allow the private sector to develop hotels around restored tourist sites and protected areas; (ii) support and accompany economic operators in the sector; (iii) promote consultation between public and private actors; (iv) set up a structure or guarantee fund to finance tourism activities in order to promote the creation of tourism-related businesses and open up access to credit.

The Government will take special care to protect children and young girls from all forms of prostitution and procuring that is directly or indirectly linked to tourist activity, and to protect host communities from HIV.

C) The Financial Sector: Diversification of Financial Products and Improved Access to Financing

The financial sector in Togo had a bank account penetration rate of 21.6 percent in 2010. This reflects the difficulty experienced by the vast majority of potential clients in accessing banking products and services. One of the most serious handicaps to private sector development is the lack of diversity in the products offered by the banking system compared with the real needs of the private sector. This is exacerbated by the absence of institutions that specialize in leasing and in mortgages. Further, SMEs/SMIs who apply for loans are unsuccessful in most cases due to a lack of formal structures for carrying out studies to determine the profitability of their businesses. Apart from all this, there are internal banking and financial constraints, namely: bad-loan policy, organizational and management problems, banking and prudential regulations, and lack of finance education.

Therefore, the Government will support the financial sector in improving its organization, to find suitable solutions to financing the economy, in particular financing businesses in an effort to realize the Government’s vision of making the private sector a driver of growth in the coming years. The need to deepen and diversify financial intermediation in Togo is urgent, based both on a greater contribution by microfinance institutions and on raising greater awareness among a large share of operators of the financing opportunities offered by regional financial institutions. In parallel, reflection is needed on how to allow the tontines, which occupy a significant place in people’s saving habits, to be placed in service to local development.

To complement microfinance activities, the Government will establish a FINA for financing SMIs/SMEs, particularly for the benefit of young people.

Above all, the Government goal is to achieve a financial sector that is healthy, successful, effective, and inclusive, serving both growth and poverty reduction. The sector must offer financing that is adapted to all categories of business (SMEs and SMIs, rural business, handicrafts, women-owned businesses, etc.) with a view to making the private sector an engine of growth. The broad strategic thrusts for achieving this goal are the following: (i) increase the stability and transparency of the financial sector; (ii) deepen the financial sector; (iii) improve the legal and judicial framework; and (iv) develop a culture of savings and loans.

The operational objectives sought in this area are the following:

• - Commercial Banks: (i) reinforce the solidity of the banking sector by reducing risk in banks’ portfolios—measures that will allow prudential rules to be respected, reduce the number of impaired loans in their portfolios, and lighten the load of bad debts, and privatization; (ii) improve bank account penetration and the performance of banks in terms of resource mobilization and credit management.

• - Microfinance: (i) improve the enforcement of the new regulatory framework and supervision; (ii) straighten out and clean up the sector; (iii) assist in the diversification and professionalization of the range of microfinance services offered; (iv) improve protection for beneficiaries through better training and education in finance.

• - Financing of SMEs: (i) strengthen and structure demand; (ii) strengthen the range of financial services offered.

• - Rural Financing: (i) strengthen and structure demand; (ii) strengthen the range of financial services offered, including, among others, support to banks, decentralized fiscal support (DFS), and development of new products (warranties, leasing, community loans, cash flow loans);

• - Financial markets and long-term financing: (i) develop the market to provide incentives for borrowers and savers; and (ii) mobilize long-term resources.

A) Development of the Maritime and River-Lagoon Network

The PAL has the potential to position itself in the region as a hub port for container ships as the only deep-water port in the subregion. It is well situated at the junction of two road corridors, Abidjan-Lagos and Lomé-Ouagadougou, which serve landlocked countries such as Burkina Faso, Mali, and Niger. The PAL requires little dredging and can accommodate large ships that draw 14 meters of water. In future, the PAL will have strategic importance as the crossroads of subregional transportation and trade—envisioned as an efficient and competitive international commercial port supporting Togo’s external trade at the lowest cost; and competitive with the subregion’s ports in the sale of port services, transit for neighboring countries, and transshipment, all to support Togo’s socioeconomic development. To accomplish this, Togo intends to implement the PAL master development plan by 2025.

The Government knows that the PAL’s role in the economy is critical, given that 90 percent of Togo’s foreign trade passes through the PAL. It is the backbone of land transport. Strengthening its competitiveness and efficiency is therefore essential for stimulating the development of private sector activity.

To attain this objective, large investment of more than one trillion CFAF will be carried out in the medium and long term to improve provision of port services and increase the PAL’s capacity by expanding port infrastructure, taking steps to: (i) construct a third quay for container ships, which will require relocating the fishing port; (ii) build a transshipment terminal to increase the number of ships that can be berthed; (iii) create several parking areas; (iv) construct a weigh station at Tsévié to comply fully with WAEMU’s regulation 14; (v) build a dry dock at Blitta; (vi) rehabilitate the PAL’s internal road system; (vii) maintain and clean service roads in the port zone; (viii) extend the PAL’s main sewer to National no. 3 and other sewage works; (ix) build a new site at Adéticopé to accommodate the relocation of new and used vehicle sales; (x) rehabilitate storage areas within the port; (xi) build an industrial road from the ore tanker quay to the different ore terminals; (xii) expand the Sahel Terminal; and (xiii) expand the ore tanker quay used for exporting clinker, coal, and iron.

To achieve effective port management, measures will be taken to: (i) restore the port’s authority over concessionaires and involve the PAL in the granting of licenses; (ii) hasten the establishment of a single contact point for port and customs formalities; and (iii) hasten the establishment of a transit monitoring program.

As for port transit costs, improving the PAL’s competitiveness will require: (i) a task force to propose ways to optimize the cost of port transit; the PAL will monitor the overall competitiveness of the Lomé port community to avoid loss of markets, particularly by collecting reliable information for making decisions about tariffs; and (ii) using the principle of competition in granting licenses.

Moreover, only in an environment of maritime safety and security will the PAL fully be able to be the lifeblood of the economy, by effective application of the International Ship and Port Facility Security Code (ISPS Code) and by early prevention of acts of piracy and armed attacks against ships in the harbor.

In any case, the Government intends to incorporate the above-mentioned investment program into a long-term vision of the development and positioning of the PAL.

To complement development of maritime transport, preparations are underway in the transport sector to modify Togo’s waterways and make them navigable. The main navigable waterways are Lake Togo, the Mono, and the Oti.

Waterways are a leading tourist attraction that could be exploited by developing recreational boating and nautical sports to complement the diversification of tourist destinations.

Further, to develop territorial bodies of water, transport strategy will emphasize the preparation of the main navigable waterways.

B) Development of Road Infrastructure

The situation of the Togolese road network is a concern. Most of the roads, built in the 1970s, have not been regularly maintained. The torrential rains of recent years have intensified their deterioration, causing significant damage and loss of human life. Access to some locations has become impossible for marketing agricultural products. Significant bottlenecks have arisen. The current state of the road network slows economic development, and road safety is an issue. The State campaigned to raise awareness and provide training for road users. For 2011, the proportion of heavily used, paved national roads is around 40 percent, and around 16.7 percent¹³ for unpaved national roads.

The plan is to improve the condition of roads through heavy investment in road maintenance and in raising the overall standard of the road network. This entails setting up a second-generation road maintenance fund, the Independent Company for Financing Road Maintenance (SAFER—Société Autonome de Financement de l’Entretien Routier) exclusively for road maintenance for the purpose of protecting agreed investment in road infrastructure. Further, the Government foresees setting up an autonomous road agency charged with implementing effective and efficient road works—road building and repair, and in particular road maintenance, projects for the national network. Complementarity between SAFER and the road agency will energize the subsector of road infrastructure. The Ministry of Public Works will be in charge of planning, studies, and follow-up evaluation.

Further, in terms of inter-regional transport, trade with countries of the subregion (Niger, Burkina Faso, Mali, Ghana, and Benin) is an important factor for Togo’s prosperity, and an inter-regional asphalt road network is vital for the country. At the national level, development of plantations for cotton, coffee/cacao, and food crops is closely linked to road transport and the rural road network. The remarkable expansion of the capital, Lomé, requires that particular attention be given to it in urban transport policy.

The following strategic objectives have been adopted to achieve this:

• A national road network with a high level of service that links all parts of the country and connects it to neighboring countries, thereby supporting the growth sectors of the economy.

• Fuller and improved rural road networks that open up areas with a strong agroeconomic potential, serve rural areas, and are connected with interurban road networks.

• A quality urban and intra-urban network that facilitates the transport of people and goods. In this context, the Government has upgraded the fleet of the Lomé Transport Company (SOTRAL—Société de Transport de Lomé), purchasing 9 buses for 3.5 billion CFAF.

• Develop the use of labor intensive work for the development and maintenance of the subsector’s infrastructure and equipment.

To meet these objectives, the Government, supported by its development partners, counts on major investment of more than 2 trillion CFAF in the next five (5) years, to: (i) rehabilitate 20 km of urban roads per year in Lomé;¹⁴ (ii) rehabilitate the urban roads of other cities in Togo; (iii) widen the Lomé-Tsévié section; (iv) open and rehabilitate rural roads as well as eliminate bottlenecks; (v) widen Route national 1 (national route) linking the PAL to the Burkina Faso border to serve Burkina Faso, Mali, and Niger and thus encourage the flow of trade and regional integration between Togo and these countries; (vi) rehabilitate the Lomé/Burkina Faso border corridor; (vii) rehabilitate the main roads crossing the North-South corridor such as the Agou-Notsé-Tohoun, the Atakpamé-Badou, the Dapaong-Mandouri, the Ghana border-Kabou-Kara-Kemerida-Benin border roads, and the Kétao-Pagouda, Sokodé-Tchamba-Benin border, Gléi-Amou-Oblo, Kabou-Guerin Kouka-Katchamba, Aného-Tabligbo-Tsévié, KAPLimé-Atakpamé, Lomé-Vogan-Anfoin, etc. junctions; (viii) step up maintenance of paved roads and rehabilitated unpaved roads; (ix) provide support for the private organization of mass transit; (x) promote the emergence and development of local engineering firms and SMEs for road maintenance work, their professionalization and skills, and their management capability; (xi) develop urban transport in other cities of the country, following the example of SOTRAL, and control urban traffic; (xii) study and set up a new regulatory framework for road security; (xiii) study and set up a regulatory framework for the security of construction workers; and (xiv) reinvigorate implementation of common policies and regional projects within the ECOWAS and WAEMU to improve the circulation of goods and people.

Rehabilitation or building of arterial roads will make it easier for the rural population in Togo’s interior to transport food and cash crops, thus helping to generate, directly and indirectly, thousands of jobs.

C) Development of the Rail Network

The Togolese rail network includes nearly 519 km of rundown metric gauge lines, 160 kilometers of which are completely out of service and partially dismantled (the Lomé-KAPLimé and Lomé-Aného lines). This means it is no longer possible to meet the level of service quality required by the Union of African Railways (UAR). The central line (Lomé-Blitta, 276 km), which should be Togo’s main service line to landlocked countries, will very soon be an important link in the inter-community connections of ECOWAS countries.

Togo’s rail network is indispensable for strengthening the transport and export of Togo’s mining and industrial products: with its more competitive rates compared to road rates and its cargo capacity, rail can significantly improve the mobility of people and goods in the country.

Therefore, Togo’s aim is to increase rail traffic significantly by 2020. The main priorities for the coming years will thus be the rehabilitation and construction of the Lomé-Cinkassé-Burkina Faso border line and the modernization of the existing network. These projects are based on an anticipated increase in potential traffic, both internal and external. The volume of internal products likely to be transported by rail is projected at 2.3 million tons per year to 2013, at 10 million tons by 2016, and at nearly 13 million tons in 2017. The Lomé-Cinkassé rail line, which will be part of a WAEMU project, will link the PAL to the Burkina Faso border, to serve Burkina Faso, Mali, and Niger, and thus encourage the flow of trade between Togo and these countries. The overall cost of this project is estimated at 1,500 billion CFAF, for technical, economic, and financial feasibility studies and completion, implementation, and oversight of the work.

D) Development of the Air Transport Network

Air transport depends on two, the Gnassingbé Eyadema and the Niamtougou, international airports. Gnassingbé Eyadema is used by Air France, Ethiopian Airlines, Asky, Royal Air Maroc, Brussels Airlines, Air Burkina, and Ceiba. Niamtougou, initially intended for internal transport, is geared more toward carrying Hajj pilgrims and off-season produce. There is a clear trend toward increased air traffic (58 percent¹⁵ between 2009 and 2010); projections are doubling in the number of passengers at Gnassingbé Eyadema between 2009 and 2015.

To increase air transport development, the Government has set the following strategic objectives:

• An efficient and competitive international airport that provides air transport for Togo’s external trade at the lowest cost, meets International Civil Aviation Organisation’s (ICAO) rigorous standards of safety and security and competes with the subregion’s airports in the sale of hub services, all in support of Togo’s socioeconomic development.

• A network of regional airports offering a high level of service, thereby facilitating the development of both a regional network serving areas far from Lomé and a network of local lines.

Therefore, the Government is (i) modernizing Gnassingbé Eyadema airport,¹⁶ which will have the capacity to welcome more than 1.5 million passengers annually by 2017, with parking bays for 11 aircraft, making it a real West African hub; estimated cost is 87 billion CFAF; (ii) planning to modernize and rehabilitate the existing installations at Niamtougou airport, and study the prospect (and possible implementation) of creating a special fund for developing domestic air transport, estimated at 15 billion CFAF; modernization of this airport includes lengthening the runway, reinforcing paved airfield surfaces, fencing, and construction of an international hotel; and (iii) envisioning a new airport in Lomé, estimated at 300 billion CFAF, with the objective of reaching overall traffic of 2.5 million passengers per year by 2025.

A) Capacity Building In Energy Production

To meet this challenge, the aim is to focus on increasing Togo’s energy production capacity: to raise electrical generating capacity from 161 megawatts in 2010 to at least 300 megawatts in 2015, and to 500 megawatts in 2020. To accomplish this, it intends to implement several electrification projects to supply more than 50,000 new customers by 2015 and secure the supply by increasing capacity of electricity production and transport. In terms of CEB capacity-building, the following projects are envisaged: (i) building the Adjarala hydroelectric dam; (ii) searching for overall solutions to energy and water problems in terms of subregional cooperation (the interstate Nigeria-Benin-Togo-Ghana gas pipeline project); (iii) continuing interconnection projects (300 kilovolts between Nigeria, Benin, Togo, and Ghana), to facilitate energy transit, optimize the means of production in the four countries, and mutual aid in case of difficulty; (iv) the introduction of concessions to independent producers, through international competition, for a guaranteed minimal performance of 50 to 100 megawatts by 2013; (v) development of the identified microhydroelectric sites on the main rivers; (vi) rehabilitation of the Nangbéto Dam (32.5 megawatts); and (vii) rehabilitation of the microhydroelectric plant at Kpimé.

At the end of these projects, nearly 700 km of high voltage lines will be erected throughout the country.

Along with electrical development, steps will be taken with respect to biomass, renewable energy, energy savings, and hydrocarbons, so as to: (i) establish legislative, regulatory, and institutional structures for promoting renewable energy and residential access at least cost to alternative energy sources replacing firewood at lowest cost; (ii) implement a program to improve woodstoves and a program to promote butane gas for domestic use; (iii) continue tax exemptions for importing renewable energy equipment (solar, wind, biogas, etc.); (iv) build a 5-megawatt solar power plant; (v) construct a 12-megawatt wind power plant; (vi) pursue the subregional project of building a natural-gas-fired, combined-cycle, 450-megawatt power plant by 2020; and (vii) continue implementing the program for energy efficiency and access to energy services.

B) Building Capacity for Energy Distribution

For electrical energy distribution, a variety of projects completed or underway include: (i) cross-border electrification phase I and II; (ii) rural electrification phase I; and (iii) construction of substations supplying up-country customers with more reliable electricity

These projects require support from institutional and regulatory reform in the sector through implementation of a national energy policy that provides guidelines for future work, and through a restructuring of the CEET. To fight effectively against poverty, which affects rural areas the most, rural electrification will be accompanied by: (i) a rural electrification strategy; (ii) the creation of a national agency for rural electrification; and (iii) establishment of a rural electrification fund. Building access roads to open up areas is indispensable for erecting electrical poles or towers.

Completion of Togo’s electrification program should make it possible to meet electrical energy needs and improve the population’s access to public electricity services from 23 percent in 2010, to 40 percent in 2017, and to 42 percent in 2020. For rural areas, the access level for this period would pass from 5 percent (2010) to 16 percent (2017) then to 18 percent (2020).

A) Stepping Up the Fight against Maternal and Neonatal Mortality

In the medium term, the objective is to reduce maternal mortality from 300 to 213 per 100,000 live births and neonatal mortality from 39 percent to 22 percent of live births in 2017. In this regard, the Government commits to: (i) increase the provision of services that encompass the reproductive health of adolescents and young adults, including prevention of early and/or undesired pregnancies and STI/HIV; (ii) scale up mobile strategies and advanced strategies directed at remote populations to reposition family planning; (iii) improve access to and the quality of prenatal, obstetrical, neonatal, and post-partum care by emphasizing the decentralization of facilities offering urgent obstetrical, neonatal, and post-abortion care; (iv) increase the demand for mother and child health services and family planning by setting up an integrated package of mother and child health services in the market²⁰ and a policy to promote financial access of women to maternal health care; and (v) promote and implement case reviews/audits of maternal and neonatal deaths and narrow escapes.

B) Stepping Up the Fight against Infant and Child Mortality

The Government has prioritized fighting infant and child mortality in its activity in the health sector: to reduce infant mortality from 78 percent to 38 percent and child mortality from 124 percent to 57 percent.

The intention is to improve the percentage of children under age five (5) who sleep under a long-lasting insecticidal mosquito net; further, to: (i) strengthen community and family care through the implementation of an integrated approach to interventions in the treatment and monitoring of the most widespread and lethal diseases for children under age 5; (ii) strengthen the subsidy policy for generic drugs essential for the most lethal child diseases; (iii) undertake the Expanded Vaccination Program (EVP) and the Prevention of Mother-to-Child Transmission (PMTC) program for HIV; (iv) increase provision of curative services in connection with infant and child health; and (v) intensify the promotion of Community-Led Total Sanitation²¹ (CLTS).

The Government will supplement these measures by improving the nutritional status of children, and is embarking on fighting malnutrition of children under age 5 by: (i) improving effectiveness of existing programs and promoting new programs to fight nutritional deficiencies in mothers and children; (ii) raising the awareness of the general population, and the vulnerable population in particular, about dietary practices; and (iii) improving the institutional framework for promoting nutrition and diet.

C) Intensification of the Fight against Malaria, Tuberculosis, and Other Transmissible Diseases

The Government will implement a strategy to reduce the impact of priority diseases and other transmissible diseases through prevention and management of malaria, tuberculosis, neglected tropical diseases, and other transmissible diseases, including diseases with epidemic potential. Therefore, the emphasis will be on scaling up integrated management approaches to diseases, including the organization of: (i) integrated preventative, chemotherapy campaigns; and (ii) improved structures and competence for taking care of the ill and for preventing epidemics. This strategy will make it possible to increase the percentage of pregnant women who have received two doses of intermittent preventative treatment for malaria during pregnancy and the percentage of people suffering from pulmonary tuberculosis who have been screened, treated, and cured.

D) Strengthening the Prevention and Control of Non-Transmissible Diseases, Including Disabilities

To reverse the trends in non-communicable diseases (NCD) and the growing proportion of disabled people, particular emphasis will be placed on: (i) development and strengthening of legislative, regulatory, and inter-sector measures; (ii) development and dissemination of information on the main NCDs at the community level; (iii) promotion of early detection of the main NCDs; (iv) strengthening treatment capabilities for NCD cases; and (v) strengthening the evaluation, monitoring, and promotion of operational research within the national NCD program.

Specific actions will also have to be developed with regard to medical transport (emergencies and disasters, traffic accidents, etc.) in terms of road safety conditions (the consequences of which are managed by the health sector: trauma, disability, etc.).

Specifically to strengthen the link between environment and health, in particular emergent diseases linked to climate change and environmental degradation, Government interventions at community or national level should include: (i) promoting household water treatment and its secure storage; (ii) reducing air pollution; and (iii) establishing energy policies that encourage development and health.

These strategies will help individuals and families take direct household measures to reduce environmental risks and mortality rates. For example, the use of safer cooking appliances and less polluting fuels like gas or electricity, improved ventilation, and keeping smoke away from children could lead to significantly fewer risks of respiratory infection and other illnesses affecting women and children.

E) Strengthening the Health System and Community Care

To strengthen the health system and community care, the Government is committed to: (i) improved governance and management of the health system; (ii) strengthened human resources for health; (iii) improved geographical accessibility to care by building new health facilities (with housing and wells and/or drinking water and electrical systems), rehabilitating and expanding Peripheral Care Units (PCUs), rehabilitating and extending health facilities at the district, regional, and central level, constructing and/or rehabilitating incinerators, constructing latrines, and acquiring ambulances; (iv) improved quality of care; (v) implementing the national policy of community-based interventions; (vi) improved access to blood products, drugs, and essential commodities at the health facility and community levels; (vii) developing medical technologies and diagnostic capabilities; (viii) applying the Abuja objectives for financing the sector; and (ix) improving the health information system and developing health research and e-health.

A) Strengthening Prevention of HIV and STI

The Government wants to lower the occurrence of HIV from 3.2 percent in 2011 to < 2 percent in 2017 and gradually reduce the percentage of HIV-positive newborns from 7.5 percent in 2011 to 2 percent in 2017. Therefore, the Government is committed to improving control of STIs and transfusion safety and ensuring adequate coverage in counseling and testing centers and in PMTC services. Organization of prevention programs adapted to specific vulnerable groups is encouraged, particularly women and youth, uniformed service personnel, refugees and displaced persons, sex workers and their clients, truck drivers, prisoners, homosexual men, and drug users.

Further, for PMTC services, the Government is committed to ARV vaccination for HIV-positive, pregnant women, from 59.7 percent in 2011 to more than 85 percent by 2017. In interim stages, women’s access to PMTC services should be raised from 61 percent in 2012 to 66.4 percent in 2013, to 73.4 percent in 2014, to 80.5 percent in 2015, to 87.6 percent in 2016, and 95.3 percent in 2017.

B) Intensification of Overall Care

In the context of universal access to care and treatment services, the Government will: (i) increase access to ARVs, vaccination, and treatment of opportunistic infections, particularly tuberculosis; (ii) strengthen in-home care and support for PLWHA; (iii) set up sustainable programs for nutritional care of infected and affected people; (iv) improve care of persons taking ARVs; (v) encourage psycho-social care of infected and affected people; (vi) guarantee the continuity of care and treatment services for PLWHA; (vii) strengthen the technical platform and the system to guarantee the quality of care offered to the ill; (viii) improve the economic conditions of infected and affected persons through income generation activities; and (ix) improve social and economic support for Orphans and other Vulnerable Children (OVC).

By 2017, at least 80 percent of people needing ARVs and associated services should have access to them.

C) Improving the Governance and Management of the Response

The Government intends to take necessary measures to ensure better governance of interventions in fighting HIV/AIDS and ensure better management of the national response in this area. To implement its strategy, it will: (i) strengthen coordinating bodies at the central, decentralized, and sector level for effectively conducting leadership and coordination of the national response to HIV/AIDS; (ii) encourage stakeholders to participate in the national response to HIV/AIDS and make optimal use of available resources to create quality services; (iii) increase the use of strategic information by all actors in real time to guide the response to HIV/AIDS; (iv) standardize the procedures of the technical and financial partners; and (v) improve the sociopolitical and legal environment for access to quality services by those sectors of the population who truly need them.

A) Implement the National Action Plans for Integrated Water Resources Management (IWRM)

To improve the water resources management framework, the Government will create an environment of good governance of water resources, taking steps to: (i) establish and operationalize a political and legal framework that follows PNE principles and legislative provisions of the water code; (ii) reform the IWRM’s institutional and organizational framework, providing an administration that conforms to the water code and respects management fundamentals, so as to guarantee user equity, resource sustainability, and equilibrium of ecosystems; (iii) build capacity and set up an integrated water information system to improve knowledge of water resources, their mobilization and use, and of fragile aquatic ecosystems and the critical environmental parameters for water resources (deforestation and silting); (iv) set up management instruments and financing mechanisms and strategies through a fund for water resources management, PPPs for financing IWRM action, and an investment strategy for economic development activities for water; (v) design and implement plans for water development and management; (vi) protect water resources, particularly against industrial pollution and silting of streams and other bodies of water; and (vii) strengthen the fight against water pollution.

B) Improve Equitable and Sustainable Access to Drinking Water

Faced with low levels of drinking-water access, the Government will provide more access for rural households by 2017, taking steps to: (i) improve drinking water service through rehabilitation of existing hydraulic infrastructure and construction of new drinking water supply systems, respecting principles of equity and balance; (ii) strengthen national capacity to undertake effective monitoring and management of rural, semi-urban, and urban water equipment and water resources while contributing to local and regional economic development; and (iii) improve knowledge of water resources and rural, semi-urban, and urban environments by conducting studies to determine the hydrogeologic, hydrologic, and socioeconomic contexts.

C) Improve Access to Adequate Sanitation Services and Promote Good Hygiene and Sanitation Practices

With respect to improving access to sanitation services, the Government’s objective is to increase the proportion of the population with improved latrines. The target for 2015 is latrines for 55 percent of households outside of Lomé, and access to a sanitation system for 91 percent of the Lomé residents and 66 percent of Greater Lomé residents. There will also be intensified effort to improve public sanitation through the construction of sewage disposal systems in rural, semi-urban, and urban areas throughout Togo.

To establish its sanitation strategy and attain its set objectives, the Government expects to: (i) improve knowledge on sanitation conditions, particularly in urban centers outside of Lomé; (ii) promote basic sanitation measures by providing sanitation education programs and building basic sanitation systems; and (iii) strengthen national technical capabilities of actors in sanitation.

D) Improve the Sector’s Performance

To deal with the dysfunctional and inadequate aspects of the administration and management of water, hygiene, and sanitation services, the Government will strengthen the sector’s institutional, legal, financial, and technical capabilities. It will set up a system for gathering information and for management, monitoring, and evaluation, by overseeing the creation of an information, communication, and education strategy for water, hygiene, and sanitation.

Thus, the intention is to strengthen participants’ capabilities to implement the PANSEA effectively and consistently by designing strategic and operational planning tools, setting up a system to analyze water and monitor water quality, and training participants in the use of modern management tools and information and communication technologies for better management of water resources and water supply and sanitation systems.

A) Strengthening and Extending the Social Insurance System

To strengthen and extend the social insurance system, the Government will consider the crucial risks and opportunities connected with the current system, such as financial sustainability, governance, coverage, and expansion of the existing arrangements beyond the formal sector; and take measures to:

(i) Improve the functioning of the CNSS and the CRT by reforming to the underlying parameters likely to resolve the structural deficits of these two organizations and ensure their financial sustainability. Reform should also make it possible to separate the risks linked to aging, death, and disabilities managed by the CRT from advantages linked to employment that the State provides to its employees, with a view to improve the functioning and governance of the social insurance system managed by the CRT and the CNSS.

(ii) Extend social insurance mechanisms steadily to the informal sector, agricultural cooperatives, and independent workers in a way that allows the most vulnerable populations have access to social insurance.

(iii) Ensure access to and quality of services for reducing adverse effects of shocks on health through the development of health insurance schemes.

(iv) Strengthen and extend INAM services.

(v) Formulate technical options for eventual universal health insurance coverage: taking into account the population’s ability to make contributions and supporting comprehensive health insurance development. Conduct a study to support the expansion of health insurance coverage to the poorest of Togo’s population.

B) Reducing Vulnerability, Fighting Poverty, and Accessing Basic Social Services

Social safety nets can effectively reduce the extreme poverty and vulnerability experienced by a still significant portion of Togo’s population, and they ensure inclusion of the poorest and most vulnerable sectors in the creation of wealth.

Therefore, the Government will set up social safety nets (monetary and in-kind transfers and temporary labor intensive work) to: (i) build capacity among the poorest and most vulnerable households and prevent poverty; (ii) provide the poorest and most vulnerable health-care access and services, as well as education to develop their human capital and promote social equity; (iii) reduce financial barriers to food security and nutritional quality for households, in particular for children; (iv) support social protection measures appropriate to the needs of the most vulnerable people, in particular orphans and child victims, children at risk of exploitation, children in conflict with the law, individuals affected by HIV/AIDS, the disabled, the elderly, and people affected by disasters; and (v) add to risk reduction and disaster response strategies by making sure that people affected by natural disasters have access to a minimum level of resources that would allow them to deal with loss of assets, income, means of production, or housing.

As for specific protections for children, priorities will be to: (i) define the national child protection system; (ii) guarantee the availability of reliable and disaggregated data on children; (iii) work for systematic registration of children at birth; (iv) ensure care for vulnerable children, notably street children; children in conflict with the law; child victims of trafficking, sexual, and economic exploitation and family mistreatment; and disabled children; (v) adopt and undertake implementation of a national child protection policy; (vi) continue implementation of the children’s code; (vii) monitor implementation of children’s rights treaties; (viii) adopt alternative strategies to incarceration of minors in detention centers and prisons; (ix) promote socioeconomic reentry of child victims of vulnerability; and (x) reduce violence against children, particularly young girls.

C) Promotion of Decent Work and Elimination of the Exploitation of Vulnerable Groups

Employment is the main source of creating wealth in Togo and building the capacity of the people to care for themselves. Each worker has a right to decent working conditions and to social protection against work-related risk. Thus to promote decent work and eliminate the exploitation of vulnerable groups, the Government intends to: (i) improve access to decent employment for the most deprived sectors of the population or those who are disabled; (ii) create favorable conditions for decent work, eliminate exploitation of vulnerable groups, particularly women and children, and eliminate child trafficking; (iii) draw up and implement strategies aimed at protecting mobile children who are victims of exploitation and various abuses; (iv) heighten awareness and build capacity of employers and workers to apply the Social Security and Labor Code; (v) build the capacity of inspection authorities for the Social Security and Labor Code; (vi) implement the National Policy for Senior Citizens; and (vii) adopt and implement a National Labor Policy.

D) Strengthening Coordination Mechanisms and the Monitoring/Evaluation System

Lack of coordination in social protection interventions is what generates the entire system of informal decision making (involving many stakeholders), duplication of tasks, and inconsistency of interventions. Moreover, lack of a targeting and monitoring/evaluation system for social protection policy and strategy means that little information is available on the impact and scaling of past and present programs. To fix this, the Government intends to set up: (i) a coordinating mechanism for social protection interventions; (ii) targeting mechanisms for the poorest and most vulnerable population sectors; and (iii) a system to monitor and evaluate the impact of social protection programs. Further, it will make the management of currently available national and international budgetary resources more effective for the social protection of the poorest and most vulnerable. Finally, it will promote vertical integration and cooperation between the Government, the various ministries involved, local authorities, and civil society organizations working in social protection.

a) Improve the Institutional and Regulatory Framework for Promoting the PSNEJ

The objective is to improve the institutional and regulatory framework for the PSNEJ, applying the following principal measures for its implementation: (i) a formulated PSNEJ; (ii) capacity-building for ministries in charge of employment and vocational training, the OEF, the National Employment Agency (ANPE—Agence Nationale Pour l’Emploi), and the Department of Youth Employment (Direction de l’Emploi des Jeunes); (iii) setting up a framework for a PPP on youth employment (national coalition for youth employment); (iv) setting up measures to provide fiscal incentives for investment and to create and develop job creating activities and incomes for youth; and (v) formulating direct fiscal measures to encourage the hiring of young graduates.

As a whole, fulfilling these various goals will be based on projects to: (i) formulate the PSNEJ; (ii) research incentive measures for hiring young graduates; and (iii) build the human, financial, logistical, and organizational capacity of the ANPE, the OEF, and the Department of Youth Employment.

b) Improve Youth Employability

To deal with massive youth unemployment and meet the whole economy’s (both modern and informal sectors) need for qualified labor, the employability of job seekers should be improved.

More specifically, this objective aims to: (i) improve labor force qualifications in the whole economy; (ii) develop the capacity of youth to find decent work; (iii) give vocational training to youth in the expanding sectors; and (iv) develop youth apprenticeship in companies and with artisans in the informal sector.

To improve youth employability and facilitate their access to jobs, urgent measures must be taken. They are: (i) formulate an inventory of needed skills for companies; (ii) train youth in newly expanding sectors (mines and quarries, green jobs, etc.); (iii) set up incentive measures for hiring young graduates; (iv) organize short-term skills training for first-time job seekers; (v) organize stages of apprenticeship in companies; (vi) establish ANPE/company partnership agreements for a training period for first-time job seekers; (vii) strengthen existing programs (AIDE; PROVONAT; and Project Support for the Professional Integration of Youth Artisans or PAIPJA—Projet d’Appui à l’Insertion Professionnelle des Jeunes Artisans); (viii) institutionalize the program promoting national volunteerism in Togo; and (ix) design and implement a reconversion and adaptation program for young graduates having problems finding employment.

Projects for attaining this strategic objective include: (i) an inventory of skills needs for businesses; (ii) skills training of young graduates; (iii) training youth in modern agriculture and livestock raising; and (iv) training and apprenticeship for youth.

To stress inclusiveness in its development strategy, the Government will also intensify basic development activities in order to create at least 3,500 jobs per year for youth, that is, 2,000 jobs per year through PROVONAT, and 1,500 per year by operationalizing the National Support Fund for Training and Professional Development (FAIEJ—Fonds National d’Appui à la Formation et au Perfectionnement Professionnel), planned for 2013.

c) Promote Youth Entrepreneurship and Self-Employment

Given the low levels of youth entrepreneurship, the objective is to develop their entrepreneurial capacity.

To promote youth self-employment and entrepreneurship, measures are planned to: (i) identify and select youth having entrepreneurial capacity; (ii) provide entrepreneurship training; (iii) finance creation of SMEs by young entrepreneurs; (iv) set up a liability scheme for young entrepreneurs; (v) adopt ways of reducing credit costs for young entrepreneurs; (vi) support agricultural entrepreneurship and rural employment; and (vii) set up an effective support and advisory system and assistance program.

The projects necessary to implement these priority measures are to: (i) select and train youth who have an entrepreneurial capacity; (ii) research how to improve access to existing sources of financing; (iii) establish young entrepreneurs and young artisans; and (iv) develop agricultural lowlands specifically for rural youth.

d) Promote the HIMO (high labor intensity) approach

Starting from the current unexploited potential of the HIMO approach in rehabilitating rural and agricultural infrastructure and in the building and public works sector, the objective is to encourage the creation of numerous high-labor-intensive jobs for youth. In particular, this is a matter of: (i) familiarizing national decision makers and economic operators with the high-labor-intensity approach; (ii) integrating the high labor-intensity approach into public investment planning; and (iii) promoting the application of the high labor-intensity approach during public infrastructure (urban public works and road work) development.

For this purpose, the priority measures to develop the HIMO approach and local employment are: (i) create a high-labor-intensity cell; (ii) raise the awareness of and advocate for the use of HIMO techniques for infrastructure work; (iii) train youth in HIMO techniques and the use of local materials; (iv) adopt measures to support the use of HIMO techniques; and (v) support the development of green jobs.

e) Set Up an Ongoing Mechanism for Financing the PSNEJ.

The objective is to mobilize the resources necessary for achieving the PSNEJ for youth employment, thereby finding a solution to, on the one hand, the State’s inability to find financing to implement job placement programs and projects for youth and, on the other hand, the over-cautiousness of the banking system and the limited resources of microfinance systems.

This is specifically a question of: (i) financing programs and projects for training and job placement; (ii) financing activities that provide income for youth; (iii) seeking additional resources for the FAIEJ); and (iv) ensuring continuity of the vocational training system through the creation of appropriate funding.

To set up this ongoing funding mechanism for the national strategic plan for youth employment requires: (i) organizing a roundtable of donors for funding the operational action plan; (ii) operationalizing the FAIEJ; (iii) consolidating the fund for assisting young people in finding employment (FIJ—Fonds d’Insertion pour les Jeunes); and (iv) formulating a financing plan for youth programs.

f) Improve the Information System on Youth Employment

The objective is to have an effective and reliable information system on youth employment. More specifically, this involves: (i) collecting, processing, and analyzing data on job creation and vocational training schemes; (ii) making an inventory of and analyzing the skill requirements of the whole economy; (iii) extending the statistical system; and (iv) evaluating job placement programs and plans for youth.

To improve the information system on the youth employment situation, a group of priority measures should be undertaken that deal with: (i) the establishment of focal points for the collection of routine data in various ministerial departments; (ii) the organization of a biannual investigation on youth employment; (iii) setting up a monitoring mechanism for job placement of youth by the OEF; and (iv) carrying out a diagnostic survey on the youth employment situation in Togo.

The information system’s database on the market will be improved by conducting: (i) biannual investigation on youth employment; (ii) monitoring of job placement for youth; (iii) a diagnostic survey on the youth employment situation in Togo; and (iv) evaluation of youth employment programs and projects.

g) Set Up a Monitoring, Coordination, and Consultation Scheme for the PSNEJ

The objective is to coordinate all the initiatives taken within the framework of the PSNEJ so as to implement an effective and united effort in fighting youth poverty, unemployment, and underemployment.

In particular, this entails: (i) mobilizing the different stakeholders in the youth employment policy; (ii) increasing the effectiveness of the various operators of vocational training through better coordination; (iii) coordinating, supporting, and monitoring the various measures and actions for creating youth employment; and (iv) providing institutional support for PSNEJ implementation.

The priority measures of this strategic objective include: (i) evaluating all youth job creation programs and projects; (ii) setting up a monitoring mechanism for the PSNEJ; (iii) setting up a coordination and consultation framework for the various parties involved in promoting youth employment; (iv) reorganizing and revitalizing the National Commission for Monitoring Development Policy (CNSPE—Commission Nationale de Suivi de la Politique de Développement); (v) training agents of Youth Employment Department and the ANPE in methodologies for monitoring and evaluating the impact of youth employment programs and policies; and (vi) organizing an annual seminar on youth employment.

A. Further Consolidating Democracy and Peace

Consolidating the democratization process to institute a culture of democratic governance requires implementation of essential political and institutional reform. Therefore, the Government will: (i) continue to integrate the Human Rights-Based Approach (HRBA) into legislative frameworks, policies, programs, and the budget; (ii) continue constitutional and legislative reform, ensuring the participation of all political actors; (iii) strengthen the role of the press in the democratization process; and (iv) implement the conclusions and recommendations of the CVJR.

An HRBA is essential to strengthen anti-corruption measures: it is rooted in the need for accountability, transparency, responsibility, popular participation, building stakeholders’ capacity, and empowering the poor. It will also improve the planning and decision-making process through extensive consultation. Thus the Government will adopt a plan to integrate human rights in administrative and justice reform and in Togo’s implementation of international and regional mechanisms for democratic governance.²²

The Government will continue to implement institutional political reform, seeking broad consensus among all political factions so as to strengthen the credibility of the electoral process and limit post-electoral disputes. It will: (i) make improvements within the electoral framework; and (ii) reinforce the Independent National Electoral Commission (CENI—Commission electorale Nationale Indépendante) by reviewing its membership and redefining functions, ensuring free and fair elections, and taking into account the recommendations of the Permanent Framework for Dialogue and Consultation (CPDC—Cadre Permanent de Dialogue et de Concertation) and those of election observation missions.

Regarding the press, measures to strengthen the role of the media in the democratization process include measures to: (i) implement national policy on communication; (ii) implement a public media reform program; (iii) guarantee fair and equal access by media to information and communication resources on the “22 Commitments” and the GPA; (iv) build human and technical capacity in public and private media; and (v) promote democratic values and human rights in the media.

The Government will implement the CVJR’s findings and recommendations, to encourage forgiveness and reconciliation so as to strengthen the political and social healing process initiated since signing the GPA. The priority is to: (i) install a Follow-up Committee to implement CVJR recommendations and ensure the effective start of its work; (ii) reorganize intelligence and security services to focus on their core mission; (iii) organize the prompt swearing-in of members of the CNDH; (iv) set up and operationalize the High Commission for National Reconciliation to facilitate assessment and reparation of damages suffered by victims of political violence between 1958 and 2005 using the mechanisms provided for this purpose; (v) review the entire law governing the CNDH, while expanding its mandate to become a national prevention mechanism against torture (NPM); and (vi) accelerate the process reforming the Code Pénal and the Code de Procédure Pénale (Penal Code and the Criminal Procedure Code), to align Togo’s legal system with all international and regional conventions it has signed and ratified, particularly those relating to torture.

B. Capacity-Building in Togo’s Key Constitutional Institutions

The Government plans to move toward full functioning of checks-and-balances institutions so as to strengthen pluralism in Togo’s democracy. In this regard it will continue the process of building capacity in all of Togo’s existing institutions, including the National Assembly, the Constitutional Court, the CENI, the CNDH, the High Authority for Audiovisuals and Communication (HAAC—Haute Autorité de l’Audiovisuel et de la Communication), and the CATO. In addition, the Economic and Social Council (CES—Conseil Economique et Social) will be set up.

C. Building Citizenship and Civil Society in Governance

The Government places special emphasis on promoting civic culture through human rights education, citizenship, and gender equality; conveying respect for public property, ethical values, civics, preventing/fighting corruption and embezzlement of public funds, a culture of reward for work well done, and sanctions that encourage best practices in the management of public affairs; and including respect for the authority of State officials and local authorities in the exercise of their duties.

Participatory development is key to engaging all development actors in the management of public affairs. Civil society is thus represented at all levels of institutional arrangements for coordinating, monitoring, and evaluating development policies (DIPD—Dispositif Institutionnel de coordination, de suivi et de l’évaluation des Politiques de Développement), established in December 2010 by Decree No. 2010-170/PR. The Government will also ensure representation on all decision-making bodies by the most vulnerable sectors in society, notably young people, women, and people with disabilities; measures will thus be taken to build the capacity of civil society organizations focusing on women and youth organizations to improve their contribution to Togo’s socioeconomic development.

D. Expanding Reform of the Army

Given that there is close correlation between security and development, as part of the GPA implementation framework the Government will carry out military reform, ensuring neutrality and involvement in Togo’s economic and social development. Therefore, provision will be made to allow the military to participate in State-building through civic and moral education, centered on soldiers’ behavior, rights, and responsibilities in a democratic society, while at the same time effectively conducting its sovereign role of defending the country’s integrity. Government objectives in this area are to: (i) encourage moral and civic education and promote teaching of International Humanitarian Law (IHL); (ii) improve relations between the military and civilians, and deal with gender issues; (iii) build effective technical and logistical capacity in the army for its role of monitoring and defending territorial integrity, and emphasize capacity-building in the navy to meet the challenges of maritime piracy.

Civic and moral education within the military will be conducted through awareness-raising meetings and seminars with command officials as well as through training programs focused on: (i) Togo’s institutions; (ii) a republican army’s role and responsibilities; (iii) the status of military personnel; and (iv) civil and political rights of the military. More time for IHL teaching will be allocated in training programs and by organizing regular training seminars and increasing awareness-raising sessions.

The building of sustainable relations between civilians and military will rely on communication and public relations. The military will open itself up to civilians, by holding open-door days to explain the missions, professionalism, and activities of the armed forces; organizing sports and recreational activities between the military and civilians; and providing military assistance to public and private institutions that request it. Increasing female staff, a goal in process since 1996, will continue as part of modernizing the army. A focus on making gender issues mainstream should lead to producing manuals that consider the specificities of men as well as women.

Building the technical and logistical capacity of the army will be conducted by upgrading existing skills, thereby addressing identified deficiencies, so as to instill operational capability equal to meeting new defense and security challenges. Indeed, modernizing the military and expanding its operational capacity will effectively improve its ability to counteract threats to economic growth efforts—maritime piracy, armed robbery, highway robbers, cross-border crime, drug trafficking, etc. Specifically this includes developing and implementing frameworks for: (i) logistics support, maintenance, and material resource management; (ii) building and rehabilitating security and defense infrastructure; and (iii) meeting new defense and security challenges democratically.

E. Strengthening the Rule of Law

The judiciary and the HRBA, promoting and protecting human rights and the security of people and property, are key to strengthening the rule of law in Togo.

The strengthening of the rule of law by an effective judiciary also accelerates economic growth. Therefore, the Government plans in the foreseeable future to consolidate the achievements of the PNMJ by taking steps to: (i) improve judiciary efficiency by building the courts’ administrative and management capacity; and (ii) increase access to law and justice, including in local settings (broadening the judiciary’s territorial coverage), and access to legal aid for the poor.

Modernizing the justice system will bring an updated legal and judicial environment into the national economy, promoting respect for trade relations, and an independent judicial system that is consistent in applying legal instruments and national and international law to issues. This is expected to attract FDI and thus boost private-sector development.

Strengthening promotion and protection of human rights requires that stakeholders in the sector, individually and collectively, interact and influence the HRBA operational framework, strategies, and mechanisms. Therefore, the Government as it strengthens the rule of law will include specific measures for facilitating Togolese citizenship documentation. It will increase cooperation among national institutions for human rights and gender equality, and expand involvement of all stakeholders engaged in public action in the field of human rights. Further, Government will: (i) promote capacity-building among all actors (State and non-State institutions) involved in human rights and other important issues such as citizen oversight, writing compliance reports (initial, periodic, and alternative) to treaty bodies and under the Universal Periodic Review (UPR); (ii) implement UPR recommendations; (iii) ensure the application of the HRBA in projects and programs; (iv) strengthen national coordination and protection mechanism for human rights, especially the rights of the child and those of people with disabilities; and (v) implement programs for the promotion of peace, human rights, and gender equality.

Strengthening the security of people and goods is a pivotal element in the SCAPE, central to promoting an HRBA and protection of human rights, as well as public and individual freedoms. The Government objective is to establish conditions that complement and supplement its actions to: (i) protect people and property; (ii) ensure road security (deterring highway robbery on all roads), maritime security (deterring piracy), and air safety; (iii) implement the Integrated National Plan for Combating Drugs and Crime (PNI-LDC—Plan National Intégré de Lutte contre la Drogue et le Crime); and (iv) implement the National Strategic Plan for fighting the Proliferation of Small Arms and Light Weapons (Plan Stratégique National de Lutte contre la Prolifération des Armes Légères et de petits Calibres). To extend civil protections, the Government will continue to (i) implement national and regional contingency plans to deal effectively with natural disasters; (ii) strengthen security sector reform by building the physical, technical and human-resource capacity of the gendarmerie, police, firefighters, and guards of prefectures; (iii) improve the relationship between the population and security forces; and (iv) ensure greater protection of public and individual freedoms.

A. Continuing to Reform and Modernize Public Administration

Government commitment to reform and modernization of public administration aims at qualitative improvement in its performance as a whole and “user satisfaction.” After the first phase (2008–2012), encompassing reform preparation and experimentation, the Government will implement the second phase (2013–2015) for the purpose of consolidating achievements and broadening action to target the full range of public administration. For this to be effectively realized, measures taken will: (i) build up the technical capacity of public administration; (ii) promote a new administrative culture of development and proximity, as well as information and communication within public administration; (iii) redefine and streamline the tasks of structures and legal standards; (iv) promote e-government; and (v) pursue standardization and structuring of the work of government.

Capacity-building for Togo’s public administration: Priority measures for building public administration capacity include: (i) redeployment and recruitment of new agents; (ii) standardizing administrative records of employees of the State and establishing a single reference file for administrative management and the salaries of public officers; (iii) reform of the National School of Administration (ENA—École Nationale d’Admistration) and the main schools and training centers for Government employees; (iv) a master scheme for the permanent training of Government employees; (v) a program for upgrading the performance of public officials; (vi) mobilization and use of national expertise within the administration; and (vii) increasing the efficiency of Government work.

Promoting a new administrative culture of development and proximity: To achieve a new administrative culture of development and proximity, the Government will: (i) reform communication strategy; (ii) improve communication within the administration and between the administration and users; (iii) undertake initiatives to promote “Rapid local administration”; (iv) establish and operationalize a Committee for the reduction and simplification of administrative procedures and bottlenecks (Comité d’allègement et de simplification des procédures et formalités administratives); (v) promote ethics in public administration; and (vi) further the decentralization process.

Redefining and streamlining legal standards and various departmental missions: Key measures to achieve this objective are to: (i) implement recommendations of organizational audits carried out in certain ministries and institutions; (ii) implement organizational audits in other ministries and institutions; (iii) adopt and implement the new General Law of the Civil Service (Statut général de la Fonction Publique); (iv) implement the new salary scale for Government employees; and (v) follow up on the implementation of staff oversight measures and payroll.

Standardizing and structuring the work of Government: This is key to ensuring inter-ministerial coordination and monitoring of Government ministers’ mission letters. In addition, special emphasis will be placed on the flow of information between ministries and Government’s external communications.

Promoting electronic government (e-government): Systematic introduction of ITC in Togo’s administration will improve productivity of personnel and ease the management of files and documents. To achieve this goal, the Government will strengthen its efforts to: (i) implement the strategy for archive systems and management of electronic documents; (ii) complete the connection between ministries and institutions; and (iii) finalize the Management System for Administrative Personnel (SGPA—Système de Gestion du Personnel Administratif).

B. Strengthening Local Governance

Concerned with the well-being of people across the country, Togo’s Government has opted strongly for decentralization. This will permit the State to involve local communities and the grassroots in management of the affairs of the nation. Through these local frameworks, the population can easily participate in development projects and contribute to local democracy entrenchment. Thus to strengthen local governance, the Government commits to: (i) accelerated decentralization; (ii) stronger deconcentrated government structures; and (iii) competent human resources for local communities.

Accelerating decentralization: The ultimate aim of decentralization in Togo is to ensure balanced development throughout the country through effective local administration, better mobilization, greater citizen participation, and an emphasis on developing local potential. The Government intends in the coming years to: (i) organize local elections; (ii) complete a legal framework for decentralization, an institutional framework, and a local government structure; (iii) establish endowments for decentralization through the state budget and strengthen the Local Government Support Fund (FACT—Fonds d’Appui aux Collectivités Territoriales) for local investment needs; (iv) establish and delimit territorial authorities; (v) revamp the technical unit for implementing decentralization; (vi) support local authorities in the construction of basic facilities; (vii) provide the new Urban Councils with infrastructure; (viii) provide regional and local authorities with planning, technical, and financial management instruments and tools.

Redefining the missions and mandates of decentralized government departments in line with the decentralization process: The Government plans to: (i) delimit and differentiate the operations of decentralized regional and local authorities and those of decentralized services of the State; (ii) coordinate relations between central Government departments and regional and local authorities (modalities of State control on regional and local authorities, support of decentralized structures by decentralized government services, etc.); (iii) develop and implement decentralization policy; (iv) provide the prefectures with adequate infrastructure and equipment; and (v) provide the prefectural administration with qualified personnel and its own budget, tailored to its new missions.

Endow local communities with competent human resources: In SCAPE implementation, heavy reliance on the central Government in its current state may limit the impact of steps made toward decentralization. Indeed, successful implementation of decentralization requires long-term restructuring of a modern, decentralized State that seeks continually to improve effectiveness and efficiency of public policies and relies strongly on the principle of subsidiarity. Thus it is important to provide regional and local authorities (which are first and foremost part of the State) with territorial governments managed by qualified and motivated staff. This restructuring, conducted according to the principle of subsidiarity, should improve provision of essential public services as may be prioritized, especially those related to health, education, transport, energy, water, and sanitation.

A. Maintaining a Stable Macroeconomic Framework

Strengthening macroeconomic stability is an essential requirement to accelerate growth and achieve economic competitiveness globally. Action and reform geared toward these objectives will focus on: (i) consolidating efforts in the macroeconomic framework by maintaining flexible fiscal policy and targeting development of economic infrastructure and basic social services; and (ii) implementing tax incentives aimed at improving Togo’s competitive advantage by reducing the tax burden on economic operators in the formal sector.

Effort will thus be made at broadening the tax base while enhancing the efficiency of tax and customs administration. Specifically, the Government plans to finalize its strategic plan for comprehensive reform of the tax administration, which will review the structure, priority tasks, resource allocation, and method of results-based management. This should result in the creation of the OTR and streamlining of the tax system.

Given that Togo’s intention to invest heavily in human resources and basic infrastructure to increase total factor productivity can be significantly slowed down by the paucity of State-owned resources and the need to balance internal and external income, more substantial and effective external aid is essential to support the implementation of the SCAPE. Efforts at achieving reliable Government policy in this area will include stronger measures for more efficient use of public resources, including programs to restore financial orthodoxy: (i) correct budget execution; (ii) stronger internal controls; (iii) improved cash management and procurement procedure; and (iv) improved transparency by fighting corruption and fraud. Public expenditure reviews will be systematized as an approach to ensure that public funds produce maximum impact. Debt policy will remain flexible to preserve the sustainability of external debt by favoring the use of concessional loans. Coordination of interventions by development partners will be another important element to improve the effectiveness of aid.

B. Boosting Structural Reform

The Government intends to bolster structural reform already underway.

As regards the cotton sector, the reforms described above will continue, to attain sector viability and to restructure the NSCT.

As regards the phosphate sector, the Government will: (i) upgrade the production structure; (ii) resume carbonite exploitation and industrialize the sector to produce phosphoric acid and fertilizers; (iii) provide capacity building for human resources at all levels; (iv) more favorably negotiate trading futures; and (v) be more attentive to local authorities.

As regards the energy sector, the Government will: (i) develop and implement a plan for maintaining a balanced budget in the subsector; (ii) implement the recommendations of the organizational audit conducted by the CEET, including those relating to improving its management; (iii) strengthen private-sector involvement in energy production; (iv) build up subregional cooperation in energy production, purchase, sale, and transport; and (v) promote wider consumption of domestic gas. The Government is to ensure overall consistency in energy reform, developing for the medium term a sector strategy for supplying electricity to consumers at a lower cost.

Further in this context, the Government will: (i) continue to encourage development and use of renewable energy; (ii) create a rural electrification fund; (iii) establish a mechanism for financing the sector with participation from external donors and the national financial system; (iv) educate households on the rational use of all forms of energy; and (v) ensure sector budget stability by improving the level of collected revenues, rehabilitation of equipment, and systematic regulation of public consumption costs.

As regards the banking sector, the Government remains committed to accelerating the process leading to the privatization of public banks, including BTCI (Banque Togolaise pour le Commerce et l’Industrie—Togo Bank for Commerce and Industry), BTD (Banque Togolaise de Développement— Togo Development Bank), and BIA-TOGO (Banque Internationale pour l’Afrique au Togo— International Bank of Africa in Togo). To achieve this, the Government is prepared to approach key partners with a solid financial base and expertise to complete the privatization process. Further, the Government is planning to maintain robust oversight in the management of these banks until the completion of the privatization process, and to implement the strategy for the development of the financial sector (approved in February 2012).

As regards the pension system, restructuring would not only provide income security for retirees and other beneficiaries, but would also release funds needed to develop the economy in the long term. Current analyses have produced a set of recommendations and options on reform critical to placing the CRT and the CNSS on a more solid financial footing.

C. Improving the Business Climate

Improving the overall business climate is essential to boost the private sector. Therefore, the Government intends to: (i) prioritize the overall business environment; (ii) strengthen the legal and judicial business framework; (iii) improve the regulatory and institutional framework for the private sector; (iv) boost free zones; (v) upgrade the framework for promoting and supporting the private sector; and (vi) improve conditions for development entrepreneurship.

As regards improving the overall business environment, the goal is to consolidate the gains made and create an overall business environment consistent with regional and international standards. Therefore, the Government plans to: (i) implement the Charter on SMEs/SMIs; (ii) improve the institutional, legal, and organizational framework of sectors that promote growth; (iii) develop a strategy for resource mobilization; (iv) strengthen the framework for cooperation between the State and the private sector; and (v) implement necessary reform to secure land estates.

As regards improving the legal and judicial framework for business and economic activity, this is a prerequisite for investment and development of trade. Togo boasts of such a legal framework, having integrated the Uniform Acts (OHADA—Organisation pour l’Harmonisation en Afrique du Droits des Affaires), a common business law in 16 States, which provides a modern and solid legal foundation for private-sector activities. For the 2013–2017 period the Government plans to: (i) continue the process of capacity building for all those using this law—judges, lawyers, bailiffs, corporate lawyers, etc.; (ii) monitor enforcement and interpretation of norms determined by Togo’s sole supreme court of appeals, the Joint Court of Justice and Arbitration (CCJA—Cour Commune de Justice et d’Arbitrage); (iii) give priority to commercial courts in the judicial modernization program’s implementation, including the Court of Trade (Cour de Commerce); (iv) extend the labor courts throughout the country; and (v) support Togo’s Court of Arbitation (Cour d’Abitrage).

As regards improving the regulatory and institutional framework for the private sector, the next five-year cycle will maximize regulatory and institutional improvements made in private-sector development. Therefore, the Government will: (i) continue to restructure the CFE and turn it into a true one-stop shop; (ii) set up CFEs in the principal municipalities to speed up the process of obtaining building permits; (iii) revise the labor code within a tripartite framework so as to enhance work flexibility; (iv) reform the system of land registry (deeds and land transfers) to reduce time and cost, by drawing on the experiences of other African countries that have carried out such reform.

Boosting the Free Zone, and with it significant growth potential and impact on the national economy, is backed up by a Government commitment to: (i) implement the revised Free Zone statute; (ii) improv