Togo WT/TPR/S/166 
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IV. TRADE POLICIES AND PRACTICES BY SECTOR 
(1) INTRODUCTION  
1. The manufacturing sector is one of the few economic activities that has to some extent 
withstood the crisis in Togo.  The decline in tr aditional phosphate processing activities has been offset 
by the expansion of the WACEM cement plant in the free zone, which exports cement to 
neighbouring countries in the subregion where limest one is generally scarce.  In 2003, cement became 
Togo's leading export, overtaking phosphates.  Th e free zone attracts enterprises by promoting its 
proximity to the Autonomous Port of Lomé (PAL ) and by offering not only fiscal and customs 
incentives, but also exchange incentives and lowe r costs for inputs (electricity and water) and 
transport; these inducements appear to offset somewhat the manifold constraints affecting 
development of Togo's manufacturing sector.  One con sequence of the crisis in Côte d'Ivoire has been 
the transfer of Ivorian companies to Togo's free zone .  Nevertheless, the socio-political crisis that has 
also affected Togo since the early 1990s has not allo wed it to utilize its advantages to the full in order 
to attract foreign direct investment. 
2. There have not been many changes in the agri cultural sector since the first review of Togo's 
trade policy.  Cotton remains the dominant agricu ltural export, followed by coffee and cocoa.  The 
Togolese Cotton Company (SOTOCO) still has a monopoly for buying seed cotton from producers, although the ginning and marketing of cotton lint have effectively been liberalized since 2000.  In the 
PRSP, the authorities indicate their intention to draw up a strategy for further liberalization of the subsector and, at a more general level,  to adopt a rural development strategy. 
3. Mining has declined sharply as a result of the crisis affecting the former Togolese Phosphate 
Office (OTP).  Phosphates and limestone (used to  manufacture cement) are still the only mining 
products currently exploited on an industrial scale in Togo;  gold and diamonds are mined on a small 
scale.  The Mining Code has been revised, inter alia , in order to meet the Kimberley Process criteria.  
Hydrocarbons have become the subject of a new Code, the Hydrocarbons Code, which was drawn up 
after the discovery of hydrocarbons potential.  Togo does not yet produce hydrocarbons and is 
therefore vulnerable to oil crises such as that prev ailing since 2002, with soaring global prices for 
hydrocarbons products. 
4. To a certain extent, the services sector has been sustained by port activities, which form its 
main component.  Since 1999, there has been a ma rked increase in the volume of goods handled by 
the PAL, inter alia , as a result of the crisis in Côte d'Ivoi re, following which Burkina Faso and Mali 
redirected a larger volume of their transit trade through the PAL.  The Port is one of Togo's major 
assets and is the transit point for goods going to sever al countries in the Sahel.  In 2001, handling in 
the Port was put out to concession.  The authoriti es have also given a concession for supplying water, 
currently the responsibility of the Togolese Water Co mpany.  In return for renewing the monopoly 
given to this Company for transporting and distributi ng water for a period of 20 years, it is obliged to 
invest large sums in raising the quality and quantity of its services, notably in rural areas, currently 
poorly served.  Electricity has once again become a State monopoly of the Togo Electricity Company. 
5. Mobile telephony density has shown a marked in crease since the first review of Togo's trade 
policy, attributable (in part) to the introduction of competition for the supply of mobile telephone 
services in Togo in 2000.  The quality of basic ser vices is still unsatisfactory.  The authorities are 
considering privatization of the traditional operator,  which has a monopoly of basic services (together 
with a universal service obligation).  The intr oduction of a national regulatory framework in 1996, 
which meets the needs and expectations of the vast  majority of Togo's craftsmen, farmers and small 
traders, has helped to ensure the rapid expansion of micro-finance.  Togo's banking system, however, WT/TPR/S/166 Trade Policy Review 
Page 48 
 
 
has problems in recovering bad debts.  Insurance services are not very developed, with the exception 
of import/export and motor vehicle insurance.  T ourism in Togo has declined since 1998 and is little 
developed as far as holidays and leisure are concerne d, even though Togo h as considerable assets in 
this respect.  Tourism and construction are th e only services for which Togo has made specific 
commitments under the GATS. 
(2) AGRICULTURE , LIVESTOCK , FISHERIES AND FORESTRY1 
(i) Overview 
6. Togo's economy chiefly depends on agriculture (including livestock and fisheries), which 
accounted for almost 38.2 per cent of nominal GDP in  2005 (Table I.1).  It is the major source of 
income and employment for 63 per cent of the population and provides a large proportion of the 
earnings from exports of goods.  Farmers form the majority of the poor population and rural 
development is therefore one of the pivotal components of the PRSP. 
7. Togo has five administrative regions:  the Mariti me Region; the Plateaux Region;  the Central 
Region;  the Kara Region;  and the Savannah Regi on.  It has good plant cover, although this is 
currently being over-exploited to meet the populat ion's need for firewood.  According to data 
provided by the authorities, at the close of th e 2002/2003 season, the total area under crops was 
1,153,765 hectares (some 20 per cent of the country).  There were 1,271,000 farms with an average area of 0.36 hectares.  Cultivation is traditional with insufficient use of modern production inputs (agricultural machinery, selected/improved seed s, irrigation, fertilizers, pesticides). 
8. Food crops consist of cereals (maize, millet, so rghum and paddy rice), tubers (yams, cassava, 
sweet potatoes and taro) and leguminous plan ts (beans, common groundnuts and bambara 
groundnuts).  The major crop grown in Togo is ma ize (Table IV.1), which accounts for some 40 per 
cent of the food crops grown, and dur ing the 2004/2005 season production was around 
1 million tonnes.  Domestic cereal production meets th e population's food needs, with the exception of 
rice, increased production of which remains one of the priorities in  Togo's agricultural policy, and 
wheat (which is not grown in Togo).
2 
                                                      
1 The major part of the information in this section was provided by the Togolese authorities or taken 
from the following:  World Bank (2003);  WAEMU Commission (2002); FAO (2002a); Doumassi, K. (2002);  "La culture du coton au Togo ", in French only.  Available at:  http://www.nioto-togo.com/article.php3?id_ 
article=21 [26 April 2005]. 
2 Imports cover some of Togo's needs for raw sugar, edible vegetable oils, meat, fish, tomatoes and 
dairy products. Togo WT/TPR/S/166 
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Table IV.1 
Production of the main food crops, 1998-2005 seasons 
('000 tonnes) 
 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 
Maize 404 412 401 406 403 423 414 
Sorghum 204 177 183 184 195 178 168 
Millet 90 85 80 79 76 68 51 
Paddy rice 42 38 32 32 32 29 32 
Yams 70 61 51 54 54 58 59 
Cassava 96 116 124 109 132 134 116 
Beans 150 135 144 148 170 146 159 
Groundnuts 61 62 54 59 51 3 59 
Source:  Togolese authorities. 
9. The main export crops are cotton (17 per cent of export earnings from goods in 2003 
(Table I.4)) and, to a lesser extent, coffee and cocoa. 
(ii) Agricultural policy3 
10. Togo has been implementing the same national agricultural development policy since 1996.  
This policy was drafted with the support of the FAO and should, in principle, have only been applied during the period 1996-1998.  An agricultural polic y note was drawn up in 2005 and may be adopted 
by Parliament following the consultations initiated with the regions.  The policy's objective remains 
food security, but it also takes into account the n eed to ensure that agricultural products are 
competitive and that agricultural production is devel oped and diversified.  Th e agricultural policy note 
also serves as input for subregional discussions on the question of a WAEMU (Chapter II(3)(ii)(c)) 
and ECOWAS (Chapter II(3)(ii)(b)) common agricultural policy. 
11. According to the authorities, the 1996 nati onal agricultural development policy essentially 
enabled the roles of those engaged in agriculture to  be redefined, particularly by refocusing State 
action on public service tasks, as indicated belo w.  The agricultural policy note identifies the 
following as the major constraints in the agricultu ral sector:  low crop productivity and little progress 
in this respect over the past decade (since the adopt ion of the national agricultural policy);  soil and 
forest degradation and in some cases of fish eries as well;  and excessive dependence on a small 
number of export crops (cotton, coffee and cocoa). 
12. There are three main components dealing with the administration and promotion of the 
agricultural sector:  the Ministry of Agriculture, Livestock and Fisheries (MAEP)
4, and two joint 
entities, the Togolese Agricultura l Research Institute (ITRA)5 and the Technical Advice and Support 
Institute (ICAT).6  The latter two have become service providers (in each of the five administrative 
regions since 2000) whose resources must be ma inly derived from the sale of services in a 
competitive environment.  Since the National Agri cultural Credit Bank (CNCA) was liquidated, the 
State has encouraged the development of the credit scheme currently based on three financial mutuals 
                                                      
3 Government of Togo, Ministry of Agriculture, Livestock and Fisheries (1996). 
4 Decree No. 97-108/PR of 23 July 1997. 
5 Established by Decree No. 97-105/PR of 23 July 1997 and under the technical direction of the MAEP, 
the ITRA has the following responsibilities, inter alia :  compiling, processing and disseminating scientific and 
technical information relating to the agronomic sciences ;  and studies on the protection of natural resources. 
6 Established by Decree No. 97-106/PR of 23 July 1997 and under the technical direction of the MAEP, 
the ICAT is responsible for advice and training in  agricultural production techniques and technology. WT/TPR/S/166 Trade Policy Review 
Page 50 
 
 
(FUCEC, SYNORSEC and SOCODEVI) that are al ready operating and present throughout Togo.7  
The Ministry of the Environment is also active in supporting the agricultural sector through the National Environment Action Plan, drawn up followi ng the adoption of the Environment Code in 
1988.  Farmers are organized in Regional Cham bers of Agriculture, which represent them. 
13. The principal support measures in the agricultural sector include exemption from personal 
income tax (IRPP), but only where the income is so lely derived from food crops grown on an area 
covering less than 10 hectares of non-irrigated land or less than five hectares of irrigated land.
8  
Cooperatives, agricultural trade unions and agricultural loan funds are exempt from corporation tax.  
Nevertheless, sale in bulk and exports of agricu ltural products are subject to a levy as advance 
payment against income tax or the presumptiv e tax assessment replacing it (Chapter III(2)(iii)).9 
14. The investment programme for the rural sector amounts to CFAF 12,545 million and Togo's 
national budget for 2006 allocated CFAF 17,200 m illion to the sector.  Customs duty and taxes are 
levied on agricultural products (Chapter III(2)(iv)).  Using the ISIC definition, the simple average 
applied tariff on agricultural products (including liv estock, fisheries and forestry) is 12.9 per cent 
(Table AIII.1), above the overall average of 12.1 per cent. 
15. For reasons of food security, since 1995 Togo has banned the export of cereals (in practice, 
all food products) (Chapter III(3)(iii));  this measure  is not conducive to development of Togo's rural 
economy or cross-border trade with neighbouring countri es and is thus a barrier to subregional trade.  
Prices of agricultural products on local markets ar e monitored by the Food Security Monitoring 
Centre, which has a policy of building up or running down stocks in order to create a market balance 
from time to time. 
16. The seven enterprises engaged in processing agri cultural products in the free zone are given 
tax exemptions (Chapter II(4)(ii)). 
(iii) Policy by subsector 
(a) Cotton 
17. Cotton is grown in all Togo's regions by some  250,000 farmers, in rotation with food crops 
(Table IV.2).  Two factors make output variable:  rainfall and phytosanitary  conditions.  During the 
2004/2005 season, production of seed cotton was around 173,000 tonnes (some 10 per cent of total 
production in the WAEMU):  73,000 tonnes of cotton lint and 93,000 tonnes of  cotton seed used to 
supply oil mills or to manufacture oil cake. 
                                                      
7 Fédération des unions de coopératives d'épargne et de crédit  (FUCEC);  Synergie nord-sud pour 
l'épargne et le crédit  (SYNORSEC), and Société pour la coopération et le développement international  
(SOCODEVI). 
8 Article 56 of the Tax Code. 
9 Article 1458 of the Tax Code. Togo WT/TPR/S/166 
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Table IV.2 
Cotton production, 1998-2005 seasons  
 1998/99 1999/2000 2000/01 2001/02 2002/03 2003/04 2004/05 
Volume ('000 tonnes): 
- Seed cotton 188 134 117 168 186 164 173 
- Cotton lint 78 56 49 70 78 69 72 
- Cotton seed 101 72 63 91 101 87 93 
Ginning ('000 tonnes): 
- SOTOCO 127 83 70 98 107 119 173 
- Private 61 8 47 70 80 45 .. 
Exports  
- Volume ('000 tonnes) 17 39 27 41 47 50 64 
- Value (CFAF millions) 35,753 24,062 20,639 14,200 30,771 33,731 32,917 
Farmers ('000) 281 255 212 255 261 248 250 
Area ('000 hectares) 159 154 135 165 199 187 199 
Yield (tonnes/ha) 1,182 871 872 1 021 938 879 870 
.. Not available. 
Source:  Togolese authorities. 
18. The Togolese Cotton Company (SOTOCO), a St ate-owned company and the major operator 
in the subsector, still has a monopoly for buying seed cotton from producers belonging to cotton producers' groups (GPC).  Since 2000, SOTOCO has not had a monopoly of seed cotton ginning or 
marketing of cotton lint, pursuant to a decree of July 1997.  Three privately owned companies are 
engaged in ginning
10, with total capacity of 140,000 tonnes, bringing Togo's total ginning capacity up 
to 250,000 tonnes.  These companies must, how ever, obtain their supplies of seed cotton from 
SOTOCO, with which they compete in ginning.11  Each company is responsible for marketing its own 
cotton lint output. 
19. The GPC are responsible for the primary collec tion of seed cotton, managing inputs, training 
and follow-up.  Fertilizers and pesticides are supp lied to producers exclusively by SOTOCO; they are 
imported by suppliers (third parti es) and private transporters store them in SOTOCO's central 
warehouses.  The selling price of seed cotton is de termined by the State and is guaranteed for each 
season.  It is fixed on the basis of a formula that takes into account global price trends, the cost price, 
the export price, the profitability of intermediate tr ansactions and taxation by the State.  A fiduciary 
committee composed of representativ es of the State, SOTOCO and producers examines decisions on 
prices.  Since the 1995/1996 season, 50 per cent of SOTOCO'S profits from cotton exports have been 
handed over to producers. 
20. SOTOCO has had a deficit since the 2001/2002 season.  The Togolese authorities envisage 
the following action to overcome the crisis:  fi nancial reorganization of SOTOCO with the State 
offsetting CFAF 35 billion of its debts (CFAF 23 million of this has already been paid);  lowering 
production costs by using real prices (purchase and selling price of inputs to producers, purchase price 
of seed cotton linked to global prices);  substantial reduction in SOTOCO's operating costs;  increased 
producer participation in managing the subsector  through the National Federation of GPC (FNGPC), 
established in October 2005;  identifying ways of financing technical support and research activities;  
                                                      
10 The Société industrielle de coton  (SICOT), the Société de promotion industrielle (SOPIC), and the 
Société cotonnière des savanes (SOCOSA). 
11 According to the authorities, SOTOCO and the private ginners, using harvest estimates as a basis, 
divide up seed cotton according to the capacity of the plants, the distance from the area of production in relation to the ginning plants in order to reduce transport costs, and SOTOCO's costs vis-à-vis seed cotton producers. WT/TPR/S/166 Trade Policy Review 
Page 52 
 
 
setting criteria for public service activities so that SOTO CO does not have to bear the cost of activities 
that are not its responsibility (for example, SOTO CO is responsible for building rural roads);  
establishment of a support fund to be managed by ac tors in the subsector so as to provide producers 
with a stable income;  initiation of negotiations w ith donor countries in order to be compensated for 
the loss of export earnings caused by the fall in cotto n prices on global markets.  The SOTOCO is one 
of the State-owned enterprises to be privatized (Table IV.5). 
21. Togo's revenue from cotton lint depends on fluctu ations in global prices (expressed in United 
States dollars) and on the trend in the Euro/US dolla r rate as the CFA franc is pegged to the Euro.12  
The global price in dollars is still well below the re cord level of 115 US cents reached in May 1995:  
it fell to 28.95 US cents/lb in October 2001, but then  rose to 85 US cents/lb in 2003, only to fall again 
in 2004, with a slight rise in 2005 and stabilization in 2006 (50 US cents/lb on 21 April 2006).13 
22. Togo supports the sectoral initiative in favour of  cotton by West and Central African cotton-
producing countries at the WTO.14   This initiative has two essentia l aspects:  (i) elimination of 
domestic support for production and subsidies for co tton exports;  and (ii) a transitional financial 
compensation mechanism to offset the income lost.15  According to a study by the World Bank, the 
support given by certain WTO Members16 to cotton producers is one of the direct causes of the 
problems encountered by the cotton subsector at the global level.17 
23. Togo, like other members of the WAEMU, reinfo rced its effective protection of the subsector 
when it adopted the CET on 1 January 2000, with the marked tariff escalation that has ensued in this 
industry.  Although MFN customs duty ranges from 5 per cent for seed cotton to 10 per cent for 
cotton yarn and up to 20 per cent for fabrics and other finished goods, the simple average for the 
textile industry (ISIC Code 321) is 16.9 per cent (Table AIV.1). 
(b) Coffee and cocoa18 
24. Coffee and cocoa are chiefly grown to the west of the Plateaux Region and, to a lesser extent, 
in the south-west of the Central Region.  Du ring the 2003/2004 season, coffee production was some 
18,000 tonnes (Niaouli and Robusta), while coco a production was around 8,0 00 tonnes, so little has 
changed since the first review of Togo's trade policy. 
25. The reorganization of the subsector in June 1996 focused on liberalizing the price of coffee 
and cocoa, and their marketing (including exports), which had previously been under the control of a 
government marketing board for agricultural products.  The main aims of liberalization were to offer 
producers more attractive incentives and to raise their incomes. 
26. The coffee and cocoa subsectors are now managed by a Coordinating Committee comprising 
representatives of all operators active in these subsector s:  the State, producers, exporters and banks.  
                                                      
12 Since early 2000, the United States dollar has si gnificantly depreciated vis-à-vis the Euro, from 
US$1.01/€1, to US$1.29/€1 on 29 April 2005, before rising to US$1.21/€1 on 14 April 2006.  
http://www.federalreserve.gov/re leases/H10/Hist/dat00_eu.htm. 
13 http://futures.tradingcharts.com/menu.html. 
14 See WTO Sub-Committee on Co tton documents TN/AG/SCC/. 
15 WTO documents TN/AG/GEN/4 of 16 May 2003, WT/GC/W/511 of 22 August 2003, WT/L/539 of 
29 August 2003, and G/AG/NG/W/188 of 26 September 2002. 
16 The United States, China and the European Union (for Greece and Spain) in particular. 
17 Baffes, J. (2005). 
18 World Bank Group (1998). Togo WT/TPR/S/166 
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Each fortnight, the Committee sets a producer pri ce (indicative price) based on international price 
trends and certain costs; the indicative price co rresponds to 70 per cent of the f.o.b. price. 
27. Following the reorganization, production of coffee and cocoa rose sharply during the 
1997/1998 season, but subsequently st agnated.  Productivity in cocoa plantations remains hampered 
by the fact that many are old and there has not been sufficient investment in inputs, especially 
phytosanitary products.  In the case of coffee, pr ices actually discourage any expansion of the areas 
under cultivation and investment with a view to in creasing output.  Earnings from cocoa exports are 
on average three times those from coffee exports.  In both cases, export earnings depend on global price trends (expressed in United States dollars)
19 and on the United States dollar/Euro trend as the 
CFA franc is pegged to the Euro.  Togo is a member  of the International Coffee Agreement and of the 
International Cocoa Agreement. 
(c) Fisheries20 
28. Togo's coastline extends for 60 km and its fish eries resources are relatively modest;  its 
exclusive economic zone (EEZ) c overs 200,000 nautical miles.  Fishing takes place in the sea, 
lagoons, rivers, dams and fish ponds.  The fishing/ fish farming subsector employs 25,000 people and 
provides a living for 150,000, i.e. 4 per cent of the total population.  At sea, fishing is on a small or 
industrial scale, but is only on a small scale in other waters.  Annual catches are estimated to be 22,000 tonnes, of which 55 per cent comes from the sea;  national production does not meet consumers' needs and these are partly cove red by imports, particularly of fish. 
29. The regulatory framework for fishing has not changed since the first review of Togo's trade 
policy.
21  Commercial, scientific and recreational fishi ng require prior authorization.  Togo has not 
signed any fishing agreements with any country.  Ne vertheless, foreign ships may be authorized to 
fish in Togo's territorial waters. 
30. There have been no positive developments as rega rds exports of fisheries products since the 
first review.  Togo is not considered to satisfy the criteria that would allow it to obtain recognition of 
equivalence with the European Union's sanitary regulations.  As a result, since 2003 Togo has no 
longer been authorized to export fisheries products to the EU.22  Technical assistance is sought by the 
Togolese authorities in order to revive fisheries exports to the EU. 
(3) MINING , ENERGY AND WATER23 
(i) Mining products 
31. Togo has large deposits of phosphate, limestone  and iron ore.  Phosphate reserves are 
estimated to exceed 100 million tonnes, with a phospha te content of over 80 per cent, while there are 
                                                      
19 http://futures.tradingcharts.com/menu/html. 
20 This section is mainly based on information prov ided by the Togolese authorities and taken from the 
following sources:  FAO (2002b);  Sedzro, K.M. and Kusiaku, K.J. (2002). 
21 Law No. 98-012 of 11 June 1998 containing the fishing regulations and Law No. 88-14 of 
3 November 1988 containing the Environmental Code with a view to planned management of the exploitation of 
biological resources and better conservation of aquatic fauna.  Law No. 98-012 of 11 June 1998 provides for 
10 implementing decrees, only one of which has been adopted, Decree No. 2001-067/PR of 9 March 2001, which deals with sanitary rules for the production and marketing of fisheries products. 
22 European Commission (2002). 
23 The principal sources for this section are the information provided by the Togolese authorities and 
the following reference:  Szczesniak, P. (2003). WT/TPR/S/166 Trade Policy Review 
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estimated to be over 500 million tonnes of iron ore, with an iron content of around 50 per cent.  At 
present, only the phosphate and limestone depos its are exploited on an industrial scale. 
32. The GDP share of mining and quarrying fell from 5.3 per cent in 1998 to 2.7 per cent in 2005 
(Table I.1).  This decline is chiefly attributable to the crisis in the phosphates subsector;  management 
of the Togolese Phosphate Office (OTP) was entruste d to the IFG-TG (International Fertilizers Group 
Togo) in 200224, and although production rose sharply in 2003, it declined in 2004 after the foreign 
investor's departure because the State did not have the investment capacity necessary to restructure the 
company.  Phosphate production was 1 million to nnes in 2005, of which around 90 per cent was 
exported, well below the country's potential.  The size of the reserves (for some 20 years), the high 
phosphate rock content, the ease with which it is  mined (open-cast mining), and the quality of the 
equipment and labour are some of Togo's assets as fa r as the exploitation of phosphates is concerned. 
33. Limestone (2.1 million tonnes in 2003) is quarri ed by a privately owned company, West 
African Cement (WACEM).  It supplies Togo's two ce ment works, situated in Lomé, one of which is 
WACEM, established in the free zone since 199925, and the other is the Togo Cement Company 
(CIMTOGO), which supplies the domestic market.  In 2002, the Scandinavian cement company 
SCANCEM joined the WACEM in building a clinke r plant in Tabligbo (FORTIUS) to supply raw 
material to the two cement companies and export the surplus to neighbouring companies which have 
few limestone resources.  Large exports of cement  to the subregion made it Togo's major export in 
2003 (Chapter I(3)). 
34. The New Togolese Marble and Materials Comp any (Nouvelle SOTOMA), which had worked 
the marble quarries in Gnaoulou a nd Pagala since 1970, had to close operations in 1992; this company 
is included in the list of State-owned enterprises to be privatized but has not yet found a buyer.  Gold 
and diamonds are also mined on a small scale in Togo.  There has been a sustained increase in exports of these minerals;  in 2003, gold exports amounted to 8,669 kg. while diamonds amounted to 17,433 g. 
35. The Mining Code was adopted in 1996 and revised in 2003
26 to align it with the WAEMU's 
Mining Code (Box II.1).  The major changes are the following:  removing hydrocarbons, which are 
now governed by the Hydrocarbons Code drawn up in 1999 (see below);  the introduction of the 
Kimberley Process Certification Scheme for the import and export of uncut diamonds;  inclusion of mineral processing in the Mining Code so as to achi eve a higher level of value added in Togo;  and 
the creation of a Mining Promotion and Developmen t Fund, part of whose resources come from the 
State's mining revenue, to finance the explora tion and exploitation of Togo's mining resources. 
36. Pursuant to the Mining Code, the State owns th e minerals in the subsoil.  Any Togolese or 
foreign natural or legal person w ith the required technical and financial capacity may prospect for 
minerals and exploit them under mining titles granted by the Ministry of Mines.
27  They must pay the 
                                                      
24 A joint undertaking comprising the group BRIFCO Limited (represented by the Chairman of the 
Compagnie financière de la Méditerranée ) and the Togolese State. 
25 This company has been benefiting from a number of free zone and Mining Code incentives, as a 
matter of exception, since it was set up.  It will come und er the Mining Code regime in 2006, which stipulates 
that a mining company enjoying benefits under the Code is  not eligible for the free zone regime as well.  
Consequently, the restrictions on domestic sales of cement produced by the WACEM will also be lifted. 
26 Law No. 96-004/PR of 26 February 1996, as amended by Law No. 2003-012 of 14 October 2003. 
27 Mining titles are linked to a particular area and consist of the following:  prospection permit, 
exploration permit, operating permit and permit for sm all-scale mining operations.  The Mining Code defines 
the areas of operation (amended when the Code was revi sed in 2003) and the term of  validity of each type of 
title.  Holders of mining titles must comp ly with the following:  protect the environmen t in accordance with the Togo WT/TPR/S/166 
 Page 55 
 
 
area and mining royalties.  The Code also gov erns the processing and marketing of mineral 
substances, which must be authorized by the Ministry of Mines.  The fees and royalties are 
determined according to the nature and the cost  of processing the mineral substance concerned and 
vary from one mineral to another.  The State may require that 10 per cent of the capital of any mining 
company (with the exception of small-scale operati ons and the production of building materials) 
established in Togo be transferred to it without pa yment in addition to the 20 per cent for which it 
must pay. 
37. The Code defines the fiscal regime for mining companies, which may not be combined with 
the free zone regime.  It grants substantial fiscal benefits and targets have been identified such as 
diamonds, gold, base metals, including zinc and pla tinoids.  The minimum treatment which the holder 
of a prospection or exploration permit may claim is  exemption from corporation tax, income tax, the 
minimum flat-rate tax and VAT.  The same applies to  holders of operating permits up to the time at 
which the first marketable goods are produced.  Hold ers of prospection or exploration permits and 
their service providers and suppliers are entitled to  the temporary admission regime for capital goods, 
machinery, commercial vehicles, tools, spare part s and consumables (excluding petroleum products). 
38. The Mining Code requires any person wishing to  engage in marketing a mineral substance 
(buying, possessing, processing, selling or exporting) to obtain authorization from the Ministry of 
Mines.  In the case of precious metals and precious st ones, the authorization is given in the form of a 
decree adopted by the Council of Ministers.  Ho lders of mining titles are not, however, obliged to 
obtain an authorization for the mineral substances they exploit within the area of their titles (for 
example, phosphates). 
39. The export or import of uncut diamonds is subject to the Kimberley Process Certification 
Scheme (Chapter III(3)(iii)).  Offices buying and selling precious mineral substances and officially 
authorized by the State are recognized as importers and exporters  of uncut diamonds. 
(ii) Petroleum products and natural gas28 
40. No petroleum or natural gas deposits are curre ntly exploited in Togo and these products are 
imported for consumption.  The Ministry of Comm erce and Industry issues import permits.  Four 
companies are presently active in this area:  SHELL, TEXACO, MOBIL, and TOTAL.  Each 
company in turn imports the equivalent of two m onths' consumption.  During each two-month period, 
the other companies obtain supplies from the importing company to supply their distribution networks.  Three other privately owned companies, SUN-AGIP, CAP and OANDO, are authorized to 
distribute petroleum products.  The Togolese Wareho use Company (STE) has seven reservoirs with a 
capacity of 12,050 m
3 to supply the domestic market, while the Togolese Storage Company of Lomé 
(STSL) has 16 storage tanks with a total capacity of 243,245 m3  to supply subregional markets. 
41. Since 1998, prices of petroleum products and gas ha ve been controlled.  The price structure is 
drawn up by the Committee for Monitoring Price Trends in Petroleum Products (CSFPP) and 
published after adoption by the Council of Mini sters.  The latest price revision was on 
10 October 2005.29  Petroleum products are subject to custom s duties and taxes, as well as to special 
                                                                                                                                                                     
Environment Code;  give preference to Togolese companies in all construction, supply or services contracts, 
subject to equivalent prices, quantities, quality and deliver y dates;  and give priority to recruitment of Togolese 
labour. 
28 Government of Togo, Ministry of the Environment and Forests (2001). 
29 The latest prices are:  CFAF 420 for premium grade petrol; CFAF 415 for regular grade petrol; 
CFAF 250 for petroleum; and CFAF 410 for gas oil.  See Infos Togo, " Le Togo augmente les prix de WT/TPR/S/166 Trade Policy Review 
Page 56 
 
 
excise duty on petroleum products (DAPP) (Chapter III(2)(iv)(b)).  The Government grants subsidies 
for gas oil, used primarily in industry, butane gas, the basic energy used to prepare food, and lamp oil, 
used for lighting in the villages. 
42. When Togo's trade policy was first review ed, the Norwegian company Petroleum Geo-
Services AS (PGS) was prospecting offshore with favourable results.  Up to March 2005, the Togo 
Hunt Oil Company was engaged in more extensiv e prospection under a contract signed with the 
State.30  Since the termination of this contract, Togo has been seeking to revive offshore prospection 
and, for this purpose, since 1 November 2005 has fostered competition between two blocs. 
43. Prospection is governed by the Hydrocarbons C ode, adopted in 1999, whose objective is to 
attract the investment needed for the exploratio n and exploitation of petroleum and natural gas.31  
Pursuant to the Code's provisions, the State ow ns the hydrocarbons on Togolese territory, including 
those in its territorial waters.  Prospection, expl oration, research, exploitation, storage, refining, 
transport and marketing of hydrocarbons are governed  by the Code.  The State may prospect, explore 
or exploit without authorization, whereas any othe r person must obtain an authorization in order to 
undertake the activities covered by the Code.  The impl ementing regulations for th e Code still have to 
be determined. 
44. The Code envisages two types of petroleum title, namely, an exploration permit and an 
operating concession.  The titles are negotiated by th e State and may be in the form of a concession 
agreement, a production-sharing agreement or a ri sk services agreement.  Such agreements also 
specify the fiscal and customs provisions applicable to the operations in question, together with the 
surface royalties, the royalties in relation to prod uction, and may also provide for a signature or 
production bonus, as well as the State's free and optional share of up to 10 per cent in marketable discoveries.  Promoters are guaranteed the transfer  of funds, subject to the WAEMU's Mining Code. 
(iii) Electricity
32 
45. In 2002, 40 million kWh of electricity were generated, while 409.7 million kWh were bought; 
Togo therefore meets 90 per cent of demand through imports.  In 2002, consumption was 362.7 kWh, 
with 45 per cent of customers receiving medium vo ltage supplies.  In urban centres, coverage was 
21 per cent in 2002, compared with 1 to 5 per cent in  rural centres, and 20 per cent for the country as a 
whole. 
46. In Togo, electricity is supplied by two co mpanies:  the Togolese Electricity Company 
(CEET), which has had a monopoly of electricity distribution and sale in Togo since 
22 February 2006 following termination of the concession agreement with the former Togo 
                                                                                                                                                                     
carburant ", 3 December 2004, in French only.  Availabl e at:  http://www.infosto go.de/itsite/actualites/ 
article_it051.htm [25 March 2005]. 
30 Panafrican News Agency, " Hunt Lands Togolese Oil Exploration Deal ", 18 May 2001.  Available at:  
http://www.diastode.org/Nouvelle/usnews199.html [25 March 2005]. 
31 Law No. 99-003 of 18 February 1999. 
32 Government of Togo, Ministry of the Economy, Finance and Privatization (2003);  and French 
Embassy in Benin – Economic Mission (2004). Togo WT/TPR/S/166 
 Page 57 
 
 
Electricity33; and the Benin Electricity Community (CEB), an international public entity set up under 
an international agreement and the 1968 Benin-T ogo Electricity Code, which has a virtual monopoly 
of production (except low voltage ge neration) and high voltage transm ission of electricity in Benin 
and Togo.  In addition to these two companies, there are industrial or individual independent 
producers which produce their own supplies using ge nerators (for example, the NIOTO agri-food 
company, which meets its own energy needs using cotton waste). 
47. The CEET buys electricity from the CEB and also generates its own electricity from diesel-
powered thermal stations (which exist throu ghout Togo) and the Kpimé dam.  The phosphate 
company International Fertilizer Group (IFG-Togo) and the WACEM cement plant are two of the 
CEB's five customers.  The electricity currently supplied to the markets in Benin and Togo by the 
CEB comes both from imports of energy produced in Côte d'Ivoire and Ghana (70 per cent) and from domestic production (30 per cent).  The new draft Be nin-Togo Electricity Code of 2001, which has 
not yet been ratified by the respective Assemblies in  the two countries, reaffirms the CEB's status as 
sole buyer and its import and transport monopoly for voltage exceeding 61 kV.  The draft Code does, 
however, mention the possibility of allowing inde pendent operators to run new production units. 
48. The selling price of electricity is determined by Government decree following a proposal by 
the regulatory authority for the electricity sector.
34  Prices are the same throughout the country with 
the exception of the free zone, wher e enterprises are given preferential rates for electricity and for 
other inputs.  The selling price of electricity was raised in 2002, the first time since 1994. 
49. Togo's supply of gas and, accordingly, its el ectricity generating capacity, will no doubt be 
increased when the private West African Gas Pipe line Company Limited (WAPCo) project gets under 
way.35  Nigeria, Ghana, Benin and Togo plan to build a 620 km gas pipeline linking Lagos (Nigeria) 
to Takoradi (Ghana), with branches to Cotonou (Benin), Lomé (Togo) and Tema (Ghana).  Mainly under the sea, the pipeline will have a capacity of 450 million cubic feet (1 cubic foot = 28.3166 litres).  The project has been deferred sev eral times, but constr uction began in Takoradi 
(Ghana) in September 2005, in Togolese waters in N ovember 2005, and is c ontinuing in Beninese 
waters in the direction of Nigeria.  The onshore wo rk will begin in March-Ap ril 2006 in Togo with the 
building of a meter/regulator station for gas intended for Togo and of a land branch pipeline to deliver 
gas to Togo.  It is expected that the first deliv eries of natural gas through  the pipeline will be in 
December 2006.  It should be noted that electric pow er is one of the priority areas for joint action by 
the ECOWAS member countries. 
                                                     
 
33 The concession was for 20 years.  All the capital was held by the ELYO group (Suez Lyonnaise des 
Eaux group) and Hydro Québec (sleeping partner).  The specifications for Togo Electricity gave it the task of 
improving the administrative and operational arrangements for the distribution and sale of electricity in Togo;  exploiting production and distribution assets and maintaini ng them in good working order;  and lessening Togo's 
energy dependence.  The company undertook to invest €40 million during the term of the agreement to 
rehabilitate and expand networks in urban areas and to supply electricity to urban areas.  The regulatory 
authority for the electricity sector was responsible for ensuring that the con cessionaire respected the terms of the 
specifications. 
34 The authority was set up by Law No. 2000-012 of 18 July 2000 and has financial autonomy. 
35 The following are the shareholders in this project:  Chevron Nigeria Ltd. (36.7 per cent), the Nigerian 
National Petroleum Company (25 per cent), Shell Petroleum Development of Nigeria (18 per cent), Volta River Authority of Ghana (16.3 per cent), So ciété Béninoise de Gaz S.A. (2 pe r cent), and Société Togolaise de 
Gaz S.A. (2 per cent).  See http://wagpco.gap. chevrontexaco.com/glance.htm [26 March 2005]. WT/TPR/S/166 Trade Policy Review 
Page 58 
 
 
(iv) Water36 
50. Drinking water is supplied by the Togolese Water Company (TdE)37, a State-owned company 
for which a management concession was granted on 13 May 2003.  The TdE has a monopoly for 
operating the facilities producing and distributing drinking water and fo r waste water sanitation works 
in Togo.  According to the TdE, it produces 19 million m3 of water, while consumption is 
13.5 million m3;  in 2004, there were 52,000 private c onnections and the network extends for 
22,352 km. 
(4) MANUFACTURING  
51. In 2005, manufacturing accounted for 8.3 per cent of GDP, an increase on the 7.2 per cent at 
the time of the first review of Togo's trade policy in 1999.  This increase is chiefly attributable to the 
expansion of the WACEM cement plant in the free zone. 
52. The trend in manufacturing has felt the positive e ffect of the many benefits granted under the 
free zone regime (Chapter II(4)(ii)).  As a resu lt, of the 61 enterprises operating in the free zone, 
36 are engaged in manufacturing.38  These benefits are not available to enterprises operating in 
Togolese customs territory because the Investme nt Code has not yet been implemented 
(Chapter II(4)(i)).  They are in general large en terprises such as the Togo Milling Company (SGMT), 
the Benin Brewery (BB), the New Oilseeds Company of Togo (NIOTO), some chemical industries 
producing soap, plastic bags ( inter alia) , as well as the CIMTOGO and FORTIA CEMENT cement 
works, some of them the result of the privati zation programme implemented by Togo since the 
reforms were launched.  The remainder of Togo's manufacturing sector comprises SOTOCO's cotton 
ginning plants, together with privately owned cott on ginning plants since the activity was liberalized 
(section (2)(iii)(a)). 
53. According to the Togolese authorities, the country's industrial policy focuses on two poles of 
development:  developing local resources and promo ting export industries.  The aims of the policy 
are:  to establish an efficient framework to promot e and directly support the private sector in general 
and the production sector in particular;  to boost and encourage more competitiveness among 
enterprises;  to make the industrial fabric more co mpact and to promote export industries;  to create 
and develop close ongoing consultation between the State and economic operators;  to encourage the 
promotion of entrepreneurship by cultivating a spirit of enterprise and by promoting rural industries;  
to build the technical and managerial capacity of pr omoters;  to guide industry along the path to 
sustainable development (combating industrial polluti on);  to study the long-term development of the 
free zone;  to promote and develop a culture of quality in the industrial sector. 
54. The substantial benefits give n to approved enterprises under the free zone regime have 
encouraged investment in export-oriented manufacturing.  Nevertheless, as noted at the time of the first review in 1999, development of the industrial fabric remains hampered by:  lack of financing 
because the banking system is not adapted to the economy's needs and the population has difficulty in 
obtaining loans, whose cost remains high;  poor integration of sectors of activity;  the high cost of 
inputs (the majority of them imported);  a nd the low level of investment (as a result, inter alia, of the 
                                                     
 
36 "Présentation de la TdE. Société Togolaise des Eaux ", in French only.  Available at:  
http://www.uade.org/story.asp?ID=46 [28 March 2005]. 
37 The operating agreement is for a renewable period  of 10 years.  The specifications include an 
increase of 16,000 in th e number of subscribers between 2004 and 2007. 
38 "L'inexistence d'un véritable tissue industriel à part les tendances de la zone franche industrielle " 
(The lack of a real industrial fabr ic with the exception of trends in the industrial free zone) should be 
highlighted.  Government of Togo, Ministry of the Environment and Forests (2001), p. 17. Togo WT/TPR/S/166 
 Page 59 
 
 
socio-political crisis in Togo in the early 1990s), wh ich has not allowed the private sector to take over 
activities abandoned by the State or the replacement of obsolescent equipment.39 
Table IV.3 
Production and exports by the major manufactur ing enterprises in Togo (customs territory) 
Volume produced Volume exported Enterprise Products 
manufactured 2003 2004 2005 2003 2004 2005 Number 
of jobs 
created 
Wheat flour French type English type (tonnes) 60,233.2 53,134.9 69,392.5 35,304.8 18,859.9 24,918.4 165 
SGMT 
Bran (tonnes) 17,656.7 9,016.1 19,951.3 15,905.3 9,011 15,869.2 .. 
FAN MILK Cream, yoghurt 
(litres) 5,729,094a 7,339,415 8,016,762a 3,350,12
2a 3,695,610 3,131,388a 138 
CIMTOGO Cement (tonnes) 588,278 533, 703 470,204 476,065 416,166 261,735 162 
FORTIA 
CEMENT Cement (tonnes) 334,398a 579,302a 531,939a 168,704a 204,519a 229,993.5a 382 
IFG Phosphates 
(tonnes) 1,465,984a 1,115,150 1,020,868 1,639,55
6a 1,233,042 896,927a 2,064 
NIOTO Refined 
cottonseed oil, 
shea butter, 
DUOR oil, olein 
(tonnes) 23,986.1a 177,341.14 64,943a 20,937.7a 49,169.6 48,742.9a 145 
BRASSERIE 
DE BENIN Beer and aerated 
beverages (kg) 544,237 541,084 578,627, 107,074 85,606 115,450 408 
ITP Pipes, boxes, 
buckets, pots, 
basins, bottles, gourds, films 
and sachets 
(tonnes) .. 2,450.9 2,355.776 .. 1,575.9 1,344
a 85 
ATS Reinforcing 
rods, nails 
(tonnes) .. 9,513.6a 9,971.3 .. 6,274.9a 2,858.5a 104 
SOTOTOLES Corrugated iron 
sheets, 
reinforcing rods, metal points, 
wire, steel  + alu 
basins (tonnes) 47,159 43,615 44,606 41,113 29,396 26,658 277 
SCIL Water-based 
paint, oil paint 
(tonnes) 1,356a 1,050a 995 .. .. 678a 38 
.. Not available . 
a Estimates based on data for two or three quarters. 
Source : Togolese authorities. 
55. The majority of imported manufactures are subject  to an MFN tariff of 20 per cent (with an 
average of 12.2 per cent for the sector as a whole, see Table AIV.1), as well as to other import duties 
and taxes (Chapter III(1)(iv(b)).  This nominal le vel of protection in the WAEMU's CET structure, 
adopted by Togo on 1 January 2000, obscures actual  protection that is higher.  The overall positive 
escalation in tariffs indicates a relatively high actual le vel of protection in the majority of industries, 
with the exception of those manufacturi ng mineral products and metal articles, inter alia 
(Chapter III(2)(iv)(a)). 
                                                      
39 WTO document WT/TPR/S/48, Chapter IV, p. 66. WT/TPR/S/166 Trade Policy Review 
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56. Imported manufactures are also subject to intern al taxes such as VAT and, in some cases, 
excise duty (Chapter III(2)(iv)(b)).  The highest ra te of taxation applies to alcoholic beverages 
(37.37 per cent), with the exception of beer, as a result of 16 per cent excise duty.  Mention should 
also be made of the special tax on the manufacture and sale of beverages (Table III.3), which 
advantages the sale of locally produced beverages. 
57. The various fiscal benefits given to approved enterprises under the free zone regime and the 
Mining Code reinforce the escalation of duty in some industries and, as a result, the actual level of protection (Chapter III(2)(iv)(a)). 
(5) S
ERVICES  
(i) Overview 
58. Services' share of GDP has not increased much since the first review of Togo's trade policy.  
Nevertheless, the figure for commercially traded  services in the GDP rose from 28 per cent in 1998 to 
29.9 per cent in 2005 (Table I.1).  This increase is ch iefly attributable to the development of maritime 
transport and related commercial ac tivities inasmuch as Togo plays an im portant role in the transit of 
goods going to landlocked countries, Burkina Faso in particular. 
59. Despite the importance of this activity, as well as the services requirements of the 
manufacturing sector (see above), Togo has only made commitments under the GATS in the three areas of tourism, recreational, cultural and sportin g services, and construction and related engineering 
services.  The authorities explain that these were the areas which they had determined were a priority 
for attracting foreign direct investment at the time of the Uruguay Round.  Togo did not take part in 
the negotiations on basic telecommunications services,  concluded in 1997, or in those on financial 
services, concluded in 1998. 
(ii) Transport 
(a) Maritime transport 
60. The Autonomous Port of Lomé (PAL) provides th e majority of Togo's international maritime 
transport-related port services and handles some 80 per cent of trade.
40  The PAL has the following 
advantages:  it is the only free port in the WAEMU, the only one that can take oil tankers and bulk 
carriers with a draught of over 14 metres, and the only one that has the sp ace for warehouse facilities 
as it is situated close to but outside the city of  Lomé.  Nevertheless, the PAL is facing competition 
from other ports in the subregion as regards trans it to landlocked countries such as Mali, Niger and 
Burkina Faso, because of the shortcom ings of Togo's road network and certain natural obstacles.  The 
PAL also has the advantage of being close to the free zone, the principal location for Togo's export-
oriented enterprises (Chapter II(4)(ii)). 
61. In 2005, 1,015 ships docked at the PAL compar ed with 1,090 in 2004, and 5.1 million tonnes 
of cargo were handled, compared with 4.4 million tonn es in 2004 (Table IV.4).  Of this total volume, 
56 per cent were imports (release for consumption) into Togo, 17 per cent exports from Togo, and the 
remainder import or export transit traffic.  The volume of goods handled in 2005 showed an increase 
of 81 per cent since 1999, when Togo's trade polic y was first reviewed.  This increase can be 
explained by two factors in particular:  the in crease in imports into Togo (such as hydrocarbons in 
bulk);  and the effects of the crisis in Côte d'Ivoi re as the PAL handled a larger part of the transit 
traffic to the Sahel countries, esp ecially Burkina Faso and Niger. 
                                                      
40 http://www/togoport.tg. Togo WT/TPR/S/166 
 Page 61 
 
 
62. The PAL is a State-owned company responsible for managing the port;  it is one of the 
enterprises to be retained in the State's portfolio (Table III.7).41  In 2001, handling of containers and 
various goods was privatized.42  It was planned that there should be two operators for each activity;  
the container-handling concession was given to  the SE2M (Maritime Cargo Handling Company)43, 
and Ecomarine (which should soon start operating).  With the exception of these handling operations, 
all other port and ancillary activities are restricted to  the PAL.  These services are provided subject to 
a scale of fees determined by the PAL and made  available to users;  the fees are revised 
approximately every five years and are proposed by the PAL to the port authority for approval. 
Table IV.4 
Goods traffic by country, 2004-2005 
(metric tonnes) 
 Variation (percentage) 2004 2005 
Imports (Togo) +12.37 2,548,525 2,863,822 
Transit – Import  +1.56 772,859 784,991 
Burkina Faso -12.12 388,900 341,804 
Niger -20.18 180,223 143,872 
Mali -14.24 63,920 54,824 
Other countries +74.87 139,816 244,491 
Total imports +9.85 3,321,384 3,648,813 
Exports (Togo) +30.03 658,293 856,042 
Transit-Export  +32.10 262,776 347,141 
Burkina Faso +46.53 188,508 276,229 
Mali -7.23 74,157 68,799 
Niger .. 25 .. 
Other countries .. 86 2,113 
Total exports  +30.62 921,069 1,203,183 
Transhipment +22.01 186,892 228,037 
Overall total +14.69 4,429,345 5,080,033 
.. Not available. 
Source : Togolese authorities . 
63. Another State-owned enterprise involved in ma ritime transport is the National Shippers' 
Council of Togo (CNCT).  Its task is to assist sh ippers, run the Transport Monitoring Centre, and 
update statistics on the transport of goods for export or import.  Any cargo loaded or unloaded in the 
PAL and, more generally, in Togo, irrespective of its final destination and the customs regime, must 
be covered by a cargo monitoring report (BSC ) endorsed by the CNCT or its representative.44  As a 
minimum, one BSC must be presented for each bill of lading (B/L):  containers (a maximum of five 
containers per BSC), bulk cargo (by 300 tonne lots), transport vehicles (1 BSC per vehicle) or road 
units.  The amount payable for the BSC is €25 per unit for cargo from Europe and €100 from 
                                                      
41 Decree No. 94-038 of 10 June 1994. 
42 Decree No. 2001-162/PR of 14 September 2001. 
43 The shareholders are the Spanish company PII ( Participaciones Internacionales Ibericas), which 
owns 85 per cent, and the Bolloré Group, which has the remaining 15 per cent. 
44 Decree No. 2001-066/PR of 9 March 2001 and Order No. 007/MTRH/2000 of 5 September 2000. WT/TPR/S/166 Trade Policy Review 
Page 62 
 
 
elsewhere.45  The Chamber of Commerce tax (TCC), amoun ting to CFAF 300, is also imposed on 
each tonne imported through the PAL, together with  the toll tax of CFAF 200 (Chapter III(2)(iv)(b)). 
64. The International Ship and Port Facility Security  Code (ISPS) came into effect in the PAL on 
1 July 2004.  This new global security regime is aimed at establishing an international regime for 
cooperation among governments, government bodies, th e maritime transport industry and the port 
industry in order to determine the measures to be ta ken to prevent incidents affecting the security of 
ships and port facilities engaged in inte rnational trade and to apply them. 
65. Consignment services are provided by Togolese and foreign shipping agencies, which 
numbered 18 in 2004.  Togo signed the UNCTAD Convention on the Code of Conduct for Liner 
Conferences in 1982 and ratified it in 1985.  It participates in the Ministerial Conference of West and 
Central African States on Maritime Transport (CME AOC), whose objective is to support the maritime 
transport policies of its member countries.  The CMEAOC has also initiated the creation of national 
shippers' and port committees.  The distribution of  cargo, however, has been abolished in Togo. 
(b) Air transport 
66. Togo has two international airports (the Gn assingbé Eyadéma international airport (AIGE) 
and the Niamtougou airport), as well as five smaller ai rfields.  The majority of international traffic 
goes through the AIGE, whose commercial manageme nt was handed over to a semi-public company 
in 1987, the Lomé-Tokoin Airport Company (SALT).46  There are 12 local, regional and international 
companies in the AIGE, including Air France.  At pr esent, there are 47 flights a week, to which must 
be added a large volume of freight traffic.  In 2005, 218,996 passengers went through the AIGE, 
which also handled 9,361 tonnes of freight. 
67. Air transport activities are governed by the Civil Aviation Code of March 1975.47  Any person 
wishing to operate an air transport service in Togo must obtain an operating permit from the Ministry of Civil Aviation.
48  The principal operators in possession of permits are the following Togolese 
companies:  Africa West; and Air Horizon.  Passenger and freight airport services are provided by the SALT according to the rates determined by the St ate.  Ground handling is provided by the privately 
owned company S.T. Handling. 
68. Foreign presence and traffic rights granted to foreign companies serving Togo are governed 
by bilateral agreements and Togo has signed such agreements with 28 countries.  These generally 
cover joint operations between Togolese companies a nd companies in the countries concerned (third 
and fourth freedoms).  Foreign companies are only allowed to provide cabotage services on a 
temporary and exceptional basis, under the responsibilit y of the Minister for Civil Aviation.  Togo has 
not signed any open skies agreements. 
69. Togo is a member of the International Civil Aviation Organization (ICAO). 
                                                     
 
45 See http://www.phoenix-europe.fr/bsc/togo/togo.asp?L=fr concerning the formalities to be 
completed in order to obtain the report. 
46 The shareholders are the Togoles e State (60 per cent), the Chambe r of Commerce, Agriculture and 
Industry of Togo (35 per cent) and the Chamber of Commerce, Agriculture and Industry of Bordeaux (5 per 
cent). 
47 Ordinance No. 15 of 14 March 1975. 
48 Order No. 006/MTRH/DAC of 28 March 2000. Togo WT/TPR/S/166 
 Page 63 
 
 
(c) Land transport 
70. Togo's road network covers 7,905 km, of wh ich 1,633 km are sealed highways (20.6 per 
cent).  It is maintained by the authorities, whic h have introduced tolls on the main roads for this 
purpose.  At the beginning of 2006, the number of vehicles (based on registration) was 116,487 four-
wheeled vehicles and 144,108 two-wheeled vehicles. 
71. Urban and inter-urban passenger transport is pr ovided by private operators, chiefly from the 
informal sector.  Private operators also transport goo ds in accordance with the rates determined by the 
State and regularly revised.  For regional tran sport of goods, the mechanisms required for the 
operation of the inter-State road transit scheme,  pursuant to the Convention on Inter-State Road 
Transit ("TRIE Convention"), signed by member s of the ECOWAS, are not yet fully in place. 
72. Togo Rail is a privately owned company ( established by the WACEM) which began 
operations in December 2002.  The assets of the National Railway Company of Togo, previously 
managed by CANAC (Canadian transport company) from 1995 to 2002, have been transferred to the 
WACEM.  Togo Rail operates two rail lines:  one 276- km line from Lomé to Blitta in the centre of 
Togo; and the Lomé-Tagliabo line of 80 km.49  In 2005, the volume of goods transported by rail was 
1.1 million tonnes and the rates are freely determin ed.  Since 1996, there has been no rail passenger 
traffic. 
73. Togo is a member of the Union of African Ra ilways (UAR) and the International Railway 
Union (UIC). 
(iii) Tourism 
74. Togo has considerable tourism potential and this se ctor is one of the major sources of foreign 
currency earnings.50  Tourism had made good strides before the troubled period in Togo from 1990 to 
1993; it subsequently recovered, reaching a peak in  1997, although there has been a downward trend 
since 1998 (Table IV.5).  In 2005, there were 93,557 visitors, 86 per cent of them foreigners.  Visitor-
nights were 181,758, an average of 1.9 to 2 nights per visitor, which indicates business trips rather 
than tourism.  Employment has grown, however, reaching 1,437 in 2005. 
75. There are several travel agencies in Togo.  Purs uant to the regulatory texts in force since 
198951, any person may supply hotel and restaurant and travel agency services regardless of 
nationality, but the National Approvals Commission is  not yet operational.  The rates charged by 
those operating tourist facilities must be approved by a joint decree issued by the Ministers for Tourism and Commerce.  The Tourism Development Directorate (DDT) is responsible for inspecting 
hotels.  As State-run hotels are being privatized (Tab le III.7), it is currently pl anned to update the texts 
and liberalize the prices of these services. 
76. Hotel and restaurant, tour ope rator and tourist guide services were the subject of specific 
commitments by Togo under the GATS.
52  The Schedule specifies that the acquisition of real estate 
for the purposes of establishing a hotel is subject to restrictions.53  The employment of foreigners is 
                                                      
49 Togo Rail is planning to build a 5-km branch line to supply the Diamond Cement works in Aflao 
(Ghana) with clinker.  A dry port is being built in Blitta to supply goods to countries in the Sahel whose exports 
and imports go through the PAL. 
50 http://www.togo-tourisme.com/. 
51 Decrees No. 89-137/PR, No. 89-138/PR, No. 89-139/PR of 23 August 1989. 
52 WTO document GATS/SC/106 of 30 August 1995. 
53 Law No. 60-26 of 5 August 1960 and its Implementing Decree. WT/TPR/S/166 Trade Policy Review 
Page 64 
 
 
also subject to the regulations in force on the employment of foreign personnel.54  Investment in 
tourist facilities is not subject to any specific restrictions. 
Table IV.5 
Tourism indicators, 1999-2005 
 1999 2000 2001 2002 2003 2004 2005 
Arrivals 93,640 72,682 74,053 67,637 70,318 96,899 93,557 
Visitor-nights 205,176 158,109 257,276 138,002 155,174 212,355 181,758 
Average length of stay 2.2 2.1 2.1 2.0 2.1 2.1 1.9 
Earnings from hotel and restaurant 
services (in CFAF billions) 5.612 5.2 6.8 6.4 6.8 6.8 7.7 
Number of rooms  2,258 2,358 2,656 4,365 4,480 4,728 .. 
Occupancy rate 21.4 19.1 14.5 13.7 10.7 10.1 9.3 
Jobs 1,115 1,288 1,365 1,603 1,646 1,385 1,437 
.. Not available. 
Source : Togolese authorities. 
77. Togo has been a member of the World Touris m Organization since 1975; it also belongs to 
the American Society for Travel Agents (ASTA ) and the Africa Travel Association (ATA). 
(iv) Post and telecommunications55 
78. Since the first review of Togo's trade policy,  the number of telephones has increased sharply, 
principally because of the development of mobile te lephony in Lomé (Table IV.6).  The number of 
fixed telephone subscribers rose from 24,647 in 1997 to 60,875 in 2003 (installed capacity is 83,000);  
teledensity for fixed telephones in 2003 was thus  1.25 lines per 100 inhabitants, compared with 
0.6 lines per 100 inhabitants in 1997.  The number of mobile telephone subscrib ers, on the other hand, 
rose from zero in 1998 to 243,613 in 2003, corresponding to teledensity of 5.03 lines per 100 inhabitants in 2003; by 2000, it had already ov ertaken teledensity for fixed telephones.  The 
number of internet connections was 74 in 2002, mos tly in internet cafes as the connections are very 
costly in Togo (see below), while the number of internet users was some 200,000 in 2002.
 
Table IV.6 
Telecommunications services indicators, 1999-2003 
 1999 2000 2001 2002 2003 
Fixed telephony 
Number of Togo Télécom subscribers 38,166 42,763 47,384 51,156 60,875 
Fixed telephone teledensity (number of lines 
per 100 inhabitants) 0.85 0.93 1.02 1.07 1.25 
Mobile telephony 
Number of Togocel subscribers 14,655 31,636 46,654 129,184 204,000 
Number of Telecel Togo subscribers .. 24,233 35,000 35,954 39,613 
Mobile telephone teledensity (number of lines 
per 100 inhabitants) 0.32 1.20 1.75 3.47 5.03 
.. Not available. 
Source : Togolese authorities. 
                                                      
54 Ordinance No. 16 of 8 May 1974 containing the Labour Code. 
55 The principal sources are:  Regul atory authority of the post and te lecommunications sectors (2004);  
Messan, A.-P. and Agbodo, K.N. (2004). Togo WT/TPR/S/166 
 Page 65 
 
 
79. The post and telecommunications sector was reorganized in 199756 and comprises the 
Togolese Post Office (SPT), which provides postal services;  Togo Télécom for fixed telecommunications, for which this State-owned enterprise has a de facto monopoly throughout 
Togo
57; and two mobile telephone companies, T ogo Cellulaire (set up on 30 June 1998 and a 
subsidiary of Togo Télécom), and Telecel Togo, which started operati ng in 2000.  The three operators 
have signed interconnection agreements.58  The three internet connection providers are Togo Télécom, 
Café Informatique and e-Process; there are around 17 internet access providers for individuals and 
300 internet cafés. 
80. The regulatory framework for opening telecommunications services up to competition was 
drawn up in 199859, and that for postal services in 1999.60  It has been supplemented by implementing 
texts specifying, inter alia, the fees to be paid by suppliers.  The telecommunications regulatory 
framework requires operators of networks or public  services and operators of independent networks to 
obtain prior authorization from the Minister for Telecommunications before commencing operations.  
Holders of authorizations must pay the relevant fees.61  The Post and Telecommunications Regulatory 
Authority has been responsible for both sector s since 2000, when it commenced operations. 
81. Togo Télécom's fixed telephone charges for using the service have been increased three times 
since the start of liberalization of the te lecommunications sector (in 1999, 2000 and 2001).62  The rates 
are set by the operator and approved by the Regulatory Authority before they come into effect.  They 
are based on past costs and on the concept of sharing of overall co sts (in the absence of analytical 
accounting). 
82. Mobile telephone operators are free to fix their rates, but these must also be approved before 
they can come into effect.  Togocel's rates,  in essence the connection charges, have fallen 
considerably since its competitor entered the market, but call charg es between the two networks are 
subject to a surcharge of around 74 per cent.  In T ogo Télécom's offer, the cost of installing a special 
link for internet access is CFAF 400,000, to which must be added the monthly fee of CFAF 350,000 
for downloading at 64 kbps. 
83. The regulatory framework includes universal service clauses.63  All operators must contribute 
to the universal service by paying an annual fee that goes to the universal service fund (FSU).  Likewise, all operators may be called upon by the g overnment to provide universal service; universal 
service providers are entitled to a subsidy from the FSU .  It is planned to amend the texts so as to 
allow the investment made by opera tors to be offset against the un iversal service fee they pay, under 
certain conditions. 
                                                     
 
56 Decree No. 96-22/PR of 28 February 1996. 
57 It was foreseen in the regulations that, from 2000 onwards, new rural and regional fixed telephony 
operators would enter the market. 
58 Decree No. 98-089 of 16 September 1998 sets out the network interconnection regulations for 
telecommunications sector operators.  These agreements are commercial c ontracts and are communicated to the 
regulatory authority before they enter into effect.  Th e interconnection charges are based on the relevant costs 
for network use and observe the principles of objectivity, transparency and non-discrimination, according to the 
authorities. 
59 Law No. 98-005 of 11 February 1998, supplemented by Law No. 2004-011 of 3 May 2004. 
60 Law No. 99-004 of 15 March 1999, as amended by Law No. 2002-023 of 12 September 2002. 
61 Decree No. 2001-007/PR of February 2001. 
62 The connection charges are CFAF 109,000 (US$182), the monthly base rate is CFAF 3,481 (US$5.8) 
and the fees for use range from CFAF 400/minute (for calls to other ECOWAS countries) to CFAF 700/minute 
(for calls to Western Europe, the United States and Canada), and CFAF 990/minute (other international calls 
outside Africa). 
63 Decree No. 2001-195/PR of November 2001. WT/TPR/S/166 Trade Policy Review 
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84. For over four years, government bodies have owed substantial arrears to Togo Télécom 
because of the financial crisis in Togo and Togo Té lécom has had to take out loans from local banks 
to finance its investments.64  Demand for fixed telephone lines app ears to exceed availability and since 
2001 (with financing from the West African  Development Bank (BOAD)) Togo Télécom has 
expanded capacity in order to respond.  It appears th at, for the past few years, the authorities have 
been considering the possibility of privatizing Togo Télécom, either as a whole or after dividing it 
into two companies, one for fixed telephony and the other for mobile telephony.  No decision has yet 
been taken in this respect. 
(v) Financial services 
(a) Banking services 
85. Togo's banking sector comprises 10 authorized banks65, and four financial institutions66; six of 
these are semi-public companies incl uded in the State's privatization programme (Table III.7).  These 
institutions support industry in the formal sector , import-export transactions, and some private 
transactions (for example, the purchase of vehicles).  Banking operations in Togo must comply with the WAEMU's common banking regulations and with  the prudential provisions of the WAEMU's 
Banking Commission, which also monitors activities
67; nevertheless, according to the Togolese 
authorities, only three banks have positive net equity that enables them to comply with the rules in 
force.  Requests for approval to establish a bank must  be made to the Ministry of Finance, which 
verifies the details and whether or not they comply with the WAEMU's banking regulations. 
86. The 10 per cent tax on financial transactions (T AF) is imposed on the turnover of companies 
that provide financial services.  According to the Ba nque de France, "for a number of years, the local 
financial system has suffered the impact of a diffi cult socio-political environment that has led to a 
deterioration in the financial situa tion and a large number of bad debts".68  The authorities stress that 
Togo's banking system remains vulnerable and the ma jority of banks are under close surveillance by 
the Banking Commission, which explains the need  to continue efforts to privatize them. 
87. Togo also has a flourishing micro-credit market, which is subject to na tional regulation under 
the aegis of the WAMU.69  These are mainly mutual aid institutions, savings and loan cooperatives or 
decentralized financing schemes (SFD).  These instit utions had some 333,080 beneficiaries at the end 
of 2005;  deposits amounted to CFAF 27,523  million in 2005 and outstanding loans to 
CFAF 22,136 million, an increase in comparison w ith 2004 (Table IV.7).  The State endorsed a 
national micro-finance strategy on 25 May 2005 a nd the programme in support of the strategy on 
6 June 2005. 
                                                      
64 http://www.izf.net. 
65 Union togolaise de banque (UTB);  Ecobank Togo; Banque togolaise pour le commerce et l'industrie 
(BTCI);  Financial-Bank Togo (FBT);  Banque togolaise de développement (BTD);  Banque internationale pour 
l'Afrique au Togo (BIA-Togo);  Société inter-africaine de banque (SIAB).  Three new banks were approved in 
2005:  the Banque régionale de solidarité (BRS-Togo);  the Banque sahélo-Saharienne pour l'investissement et le commerce;  and the Ba nque Atlantique Togo. 
66 Cauris investissements;  Fond de garantie des in vestissement privés en Afrique de l'Ouest;  Caisse 
d'épargne du Togo;  and Société togolaise de credit automobile. 
67 Details concerning the West African Banking Comm ission are available at:  http:/www.izf.net/izf/ 
FicheIdentite/COBAC.htm [10 May 2005]. 
68 Banque de France (2003), p. 9, in French only. 
69 Law No. 95-014 of 14 July 1995 and its Implementing Decree No. 96-038 of 10 April 1996. Togo WT/TPR/S/166 
 Page 67 
 
 
Table IV.7 
Basic data on decentralized financing schemes, 2002-2004 
 2002 2003 2004 
Members/clients 152,945 179,854 199,924 
Service desks 142 78 77 
Deposits (in CFAF millions) 14,731.94 16,887. 26 22,343.85 
Outstanding loans (in CFAF m illions) 9,715.28 11, 614.39 17,854.67 
Non-performing loans (in CF AF millions) 902.89 699.62 743.82 
Source:  BCEAO 
88. Since the first review of Togo's trade policy, mi cro-credit has developed rapidly, particularly 
outside the urban areas served by banking institutions, the main reason being the high level of savings 
(6 per cent of the banking system's assets in 1999).  Micro-credit gives farmers and small and 
medium-sized enterprises access to loans (8 per cent of the banking system's loans in 1999).70 
89. Within the WAEMU, the SFD are subject to  common regulations approved by member 
States.71  In Togo, the SFD come under the Ministry of the Economy and Finance and 31 institutions 
have been authorized to engage in savings/loans, three received authorization for direct loans, and 
11 are non-governmental organization welfare projects recognized as such. 
(b) Insurance services 
90. Insurance services are provided by  10 companies, seven of wh ich offer non-life insurance and 
three life insurance, with total capital of CFAF 6.7 billion.72  With the exception of Fidelia 
Assurances, all the other companies have foreign majority shareholdings.  The Togolese State now only has 2.77 per cent of the capital of GTA-C2A- iard, which covered 41.3 per cent of the Togolese 
non-life insurance market in 2004.  The companies freely determine insurance premiums, except for 
the automobile civil liability branch (mandatory si nce 1987), whose premiums are determined by the 
supervisory body following a proposal by the nationa l insurance directorate.  Overall, the regulated 
commitments of all life and non-life insurance companies amount to CFAF 22,978 million and 
CFAF 19,750 million respectively, corresponding to  the value of the assets representing the 
counterpart of the regulated commitments;  the authorities indicate that the regulated counterpart 
assets in the market are not sufficient. 
91. Togo has signed the Inter-African Insurance Mark et (CIMA) treaty, in effect in the franc 
zone.  The CIMA structure comprises a Council of  Ministers, a Regional Commission for Insurance 
Supervision, and a General Secretariat. 
92. Companies wishing to engage in  insurance must obtain approval for insurance transactions in 
one or more branches of insurance.  The same company may not, however, offer several branches so 
on the Togolese market all insuran ce companies specialize in either life or non-life insurance.  
Companies established in Togo may not cover risks outside the country.  Likewise, risks in Togo may not be covered by companies not established in Togo.  This type of cover may, however, be offered in 
the context of community joint insurance within  the CIMA framework.  The minimum capital 
                                                     
 
70 IMF (1999). 
71 Law No. 59/94/ADP of 15 December 1994 and its Implementing Decree No. 95-308/PRES/MEFP of 
1 August 1995. 
72 GTA-C2A-iard;  GTA-C2A-vie; UAT iard; UAT vie;  COLINA-ASSURANCE; AGF-Togo;  
FEDAS-Togo;  Beneficial Life Insurance (B LI);  Fidelia Assurances;  NSIA-Togo. WT/TPR/S/166 Trade Policy Review 
Page 68 
 
 
required to set up an insurance company pursuant to the CIMA code is CFAF 500 million for public 
limited companies and CFAF 300 million for mutual insurance funds. 
93. The Minister for the Economy, Finance and Pr ivatization is responsible for approving 
insurance companies, after verifying whether th e application meets the following criteria:  the 
shareholders, the administrators and the directors of  the company have the cap acity to administer and 
manage the company to be set up; the viability of  the business plan taking into account the financial 
estimates, the investment programme and the estimated financial situation; the general situation in the 
market. 
94. The 10 per cent TAF applies to the turnover of  companies supplying financial services, 
including insurance. Togo WT/TPR/S/166 
 Page 69 
 
 
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