While the country has a moderately unstable geopolitical environment, the limited O&G involvement has been relatively unmolested. Consequently, it is believed that there is a more Outlook Positive that would otherwise be expected, given the domestic political uncertainty.
May 28, 2021
Africa - West
Simple Production Sharing Contract ("PSC")-based fiscal regime. Royalty rates are reduced for deep-water (>200m water depth) operations. Cost recovery rates are negotiable, whilst profit oil is split between contractor and government on a sliding scale linked to production rates. The contractors liability for income tax is paid on its behalf from the government share of profit oil. A range of small bonuses, rentals and fees are payable.
Togo’s strong economic growth in 2019 was driven by major reforms that improved the business climate and increased investment. In the last two years, Togo rose by more than 50 places in the World Bank’s Doing Business report and now ranks 97th – the highest ranking in West Africa. Agriculture remains one of the engines of economic growth in Togo. In 2019, Togo became the top exporter of organic products to Europe in the Economic Community of West Africa States (ECOWAS) and the second in Africa after Egypt. The export volume of these organic products (mainly soybeans and pineapples) more than doubled, from 22,000 tons in 2018 to 45,000 tons in 2019. The government of Togo implemented various business reforms and completed several large infrastructure projects over the last five years to attract investment. In 2018, the government launched its five-year National Development Plan (PND) with three major axes. The plan’s first goal is to leverage the country’s geographic position by transforming Lome into a regional trading centre and transport hub. Togo has already completed hundreds of kilometres of refurbished roadways, expanded and modernized the Port of Lome, and inaugurated in 2016 the new Lome international airport that conforms to international standards. The second goal is to increase agricultural production through agricultural centres (Agropoles) and increase manufacturing. The third goal is improving social development, including electrification of the country. The government is searching for private sector investment to fulfil these PND goals.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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