Economy
Among the smallest countries in Africa, Togo enjoys one of the highest standards of living on the continent owing to its valuable phosphate deposits and a well-developed export sector based on agricultural products such as coffee, cocoa beans, and peanuts (groundnuts). Low market prices for Togo’s major export commodities, however, coupled with the volatile political situation of the 1990s and early 2000s, had a negative effect on the economy.
Agriculture, forestry, and fishing TogoBales of harvested cotton in Togo.(more)
The variety of soils and climates enables Togo to grow a wide range of products. A large proportion of the population is engaged in agricultural pursuits, many of which are subsistence-based; agricultural products also factor prominently in the Togolese foreign exchange income. Staple crops include corn (maize), cassava (manioc), rice, yams, sorghum, millet, and peanuts; export crops include cocoa beans (harvested from cacao trees), coffee, shea nuts, cotton, and palm kernels. Prior to 1996 a government agency, the Office of Agricultural Products of Togo, held a monopoly on the foreign sale of Togolese products. Since then government policy has shifted toward encouraging increased cooperation between the public and private sectors.
Cattle, sheep, and pigs are raised in the plateau region and the north. Fishing is carried out on the coast and in the well-stocked inland rivers and ponds. Most of the catch is consumed locally. Forests cover less than one-tenth of Togo’s total area; heavy rates of deforestation—due in large part to slash-and-burn agriculture and the need for wood fuel—have greatly diminished the proportion of Togo’s wooded area, particularly in the early 2000s.
Resources and power
Mining and quarrying dominate industry in Togo. Phosphate is the major mineral resource and one of the country’s leading export items. Deposits include those at Hahoetoé and Kpogamé, directly northeast of Lomé in the south of the country. Togo is one of the world’s largest phosphate producers. Togo’s considerable limestone reserves, also mined near Lomé, are utilized primarily for cement production. Togo also has substantial marble deposits.
Other mineral resources with commercial potential include iron ore, bauxite, uranium, chromite (an oxide of iron and chromium), gold, diamonds, rutile (titanium dioxide), manganese oxide, and kaolin (china clay). While the iron ore reserves are large, the metal content is only slightly more than 50 percent. The bauxite has a low mineral content.
More than three-fifths of the electricity generated in Togo is hydroelectric, although petroleum is also an important source of energy. In addition to electricity from domestic sources, Togo imports energy from neighbouring countries to meet demand.
Manufacturing
The Togolese manufacturing sector is relatively small. Manufacturing in the past centred on the processing of agricultural commodities and the import substitution of consumer goods (textiles, footwear, beverages, and tires). In the late 1970s and early 1980s, however, major investments in heavy industrial schemes included a cement plant, a petroleum refinery, a steelworks, and a phosphoric acid plant, but some of these have since closed down. Several industrial free zones have been established in Togo, including that at Lomé.
Finance and trade
Togo’s currency is the CFA franc, which has been officially pegged to the euro since 2002. Currency is issued by the Central Bank of West African States, an agency of the West African Economic and Monetary Union, consisting of eight countries (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo) that were once French colonies in Africa.
Imports include mineral fuels, food, construction materials, machinery, transport equipment, pharmaceuticals, and paper products. Low customs duties have encouraged significant smuggling of imported consumer goods to neighbouring countries with higher tariffs, especially Ghana. Aside from phosphate and agricultural products, which account for a large proportion of Togolese export earnings, some iron and steel and cement are exported. Togo’s main trading partners include France, China, India, Niger, Benin, Burkina Faso, and Mali.
Services
The services sector accounts for more than two-fifths of the gross domestic product. Conflict in the 1990s and early 2000s disrupted the service industry, including tourism, which was a significant source of foreign revenue before that time.
Labour and taxation
More than half the labour force works in the agricultural sector, which meets the majority of the population’s food requirements and produces agricultural commodities, such as cotton, for export. Most Togolese workers are permitted to participate in union activity and to strike; government health workers may not strike, and security forces may neither strike nor form unions.
Indirect taxes, almost entirely on imports and exports, account for most of the government’s ordinary budget revenues. Direct taxes consist of an income tax, a progressive tax on all profits, taxes on wages paid by employers, a tax on rental values and land, and head taxes.
Transportation
Three main road systems include the scenic coastal road between Ghana and Benin; the road from Lomé north to Burkina Faso; and roads serving the cacao- and coffee-producing area of Kpalimé, Badou, and Atakpamé. Some one-third of the country’s roadways are paved.
The national railway provides service on a number of lines that emanate from Lomé. One line connects Kpalimé with the capital; other lines run to Aného, Tabligbo, and Blitta.
Lomé is Togo’s principal port and has been an important transit point for a number of Togo’s landlocked neighbours. Its artificial harbour was inaugurated in 1968. A second port is located at Kpémé, about 22 miles (35 km) northeast of Lomé, and is used to handle phosphate shipments.
The international airport at Tokoin (near Lomé) links Togo with European and other African countries. A second international airport is located at Niamtougou in the north. Local airports include those at Atakpamé, Sokodé, Sansanné-Mango, and Dapaong.
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Publish date : 2024-10-12 05:00:00
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