The industrial free zone aims at promoting the expansion of export-oriented activities and services in Togo by providing companies operating under this scheme with the most conducive conditions for their competitiveness.

Thus, the zone provides export-oriented industries, service companies and agricultural activities with an incentive investment climate while encouraging the use of local manpower.

At its creation in 1989, the Togo Export Processing Zone gained the determining support from cooperation bodies such as the United Nations Development Programme (UNDP), the United Nations Industrial Development Organisation (UNIDO), the Overseas Private Investment Corporation (OPIQ) and the United States Agency for International Development (USAID). Top To be authorized to establish within the Deport Processing Zone or enjoy the Export Processing Zone Status, companies must fulfil the following conditions:

• Carry out a processing or a service activity
• Guarantee export of their production of goods and services
• Reserve permanent jobs for Togolese nationals on a priority basis.

The promoter who meets these conditions must send an application file for approval for the Export Processing Zone Status to Togo Export Processing Zone Authority - SAZOF - following a form which is obtainable at SAZOF.

The form can also be teleloaded from the web site: www.zonefranchetogo.tg Top

A. CUSTOMS AND DUTIES BENEFITS

1- CUSTOMS DUTIES AND TAXES

Exemption from all customs duties and taxes while importing machinery equipment, raw materials, office supplies, and while exporting goods manufactured within the free zone as well.

50% reduction in the same duties and taxes on commercial vehicles.

2- VALUE ADDED TAX

10 year exemption from VAT on goods and services earmarked for the setting up and operation of the companies.

3- CORPORATE DUTY

Stabilization of corporate duty at the reduced rate of:

• 5% duty on taxable profit during the first five years of operation
• 10% taxable profit from the 6th year to the 10th year
• 15% taxable profit from the 11th to the 20th year and
• Ordinary law shall apply as from the 21 st year on (regular rate of 30%).

4- PAYROLL TAX

Reduced flat rate of 2% payroll tax for the lifetime of the company (as against 7% regular rate).

5- BUSINESS LICENCE TAX

Reduction in business licence tax according to the following graduated scale.

• 5% tax from the 2nd to the 5th year of operation
• 10% tax from the 6th to the 10th year
• 15% tax from the 11th to the 20th year and
• Ordinary law shall apply as from the 21st year on.

6- LAND TAX

Reduction in land tax according to the following graduated scale:

• 5% tax from the 2nd to the 5th year
• 10% tax from the 6th to the 10th year
• 15% tax from the 11th to the 20th year, and
• Ordinary law shall apply as from the 21st year on.

7- OTHER DUTIES AND TAXES

Any other duty or tax not specifically mentioned herein shall be exempted.

B. ANY OTHER BENEFITS

Preferential tariffs are granted to free zone companies on the provisions of public utilities (telephone, water, power supply and port services). Top Togo signed several international agreements, among which the most important are:

UEMOA :

(West African Economic and Monetary Union), over 60 million inhabitants.

ECOWAS :

(Economic Community of West Africa states) over 200 million consumers.

MIGA :

(Multilateral Investment Guarantee Agency).

OHADA :

(Harmonisation Business Law Organization in Africa).

CIRDI :

(International Centre for Investment disputes Settlement).

APE :

(Economic Partnership Agreement).

OCI :

(Islamic Conference Organization).

OAPI :

(African Patent Rights Organization).

NEPAD :

(New Partnership for African Development).

AGOA :

(African Growth and Opportunity Act). Top The TOGO Export Processing Authority - SAZOF - has in Lomé and in the interior of the country, sites where bare plots of lands are let out on a long time basis (minimum 30 years) for 300 F CFA (0.45 €)/sqm/year.

Companies enjoying the export-processing zone status can also set up freely everywhere in TOGO and enjoy the benefits granted by the Zone. Top The typology of operational companies of the Togo Export Processing Zone is very varied. One can find inter alia.

• Food industry and agri industry, horticulture;
• Wood industry, metallic engineering industry, and plastic industry;
• Clothing industry, synthetic hairs (hair pieces, wigs), leathercraft (shoes), Pharmaceutic industry, cosmetic industry.

Several other potential sectors can be developed in the Zone.

We can mention among others:

• Textile (spinning, weaving, manufacturing).
• Light engineering products and electronics, equipment assembling: vehicles, bicycles, household appliances, computer hardware, etc.
• Jewellery, diamonds polishing and other gems. Manufacture of toys.
• Building materials industry,
• Stationery and others

Top TOGO as a member of the West African Economic and Monetary Union (UEMOA), its currency, the CFA Franc, is pegged with Euro at a fixed rate of 1 EURO = 655.957 F CFA Freedom to transfer funds is guaranteed in conformity with UEMOA regulations. Top

The objective of the Togo Free Zone Authority (SAZOF) is to facilitate the task of installing production units in the Free Zone. It provides project managers assistance with various formalities and guides them in their relations with the Administrations and public utilities. Top Several technical departments provide this type of assistance:

• Technical department

• Employment office
• Legal department
• Information desk

The SAZOF information desk offers companies precious help with their formalities, particularly:

• Residency permit
• Company establishment authorization
• Registration at the trade register
• Company registration
• Building permit
• Tax certificate
• Installation of telephone lines
• Subscription to water and electricity boards.

SAZOF can provide industrial sites to meet investor's requirements. Top As regards to the use of the Togolese labour, specific conditions to the Free zone are defined in an agreement named "Agreement on Work Relations between Employers and Workers in Free zone" signed on June 1st, 1996.

The mechanisms of regulation of the social conflicts arc simplified, and are in conformity with the mind of the law and the agreement of June 1st, 1996. Qualified and disciplined work force abounds in Togo where freedom of enrolment is guaranteed. Top