Togo approves bill to expand special economic zones

The Togolese government has approved a bill to establish a new legal framework for special economic zones (SEZs), aiming to decentralize industrial investment away from the capital, Lomé.

The proposed legislation, approved by the Council of Ministers, introduces various types of economic zones with tax incentives that are modulated based on their geographic location. This reform seeks to address the historical concentration of industry in the Greater Lomé area, which currently benefits from proximity to the port and major infrastructure.

Beyond geographic expansion, the new framework emphasizes strengthening links between authorized companies and the domestic economy. Key priorities include promoting the use of local raw materials, supporting domestic suppliers, and fostering vocational training and skilled job creation.

Under the existing free zone system, which has been in place since 1989, approximately 19,000 direct jobs have been created for Togolese nationals. However, authorities noted that these businesses have had limited integration with local subcontractors and suppliers. The new bill, which awaits parliamentary examination, intends to ensure that industrial gains are more widely distributed across the national economy.