Togo - Reform and Governance Support Programme Phase II (PARG-2)

The Reform and Governance Support Programme Phase II (PARG-2) is the result of a request made by the Togolese government to the Bank in June 2010. It is a continuation of the previous budget support programme (PARG-1) supported by the Bank and other multilateral donors, including the World Bank and the European Union. The main expected PARG-2 outcomes are: (A) a more appropriate regulatory and institutional framework for private sector development with: (i) the promulgation of a new Investment Code with more incentives; (ii) simplification and enhanced clarity of the provisions of the Tax and Customs Codes; (iii) reduction in the time required to start a business from 75 days to two weeks and a 48% reduction in start-up costs for ECOWAS citizens and 30% for non-ECOWAS citizens following the establishment of a one-stop shop; (iv) accounting and management assistance to SMEs/SMIs as well as to informal sector units now provided through Authorized Management Centres; (v) participation of investors in tapping the country’s mineral resources fostered by a new Mining Code in compliance with international standards; (B) public finance management is consolidated through: (i) full operationalization of SIGFIP allowing the expenditure chain, which currently only covers commitment, validation and payment authorization, to reach the Public Treasury payment stage and to facilitate the presentation of management accounts; (ii) ending of bad management practices by strengthening internal and external control as well as public procurement management. The programme, costing a total of UA 20 million, aims to support structural reforms for sustained and sustainable growth. It has two components: a) further improvement of the business environment; b) further rationalisation of public finance management.