fDi Markets tracked 11 greenfield projects in Togo in the first 11 months of 2019, compared with just two projects announced in the whole of 2018. This was the highest growth in the number of greenfield projects across all African countries, and a marked improvement after four years of sluggish FDI since the previous peak of seven projects in 2013.
Between January and November 2019, Togo was also the best performer in Africa in attracting greenfield FDI projects relative to its share of the continent’s nominal GDP. It attracted 6.7 times what might be expected given the size of its economy.
Rwanda and Senegal ranked second and third in Africa, respectively, attracting 5.9 and 3.4 times the amount of greenfield FDI relative to the size of their economies. Estimated greenfield investment announced in Togo also peaked at $2.24bn in the first 11 months of 2019, according to fDi Markets, ranking the country seventh out of 54 African countries for the period.
The majority of this record investment came from a mega-project announced by Nigeria-based Dangote Group, a conglomerate which has business interests in industries such as cement, sugar, oil and gas. The firm announced plans to establish a $2bn phosphate processing facility which is expected to create 2500 jobs.
Dangote Group also announced plans to invest $60m to set up a cement manufacturing facility in the Togolese capital Lome. After no greenfield manufacturing projects in the small West African country since 2016, Togo garnered three separate projects in the first 11 months of 2019.
Other notable investments tracked by fDi Markets in 2019 include the announcement by UAE-based AMEA Power to invest $33.5m in a 50MW solar park in the central Togolese region of Blitta, and Germany-based time:matters’ plans to open a new delivery hub in the capital Lome.
Togo climbed 40 places to 97th out of 190 countries in the World Bank’s Ease of Doing Business Report 2020 following the implementation of regulatory reforms. The small West African country was among the top 10 improvers in 2020 after significant reform efforts in the areas of starting a business, registering property and getting credit.
Ratings agency S&P upgraded Togo’s credit rating to a single-B with a stable outlook in June 2019. President Faure Gnassingbé, who has been in power for 14 years, will stand for re-election on 22 February 2020.