Project Case Study
Making mining boost the economy in Togo
Togo’s mining sector could become an attractive destination for investment
Togo draws on several sectors to maintain a 5 percent economic growth rate – agriculture, trade, construction and public works as well as the extractives sector.
But Togo is characterized by poverty and, in the 2016 Human Development Index (HDI), it ranked 166th out of 188 countries. Income per capita stood at $540 in 2015. The government must continue its efforts to stimulate economic growth and reduce poverty in order to achieve its sustainable development goals.
The government has managed to support demand by undertaking an ambitious public investment programme despite a recent fall in commodity prices, which has affected its main export products (notably phosphates).
The mining sector is an essential component of economic development, accounting for 4% of total national income and 22% of exports. Because the mining sector has strong growth potential, Togo is committed to promoting the development of the sector and encouraging the development of the private sector
In 2017, ASI was selected by the World Bank to conduct a review of the fiscal policy for the mining sector in Togo to establish it as a more attractive investment destination. It required recommendations to improve the fiscal regime and development of a financial model for the Ministry of Mining in Togo to support mineral forecasting for the sector. The project also includes capacity building for government agents from mining-related institutions and the Mineral Revenue Authority.
- We conducted case studies of Ghana’s and Burkina Faso’s mining fiscal regimes to demonstrate comparative strengths and weaknesses in Togo’s fiscal regime
- We developed a fiscal model to forecast potential revenues from the mining sector and trained officials on its use
- We developed a road map of legal and fiscal reforms of the mining sector that would raise revenues from the industry and improve Togo’s economic and social development.
- We conducted training for the Togolese Revenue Authority, government ministries (such as the Ministry of Finance, the Ministry of Mines and Energy and members of the Togolese Extractive Industries Transparency Initiative Secretariat) and mining industry representatives to improve their skills in taxes. We developed tax audit procedures and methods based on the international best practice, which is important for maximising taxpayer oversight.