Lome, Togo – (African Boulevard News) – The World Bank and International Finance Corporation (IFC) have published a report stating that Togo’s economic growth potential can be realized through increased private sector participation in agriculture, transport, and logistics, as well as through improved energy and digital infrastructure. The Togo Private Sector Diagnostic (CPSD) report examines the challenges the country faces and identifies solutions to create more jobs and reduce poverty.
The report noted that Togo’s economy has been growing steadily at an average of 5% per annum in recent years, but remains vulnerable due to its reliance on a few primary products and the public sector. The private sector is crucial for achieving sustainable economic growth.
Togo’s agriculture, which employs about 65% of the country’s population, is the most promising sector for private investment, according to the report. The report suggests that more investments are needed to develop value chains for export crops, including cotton and cashew, to increase productivity and ensure producers are paid fairly. The transport and logistics sectors could also attract private investment by developing transport infrastructure and streamlining processes.
Energy and digital infrastructures are also crucial areas that require private investment to improve Togo’s business environment and promote economic growth. The report suggested that the government should work with the private sector to improve the regulatory framework, encourage competition, and provide support to entrepreneurs and small and medium-sized enterprises.
The World Bank and IFC report emphasized the need for structural reforms and policy interventions to create an enabling environment for private investment. It also recommended that the government should strengthen institutions and develop human capital, in addition to promoting regional integration and improving the business climate.
According to IFC Country Manager for Togo and Benin, Pierre Laporte, “The CPSD provides a roadmap for Togo to grow its economy by leveraging opportunities in the agricultural sector and transport and logistics, as well as developing energy and digital infrastructures. The private sector has a key role to play in this transformation.”
In conclusion, the report has highlighted the immense potential of the private sector in transforming Togo’s economy and improving livelihoods. Togo’s government should adopt a proactive approach in creating a conducive environment for private investment to thrive, which will lead to sustainable economic growth, more jobs and reduced poverty.