WT/TPR/S/48 Trade Policies Review
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IV. TRADE POLICIES AND PRACTICES
(1) INTRODUCTION
1. The Togolese economy is organized around the advantages offered by the country's
geographical position  Thus, the Atlantic coastline of Togo has made it possible to develop harbour
activities which are entrusted to a State-owned en terprise, the Lomé Autonomous Port (PAL).  Most
of Togo's foreign trade passes through the PAL which serves as a transit point for goods intended forthe land-locked countries of the Sahel such as Burkina Faso, Mali and Niger.  Exploitation of this
position has encouraged the installation of co mmunication networks linking the port to the
land-locked countries, and, at the same time, the opening up of Togo to the outside world.  The
development of informal trade is a corollary of this situation, a portion of the goods in transit being
fraudulently sold in Togo.  The structure of the im port duties (Chapter III.2(iii)(a)), by encouraging
the transit and importation of certain goods for which there is a strong demand in the subregion, has
also helped to ensure a preponderance of the services sector within the Togolese economy.  The social
and political crisis that Togo endured at the beginning of the 1990s impaired the dynamism of this
sector which the Togolese Government is currently tr ying to restore.  However, the services sector is
one in which the State still has a strong presence through its wholly-owned enterprises.
2. Agricultural holdings are usually family ones and of dimensions reflecting the size of Togo,
i.e. its area of less than 57,000 km.
2.  Cotton, and to a lesser extent coffee and cocoa, are cultivated
alongside food crops intended for local consumption (subsistence crops).  The agricultural sector has
been substantially liberalized and price controls on most products have been abolished.  The poor
communications of the rural areas constitute a brake on the development of the sector.  Indeed, the
development of the infrastructures needed for the transit activities has taken place to the detriment of
opening up the agricultural production areas.  The result is some problems of produce storage andpreservation which give rise to fluctuations in the prices of goods and losses for the peasant farmers.
Agriculture also suffers from the poor access that the farmers have to credit.  The sector is protected
mainly by the import duties whose average rate is 16.3 per cent, with a minimum of 3 per cent and a
maximum of 23 per cent.  The State is particularly active in the cotton, forest and butchery chains,
where State-owned enterprises operate.
3. Mining activities are concentrated on the exploitation of phosphate and limestone.  Phosphate
which, with cotton, is one of the two main sources of the country's export earnings, is exploited by a
state-owned enterprise whose capital is to be partly privatized (40 per cent) in the context of measures
formulated by the Government to attract investors to the mining sector.  The Mining Code was revised
in 1996 to that end.  The mining sector is the least protected (in terms of import duties) in Togo(Chart III.2).
4. The free zone regime reflects the direction given since 1989, to Togo's industrial policy,
namely, the promotion of export-oriented enterprises (particularly industrial ones).  Despite the
potential of the Togolese economy for the development of this sector (Table IV.1), factors such as the
social and political crisis, the structure of the import duties which the advantages offered by thevarious codes should correct, the lack of integration of the various sectors and the increase in the cost
of inputs as a result of the devaluation of the CFA franc in 1994, have held back industrial
development in Togo.  The manufacturing sector is the most protected (in terms of import duties) of
all economic activities in Togo (Chart III.2).  The negative escalation of import duties, from semi-
finished products to finished products, does not encourage, without prejudice to exemptions, the
development of final processing activities in Togo;  this could be an explanation for the predominance
of the production of semi-finished goods in the sector.Togo WT/TPR/S/48
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Tableau IV.1
Cost of energy, water, telecommunications and transport:  comparison with the other WAEMU countries
Electricityb
KW/HDiesel oilb
CFAF/lWater b
CFAF/m3Telephonea
1 mnTransportb
road t/km.Transportb
rail t/km.Transportb
airc
France USA CFAF CFAF CCFA/kg.
Togo 53 195 257 1500 857 36.7 42.1 2,800
Burkina Faso 51 312 1,026 2,262 1,482 42.5 52.5 3,000
Benin 41 135 293 1,760 1,705 47 28.3 2,900
Côte d’Ivoire 37.3 270 424 1,390 870 37.2 31.4 2,900
Mali 55 275 315 3,060 1,360 43.6 26.3 3,000
Niger 55.35 265 319 1,800 1,285 50.1 31.4 2,800
Senegal 55.88 300 614 1,330 800 33.6 26.3 2,200
a 1996b 1995c Destination Paris
Source: CEFTE (1997) Programme d’Appui Régional à l’Intégration des pays de l’UEMOA, WAEMU
.
(2) AGRICULTURE , LIVESTOCK , FISHERIES , FORESTRY AND RELATED INDUSTRIES
(i) General
5. Agricultural production take places for the most part on small family holdings and is based on
rudimentary techniques.  It is a subsistence agriculture which, according to seasons, is sufficient to
ensure food self-sufficiency.1  The food crops consist mainly of maize, millet, sorghum, manioc and
yams.  Cash crops are mainly cotton, cocoa and coffee.  The food crops and cash crops contribute to
an extent of 27 and 4 per cent respectively to the GDP.  Fertilizer is used only for the cash crops,
particularly cotton.  These factors, combined with  soil impoverishment, have contributed to the low
level of productivity in the sector.
6. Animal production (stock-farming and fishing), is developing slowly;  it is insufficient to
cover the needs of the population.  The national production of meat and fish would cover only 60 per
cent and 30 per cent respectively of the demand.  In 1995, imports of meat and fish were 2,943 and
45,714 tonnes respectively.  Moreover, over-exploitation of the forests has led to nationalreforestation campaigns.
7. Agriculture plays an important role in the Togolese economy;  it employs about 75 per cent of
the active population and contributes about 40 per cent to the GDP. In recent years, agricultural
production has grown somewhat irregularly under the combined effect of climatic variations, the
social and political environment and the devaluation of the CFA franc.  Between 1993 and 1996, the
average annual growth in food production was 5 per cent, while that of the cash crops was about 9 per
cent.
8. One of the chief problems facing agriculture in Togo is that of storing and preserving
produce, which is the reason for major seasonal price fluctuations (very low prices at harvest time and
excessively high prices during transition periods a nd drought years).  This problem is aggravated by
the lack of infastructure which makes access to certain regions difficult (particularly during the rainy
seasons), including the main production areas.  Agriculture also suffers from the difficulty of accessof peasant farmers to credit and from agrarian problems caused inter alia  by a high population density
(more than 70 inhabitants per km.
2) and the limited recourse to irrigation.
9. In its 1996 Declaration of Agricultural Deve lopment Policy, the Government envisaged a
redefinition of the roles of the various actors in agriculture, the establishment of a system of
                                                     
1 In general, two regions out of five are self-sufficient in food.WT/TPR/S/48 Trade Policies Review
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agricultural credit, continuation of the liberalization of the sector (particularly trade and prices), a new
agrarian policy and the preservation of natural resources.  At present, there are three organizations
involved in the supervision and promotion of the agricultural sector:  the Ministry of Agriculture,
Livestock and Fisheries, and two parastatals, the To golese Agricultural Research Institute (ITRA) and
the Technical Advice and Support Institute (ICAT).  After the liquidation of the National Agricultural
Credit Bank (CNCA), the State encouraged the development of the present credit system which isbased on three mutualist financial institutions, already operational and represented throughout the
country (FUCEC, SYNORSEC and SOCODEVI).
2
10. Since 1973, farmers have not paid any tax on their income and the civic tax is no longer
collected in the countryside.  Cooperative societies, farmers' unions and agricultural credit banks are
exempted from the corporate tax.  Moreover, most ag ricultural inputs are exempted from VAT;  they
are subjected to import duties of not more than 8 per cent.
11. According to the authorities, the system of taxing  the agricultural sector is designed to supply
the general population with foodstuffs at low prices, while mobilizing tax resources and protecting
national production.  For most agricultural products, the rate of import duties is 8 per cent (maize,
millet, small ruminants, poultry, pork and milk).  On the other hand, rice, sorghum, cattle, goats, fish,tubers and leguminous plants, local production of which are important, bear import duties of 23 per
cent.
(ii) Policy by product category
(a) Food crops
12. The main food crops are cereals (maize, millet, sorghum and paddy rice), tubers (yams,
manioc, sweet potatoes and taro) and leguminous vegetables (beans, groundnuts and voandzou).
13. Foodstuff production for the last three years has averaged 596,047 tonnes of cereals,
1,082,875 tonnes of tubers and 85,137 tonnes of leguminous plants.  As compared with food needs,
the net production of tubers and leguminous plants is in surplus, whereas that of cereals is in slight
deficit as a result of an inadequate production of maize and rice (Table IV.2).  These cereal deficits
are usually compensated for by surplus production of manioc and yams.  Nevertheless, because of the
droughts and the problems of storing and preserving produce, needs in recent years have been coveredonly to the extent of 84 per cent on average.
3  Distribution of needs coverage is unequal within
regions because of production conditions, the difficulties of access to certain zones and differences in
the level of household incomes.
14. Among the objectives of Togo's agricultural development policy are an increase in the
production of food crops through intensified cultivation (owing to an improvement in productiontechniques and storage and preservation conditions) and the retention of subsidies on fertilizers.
Exports of food products can be temporarily suspended by interministerial decree in order to cope
with food shortages:  such was the case in February 1995, when the export of cereals was temporarily
suspended.  The Togolese Grain Office (Togograin), responsible for managing the reserve stocks of
cereals was wound up in August 1997
4;  at present, there are no reserve stocks.  The authorities are
trying to persuade the peasant farmers to establish cereal banks to be managed by their groupings.
                                                     
2 Féderation des Unions de Coopératives et de Crédit (FUCEC);  Synergie Nord-Sud pour l'Épargne et
le Crédit (SYNORSEC), and Société pour la Coopératio n et le Développment International (SOCODEVI).
3 Estimates of the Ministry of Planning and UNDP in 1995.
4 Decree No. 97-114/PR of 20 August 1997.Togo WT/TPR/S/48
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Table IV.2
Togo's food balance sheet, 1995-1997
(in tonnes)
Crop
seasonNet production
(1)Stocks
(2)Net imports
(3)Availabilities
(4)=(1)+(2)+(3)Food needs
(5)Surpluses or
deficits
(6)=(4)-(5)
Cereals 94/95 499,486 5,686 3,555 508,727 562,665 -38,164
95/96 516,007 1,415 55,560 572,982 569,178 19,387
96/97 593,834 1,415 34,506 629,755 651,480 -21,725
Tubers 94/95 858,694 128,000 0 986,694 585,567 401,127
95/96 1,067,355 0 0 1,067,355 605,202 462,153
96/97 1,076,784 0 0 1,076,784 676,492 400,292
Leguminous plants 94/95 64,559 0 0 64,559 44,068 20,491
95/96 59,234 3,000 0 62,234 39,358 22,526
96/97 106,077 3,000 0 109,077 60,990 48,087
aNet imports = imports – exports.
Source: Togolese authorities (Directorate of Agricultural Surveys and Statistics (DESA)).
(b) Cotton
15. Cotton is by far the main cash crop of Togo (Chart IV.1).  The increase in production over the
last few years is due to the improvement in productivity (about 1,200 kg. per hectare), to the increasein the number of producers (199,618 in 1996 as against 156,325 in 1990) and to sustained action of
outreach and advice by the Togolese Cotton Company (SOTOCO) to the producers regrouped within
the cotton producers groupings (GPC), of which there were some 2,283 in 1996.
16. The GPC are responsible for the primary collection of the cotton seed and the management of
inputs.
5 The entire production of cotton seed is purch ased exclusively by SOTOCO (a State-owned
company and the main operator in the chain) at a price fixed by the State (Chart IV.2).  The principles
for determining this price and distributing the marg in between the cost price and the export price are
established by considering the evolution of the world price, the economic viability of the intermediate
operations, State taxation and the levies for a support fund.  The price to the producer is guaranteed
for each crop season.  A trust company made up of representatives of the State, of SOTOCO and ofthe producers studies the decisions concerning prices.  Since the 1995/96 crop season, the profits
made by SOTOCO on the export of cotton have, to the extent of 50 per cent, have been returned to the
producers.
                                                     
5 The operation of supplying cotton producers with inputs is now carried out by the private sector.WT/TPR/S/48 Trade Policies Review
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020406080100120140160180
1987-88 88-89 89-90 90-91 91-92 92-93 93-94 94-95 95-96 96-97Chart  IV.1
Production of cash crops in Togo, 1987-1997
Thousands of tonnes 
Source : Togolese authorities.CottonCoffeeCocoa
0%10%20%30%40%50%60%70%80%90%100%
1992/93 1993/94 1994/95 1995/96Chart IV.2
Structure of the price of cotton, 1993-1996
Source : Togolese authorities (Togo Agricultural Products Office (OPAT)).Producer Transport MarketingTogo WT/TPR/S/48
Page 59
17. A Decree issued in July 1997 liberalized cotton ginning and the marketing of the cotton fibre.
SOTOCO has three ginning plants with a capacity of 120,000 tons.  Another ginning plant belongs to
a private company, the Société Industrielle du Coton du Togo (SICOT).  This company obtains its
supplies of cotton seed from SOTOCO.  Nowadays, there are four operators active in the export of
cotton fibre (SOTOCO;  SICOT;  Industrie, Commerce et Agrochimie; and the Société de Négoce des
Produits).
Table IV.3
Producer purchase price and f.o.b price of cotton, coffee and cocoa (CFAF/kg.), 1991-1997
1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97
Cotton Prod pce 100 100 90 110 145 170 180
Prod pce 238.1 238.1 214.3 265.1 349.4 409.6 433.8
Pce f.o.b. 439 384 338 537 761 745 828
Coffee Prod pce 180 190 140 145 650 750 [..]
Pce f.o.b. 280 264 230 441 760 840 [..]
Cocoa Prod pce 250 250 225 225 550 450 [..]
Pce f.o.b. 491 350 305 599 730 516.1 [..]
[…] Not available.
aProducer price of cotton seed (Pce = price).
bEquivalent of the producer price of cotton fibre.
Source: SOTOCO and APROMA report.
(c) Coffee and cocoa
18. Almost all the production of coffee and cocoa comes from small family holdings.  The total
number of planters is estimated at 40,000 and the average size of a holding is about two hectares.
19. Production of coffee and cocoa varies considerably from one crop season to another in Togo.
The stagnation of cacao production between 1990 and 1996 is to be explained by the ageing of the
plantations and the inadequacy of their maintenance, largely as a result of fairly low producer prices.
The increase in producer prices as a result of the devaluation of the CFA franc (Table IV.3) and therecovery of world prices explain the renewed interest in these crops since the 1994/95 crop season
(Table IV.4).  Some new coffee plantations have also been installed by the National Company for the
Revitalization and Development of Coffee and Cocoa (SRCC) since 1995.
Table IV.4
Areas under coffee and cacao plantations in 1995 (hectares)
Old plantations SRCC/SAFICC
plantationsNew private
plantationsTotal
Coffee 15,000 22,755 8,000 45,755
Cacao 26,000 6,120 3,000 35,120
aSRCC = National Company for the Revitalization and Development of Coffee and Cocoa;  SAFICC = Coffee and Cocoa Support
Structure.
Source: Togolese authorities (SAFICC).
20. The liberalization, by decree in 1996, of the coffee and cocoa chains encouraged the arrival of
several private exporters.  For the first crop season following the liberalization (1996/97),
22 operators were authorized to export.  The number of operators approved for the 1997/98 crop
season is 30, including foreigners having companies established in accordance with Togolese law.WT/TPR/S/48 Trade Policies Review
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21. The management of the coffee and cocoa chains is carried out by a Coordination Committee,
made up of representatives of all the operators active in these chains:  the State, producers, exporters
and banks.  The Committee determines, fortnightly, a producer price (indicative price) on the basis of
the evolution of the international price and certain costs;  the indicative price is equivalent to 70 per
cent of the f.o.b price.  Since the liberalization, the prices actually paid to producers are above the
indicative prices.  This reveals the competition among exporters to obtain supplies in Togo.
22. Since the liberalization of the chains, the supervision and technical follow-up of the producers
have been carried out by a private organization, the Association de Conseils et d'Appui pour le
Développement Rural (ACDR).  The farmers are now  supplied with inputs by private operators,
namely, ACDR and certain exporters, through the intermediary of the producers' groupings.  The
inputs are supplied on credit against of promise of reimbursement in kind at harvest time.  TheCoordination Committee ensures that a certificate of quality is presented before every export
operation.  As regards packaging, there are some compulsory prescriptions for all cash crop products:
the exporters must follow the specific provisions for each type of product (Chapter III.2(vii)(a)).
Inspections are not, however, systematic except in the case of coffee and cocoa.
(d) Shea
23. The production of shea is an, essentially female, gathering activity, carried out in parallel with
the other daily tasks.  There are no structured rural groupings for the exploitation of shea products.
The shea nuts are processed into butter either on the spot or industrially in Togo.  The on-the-spot
processing is also an essentially female lucrative activity.  On average, a household produces 33.3 kg.
of shea kernel per year, or 11.2 kg. of butter, 30 per cent of which is consumed at home.  As for
industrial processing, this is carried out exclusively by the Nouvelle Industrie des Oléagineux du Togo
(NIOTO) company, which has its own supply network.   This company has a plant which enables it to
treat 100 tonnes of kernel per day.
24. The exportation of shea is as old as that of coffee and cocoa.  Although fluctuating from one
year to the next, the volume of shea exported has become relatively significant since the beginning of
the 1980s.  Exports amounted to CFAF 566 million in 1997 for a volume of 5,283 tonnes;  a small
part of the volume exported consists of re-exports, i.e. the export of imported products.
25. Until 1989, shea nuts were marketed solely by the Togo Agricultural Products Office (OPAT)
with the assistance of approved purchasers.  A pproved private operators were then authorized to
export the shea nuts.  Since 1992, as a result of the continued fall in international nut prices, OPAT
has suspended the export of shea, leaving the business to the private sector.  Locally produced shea
butter is exported to the industries of the European Union and Japan. 
(e) Livestock
26. Regarded as a secondary activity, stock-farming is carried out by more than 75 per cent of the
Togolese peasant farmers as a complement to their agricultural work.
6 The chain is largely dominated
by small short-cycle livestock farming, particularly of poultry and small ruminants (Table IV.5).
Stock-farming is essentially of the traditional (extensive) type.  Besides this type of stock-farming,there are other forms:  urban livestock raising, peri-urban stock-farming and ranching.  Traditional
village stock-farming, of the sedentary type, associated with rain-fed cultivation, supplies almost the
entire production of animal species.  Urban livestock raising is intended mainly for family
consumption and is practiced in the large towns.  Stock-farming of the peri-urban type developed
during the 1980s and 1990s.  It declined, however, after the devaluation of the CFA franc because of
                                                     
6 FAO (1995).Togo WT/TPR/S/48
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the increase in the cost of the products used to feed  the animals.  This type of stock-farming supplies
the urban population with meat and eggs.  The ranching system is the prerogative of State-owned or
parastatal companies, is defective in management and has some major agrarian problems.
Table IV.5
Development of livestock in Togo, 1993-1996
(Number of heads)
1993 1994 1995 1996
Cattle 248,000 244,300 239,400 251,400
Sheep and goats 2,676,000 2,729,500 2,740,400 2,904,800
Pigs 429,200 420,600 408,000 436,600
Poultry 5,685,000 5,571,300 5,738,400 6,082,700
Source: Togolese authorities.
27. Stock-farming contributes about 5.4 per cent to the Togolese GDP.  The quantities of meat
produced and consumed are calculated on the basis of estimates in the absence of recent data.  The
total production of meat and offal - 157 - was estimat ed, in 1989, at 17,300 tons, 60 per cent of which
came from small ruminants and poultry;  this production was estimated at 22,133 tons for 1993.7 The
consumption of livestock products was estimated at 28,487 tons in 1989.  The consumption of meat
and offal in 1994 was estimated at 7 kg. per person and per annum as against 8.3 kg. in 1989.  Theremainder of national demand is satisfied by the importation of live animals and of frozen meat.
28. The formal organization of livestock producers is recent.  It has been carried out within the
framework of development projects for stock-farming with the assistance of NGOs.  In 1995, more
than 300 groupings were set up to support, on the one hand, the organization of basic animal health
care and, on the other, the emergence of a modern sector for the production of small ruminants.Credit for stock-farming is provided by private rural financial institutions organized in savings and
credit unions such as the Fédération des Unions de Coopératives d'Épargne et de Crédit (FUCEC) and
Synergie Nord-Sud pour l'Épargne et le Crédit (SYNORSEC).
29. The trade in live cattle, organized in traditional circuits, involves several categories of agents,
such as the stock breeders, commission agents, cattle dealers, pen managers and carriers.  Togo hasabout 60 cattle markets which have little organization, divided into collecting, regrouping and
terminal markets.  The prices of livestock are free whereas those of meat are fixed by the local
authorities.
30. The average rate of import duties on live animals is 9.3 per cent;  the maximum rate of 23 per
cent is applicable to meats and their preparations.
(f) Fisheries
31. The contribution of the fisheries to GDP formation is marginal.  The sector employs about
10,000 fishermen, 60 per cent of them full-time, and about 12,000 fish merchants and processors.  The
annual production of fish varies between 15,500 and 17,500 tonnes, of which about 12,000 tonnes
come from the sea.  Fishing is essentially a small-scale activity;  industrial fishing supplies only about100 tonnes of catches per year.
32. The fishermen are grouped in cooperatives called UNICOOPEMA which undertake in
competition with private companies, to supply fish ing gear and appliances to their members at prices
                                                     
7 FAO (1995a).WT/TPR/S/48 Trade Policies Review
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lower than those in private shops.  The distribu tion and marketing of fishing products are largely
reserved for the informal sector.  The distribution circuit consists of wholesalers and retailers of fresh
and smoked fish and importers of frozen fish.
33. Production is inadequate to satisfy domestic consumption which is estimated at an annual per
capita consumption of between 10 and 14 kg.  Hence the importance of frozen fish imports over the
last three years.  Such imports represent about three times domestic production.  The market forimports of frozen fish is dominated by four large private companies, namely, Togo-frigos, Togo-food,
UBA and STOC.  Some of the frozen fish imports are re-exported to the countries of the Sahel such as
Burkina Faso and Niger.  In addition to the exports and re-exports of the private companies installed
on customs territory, there are three modern freezer plants operating in the free zone.  The largest of
these, CRUSTAFRIC, packages and exports non-processed shrimps.  In  1994 more than10,000 tonnes of its production went to the European market.  The fishing products exported are spiny
lobsters and squill fish.
34. The legal texts regulating the fishing sector are very old and largely dead letters.  Positive
Togolese law in respect of fisheries is based mainly on the fundamental law of 1964, for which the
application decrees were never issued.  Nevertheless, some new legal texts are being prepared.  TheHealth Inspection and Control Service is underequipped, in terms of both material and human
resources.  Togo has signed and ratified the United Nations Convention on the Law of the Sea of
10 December 1982.
35. The inputs and equipment used for fishing are exempted from VAT. The maximum rate of
import duties of 23 per cent applies to fish, crustaceans and their preparations.
(g) Forestry and wood products
36. Togo has a far from negligible woodland coverage, which is currently being over-exploited.
More than 15,000 hectares are cleared annually, as against about 900 hectares of reforestation.  As
part of community forestry work, 18,036 ha. have been reforested since 1977, consisting of 1,060 ha.
of community forests, 1,144 ha. of school plantations and 15,832 ha. of individual or family
plantations.  Timber covers about 11,000 ha., of which 80 per cent belongs to the State.  Togo has
18,831 ha. of building timber and firewood, of which 79 per cent is owned by private individuals.
37. A forestry plan of action has been applied for the last three years, followed by a national plan
of action for the environment.  The general objective of the first is to cover one third of the territory
with forests.  Its specific objectives are, on the one hand, to protect the ecosystem and, on the other, to
produce sufficient fuel wood for domestic and industrial needs, so as to reduce the fairly considerable
imports of wood.  To achieve these objectives, the State has identified, on the national territory,certain priority zones in which it intends to promote agro-forestry.  Since 1977, plantations have
officially been declared of public utility;  however, titles are issued to planters after their installation
in order to give them ownership of their plantations.
38. The most important operator in the sector is the Forest Development and Exploitation Office
(ODEF).  It deals with the management of State forests and the trade in products from the Stateplantations.  ODEF has a timber-processing plant with a capacity of 8,000m
3/year.  It also has nine
depots distributed throughout the territory.  Its production varies between 2,000 and 3,000m3/year.  In
addition, ODEF is exploiting a zone of firewood production to supply Lomé and the Maritime Region.
It sells various varieties of seedlings and trees to private individuals as well as to State-owned
companies such as TOGOTELECOM, CEET and RNET.8 ODEF sells to private operators who export
                                                     
8 CEET: Compagnie des Eaux et Électricité du Togo;  and RTET:  Régie Nationale des Eaux du Togo.Togo WT/TPR/S/48
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in the form of logs or posts and who also obtain supplies from private sources.  The other operators
are individual entrepreneurs, farmers and traders, whose activities generally belong to the informal
sector.  In 1997, exports of wood amounted to $4.6 million, or 1.9 per cent of GDP.
39. The import duties on wood products are progressive:  they are 8 per cent on untreated
products, 13 per cent on firewood and 23 per cent on w ooden articles, with an average rate of 22.3 per
cent on all products.  There is a tax for environmental purposes collected by the Treasury on charcoalsold locally;  it consists of CFAF 50 per sack of 50 kg. and of CFAF 100 per stere of firewood.  This
tax, levied during transport, varies from CFAF 1,000 to CFAF 4,000 according to the capacity of the
lorry if the goods are transported in bulk.   Other taxes are provided for in the Environmental Code
but they have not yet been applied.
40. Togo is a member of the International Tropical Timber Organization (ITTO) and of CITES
(Chapter III.2(i)(vi)(c)).  Iroko, mahogony, lingue and ebony are among the species protected in Togo
to save them from extinction and on account of their commercial value.  Their exploitation and trade
are regulated and subject to the granting of a timber licence costing CFAF 6,500 per m
3 of red wood;
CFAF 4,250 per m3 of white wood, and CFAF 3,500 per m3 of other wood.  This fee amounts to
CFAF 1,000 for felling one palmyra palm and CFAF 500 for one oil palm.  As regards fauna, on theother hand, elephants, crocodiles and manatees are protected:  their import and export are forbidden.
Certain fauna products are exported:  they are estimated at 40,000 pythons, 14,000 monitors,
3,000 tortoises, 5,000 chameleons and 10,000 large scorpions.
(3) M
INING , ENERGY AND WATER
41. Mining and energy contribute 5.3 and 3.7 per cent respectively to Togo's GDP.  To date,
mining activities have been limited to the exploitation of phosphates and limestone.  The activities of
the companies operating in the petroleum area consist essentially of the importation and distributionof products.
(i) Mining products
42. Togo has some large deposits of phosphates, limestone and iron.  Only the phosphate and
limestone deposits are currently being exploited.  One State-owned company, the Togolese
Phosphates Office (OTP), is responsible for the mining (two mines, one at Hakotoé and the other atKpogamé), processing (one plant) and exportation of the phosphate.  OTP is on the list of enterprises
to be privatized:  40 per cent of its capital is to be sold to private shareholders.  The partial
privatization of this company should make it possible to find funds to finance its investment
programme, to introduce a cost-reduction policy and to increase its production capacity.  Its annual
production is about 2.8 million tonnes.  A policy of finding new markets made it possible to sell3.5 million tonnes of phosphates in 1997 (table IV.6).  In addition to this policy, the size of the
reserves (about 20 years), the high phosphate content of the rock, the facility of the mining process
(open-cast), and the high quality of the equipment and labour force are some of the advantages that
Togo has in the matter of exploiting the phosphate.
43. Since 1985, with the support of donors, the Ministry of Mines has carried out a geological
cartographic survey of five of the regions of Togo and is beginning to evaluate the potential of the
various deposits.  Phosphate reserves are assessed at more than 100 million tonnes, with a content of
more than 80 per cent, while iron reserves are estimated at more than 500 million tonnes, with an iron
content of more than 50 per cent.  These activities have been interrupted by the halt in international
financing.  A new Mining Code offering some major tax advantages, was adopted in 1996
(Chapter II.4(ii)) and some targets have been identified:  diamonds, gold and base metals, includingWT/TPR/S/48 Trade Policies Review
Page 64
zinc and platinoids.  Apart from these targets, the Government is hoping to encourage the
exploitation, whether at the industrial or small-scale level, of the following deposits:  limestones and
dolomites for the manufacture of cement and quicklime;  the Bassar phosphates for soil enrichment;
clays for the manufacture of bricks and tiles;  glass sand for the manufacture of bottles;  peat for
energy and soil enrichment;  Bassar iron for the small-scale production of wrought iron;  marbles and
ornamental stones for building;  and rocky materials for construction work and street-paving.  TheGovernment is relying on national and foreign private investment to achieve its objectives in the
mining sector.
44. The extraction of limestone is carried out by a completely private company, the WACEM.
Production, which is still small since the company has been in existence for less than a year, was
249,251 tonnes between August 1997 and January1998.  The limestone is sold to the Togo CementCompany (CIMTOGO) but also exported in the subregion.  The Togo Marble Company (SOTOMA)
which, had been exploiting the deposits at Gnaoulou and Pagala since 1970, had to suspend its
activities in 1992;  it is being privatized.
Table IV.6
Main destinations of phosphate exports, 1997
Destination Tonnes
Canada 1,078,000
South Africa 600,000
Philippines 570,000
USA 300,000
Spain 200,000
Brazil 200,000
Greece 150,000
Poland 150,000
India 100,000
Mexico 90,000
Total 3,438,000
Source: Togolese authorities (Togolese Phosphates Office).
45. There is also a small-scale exploitation of gold and diamonds in Togo;  it is reserved to
nationals and governed by the Mining Code.
(ii) Petroleum products and natural gas
46. There is no exploitation of petroleum deposits or natural gas in Togo.  Prospecting is
currently being carried out by a Norwegian company, Petroleum Geo-Services AS (PGS).  There are
prospects for the discovery of deposits in the Togolese  sedimentary basin which forms part of the
West African sedimentary basin in which discoveries have been made in Benin, Côte d'Ivoire, Ghana
and Nigeria.  Prospecting and production are governed by the provisions of the Mining Code
(Chapter II.4(ii)).  The likelihood of discovering petroleum and gas in the short- and medium-terms
justifies the present attractive policy designed to foster competition among the operators. This policy
is based on four principal aspects:  the division of the zones of interest into exploration blocks so as toattract several companies;  great flexibility in the application of the regulations;  the drafting, already
well advanced, of a petroleum code;  and a flexible tax policy based on a system of preferences.
47. Togo imports petroleum and gas products in the finished state for consumption.  The Ministry
of Industry and Commerce issues the import licences.  There are five companies operating at the
moment:  SHELL, TEXACO, MOBIL, TOTAL and ELF.  These companies import in turn theequivalent of two months' consum ption (30,000 tonnes of products).   During each two-month period,
the other companies obtain supplies from the importi ng company in order to furnish their distribution
networks.  Two other companies, SUN and CAP UNI PETROLE, are licensed to distribute petroleum
products.  All these companies are private ones.Togo WT/TPR/S/48
Page 65
48. The prices of petroleum and gas products have been regulated since 1988.  The price structure
is lodged with the Ministry of Industry and Commerce.  Since June 1997, when the c.i.f. price of
petroleum products varies by up to 5 per cent above and below the fixed price, the latter is not
revised;  outside this range, the price is revised by the Committee to Follow Up the Fixing of Prices of
Petroleum Products9, and the increase is passed on to the consumer price.  Fluctuations in the c.i.f.
price within the range are borne by the petroleum comp anies, so as to ensure a certain stability of the
consumer price for these products.  An adjustment system, based inter alia  on the average cost of
transporting the products, makes it possible to maintain an identical consumer price throughout the
territory.
49. The importation of petroleum products, other than lubricants, is subject to a specific tax
which replaces the DFE;  its tariff equivalent varies from 1.6 per cent for paraffin to 21.4 per cent forhigh-octane petrol (Chapter III.2(ii)(a)).
(iii) Electric power and water
50. The activities connected with electric power ar e organized around two companies:  the Benin
Electrical Company (CEB) and the Togo Electric Power Company (CEET).  There are two sources of
electric power:  thermal (Mango, Lama Kara, Lomé and Sokodé power stations) and hydroelectric(Nangbéto Dam).  The CEB is responsible for producing and transporting electricity to Benin and to
Togo.  In Togo, the CEB, an inter-state company, has the monopoly of the production, transport and
import of electricity, whereas CEET, a State-owned company, has the monopoly of distribution.  In
practice, some large consumers (e.g. OTP) are direct subscribers to CEB.  A legal reorganization of
activities is in progress designed to define more effectively the powers of each of the companies.
51. About 80 per cent of the electricity consumed is imported.  The imports come from Ghana
and Côte d'Ivoire.  Power cuts at the beginning of 1998, due to the fall in the water level in thehydroelectric dams and the maintenance of the production units in the two supplying countries, were
exceptionally serious.  In order to remedy this situation and its disastrous consequences for the
economy, several solutions were envisaged, including projects for the construction of the Adjralla
high dam above the one which is already operational, of a Nigeria-Ghana gas pipeline passing through
Togo and Benin, and the extension of the distribution network.  Two interconnection projects are alsounder consideration:  one with Nigeria and the other with the other members of WAEMU.
Interconnection of the electricity networks is al so planned in the context of the WAEMU Community
Energy Programme.
10  In addition, solar energy is utilized on a small scale in the countryside.
52. The price of electricity is fixed by interministerial decree (by the Ministries of Mines,
Commerce and Finance).  It is identical throughout the entire territory and degressive in terms of thequantities consumed.
53. The supply of drinking water is separated from that of electricity.  It is carried out by a State-
owned company, the Togo National Water Board (RNET).  In 1994, about 75 per cent of the urban
population and 50 per cent of the rural population had access to drinking water.  Total production of
water in Togo increased from 14.1 million cubic metres in 1985 to 24.6 million cubic metres in 1996,an increase of 74 per cent.  Changes in the cost of  production and in prices per cubic metre indicate an
increase of 62 and 24 per cent respectively for the costs and prices during the period 1990-1995.  The
                                                     
9 This Committee is made up of two members of the Ministry of Commerce, one member of the
Ministry of Economic Affairs, one member of the Directorate-General of Taxation, one member of theDirectorate-General of Customs, one member of the Public Treasury, one representative of the mining serviceand two representatives of the petroleum grouping.  The Ministry of Commerce takes the chair at its meetings.
10 Recommendation No. 03/97/CM.WT/TPR/S/48 Trade Policies Review
Page 66
high level of the real production cost is essentially due to the large proportion of the depreciation cost
(35 per cent).  The cubic metre of water, whose price is fixed by the State, has been sold at a loss ever
since 1992:  the cost price of the cubic metre of water has increased from CFAF 244 in 1992 to
CFAF 367 in 1995, whereas the average price per cubic metre has varied only from CFAF 231 in
1992 to CFAF 238 in 1995.  RNET is subsidized by the State and by certain donor countries.
(4) MANUFACTURING SECTOR
54. The manufacturing sector contributes less than 10 per cent to Togo's GDP.  Paid employment
in manufacturing industries is small;  it has declined steeply from 4,656 in 1990 to 2,946 jobs in
1996.11 The sector comprises enterprises of very varied sizes but is dominated to an extent of 77 per
cent by small and medium-sized industries.  In 1996, there were 41 enterprises active as against 82 in
1990.  Food processing, chemicals, paper, printing and publishing, and wood and wooden articles arethe areas of most of the enterprises in the sector.  The industries do not process many local products
and are more inclined to be supplied with raw ma terials from abroad.  Generally speaking, apart from
the enterprises manufacturing building materials, food-processing industries and the OTP, all the
other industries are operating at less than 30 per cent of their capacity.
55. The substantial advantages granted to enterprises installed in the free zones have encouraged
applications for approval under this regime, to the detriment of the Investment Code regime.  The
result should be ceteris paribus , a reorientation of investment towards export industries, since the
industrial sector is the chief target of both regimes.  Nevertheless, the development of this sector,
which is currently dominated by private firms, has been retarded, inter alia , by:  the lack of financing
due to the inappropriateness of the banking system to the needs of the economy and the poor access of
the general population to credit facilities, the costs of which remain high;  the poor integration of the
sectors of activity;  the increase in the costs of inputs (most of them imported) as a result of thedevaluation of the CFA franc in 1994;  and the weakness of investments (linked, inter alia , to the
social and political crisis in Togo at the beginning of the 1990s)  which has prevented both the
takeover by the private sector of the activities abandoned by the State and the renewal of obsolescent
equipment.
56. On the occasion of the reform of the tariff, products were divided into three categories of the
DFE which vary, in some cases, in terms of the degree of processing.  Nevertheless, tariff analysis
reveals a negative escalation of import duties, from semi-finished products to finished products
(Chapter III.2(iii)(a)).  Without prejudice to exemptions, this structure of import duties could explain
the predominance of industries producing semi-finished products in the Togolese manufacturing
sector.
57. The manufacturing sector is the most protected (in terms of import duties) in Togo.  A large
number of the products of the sector are subjected to import duties exceeding 20 per cent
(Table AIV.1).
(i) Food processing
58. There are 21 enterprises active in this branch, three of which are very large, the Société
Générale des Moulins du Togo (SGMT), the Brasseries du Bénin (BB) and the NIOTO.  These three
enterprises account for 84 per cent of the branch's production.
59. The SGMT, which was initially a parastatal company, has been completely privatized.  It
produces wheat flour;  its monopoly was removed in 1995.  However, SGMT continues to benefit
                                                     
11 CEFTE (1997a).Togo WT/TPR/S/48
Page 67
from many advantages offered through a special agreement it signed with the Togolese State and
which places it in a position of strength compared with its competitors.  Thus, until 1 January 2000
the SGMT is exempt from the DFE, TS and VAT on materials, machines, raw materials and
packaging.12
60. The BB is at present the only company producing beverages on an industrial scale in Togo.  It
produces beer, non-alcoholic beverages and wine.  A parastatal when established in 1964, it was
entirely privatized in 1995.  The quality of the products and their prices have helped to promote them
and they are exported throughout the subregion.
61. The NIOTO is a cotton oil mill which was taken over in 1989 by the Compagnie Française de
Développment des Textiles (CFDT).  The NIOTO be nefited from exemption from duties and taxes on
imported equipment goods until 1 July 1997.
62. The other enterprises operating in the branch are bakeries (the most numerous), two pasta-
making companies, one of which is approved under the community preferential taxation (TPC)
regime, a sugar refinery, a company manufacturing sweets and spices and a creamery, which is also
approved under the TPC regime.  The import duties on foodstuffs are usually above 20 per cent
(Table AIV.1).
(ii) Textiles and clothing
63. The industry has one sizeable enterprise in terms of the volume of its production, TOGOTEX.
It produces fancy fabrics.  This company, which is facing competition from imports and from the
informal sector as a result of the opening of the market to imports of fabrics and worn clothing, has
already been privatized.  Import duties on textiles and clothing are 23 per cent, apart from some rare
exceptions such as the wax fabric which is not produced locally.
(iii) Chemicals
64. There were seven enterprises active in this branch in 1995.  They manufacture oxygen,  soaps
and detergents, plastic articles, paints and cosmetic products.  The products of the industries in this
branch face fierce competition from products imported from the countries of the subregion such as
Benin, Côte d'Ivoire, Ghana and Nigeria.
65. The branch has one large enterprise producing plastic articles, ITP, some of whose products
are approved under the TPC.  The average import duties on chemical products is 20 per cent, with a
minimum of 3 per cent and a maximum of 23 per cent.
(iv) Non-metallic mineral products
66. The non-metallic mineral products branch is made up of SME manufacturing chalk or lime
and two major enterprises:  CIMTOGO for the production of cement and Nouvelle SOTOMA whichproduces marble.  The average rates of duties on the products of the branch are usually above
20 per cent  (Table AIV.1).
67. The CIMTOGO company was privatized in 1996 after having been a parastatal for more than
ten years.  CIMTOGO has a production capacity of 650,000 tonnes per annum;  in 1995, it produced
about 448,000 tonnes of cement.  Since the liberalization of the branch, the price of Togolese cementhas become competitive and imports remain at a very low level.
                                                     
12 Convention of 18 July 1971 and the supplementary amendment of 16 July 1993.WT/TPR/S/48 Trade Policies Review
Page 68
68. The Nouvelle SOTOMA is a State-owned company which is active in the areas of marble
work and brick-making.  The Nouvelle SOTOMA should be privatized during 1998.
(v) Metal working
69. Nine enterprises, two of them of large size and completely private, were active in 1995.  The
Nouvelle Société Togolèse des Tôles (NSOTOTOLES), with an installed capacity of 12,000 tonnes
per annum, produces sheet metal.  In 1995, it produced 8,860 tonnes of which 5,810 tonnes were soldon the domestic market.  With an installed capacity of 40,000 tonnes per annum, the Société Togolèse
de Soudure (STS) produced, in 1995, 4,500 tonnes of concrete-reinforcing bars.  The STS is now
being wound up.
70. The enterprises in the branch encounter fierce competition from the informal and small-scale
sector, particularly from blacksmiths and welders.  The company AMEX FIELDS TOGO STEEL hasa TPC approval for the iron bars and non-alloyed steels that it produces.  The average import duty on
iron and steel products is 20 per cent, with a minimum rate of 8 per cent and a maximum rate of
23 per cent.
(vi) Paper and printing
71. The enterprises in this branch are small.  In 1995, there were 16 active companies in the
branch.  EDITOGO is a na tional publishing establishment (State-owned company) set up in 1961 and
responsible for printing the official journals.  It accounts for 50 per cent of the value added of the
branch.  The main activity of the other companies is the manufacture of printed forms.  The other
activities of the branch relate to the manufacture of newsprint, exercise books and envelopes.  Some
of these products are exempted from the DFE (Chapter III.2(iii)(a)).  Stationery articles are subject to
an import tax of 23 per cent, and the average applied to the products of printing and publishing is
15.7 per cent, with a minimum rate of 3 per cent and a maximum of 23 per cent.
(vii) Woodworking and wooden articles
72. The enterprises in this branch are private woodworking companies.  However, because of the
competition from the informal sector, the branch is in decline.  In 1995, only two enterprises were still
officially active.   The average import duty on the products of the branch is relatively high at 22.3 per
cent.
(5) 
SERVICES
73. The services sector, which is essentially dominated by trading and transport activities, makes
an important contribution to GDP (about 44 per cent).  The importance of trading activities, both in
terms of jobs (particularly in the towns) and of contribution to GDP (about 20 per cent of GDP), is to
be explained by the position of Togo as one of the crossroads of subregional trade.  Trading activitiesare usually informal and dominated by women, who sell fabrics and foodstuffs, and by dealers in
manufactures imported from the neighbouring countries (particularly the Côte d'Ivoire, Ghana and
Nigeria) or Asia.  The place of transport services in the sector is also linked with the position of Togo,
which makes it a transit country.
74. In the framework of the Uruguay Round, Togo has entered into undertakings concerning the
measures relating to the modes of supplying construction and related engineering services, tourism
and travel-related services and recreational, cultural and sporting services (Table IV.7).Togo WT/TPR/S/48
Page 69
Tableau IV.7
Schedule of specific commitments under the General Agreement on Trade in Services (GATS)
Services Cross-border supplies Consumption abroad Commercial presence Presence of natural
persons
LIMITATIONS ON MARKET ACCESS
Installation and assemblyworkNone None Unbound No limitation subject to
the regulations in force
concerning the
employment of foreignstaff (Ordinance No. 16
of 8 May 1974 containing
the Labour Code)
Hotels and restaurants None None No limitation, subject to
the regulations in force
concerning theacquisition of buildings
by foreign natural or
juridical persons(Act No.60-26 of
5 August 1960 and its
application decree).No limitation subject to
the regulations in force
concerning theemployment of foreign
staff (Ordinance No. 16
of 8 May 1974 containingthe Labour Code)
Travel agencies and tour
operators servicesNone None None No limitation subject to
the regulations in force
concerning theemployment of foreign
staff (Ordinance No. 16
of 8 May 1974 containingthe Labour Code)
Tourist guides services None None None Unbound
Entertainment services None None Unbound None
LIMITATIONS ON NATIONAL TREATMENT
Installation and assemblyworkNone None Unbound No limitation subject to
the regulations in forceconcerning the
employment of foreign
staff (Ordinance No. 16
of 8 May 1974 containing
the Labour Code(Ordinance No. 16 of
8 May 1974).
Hotel and restaurants None None None Unbound
Travel agencies and tour
operators servicesNone None None Unbound
Tourist guides services None None None Unbound
Entertainment services None None Unbound None
Source: WTO document GATS/SC/106, 30 August 1995.
(i) Transport services
75. The contribution of transport services to GDP amounted to more than 5 per cent in 1996.
Transport furnished about 26,500 permanent jobs, some 80 per cent of which were in the private
sector and almost 56 per cent in urban transport.13
                                                     
13 CEFTE (1997a).WT/TPR/S/48 Trade Policies Review
Page 70
(a) Port services
76. The Autonomous Port of Lomé (PAL), associated with the port free zone, is a major asset for
Togo.  It is the only free port in WAEMU.  It is a deep-water port with, on 800 hectares, 65,000 m2 of
warehousing and 230,000 m2 of wharfage.  PAL is a State-owned company with an annual capacity
estimated at 3 million tonnes.  PAL carries out all Togo's international shipping activities, dealing
with about 80 per cent of its trade.  Port traffic,  after having experienced a slowdown in activities at
the beginning of the decade, returned to rapid growth from 1994 onwards, with an average annual rate
of increase of 26 per cent between 1994 and 1996 and an average tonnage of 1.84 million tonnes.  In
1996, PAL received on average 69 ships per month.  The flags most frequently seen in the port of
Lomé are those of Greece, Panama, Italy, Liberia, Cyprus, France and the Bahamas.
77. PAL ensures the transit traffic for the countries of the Sahel, particularly Niger, Burkina Faso
and Mali (Table IV.8).  It was decided, a year ago, that, with the assistance of the Caisse Francaise de
Développement (CFD), cargo-handling services wo uld be transferred to a private company which
would take responsibility also for the management of containers.
Table IV.8
Evolution of import and export traffic of the Autonomous Port of Lomé, 1995-1997
(Thousands of tonnes)
1995 1996 1997
Total import and export 1,830 1,888 2,178
Total import 1,495 1,538 2,367
Including imports for Togo 1,133 1,171 1,274
      Imports for Burkina Faso 205 213 274
      Imports for Mali 8 14 14
      Imports for Niger 104 102 142
Source: Togolese authorities (Autonomous Port of Lomé).
78. Consignment services are carried out by national and foreign shipowners.  In 1997,
18 shipowners divided up the national market.  Togo signed the United Nation Convention on a Code
of Conduct for Liner Conferences in 1982 and ratified it in 1985.  Togo is a member of the Ministerial
Conference of West and Central African States on Maritime Transport (MCWCS), the purpose ofwhich is to support the shipping policies of its member countries.  CMEAOC has, for example, begun
the establishment of national shippers' committees and port committees.  However, the distribution of
sea freight has been abolished in Togo.
(b) Air transport
79. Togo has two international airports and five small airfields.  The bulk of international traffic
transits through the international airport of Lomé -Tokoin, the commercial management of which has
since 1987 been entrusted to a parastatal company, the Lomé-Tokoin Airport Company (SALT), in
which the Togolese state has 60 per cent of the shares, the Chamber of Commerce, Agriculture and
Industry of Togo 35 per cent and the Chamber of Commerce, Agriculture and Industry of Bordeaux,
5 per cent.
80. Lomé airport has a capacity of 700,000 passengers per year, 11,000 tonnes of computerized
freight and cold storage plants.  The political events of the beginning of the decade caused passenger
traffic to drop from 414,000 in 1990 to 191,000 in 1994 and freight from 6,512 tonnes to
3,200 tonnes. At present, there are 57 flights to 36 destinations per week.Togo WT/TPR/S/48
Page 71
81. The multinational company, Air Afrique, is that  designated (as a national company) by Togo
to exploit the international routes.  Neighbourhood airline transport is organized as duopolies between
Air Afrique and the other (foreign) airlines serving countries such as Burkina Faso, Côte d'Ivoire,
Ghana and Nigeria.  More than 70 per cent of the cargo is carried by Air Afrique, followed by Air
France and SABENA.  Before December 1997, stopover assistance was the monopoly of Air Afrique.
Since that date, SALT has set up a private co mpany (STH) which groups SABENA, SALT, PAL and
TRANSTEL, plus a third party which has not yet been appointed.  This company should become
operational in June 1998;  its establishment is a step towards liberalization.
82. Togo has signed an agreement with the airlines , particularly Air Afrique, for the transport of
mail and has acceded to the IATA Convention.  Togo is also a member of the Chicago Convention.
(c) Road transport
83. Togo's road network consists of 7,850 km. of roads:  2,750 km. of national roads, the building
and maintenance of which are the responsibility of the Ministry of Equipment, and 5,100 km. of
secondary roads whose construction only is incumbent upon the prefectures.
84. Interurban transport of travellers is carried out by small-scale operators usually owning one or
two vehicles.  Access to the profession has been free since 1996.  It requires a transport licencedelivered by the Ministry of Commerce, the possession of a vehicle that has successfully passed the
technical test and been declared suitable for (public) transport and a third-party insurance policy.  The
formalities are identical for foreigners and nationals.  Goods are carried by many informal operators
(about 350, each of whom has one or two lorries) and by four well-organized carrying companies,
each having between ten and 40 large freight vehicles.  The establishment of transport prices is free.
Two trade unions have an important role in this sector:  the Union Syndicale des Conducteurs du
Togo (USYNDICTO) and the Syndicat Libre des Conducteurs du Togo (SYLICONTO) administerthe lorry depots and ensure the payment of taxes on behalf of the drivers.
85. Reforms have been introduced to improve the ma nagement of the road sector:  privatization
of road maintenance, entrusted to SME, the installation of a contracting process and the establishment
of an independent Road Maintenance Fund.
86. In addition to the bilateral agreements with the countries of the Sahel for the transport by
Togo of goods in transit, there are two conventio ns within ECOWAS, on inter-state transit (TIE) and
on inter-state road transport (TRIE), which have defined the conditions of inter-state road transport
and, in particular, goods transport, since 1982.
87. The Togolese transport services are competit ive (Table IV.I).  However, although the
transport of goods in transit is relatively protected from untimely controls, the same is not true for thecarriage of travellers or goods.  These controls can give rise to levies amounting to as much as 30 per
cent of the drivers' earnings.  USYNDICTO estimates at CFAF 1,000 per vehicle the levy effected at
each control.  On the less than 700 km. long journey from Lomé to Dapaong, a driver must thus be
prepared for a levy of almost CFAF 40,000 on his earnings.
88. The Government's two objectives in the matter of  road transport are to strengthen road safety
and renovate certain arterial roads, which are currently defective.
(d) Rail transport
89. In Togo, there is a single railway line, 276 km. long, connecting Lomé to Blitta in the centre
of the country.  The four other lines were closed because of competition from the roads and theWT/TPR/S/48 Trade Policies Review
Page 72
run-down state of their infrastructure.  The railway is mainly used for various kinds of good traffic
(firewood, charcoal and foodstuffs).  Few travellers use this mode of transport.
90. Rail transport is the monopoly of the Togo National Railways Company, the management of
which has been entrusted to a private Canadian company, the Société Canadienne de Transport
Ferroviaire (CANAC).  Freight charges are free, whereas passenger tariffs are always fixed by the
State.  Togo is a member of the Union of African Railways (UAR).
(ii) Tourism, hotel and restaurant services
91. Tourism is one of Togo's main sources of foreign currency earnings.  The country has a
number of advantages;  a survey of three regions (Lama Kara, Centre and Savannah) enabled a list to
be prepared of tourist sites which should form the subject of a documentary.  Tourism was important
before the troubled period that Togo we nt through between 1990 and 1993 (Chart IV.3).
Table IV.9
Hotels by category, 1998
No. of hotelsaNo. of rooms No. of beds
5 stars
4 stars
3 starts
2 stars1 star 2
 1
 5
 9
11333
205
404
245231666
410
808
490462
a Hotels providing only basic facilities have not been included in the table.
Source: Togolese authorities.05000100001500020000
1980 1983 1986 1989 1992 1995Chart IV.3
Evolution of tourist service earnings in Togo, 1980-1995
Millions of CFA francs
Source :  Central Bank of We st-African States.Togo WT/TPR/S/48
Page 73
92. Togo has 28 hotels, with a total of 2,836 beds (Table IV.9).  Since 1994, activity has revived
and the number of arrivals has increased from 24,244 to 58,290 in 1996, with France being the main
origin (Table IV.10).
93. There are several travel agencies active in Togo.  According to the regulations in force since
1989, the furnishing of hotel, restaurant and travel agency services is open to everybody, without
restrictions of nationality.  Only professional, technical, financial and moral aptitudes are taken intoaccount.  On the other hand, the prices proposed by the persons operating tourism establishments must
be approved by a joint order of the Ministers of Tourism and Commerce.  It is proposed to update the
regulatory texts since the State-managed hotels are being privatized.  There is also a project for the
restructuring of the Ministry of Tourism and Leisure.
94. The participants in the National Forum on Tourism, held in October 1997, identified the
constraints on tourist development in Togo.  The lack of any national master plan for the development
of tourism, the non-application and obsolescence of the existing legal and regulatory texts and the
relatively high cost of transport appeared among  the constraints.  The Forum's main recommendations
were that the legal texts should be renewed and the taxes applied to tourist enterprises lightened and
simplified through the introduction of a tourism investment code.
Table IV.10
Hotel statistics in Togo, 1989-96
Country/origin 1989 1990 1991 1992 1993 1994 1995 1996
Total 114,218 103,246 69,098 48,559 24,244 43,767 53,031 58,290
Africa 51,238 48,399 37,582 28,533 13,710 22,423 28,016 30,650
America 8,540 6,953 7,059 2,229 1,307 2,791 2,601 2,846
United States 5,965 5,068 2,364 1,785 1,005 2,031 1,821 2,033
Canada 2,168 1,520 4,479 352 202 634 554 569
Other countries of America 407 365 216 92 100 126 226 244
Europe 50,374 44,660 22,198 16,192 7,508 15,689 20,703 23,583
Germany 6,092 5,379 2,581 1,574 1,066 1,778 2,467 2,683
Benelux 8,127 5,282 3,847 3,463 645 2,413 2,114 2,358
France 25,284 24,202 10,864 8,039 3,338 6,035 9,516 10,406
United Kingdom 2,125 1,592 735 418 337 382 621 650
Italy 2,432 2,193 1,050 657 510 1,397 995 1,957
Scandinavian countries 670 659 200 141 172 191 210 244
Switzerland 2,161 1,893 1,546 942 758 1,334 633 732
CISa102 168 123 40 37 889 2,675 2,927
Other countries of Europe 3,381 3,292 1,252 918 645 1,270 1,472 1,626
Asia 3,931 3,173 2,194 1,550 1,644 2,801 1,634 1,203
Rest of the world 135 61 65 55 75 63 77 8
a Commonwealth of Independent States.
Source: Togolese authorities.
95. Togo has been a member of the World Tourism Organization (WTO) since 1975;  it is also a
member of the American Society for Travel Agen ts (ASTA) and the African Travel Association
(ATA).
(iii) Post and telecommunications
96. The Togo Post and Telecommunications Office (OPTT) has been through two phases of
evolution.  Originally an industrial and commercial establishment, OPTT then became a State-owned
company with the status of an autonomous co mpany subject to trade and tax legislation, to
commercial accounting criteria and to the labour legislation.
97. New regulations were adopted in the Council of Ministers on 28 February 1996 defining the
modalities of the exercise of competition.  In accordance with these provisions, the post andWT/TPR/S/48 Trade Policies Review
Page 74
telecommunications services were divided into two operating companies as from January 1997:
TOGOTELCOM for telecommunications and the Togo Postal Service (SPT) for postal services.
98. TOGOTELCOM's turnover in 1996 was CFAF 14 billion, a distinct increase on previous
years.  For 1996, TOGOTELCOM reported CFAF 2 billion in profits after having absorbed the postal
service deficit which had been almost a billion CFA francs.  The number of subscribers increased
from 21,715 in 1995 to 24,647 in 1997 (Table IV.11).  TOGOTELCOM is continuing its programmeof expanding the telephone network.  At the moment, it has a monopoly situation.  However, an
invitation to tender has been issu ed for the granting of a second licence for the supply of cellular
telephone services.  Moreover, a draft bill to regulate the liberalization of telecommunication services
has been submitted to the National Assembly.
99. The price of telecommunication products are fixe d, in terms of the costs of production, by a
supervisory council made-up of officials from the Ministry of Equipment and the Ministry of
Commerce.  A 20 per cent margin is usually applied.
14  The prices applied domestically have
remained stable for about ten years, while those for foreign communications increased by 40 and
50 per cent in 1995 for the ECOWAS countries and other destinations respectively.  While the cost of
telephone calls from Togo is quite competitive in the subregion, the installation costs and subscriptionare high (Tables IV.1 and IV.10).
Table IV.11
Telecommunication basic indicators, 1994-1997
1994 1995 1996 1997
Number of subscribers 21,400 21,715 24,050 24,647
Number of lines/100 inhabitants 0.56 0.56 0.60 0.60
Waiting time for 1 line 3 months 6 months 3 months 6 months
Turnover by product (millions)
       Telephone 10,645 12,052 14,300 […]
       Telex 211 196 190 […]
       Specific connections 140 179 244 […]
       Togopac 60 81 183 […]
Staff 877 891 875 861
[…] Not available.
Source: TOGOTELCOM.
Table IV.12
Telephone tariffs in certain countries, 1994
(US$)
Residential Business Local call
Installation Monthly
subscriptionInstallation Monthly
subscription
Togo 192.7 2.6 192.7 2.6 0.09
Benin 158.0 4.1 287.7 4.1 0.11
Côte d’Ivoire 48.3 12.3 148.3 12.3 0.20
Ghana 52.3 1.0 52.3 1.0 0.10
Nigeria 133.7 2.3 201.9 4.5 0.26
South Africa 74.8 10.5 74.8 10.9 0.06
Source:  International Telecommunication Union, African telecommunication indicators   1996.
                                                     
14 An Act of December 1997 will establish the new modalities for fixing prices.Togo WT/TPR/S/48
Page 75
100. National and foreign suppliers of express postal services, such as EMS-Togo (public) and
DHL (foreign), operate in Togo.  Togo participates in several types of international and bilateral
agreements concerning postal and telecommunication services.  It is a member of the International
Telecommunication Union (ITU), the Universal Postal Union (UPU), the Pan African Postal Union
(PAPU) and has a partnership agreement with TNT for integration into the GDEW network for the
exchange of accelerated EMS mail.
(iv) Financial services
101. In Togo financial services include the activities of banks, financial establishments, financial
institutions in the informal sector and insurance companies.  There is a 10 per cent financial affairs tax
(TAF) on the turnover of companies providing financial services.
(a) Banking services
102. Apart from the Central Bank of West-African States (BCEAO), Togo has ten banks and
financial establishments including one development bank and four private commercial banks.  Those
banks whose capital is wholly or partly held by the State are presented in Table III.10.  Generally
speaking, the banks have few long-term saving instruments suitable for the financing of investments.
The banking system is excessively liquid:  the banks limit their loans and investments because thelegal system does not guarantee, inter alia , the recovery of debts that are at risk.
103. Banking activity is subject to the approval of the Minister of Finance, with the consent of the
WAEMU Banking Commission.  A minimum capital of  CFAF 1 billion is required.  Under the
legislation in force, only citizens of a WAEMU me mber country may direct, administer or manage a
bank, a financial institution or one of their branches, unless there is an establishment agreement.
Interest rates are freely fixed by the banks but mu st be lower than the usury rate fixed by BCEAO
(18 per cent in December 1997).
104. Since 1985, the Togolese banking sector has encountered serious difficulties in recovering its
loans.  In 1991, the laws adopted in 1989 to strengthen the capacities for the recovery of loans were
repealed.  The political events at the beginning of the 1990s aggravated the precarious situation of the
banking system.  Certain banks saw the volume of their debts that were legally disputed increase
significantly, compromising more than 50 per cent of their portfolio.  From restructuring torestructuring, the local banks and financial institutions have been trying to brake the degradation of
the quality of their portfolio and limit their deficit in effective shareholders funds.  The work of
preparing a Financial Sector Stabilization Programme (PASFI) is in progress.
105. In addition to banks, there are also the Togo Savings Bank (CET), the Postal Cheques
Account Centre (CCCP), the Société Togolaise de  Crédit Automobile (STOCA), mutualist and
cooperative financial institutions and financial institutions of the informal sector such as tontines and
money-lending practices.  The CET, CCCP and STOCA operate, like the banks and insurance
companies, in the modern financial sector.  The cooperative and mutualist structures are organized so
as to complement the modern sector, i.e. by mobilizing savings and granting loans, on flexible
conditions, to the (relatively large) strata of the Togolese population which have no access to theservices of the modern sector.  These institutions, though recent, are present throughout the territory.
They are supported by grass-roots rural organiza tions and by NGOs and as sistance agencies.  The
largest of them is the FUCEC.WT/TPR/S/48 Trade Policies Review
Page 76
(b) Insurance services
106. The insurance services branch is a relatively underdeveloped sector.  There are eight national
and foreign insurance companies which divide up the Togolese market.  Among them are one
parastatal, the Togolese Insurance Grouping (GTA),  66 per cent of the equity capital of which is held
by the State.  GTA has between 40 and 43 per cent of the national insurance market (Table IV.13).
107. Togo is a signatory to the Treaty Establishing an Intra-African Insurance Market Conference
(CIMA).  Since 10 July 1992, the date of signature of the Treaty, a single insurance code has been in
force in the countries of the franc area. with st andardized control and sanction mechanisms.  The
CIMA is organized around a Council of Ministers, a regional insurance control commission and a
Secretariat General.
108. The Code prohibits the establishment in Togo of branches and subsidiaries of foreign
companies;  only companies established under domestic law, whatever the origin of the capital, and
approved by the Ministry of Finance after consultation with the Regional Insurance Control
Commission, in Libreville, are authorized to operate.  The Code requires that life and non-life (fire,
accident, miscellaneous and technical risks) insurance activities be separated.
109. In accordance with the regulations in force, importers established on Togolese territory must
take out an insurance policy with a local company.Togo WT/TPR/S/48
Page 77
Table IV.13
Evolution of policies issued per company, 1994-1996
(Millions of CFA francs)
1994 1995 1996
Policies Issued Percentage Policies Issued Percentage Policies Issued Percentage
POLICIES ISSUED BY BRANCH
NON-LIFE INSURANCE
Car 1,429.5 26.3 1,964.9 28.5 2,442.8 30.1
Fire 728.9 13.4 910.8 13.2 1,009.7 12.4
Transport 653.8 12.1 932.7 15.5 937.2 11.5
Other risks 1,668.2 30.7 1,722.0 24.9 2,099.3 25.8
Total non-life 4,480.5 82.5 5,530.5 80.1 6,489.1 79.8
LIFE INSURANCE 948.4 17.5 1,373.4 19.9 1,643.2 20.2
GENERAL TOTAL 5,428.9 100 6,904.0 100 8,132.4 100
POLICIES ISSUED PER
COMPANY
NON-LIFE INSURANCE
GMC […] […] […] […] 133.8 1.7
GTA 1,906.2 35.1 2,181.7 31.6 2,670.7 32.8
C2A 829.9 15.3 1,039.4 15.1 1,339.1 16.5
UAP 1,157.4 21.3 1,748.4 25.3 1,946.4 24.0
AGF 373.5 6.9 560.9 8.1 398.9 4.9
CIAL UNION 213.4 3.9
Total non-life 4,480.5 82.5 5,530.5 80.1 6,489.1 79.8
LIFE INSURANCE
GMC 19.0 0.2
GTA-VIE 421.4 7.8 562.7 8.2 620.1 7.6
C2A-VIE 15.9 0.3 121.9 1.8 230.6 2.8
UAP-VIE 357.8 6.6 515.7 7.4 562.0 6.9
PREVOYANCE 146.0 2.7 155.0 2.2 185.5 2.3
AIGLE-VIE 7.1 0.1 17.9 0.3 25.7 0.3
Total - LIFE 948.4 17.5 1,373.4 19.9 1,643.2 20.2
General Total 5,428.9 100 6,904.0 100 8,132.4 100
[…] Not available.
Source: Togolese Authorities.WT/TPR/S/48 Trade Policies Review
Page 78
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