Togo’s extractive sector is primarily focused on mining and quarrying, with no ongoing extraction of proven oil reserves due to decreased investment in the hydrocarbon sector. Togo’s mining sector is primarily centred around the production of phosphate, led by the state-owned enterprise Société Nouvelle des Phosphates du Togo (SNTP). Togo also produces gold, bauxite, limestone, clinker, zinc, iron ore and manganese. ITIE Togo also includes groundwater extraction and the marketing for precious minerals in the scope of its EITI reporting.
Togo joined the EITI to support its objectives of attracting foreign direct investment and increasing transparency in the production and export of phosphates and marketing of precious minerals. With the gradual increase in phosphate production, the EITI is contributing to reforms and debates around contract transparency as well as social and environmental issues.
Togo’s mining industry is governed by the Mining Code, which regulates the procedure for the award and transfer of mining rights, artisanal mining provisions, and the participation of extractive companies in the extraction and production of mineral resources.
Following the Mining Code reform initiative carried by the Mining Development and Governance Project (PDGM), Togo's Council of Ministers adopted a draft law in 2019 amending the current Mining Code. Other legislative texts that govern the mining sector include the General Tax Code, Book of Tax Procedures, the Customs Code promulgated by Law N°2014-003 and the Investment Code promulgated by Law N°2012-001.
Extractive companies are not subject to a specific tax regime. With the exception of the tax advantages provided for in the Mining Code or any specific regime that may be negotiated in the framework of a mining convention, the holders of mining titles are subject to a common law regime.
Payments by extractive companies are made to several financial authorities, mainly the Office Togolais de Recettes (OTR) for common taxes and duties and the General Directorate of Mining and Geology (DGMG) for specific payments.
Licenses and contracts
Mining licenses are issued on a first come first served basis by the General Directorate of Mining and Geology (DGMG), under the Ministry of Mines. In accordance with the Mining Code, a mining title can only be acquired by virtue of an authorisation or permit granted by order of the Minister of Mines. Mining permits are published on the DGMG website.
In June 2019, the Ministry of Mines and Energy launched the Mining Development and Governance Project (PDGM) for the implementation of a mining cadastre, which was launched in December 2019. In accordance with Law No. 2014–009 (Article 9), extractive contracts and the procedure for awarding them are published on the DGMG website. Some contracts are available on resourcecontracts.org.
Togo does not have legal framework mandating the disclosure of beneficial ownership. However, ITIE Togo discloses beneficial ownership data for some extractive companies through EITI reporting, however the information is not comprehensive.
The government adopts the definition of a beneficial owner in accordance with the EU Fourth Money Laundering Directive, and Togo’s EITI multi-stakeholder group defines a beneficial owner as any individual holding an interest of 25% or more in a company. An online public registry is being developed.
The General Tax Code provides for the rebate of certain taxes to regions and communes. Law n°2018-24 of the General Tax Code and Law n°2018-25 of the Tax Procedures Book, both adopted in January 2019, regulate the disbursement of subnational payments and transfers.
Taxes such as the single business tax, patent rights and property taxes are divided between municipalities, the state budget and the Togolese Revenue Office (OTR), in accordance with rates set out in the General Tax Code. Subnational payments made directly by extractive companies are levied at the discretion of the local authorities; however, specific information related to these payments has not been reported.
ITIE Togo is administered by the Togo Multi-Stakeholder Group (MSG), also known as the Comité de pilotage, as well as the Conseil national de supervision. The MSG, chaired by the Minister of Mines, monitors Togo’s EITI implementation in accordance with the guidelines defined by the Conseil national de supervision. It also ensures that the strategic and political decisions of the Conseil national de supervision are respected and implemented. It is composed of representatives from government, industry and civil society.
Togo was found to have made meaningful progress with considerable improvements in implementing the 2016 EITI Standard in September 2020, following its second Validation. Togo has fully addressed five of the seven corrective actions identified in its previous Validation. The next Validation is expected to commence in January 2024.