Togo reforms economic zones law

The Togo government has approved a new law to reform its special economic zones (ZES), aiming to spread industrial investments more evenly across the country and boost their overall economic impact.

New law diversifies economic zones

The reform plans to introduce a variety of economic zones and adjust the benefits given to companies based on their location, with the goal of encouraging investments beyond the capital city of Lomé and its surrounding areas.

Old regime had limited economic reach

The previous industrial free zone regime, established in 1989 and revised in 2011, helped develop export-oriented industries but led to a concentration of investments in the capital region. As of March 2026, 141 companies had been approved under the regime, with 91 still active, creating nearly 19,000 direct jobs.

Reform focuses on local economic integration

The new framework emphasizes local content, vocational training, and the creation of skilled jobs. It also encourages the local processing of national raw materials to strengthen the domestic economy.

Tax benefits will be time-limited and conditional

According to the Council of Ministers' report, tax incentives for investors will be limited in duration and subject to conditions. This aims to preserve public revenues and ensure fair market competition while maintaining Togo's appeal to investors.

Togo’s industrial platform shows progress

Launched in 2021 in Adétikopé, near Lomé, Togo’s main industrial platform had attracted over 350 billion CFA francs (about 598.3 million USD) in investments and created 6,580 direct jobs by June 2026, with 12 operational companies in sectors like soy, shea, and textiles.

Challenges remain for regional expansion

The government now faces the challenge of extending this momentum to other regions, where infrastructure, energy, and logistics services are crucial for attracting industrial investment.

Law needs parliamentary approval

The proposed law still needs to be reviewed by Parliament, and the specific details of the new regime, including the criteria for tax incentives by location, remain to be finalized.