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WT/TPR/G/16629 May 2006
(06-2490)

Trade Policy Review Body Original: French






TRADE POLICY REVIEW
Report by TOGO



Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Togo is attached.

Note: This report is subject to restricted circulation and press embargo until the end of the meeting of the Trade Policy Review Body on Togo.


CONTENTS
ACRONYMS AND ABBREVIATIONS 5
I. OVERVIEW 7
II. MACROECONOMIC ENVIRONMENT 7

2.1 Macroeconomic policy 7
2.1.1 Economic situation 7
2.1.2 Economic outlook 8

2.2 Foreign investment regime 10
III. TRADE POLICIES AND PRACTICES 10

3.1 General trade policy objectives 10

3.2 Trade laws and regulations 11
3.2.1 Foreign trade 11
3.2.2 Domestic trade 12
3.2.3 Fiscal measures 12
3.2.4 Tariff measures 12
3.2.5 Trade support structures 12
3.2.6 Trade agreements 13
3.2.6.1 Bilateral trade agreements 13
3.2.6.2 Regional trade agreements 13
3.2.6.3 Multilateral trade agreements 13
3.2.7 Togo's commitments under the WTO Agreement 13
3.2.7.1 Trade in goods 13
3.2.7.2 Trade in services 13
3.2.7.3 Trade-related aspect of intellectual property 13
3.2.7.4 Notifications 13
3.2.7.5 Trade Policy Review 13
3.2.8 Trade-related technical assistance 14
IV. SECTORAL POLICIES 14

4.1 Agriculture 14

4.2 Environment and natural resource management 15

4.3 Industry, Mining and Handicrafts 15
4.3.1 Industry 15
4.3.2 Mining 16
4.3.3 Handicrafts 16
4.3.4 Services 17
4.3.4.1 Transport 17
4.3.4.2 Post and telecommunications 17
4.3.4.3 Electricity and water 18
4.3.4.4 Tourism 18
V. CONCLUSION AND RECOMMENDATIONS 18


ACRONYMS AND ABBREVIATIONS

ACP African, Caribbean and Pacific States
EPAs Economic Partnership Agreements
ARPT Post and Telecommunications Regulatory Authority
ADB African Development Bank
WB World Bank
CCIT Chamber of Commerce and Industry of Togo
CEB Benin Electricity Community
ECOWAS Economic Community of West African States
CEET Togo Electric Power Company
CETEF Centre Togolais des Expositions et Foires de Lomé
CFE Centre for Business Formalities
CNCC National Competition and Consumption Commission
CNCT National Shippers Council of Togo
CRM Regional Chambers of Trades
IPRSP Interim Poverty Reduction Strategy Paper
PRSP Poverty Reduction Strategy Paper
CFAF Communauté Française Africaine
IMF International Monetary Fund
PRGF Poverty Reduction and Growth Facility
INN National Standardisation Institute
INPIT National Institute for Industrial Property and Technology
INQM National Institute for Quality Control and Metrology
JITAP Joint Integrated Technical Assistance Programme
OAPI/AIPO African Intellectual Property Organization
OHADA Organization for the Harmonisation of Business Law in Africa
WTO World Trade Organization
MDGs Millennium Development Goals
WIPO World Intellectual Property Organization
UN United Nations
PAL Autonomous Port of Lomé
PGFF Refrigerant Management Plan
GDP Gross Domestic Product
LDCs Least Developed Countries
PMOB Biosecurity Implementation Plan
HIPC Highly Indebted Poor Countries
RCCM Register of Commerce and Personal Property Transactions
SALT Lomé-Tokoin Airport Company
SNCUDB National Strategy for the Conservation and Sustainable Use of the Biodiversity
TdE Togolese Water Company
VAT Value Added Tax
AU African Union
EU European Union
WAEMU West African Economic and Monetary Union
ZF Free Zone

I. OVERVIEW
1. Togo is in West Africa. It has the shape of a more or less rectangular corridor varying between 50 and 150 km. in width and located between the Republic of Benin to the east and the Republic of Ghana to the west. The country extends lengthwise some 600 km. between the Atlantic Ocean to the south and Burkina Faso to the north. It has a surface area of 56,600 km2.
2. Togo became independent on 27 April 1960 under the official name of the Togolese Republic. Since 1992, Togo's political system has been governed by the Constitution of the Fourth Republic. Based on democratic values, Togo's is a semi-presidential, multiparty regime.
3. The country has five regions that are subdivided into prefectures. Under the last administrative reform of 1991, the country was divided up into 30 prefectures and four sub-prefectures. The latest estimates put the Togolese population at 5.1 million in 2004 with an average density of 90 inhabitants per square kilometre. Togo's population is comprised of some 40 ethnic groups and is unevenly distributed over the five regions.
4. Togo is a member of several international, regional and subregional organizations including the United Nations (UN), the African Union (AU), the World Trade Organization (WTO), the Treaty on the Harmonization of Business Law in Africa (OHADA), the African Intellectual Property Organization (OAPI), the Economic Community of West African States (ECOWAS), the West African Economic and Monetary Union (WAEMU), the Council of the Entente and the Benin Electricity Community (CEB).
II. MACROECONOMIC ENVIRONMENT
5. Since the first trade policy review in 1999, the Togolese authorities have pressed ahead with the adjustment process undertaken to restore economic viability through structural reforms and to stimulate a return to growth.
6. Yet Togo's economy remains vulnerable to a range of factors that affect its development policy, including:
- A climate marked by irregular rainfall which affects agricultural output;
- the international environment, whose parameters are hard to control. Togo is at present adversely affected by the suspension of economic cooperation with the European Union, the persisting political crisis and the deteriorating terms of trade among other things.
2.1 Macroeconomic policy
2.1.1 Economic situation
7. In the last five years (2001-2005) the Togolese economy grew on average at the relatively slow pace of 2.1 per cent a year. This average is the result of a very mixed growth pattern ranging from negative growth in 2003 to real growth of 4.2 per cent in 2004, followed by a serious slowdown in 2005 instead of the expected growth of some 1 per cent.
8. With an average population growth rate of 2.4 per cent per annum, household standards of living declined, as per capita GDP fell from CFAF 206,024 in 2001 to CFAF 195,799 in 2003, before rising again to CFAF 207,509 in 2005.
9. Inflation was held below the 3 per cent threshold set by the WAEMU, except in 2005 when it reached 6.7 per cent, driven by a surge in commodity prices between April and June 2005.
10. Despite the remarkable breakthrough of the tertiary sector in recent years, the Togolese economy remains dependent on the primary sector.
11. Agriculture is still the dominant sector, accounting for some 36 per cent of GDP. It continues to drive growth, and expanded at an average of 2.9 per cent in the last five years. It is also the largest provider of jobs, employing 70 to 80 per cent of the workforce.
12. Food crops (maize, cassava, yam, sorghum (milo), rice, beans, groundnut, etc.) and export crops (cotton, coffee, cocoa, etc.) make up roughly 30 per cent of GDP, and growth has fluctuated between 0.4 and 8.1 per cent over the past five years as climatic conditions have varied.
13. Livestock farming accounts for 5.3 per cent of GDP and the national herd is estimated at some 334,000 head of cattle, 4.8 million sheep and goats, 500,000 pigs, the national poultry stock amounting to some 13 million.
14. Fisheries and forestry make up 3.4 per cent of GDP.
15. The secondary sector accounts for some 19 per cent of GDP and grew at an average of 2.4 per cent per annum between 2001 and 2005. It comprises extractive industries (4.1 per cent of GDP), manufacturing (9.1 per cent of GDP), electric power, gas and water (3.4 per cent of GDP) and construction and public works (2.3 per cent of GDP).
16. Overall, the tertiary sector accounts for 26.7 per cent of GDP. Its major component is trade, which makes up 11.6 per cent of GDP. This sector has grown by an average of 3.1 per cent over the past five years.
17. As to public finances, budget receipts have stagnated at 11.4 per cent of GDP, whilst government spending has risen by 10.4 per cent owing to a 3.6 per cent increase in current expenditure and a 95.6 per cent increase in capital expenditure. The upshot has been a deterioration in the budget balance to -2.3 per cent of GDP in 2005 from 1.4 per cent in 2004.
18. As for the public debt, 60.8 per cent of it represents commitments to the World Bank, the IMF and the ADB, whilst 39.2 per cent is comprised of bilateral debt. Outstanding foreign debt has increased by 4.9 per cent to 72.4 per cent of the overall public debt. Domestic debt, estimated at almost CFAF 240 billion, is a serious burden on the private sector.
19. To offer some relief to private creditors and reinvigorate production, the Government has invited tenders for an audit of the debt and the implementation of a debt-settlement strategy. Debt servicing amounts to 10.7 per cent of goods and services exports and 35.8 per cent of tax receipts.
20. On the foreign trade front, exports of phosphates have contracted by 37.4 per cent and those of cotton by 31.9 per cent as a result of plummeting world prices. In parallel, and mainly as a result of the rising oil bill, imports have increased by 21.4 per cent. These trends have led to a deterioration in the current account deficit, despite the growth of clinker exports.
2.1.2 Economic outlook
21. In November 2004 the Togolese Government adopted an Interim Poverty Reduction Strategy Paper (IPRSP) and expects to reach the decision point under the Highly Indebted Poor Country (HIPC) Initiative before December 2006 by speeding up finalization of the Poverty Reduction Strategy Paper (PRSP). This should allow the country to benefit from all the advantages of the HIPC Initiative and the Poverty Reduction and Growth Facility (PRGF). The Government will thus be able to substantially expand social investments with a view to improving household living standards and raising the incomes of disadvantaged sectors of society over the medium term.
22. In December 2005, the Government organized a national seminar on economic revitalization. This afforded an opportunity to make an overall diagnosis of the problems facing the economy and to propose solutions for effective economic revival through a proactive policy. The main objective for the years ahead is economic revitalization driven by consumption in the short term and by investment over the medium term. This will call for a proactive policy designed in particular to:
- Restore macroeconomic and financial balance;
- improve wages;
- increase budget allocations for capital expenditure;
- stabilize public finances by means of strict budgetary management, scrupulous adherence to the rules of public finance and the allocation of public funds to the social sectors;
- improve tax collection by strengthening the tax administration and expanding the tax base so as to attain the 17 per cent level of fiscal pressure recommended by the WAEMU;
- strengthen development management capacities and good governance;
- create a climate to favour renewed cooperation with the European Union and with the international financial community;
- buttress the financial sector by providing incentives and guarantee mechanisms;
- implement an action plan to develop and promote trade so as to make the country internationally more competitive. Amongst other things, this will entail expanding and diversifying the export base by identifying new products for which Togo would have a comparative advantage;
- further reduce government involvement in non-strategic sectors, thereby expanding the role of the private sector and attracting foreign investment;
- consolidate the country's economic integration in the WAEMU and ECOWAS.
23. Social and political priorities revolve around fulfilling the basic requirements for the government's economic and trade objectives to be attained. In particular, this will entail:
- Strengthening democracy, security and peace;
- reinforcing national solidarity;
- meeting the educational and cultural challenge.
24. These measures should enable the Togolese economy to return to real annual growth at a rate of over 4 per cent in the short term, and close to the 7 per cent needed in the medium term to reduce poverty and attain the Millennium Development Goals (MDGs).
2.2 Foreign investment regime
25. Investment in Togo is governed by a code introduced in 1965, which has undergone a series of improvements. The latest version dates back to 1989. The code is again being reviewed in order to adapt it to the current subregional environment. At the same time, investment strategies are being harmonized within the WAEMU framework. In addition to the code, a law was enacted in 1989 to regulate the export processing Free Zone. The Government is planning a study of the developmental impact of the Free Zone to explore the possibilities for harmonization with international commitments and the subregional environment.
26. Foreign direct investment has averaged CFAF 50 billion over the past five years, amounting to roughly 38 per cent of private investment.
27. To consolidate investor confidence in the Togolese economy, emphasis will be placed on priority measures to create a climate favourable to private investment by:
- Enhancing the performance of the single window for business formalities (Centre de Formalitié des Entreprises) in order to ease the setting up process for new enterprises;
- developing and fitting out industrial infrastructure so as to provide facilities to investors both in the Free Zone and in the customs territory;
- creating a regulatory framework conducive to investment;
- improving the system of accreditation, certification, standardization and quality assurance;
- creating an investment promotion agency.
III. TRADE POLICIES AND PRACTICES
3.1 General trade policy objectives
28. Togo is keen to strengthen and improve its position as a commercial centre and country of transit in West Africa. With that in view, it intends to serve as a hub for imports and exports from neighbouring countries, particularly those that are land locked. It is assisted in these aims by an operation known as Solidarité sur la mer and by the single window set up for port-related customs formalities.
29. Beyond this involvement in national, regional and continental matters, Togo has been keeping abreast of the changing international economic and trading environment.
30. Since the country's first trade policy review in 1999 the Government has pursued a trade policy that has consistently sought to:
- Implement an action plan to develop and promote trade;
- improve the institutional and regulatory framework so as to create an environment favourable to the private sector, investment, and trade and export promotion;
- enhance the production capacity and competitiveness of enterprises;
- build and strengthen human and institutional capacity to manage and promote commercial activities, and participate more actively in ongoing liberalization programmes;
- ensure a more active presence for the country in the international organizations involved in world trade.
3.2 Trade laws and regulations
3.2.1 Foreign trade
31. Since its first trade policy review, Togo has been moving ahead with its liberal trade policy, giving effect to measures enacted previously for the general liberalization of economic and commercial activities.
32. These liberalization measures are still in force and encompass, inter alia, the elimination of:
- The state trading monopoly;
- import licences and permits;
- export licences for local industrial goods, cereals and other food products as well as cash crops;
- quotas and bans.
33. Nevertheless, to protect local consumption in the event of shortages, provisional safeguard measures may be adopted in respect of local industrial goods as well as cereals and other foodstuffs.
34. Where circumstances warrant, provisional bans may also be applied in order to safeguard human and animal safety and health and protect the environment.
35. In order to operate, every importer, exporter and shipper is required to obtain an importer's, exporter's or shipper's card.
36. Moreover, resolved to secure fresh progress in the building of African unity so as to further regional integration and involve the continent more closely in the world economy, Togo has been applying the OHADA uniform acts since 2000.
37. Togo likewise applies the liberalization programmes, codes, principles and community regulations adopted by ECOWAS and the WAEMU, as well as the WAEMU's regional programme to harmonize standardization, certification, accreditation and metrology, adopted in September 2005 and in force since January 2006.
3.2.2 Domestic trade
38. Togo's own competition law was replaced by the WAEMU community law on competition, which took effect on 1 January 2003.
39. A National Competition and Consumption Commission became operational in 2006.
40. Prices have been deregulated other than those of some sensitive products such as water, electricity, telephone services and hydrocarbons, which remain subject to administrative controls.
41. The requirements for engaging in business activity are an installation licence and registration in the Register of Commerce and Personal Property Transactions (RCCM).
42. Arrangements were made to set up a Centre de formalité des enterprises (Centre for Business Formalities), and this has been operational since early 2006.
43. Other steps are being taken to improve the organization of the "informal" sector.
3.2.3 Fiscal measures
Domestic taxation is governed by the General Tax Code of 1983, as amended in 1985. Since 1997 the Government has applied VAT at a single rate of 18 per cent (Directive No. 02/98/CM/UEMOA).

3.2.4 Tariff measures
44. Togo applies the Common External Tariff of the WAEMU.
3.2.5 Trade support structures
The principal ones are:

- Institut National de la Propriété Industrielle et de la Technologie (INPIT);
- Institut National de la Normalisation (INN);
- Institut National du Contrôle de la Qualité et de la Métrologie (INQM);
- Centre Togolais des Expositions et Foires de Lomé (CETEF- Lomé);
- Chambres Régionales des Métiers (CRM);
- Commission Nationale de la Concurrence et de la Consommation (CNCC);
- Chambre de Commerce et d’Industrie du Togo (CCIT);
- Conseil National des Chargeurs Togolais (CNCT);
- Société Aéroportuaire de Lomé Tokoin (SALT);
- Port Autonome de Lomé (PAL).
3.2.6 Trade agreements
3.2.6.1 Bilateral trade agreements
45. The entry into force of the WAEMU Treaty nullified all bilateral trade agreements signed by individual member countries of the Union with third countries. The WAEMU Commission now has sole authority for the signing of trade and investment agreements with third countries.
3.2.6.2 Regional trade agreements
46. As an ACP country and an LDC, Togo enjoys non-reciprocal preferential access for its products to the EU market. Under the terms of the Cotonou Agreement, to which Togo is a signatory, ECOWAS is authorized to negotiate Economic Partnership Agreements (EPAs) on its behalf.
3.2.6.3 Multilateral trade agreements
47. In the context of the Uruguay Round, Togo inter alia signed the Final Act on 19 August 1994 in Geneva and ratified the Marrakesh Agreement establishing the WTO. It has thus been a WTO founding Member since 31 May 1995.
3.2.7 Togo's commitments under the WTO Agreement
3.2.7.1 Trade in goods
48. Upon joining the WTO, Togo bound its customs tariff at a maximum rate of 80 per cent, this ceiling applying to the sum of the fiscal import duty at the increased rate of 30 per cent and the other taxes and charges pertaining to statistics, tolls and the customs stamp duty that apply to trade in goods.
3.2.7.2 Trade in services
49. Togo's services trade commitments cover services in the areas of tourism and travel, recreation, culture and sports, as well as the related construction and engineering services.
3.2.7.3 Trade-related aspects of intellectual property
50. Togo is a signatory to the revised Bangui Agreement creating the African Intellectual Property Organization (AIPO), which serves as a national office for the management of intellectual property titles. Togo is also a member of the World Intellectual Property Organization (WIPO).
3.2.7.4 Notifications
51. In accordance with the WTO provisions, Togo submits notifications for the purposes of the integrated database. It has difficulty in meeting this obligation, however, owing to problems in the gathering and processing of information and the training of the requisite human resources.
3.2.7.5 Trade Policy Review
52. This is Togo's second trade policy review since 1999.
3.2.8 Trade-related technical assistance
53. Togo has not as yet any direct representation to the WTO and other international organizations based in Geneva.
54. This is a serious impediment to effective follow-up and use of the various programmes and opportunities available. Togo is therefore in real need of assistance in several areas, including:
- Direct representation in Geneva, through the provision of useful and current information regarding assistance available to LDCs in the framework of the Maison Universelle.
- Actual admission for Togo to the Integrated Framework and to the JITAP: Togo's dossier for admission to these assistance programmes has been dormant for reasons pertaining to the Poverty Reduction Strategy Paper (PRSP), which has not yet been submitted to the bodies that administer these programmes.
The interim PRSP has now been validated and Togo therefore wishes to benefit from the assistance and support of the partners to these programmes in concluding the formalities and reactivating its dossier with a view to actual admission to these assistance programmes.

Among other things, this should help to stimulate income-generating activities at grassroots level in a number of areas including handicrafts and off-season products, and to strengthen human resource capacity for the management of commercial activities, production capacity, the diversification of exportable goods and market access.

- Expanding and improving human and material resources, as well as mechanisms for gathering, managing and disseminating import- and export-related trade information.
- Information and training in the form of workshops and seminars – for example for parliamentarians and civil society - covering negotiations, notification, customs valuation, non-tariff barriers, sanitary and phytosanitary standardization measures, services, and in particular, the WTO and its agreements.
IV. SECTORAL POLICIES
Agriculture, livestock, fisheries, environment and natural resource management

4.1 Agriculture
55. Agriculture is still the driver of the country's economic growth, contributing an average of 30 per cent to GDP. There are a number of obstacles to the fulfilment of Togo's agricultural potential in terms of human resources and availability of arable land, namely: inadequate management of land, water and agricultural mechanization, and insufficient funding for agriculture.
56. The needs to be met may be summarized as five objectives:
- Human and material capacity-building;
- reconstituting the national cadastre, land registration and development;
- promoting production in agriculture, livestock farming and fisheries;
- marketing promotion;
- promoting exports in general and of semi-processed goods in particular.
57. The Government will be giving priority to removing these obstacles from the agriculture and fisheries sectors.
4.2 Environment and natural resource management
58. The adoption of the Environmental Code in 1988 was undoubtedly a major advance in environmental protection policy. The Government's commitment to environmental protection is reflected in Article 41 of the Constitution of 14 October 1992 and by the numerous international agreements on environmental protection that Togo has acceded to, signed and ratified.
59. Pursuant to these, sectoral strategies and plans have been drawn up, including: the National Strategy for the Conservation and Sustainable Use of the Biodiversity, the Refrigerant Management Plan, and the Implementation Plan regarding Biosafety and Persistent Organic Pollutants (POPs).
60. Government action will consist of:
- Building human and material capacities;
- effectively including an environment dimension in all development projects;
- strengthening the process of subregional integration and international cooperation with a view to joint management of shared or cross-border resources.
61. Specific trade-related strategies will aim to formulate and implement environmental norms and standards in order to avoid the consumption and use of products that are harmful to health and the environment. These concerns will be reflected in the new quality assurance programmes.
62. To reduce the pressure on wood resources, the structure of butane gas prices has now been revised to make it accessible to most of the population, and is comparable to that of neighbouring countries.
63. To enhance use of gas as a source of energy, the Government intends to take action regarding the prices of gas cookers.
4.3 Industry, mining and handicrafts
4.3.1 Industry
64. Industry is currently limited to the manufacturing sector, which is itself relatively new. Agro-industry makes up most of the sector, but there is also phosphate mining and production and crushing of clinker.
65. To underpin the revitalization of the economy, emphasis will be placed on priority actions covering:
- The upgrading and performance of the single window Centre for Business Formalities - (CFE) operated by the Chamber of Commerce and Industry of Togo (CCIT), and of the Autonomous Port of Lomé (PAL);
- the development and fitting out of industrial infrastructure to provide facilities for investors;
- the introduction of a regulatory framework conducive to investment;
- improvement of the system of accreditation, certification, standardization and quality assurance;
- the early adoption of an investment code that encourages investment, pending the drafting and implementation of a community investment code for WAEMU countries.
4.3.2 Mining
66. Togo has abundant mineral resources. Phosphate and limestone account for some 50 per cent of export earnings.
67. To further develop the mining industry, the Government's policy is aimed at:
- Diversifying mining products;
- promoting both onshore and offshore oil exploration;
- boosting the human and material capacities of the General Directorate of Mining and Geology;
- attracting foreign investors by creating an environment favourable to prospecting in Togo through implementation of the new mining code for hydrocarbons;
- promoting artisanal mining by establishing wages for artisanal miners.
4.3.3 Handicrafts
68. Measures specific to this industry will comprise:
- Implementing a national handicrafts policy;
- establishing a financial and tax system for handicraft activities that takes account of their needs;
- institutionalizing the training and upgrading of craftspeople and supervisory personnel;
- providing access for craftspeople to funds available under economic development and poverty reduction programmes and to bank loans at reasonable interest rates;
- supporting craftspeople in the development of marketing channels;
- producing high-quality articles suited to local, subregional and world markets.
4.3.4 Services
69. The decision to diminish the role of government in the production of goods and provision of services and to dismantle monopolies should facilitate trade liberalization and the development of viable financial, banking and insurance systems in the interests of domestic and foreign operators in upstream and downstream services, including transport, post and telecommunications, water, electricity and tourism.
4.3.4.1 Transport
70. The Government's objectives in the transport sector include:
- Improving maintenance of road infrastructure through expansion of the financial resources of the Road Maintenance Fund (FER). To that end, a programme has now been launched to install toll stations along the major highways;
- making the Togolese corridor more competitive vis-à-vis neighbouring corridors for the transportation of goods to the interior of the country and to the hinterland countries. The Government has accordingly taken the following action:
· providing escorts for goods transport vehicles under the operation known as Solidarité sur la Mer;
· regrouping security checkpoints at single and well-defined locations;
· exploring the possibility of creating a dry port at Blitta so as to ease the transportation of goods to the hinterland countries;
- making the Autonomous Port of Lomé (PAL) more competitive vis-à-vis the ports of the subregion and bringing on stream the single window for all customs operations so as to speed up the exit of goods from the port;
- restructuring the rail transport system to enhance its efficiency:
- improving the legal and institutional framework for the transport sector so as to reinvigorate private sector development.
4.3.4.2 Post and telecommunications
71. The Government aims ultimately to liberalize all market segments in this sector. The process has already begun with the granting of a mobile telephone licence to Télécel Togo, a private operator, and the creation of a regulatory body for the sector known as the Post and Telecommunications Regulatory Authority (ARTP).
72. The restructuring of postal services will continue until they are privatized.
As to new information and communication technologies, the Government is continuing its efforts to make computer hardware and software and consumables accessible to all.

4.3.4.3 Electricity and water
73. The focus of government action with respect to water and electricity will be the continued implementation of measures to ensure the recovery of operating costs and to apply rates that will optimize the profitability of production units and thereby increase their financial self-sufficiency.
74. To improve management efficiency in the sector, the Government will also be turning to the private sector, whether through outright privatization or by means of arrangements such as the privatization of commercial management (as in the case of TdE) or concessions (the case of CEET).
75. The Government will also endeavour to promote private sector investment in energy and water management with a view to improving the supply to the population. The ultimate aim is an overall solution to energy and water problems through subregional cooperation, the GAZODUC inter-State project (Ghana, Togo, Benin and Nigeria) being one example.
76. For the medium term, the Government's priority will be to increase electricity production and thereby reduce the country's dependence on imports. The Benin Electricity Community Communauté Electrique du Bénin - CEB is the entity responsible for these activities, which will consist mainly of rehabilitating and maintaining thermal power stations, building a new dam on the Mono river, and evaluating and harnessing the country's energy resources.
4.3.4.4 Tourism
77. The following are the chief objectives for this sector:
- Drawing up a national master plan as well as regional master plans for tourism development and promotion;
- setting up tourism promotion entities: national office, advisory committee, regional boards;
- updating the regulatory and tax framework to provide greater incentive and make the sector more attractive;
- developing existing tourist sites;
- developing human resources for tourism services and training tourist guides;
- raising awareness amongst the various population groups and categories of law enforcement services that are involved with tourists and their safety and the protection of tourist sites;
- promoting national and subregional tourism.
V. CONCLUSION AND RECOMMENDATIONS
78. This trade policy report by Togo is a part of the Government's national economic and social development policy.
79. The aim of that policy is to contribute significantly to growth in order to achieve the global objectives of good governance, poverty reduction and integration into the newly emerging world economic context, these being indispensable to the country's lasting social and economic advancement.
80. But these objectives cannot be attained without the support of the international community.
81. Togo is therefore looking to the World Trade Organization for increased technical assistance in human capacity-building.
82. As a least developed country, Togo is keen to benefit under the JITAP and the Integrated Framework, particularly as the IPRSP was recently validated and significant headway has been made in implementing the Governments' agenda of 22 commitments vis-à-vis the EU for strengthening democracy in Togo.
83. The Government is counting on its donors and other development partners to step up Official Development Assistance with a view to meeting the many economic and social development challenges facing Togo.

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