Togo

EITI Status Meaningful progress

Joined EITI in 2010

Latest Data From 2017

Latest Validation 2019

Last updated 9 October 2020

Overview

The country is a producer of iron, phosphates, limestone, gravel and sand. Political unrest and social conflicts around revenue redistribution to resource-rich communities and mine rehabilitations have been widespread. The national EITI is expanding outreach to mining communities, including canvassing citizens’ demand for information. The EITI can provide an instrument for tracking enforcement of rules and taxes as well as monitoring the ongoing updating of the mining cadastre and mining code.

African Development Bank Report

Tax and legal framework

The three main taxes and fees imposed on companies operating in the mining sector include corporate income tax, a levy on service providers (retenue sur prestation de services – RSPS) and dividends. The Tax Commissioner (“Commissariat des Impôts) is the main body responsible for collecting and managing taxes paid to the central government. Regional and municipal governments (“communes” and “prefectures”) are responsible for levying and collecting local taxes, but also receive a share of land, waste management and professional taxes as subnational transfers.

The current Mining Code does not contain clear provisions dealing with the publication of contracts. However, some mining contracts are published on the website of the Directorate of Mining and Geology.

Beneficial ownership disclosure

Togo's current legal framework does not provide for a clear definition or public registry of the actual owners of companies bidding, operating or investing in extractive assets. Togo attempted to disclose beneficial ownership in its 2012 2013 EITI Reports. In both reports, about half of the companies disclosed their legal owners but no company has yet disclosed the beneficial owners. With the 2016 EITI Report, more companies disclosed their beneficial owners, including information on politically exposed persons. The report recommends the creation of a public beneficial ownership register.

Production

Togo is a leading producer of phosphates (ranking 3rd in Africa in the 2000s) but also produces iron, limestone, gravel and sand. Ongoing development of manganese production is taking place around Nayega and the project is in Phase 11 (Bulk sampling).

BTI, Togo 2016 country report

UN Economic Commission for Africa, Les industries extractives au Togo

Agence Nationale de Gestion de l’Environnement du Togo (2013), Evaluation environnementales et enjeux socio-economiques des ress

a Déclaration de Berne (2015), La véritable histoire de l’or « togolais » raffiné en Suisse

Natural resources

Togo has rich deposits of iron, chromite, manganese, bauxite, phosphates and limestone. Abundant mineral resources of phosphates and limestone are found along coastal regions, while other mineral deposits are located inland. Togo has no oil and gas reserves yet but has been conducting seismic surveys.


Commodity	Reserves	Unit	Significance
Iron	500	million metric tons	Around Basser
Chromite	50	thousand metric tons	Around Monts Ahito and of Farende
Manganese	15	million metric tons	Around Nayega.
Bauxite	1	million metric tons	Around Mont Agou.
Phosphates	300	million metric tons	Around Basser
Limestones	375	million metric tons	On the coastal sedimentary basins

Revenue collection

The latest EITI disclosures (2016) show that Togo received USD 37 million from extractive industry taxation. Almost all of these revenues came from mining, mainly cement (limestone) and phosphates. Revenues were mainly collected through corporate income tax (27%), levy on service providers (retenue sur prestation de services – RSPS) (20%) and dividends (11%). A new tax for local communities was recently introduced.

Behind the scenes of Togo’s exports

Progress Report 2016: Togo exports

Togo: improving revenue collection with EITI

Millennium Challenge Corporation, Fiscal 2016 Togo ranking

Revenue allocation

Regional and municipal governments (“communes” and “prefectures”) manage only small local taxes, but also receive shares of land, waste management and professional taxes as subnational transfers. The Customs and Direct Taxes Department levies customs duties and penalties and remits a share of these to WAEMU (UEMOA) and ECOWAS (CEDEAO). All other revenues are managed by the Tax Commissioner (“Commissariat des Impôts”).

IMF (2015), Article IV Consultation Togo 2015

African Development Bank, Togo Economic Outlook 2015

IMF (2014), Togo Poverty Reduction Strategy Paper

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

While no contracts are currently disclosed, in 2014 the government stated its intention to publish all contracts and licenses. Togo is also upgrading its mining cadastre system.
Togo includes commercial groundwater and mineral commodity trading in the scope of EITI reporting.
Togo participated in the beneficial ownership pilot in 2015.

Implementation

The Togo EITI is updating its work plan, including follow up on recommendations from EITI reporting. Dissemination of the 2016 EITI Report is ongoing and its 2017 Annual Progress Report has been published.

Governance

The government published Presidential Decree 2010-028 on 19 April 2010, establishing the mandate and responsibilities of its two-tier EITI implementation structure. The National Supervisory Council (“Conseil national de supervision”) chaired by the Prime Minister provides strategic and political direction to EITI implementation. The Steering Committee (“Comité de pilotage”) chaired by the Minister of Mines and Energy is the effective multi-stakeholder group.

Timeline

Togo's progress by requirement

EITI Reports and other key documents

Togo Validation 2020

Published Date:

April, 2020

In May 2018, the EITI Board agreed that Togo had made meaningful progress in implementing the 2016 EITI Standard. See Board decision 2018-24/BC-249

In this second Validation, the EITI International Secretariat has assessed the progress made in addressing the seven corrective actions established by the EITI Board following the first Validation. See more under background below.

Timeline of Validation and related materials