transforming textile trade in togo
TRANSCRIPT
TRANSFORMINGTEXTILE TRADE IN TOGOInvestor’s Handbook
Table of Content
Message from the President 04
Togo is open for the world 05
Togo comes with unparalleled trade potential 06
PIA Textile Park Concept 07
5 Reasons to go for Togo 08
#1 superior quality cotton at a concessional price 10
#2 Round-the-clock power and doorstep gas supply 11
#3 Availability of skilled workforce with the ease of hiring expats 11
#4 Subsidies on taxes along with non-fiscal benefits 12
#5 Enabled for regional and
international trade 12
Perks of PIA 14
A glance at the facilities and layout 16
About Arise IIP 18
About sustainable practices 19
This public private partnership demonstrates what can be achieved when ambitious and established investors like Arise IIP join forces with Togo and the Togolese.
The Plateforme Industrielle D’Adetikope (PIA) will capitalise on our country’s rich natural resources, ensuring that Togo obtains a greater share of the value added through local industry development dedicated to the processing and transformation right here in the country.
Agriculture is our lifeblood and we will further develop our industry to ensure that Togo, the Togolese and those investing in Togo benefit from its natural wealth.
I take this opportunity to encourage ambitious national and international entrepreneurs to consider this project as just one example of what can be achieved in Togo, of the huge human and natural resources on offer, and of our willingness to engage with any investors and businesses that are serious about creating mutual value.
The Government of Togo is
proud of the successful launch
of the Industrial Platform of
Adetikopé, in partnership
with Arise IIP.
Faure GnassingbePresident of the Togolese Republic
MESSAGE FROM THE PRESIDENT
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Located in the heart of Western Africa, Togo is the most obvious and efficient point of entry to the region and to the adjoining countries like Burkina Faso, Benin, and Ghana. The Togolese economy is stable and largely fuelled by its agriculture sector, making Togo replete with some of the world’s finest raw cotton. What adds to this stability is the political inclination of the Togolese government toward people development, trade promotion, and economic growth. In fact, the National Development Plan laid out for Togo has sharp emphasis on policies, regulations, and tax benefits that encourage textile trade in the country.
TOGO IS OPEN FOR THE WORLD
Above factors, among many others, make it easy to do business in Togo. According to the Doing Business (2020) report by the World Bank, Togo is the 3rd best reformer, making it the leader in Ease of Doing Business across West Africa. The world has now turned its head to Togo, with the country attracting greenfield projects 6.7 times the foreign direct investment that’s expected of a country of its size.. Pair this attractiveness with a rise in cotton production in West Africa and Togo’s own connectivity via railway, roadway, airway, and sea ports; PIA Textile park is ready to up Togo’s textile market share in the globe.
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TOGO COMES WITH
Located on the coast of West Africa, Togo has a strong foothold in cotton production. While the majority of the Togolese population depends on subsistence agriculture, cotton production alone employs 275,000 farmers; directly or indirectly supporting close to 2.5 million people. Togo has a stable economy, projected to grow at a rate of 7.6%*.
With its coast facing south, Togo shares borders with Benin, Burkina Faso, and Ghana;. The location further privileges Togo with direct access to landlocked countries like Niger and Mali to conduct trade with. In fact, Togo’s capital Lome is connected to all these countries with less than 12 hours transit via the International Highway N° 1, making it a hub to connect these west African resources to the rest of the world. In fact, these neighbouring countries also act as a regional market for cotton products from PIA.
UNPARALLELED TRADE POTENTIAL
Area
56,785 sq.km
Population
8 Million
GDP Growth
5.0%
Capital
Lome
Currency
FCFA (XOF) (1 Euro = 655.957)
Language
French, English, Regional languages
Climate
Tropical Avg. temperature 27.5°C on the coast to 30°C in northern region
Population
Growth Rate 2.4%
Here’s a quick snapshot of Togo:
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PLATEFORME INDUSTRIELLE D’ADETIKOPE (PIA) TEXTILE PARK
AN INDUSTRIAL PARK FOCUSED TO
Spinning Weaving Knitting
Woven Processing
Knit Processing
Garmenting
INVESTMENT AVENUES AT PIA TEXTILE PARK
TEXTILESEquipped with state-of-the-art manufacturing facilities and integrated infrastructure, the PIA Textile Park at Adetikope offers the perfect industrial environment for the Textile and Apparel industry to flourish. Developed on a vertically integrated model, the park streamlines the entire value chain for textiles from sourcing, to spinning, weaving and garmenting. This 400 ha park is designed in compliance with benchmark global standards to deliver a complete manufacturing ecosystem for textiles. All this, in conjunction with thoughtfully readied plug-and-play factory sheds, makes Plateforme Industrielle d’Adetikope (PIA) Textile Park poised to achieve its objective to transform local cotton into high value finished garments.
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5 REASONS TO GO FOR TOGO
#1 SUPERIOR QUALITY COTTON AT GLOBALLY COMPETITIVE PRICE
#2 ROUND-THE-CLOCK POWER AND DOORSTEP GAS SUPPLY
#3 AVAILABILITY OF SKILLED WORKFORCE WITH THE EASE OF HIRING EXPATS
Cotton available at discounted prices
24x7 electricity from renewable sources at the price of 7 US cents per kWh
Gas available at doorstep
Unskilled and Skilled Labor available
Vocational training centre to train labour for factories
Freedom to bring expat staff during the initial years
Labour law adopted to meet industry demands while respecting Global standards
PIA’S COMPETITIVE EDGE
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#4 ATTRACTIVE FISCAL FRAMEWORK
#5 ENABLED FOR REGIONAL AND INTERNATIONAL TRADE
Tax holidays under Free Zone Code for Export Oriented Units
OTHER BENEFITS
100% foreign ownership permissible
Investment protection under MIGA
Foreign currency loans allowed
Loan facilities
Easy repatriation of profits
Forex availability
Duty Free Treaties with US and EU under AGOA and EBA
25 day transit time to EU, 40 days to US markets
Deep water port, with direct shipping lines across the globe
Regional hub of major shipping lines, annual container handling capacity of 4 Mn TEUs
Access to regional market of 400 mn+ consumers in ECOWAS nations
PIA’S COMPETITIVE EDGE Customs Duties And TaxesExemption 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.
Payroll TaxReduced flat rate of 2% payroll tax for the lifetime of the company
Business Licence Tax
Value-Added TaxTotal exemption of the value-added tax on works and services realized for the company benefiting from the free zone status
Other Duties And TaxesAny other duty or tax not specifically mentioned herein shall be exempted
Land Tax
Corporate Tax
Dividends Tax or Income Tax on Movable Capital
THE COMPANIES OPERATING UNDER FREE ZONE REGIME WOULD AVAIL THE FOLLOWING BENEFITS.
0 %during the first 5 years*
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#1 SUPERIOR QUALITY COTTON AT GLOBALLY COMPETITIVE PRICE
Togo is one of the top ten producers and exporters of Cotton in Africa. It is in fact privileged to have direct access to the major cotton producers in West Africa, Togo’s National Development Plan of 2018-2022 prioritizes the Textile and Garment sector to drive industrialization and restore Togo’s rich heritage. These factors deeply support the growth of Togo’s textile industry and the scope to set up manufacturing units in specialized industrial zones like PIA.
Cotton available at a competitive rate compared with global cotton prices
CMiA certified cotton is sustainably sourced
Ready warehousing at the park
ADVANTAGES OF COTTON PROCUREMENT AT PIA TEXTILE PARK
WHAT MAKES TOGO’S COTTON SUPERIOR
Strength
• Between 29.5 to 30.5 GPT
• Elongation at a good level of 5.6
Micronaire
• Range from 3.8 to 4.4 with an average of 4.2
Cotton Grades
• Superior grade: OTI, ALTO/S, ALTP • Middle grade: OGOU • Low grade: BUTO
Stickiness
• The cotton of Togo is honey dew free’
Colour
• Togo’s cotton is fairly white, equivalent to the USDA Middling grade
• 85% of the total production is of its quality
Length
• Medium staple length per campaign is 28.54mm
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#2 ROUND-THE-CLOCK POWER AND DOORSTEP GAS SUPPLY
#3 AVAILABILITY OF SKILLED WORKFORCE WITH THE EASE OF HIRING EXPATS
Plateforme Industrielle d’Adetikope (PIA) Textile Park is powered by dedicated grids that provide uninterrupted quality electricity, all day round. The cost efficiency of this power, priced at 7 US cents per kWh, gives our investors the edge to cut commercial power costs, optimize resources, and grow efficiently. Use of renewable solar power celebrates PIA’s commitment toward sustainability and environment protection. To top the availability of discounted and green electricity, PIA Textile Park is equipped with the infra to provide gas at doorstep.
FAVOURABLE LABOUR POLICIES AND AVAILABILITY
Guaranteed freedom to hire under flexible labour code
Dedicated vocational training centre to train 7000 textile mill workers and 25,000 garmenting workers
Government to subsidise 50% of workers salary to compensate loss of productivity for an initial period of 18 months
Attractive labour costs at a minimum wage as less as US$ 105 per month / per labour
Togo has a labour force population of 3.3 million, and is expected to grow to 10.3 million by 2030. Togo boasts of its quality of work force in the region. With approximately 70% of its total population under the age of 35 years, Togo is a young and growing community.
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#4 SUBSIDIES ON TAXES ALONG WITH NON-FISCAL BENEFITS
#5 ENABLED FOR REGIONAL AND INTERNATIONAL TRADE
Togo’s port access to the Blight of Benin clears its pathways to reach western markets like the USA, European countries, southern African countries and central Asia. All these markets combined pave a bright future for trade and commerce of textile goods and commodities, marking a grand opportunity for manufacturing plants in PIA to thrive.
No ceiling on foreign and local investment
Investment protection (through MIGA)
Foreign currency loans allowed
Working capital credit facilities via reliable banks
Ease of doing business - Single window centre
TOGOLESE CORPORATE LAWS ALSO PRESCRIBE SOME NON-FISCAL BENEFITS
TRADE BEYOND AFRICA
Business Licence Tax
Land Tax
Corporate Tax
Dividends Tax or Income Tax on Movable Capital
0 %during the first 5 years* on
Customs Duties And TaxesExemption 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.
Payroll TaxReduced flat rate of 2% payroll tax for the lifetime of the company
Value-Added TaxTotal exemption of the value-added tax on works and services realized for the company benefiting from the free zone status
Other Duties And TaxesAny other duty or tax not specifically mentioned herein shall be exempted
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With its coast facing south, Togo shares borders with Benin, Burkina Faso, and Ghana; all avid producers of cotton. The location further privileges Togo with direct access to landlocked countries like Niger and Mali to conduct trade with. In fact, Togo’s capital Lome is connected to all these countries with less than 12 hours transit via the International Highway N° 1, making it a hub to connect these west African resources to the rest of the world. Apart from these neighbouring countries, Togo enjoys an extended access to a market base of 400 million people as a part of one of 16 ECOWAS countries.
Togolese capital Lomé is infrastructurally equipped for export. The port has an annual processing handling capacity of 4 million TEUs and is in fact capable of accommodating 3rd generation container ships. The Port of Lomé, which handled close to 1.5 million TEUs in 2019, is ready to take the load of exporting textiles to the rest of the world, helping textile manufacturers invested in PIA have a ready roadmap to begin and grow their trade business.
Togo is also equipped with a world-class airport hub with daily flights to more than 30 international cities, including Paris, Addis Ababa, India, China, USA and major global locations. Togo also boasts of world class road infrastructure that consists of an industrial corridor connecting Lomé (Togo) to Ouagadougou (Burkina Faso) and other landlocked countries of sub-Saharan Africa.
Exempts duty on all products exported from sub-Saharan African (SSA) countries to the United States
SSA countries eligible for textile visa can purchase fabric from anywhere in the world
Cut, sewn, and packaged AGOA eligible garments can be exported to the U.S.
The EU’s Generalised Scheme of Preferences (GSP) removes duties from products vulnerable developing countries
Under GSP, the EU grants partial or full tariff reductions on ~66% of tariff lines
The Everything But Arms (EBA), a part of the EU’s GSP, gives Least Developed Countries (LDCs) tariff-free, quota-free access to the EU market
TRADE WITHIN AFRICA
INFRASTRUCTURE THAT CONNECTS PIA TO THE WORLD
FULL DUTY-AND-QUOTA-FREE (DFQF) ACCESS TO EU AND US MARKETS THROUGH AGOA, EBA, ACP/EU
AGOA
GSP & EBA
Population in Mn
Source: UNCTAD Handbook of stats - 2019, UN World Population Prospects 2019, Dept. of Eco & Social Affairs, UN
Africa India China Brazil USA Russia Japan
1,366 1,639 1,434 1,4022,4891,308
2019 2050
211 299 329 379 146 136 127 107
+273-32
+18-10 -20
+50
+1,181
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PERKS OF
PIAPlateforme Industrielle d’ Adétikopé is a vertically integrated industrial zone, focussed at creating thriving value chains for the textile industry: from raw material sourcing, to resource transformation (manufacturing), to exporting final products. PIA is strategically located on a highway, connecting it to the airport and the seaport . It even shares a close proximity to the proposed railway line for better managed and economical freight. Moreover, PIA has a single window centre, with its own power & water supply along with a fully equipped medical centre, police & fire stations among other facilities.
N1
N2
Adetikope
Distances :
From Lome City: 15 km
Agouenyive
N34
Lome
15 k
m
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Hassle-free land provision with electricity, water, gas and internet
Readymade sheds at attractive prices
Ready Plug and Play shed available for Garmenting Units’
LAND AVAILABLE TO PLUG-AND-PLAY MANUFACTURING PLANTS
Dedicated utilitiesContinuous high-quality electricity supply at an attractively discounted rate
Water supply
CETP with Zero Liquid Discharge
Security
PIA is secured in sync with the local law enforcement for controlled, lawful, and well monitored movement.
Logistics facility
Container yard and ICD (Stuffing, destuffing, container storage and custom benefits inside zone
Dedicated relationship manager
One-stop solution to all the business needs and approvals like Company Registration Custom, Financial, Administrative, Labour, Taxation, Environment
Complete transparency on time and cost of approvals
Speedy visitor and work permits and authorization under one roof.
WORLD CLASS INFRASTRUCTURE
SINGLE WINDOW CLEARANCE
Connectivity
Connected to the Lome seaport, airport 25 kms/30 mins from PIA
Access landlocked countries via highway N1
Wide lane roads
High-speed internet connectivity
Fire station
The zone sports a fire station and a fully equipped hospital to ensure global standards of safety
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CUN
ETTE
CUN
ETTE
CUN
ETTE
CUN
ETTE
CUN
ETTE
CUN
ETTE
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
RN 1
ACCES
SNB
WATER RETENTION BASIN
+300 Documentation Room
Government officer's Workspace
Server / Lan Room
+00
Plinth Protection
+300
Pantry
PIA Coordinator Office
Toilet
TSEV
IELO
ME Road MC-02B
POLICESTATION
FUELSTATION
WAREHOUSING
TRUCK PARKING
CONTAINER YARD
Road MC-01
WATERWORKS-1
SWC
FIRESTATION
TEXTILE UNIT-1
TEXTILE UNIT -2
DRY STORAGE
A GLANCE AT THE FACILITIES OF THE PROPOSED
INDUSTRIAL
COMMERCIAL
WAREHOUSE
N
CONTAINER YARD
DRY STORAGE
PARKING
RENAULT
LONG VEHICLELONG VEHICLE
30.00
TYPE 'C' ROAD = 30.00M WIDE
LONG VEHICLELONG VEHICLE
RENAULT
60.00
TYPE 'A' ROAD = 60.00M WIDE
RENAULT
LONG VEHICLELONG VEHICLE
45.00
TYPE 'B' ROAD = 45.00M WIDE
LONG VEHICLELONG VEHICLE
30.00
TYPE 'D' ROAD = 30.00M WIDE
NOTE:- Master plan subject to change without prior information
FACILITY
GREEN
WATER BODY
INDUSTRIAL ZONE
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FIRE STATION
The zone sports a fire station and a fully equipped hospital to ensure global standards of safety.
POLICE STATION
PIA is secured in sync with the local law enforcement for controlled, lawful, and well-monitored movement.
Single-window Clearance (SWC) Building
SWC
Permits and authorization for all investors and visitors from across the Globe under one roof.
COMMERCIAL TOWERS
A thoughtfully planned commercial zone that offers investors plots to develop offices, retail centers and hospitals right next to the entrance.
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ARISE INTEGRATED
INDUSTRIAL PLATFORMSARISE IIP is a joint venture between the Africa Finance Corporation (AFC) and Olam International Limited (Olam). It conceives, develops, and builds industrial ecosystems designed to make Africa thrive.
Arise IIP identifies unmet industrial potential across Africa, and then helps realise this potential by designing, financing, building and operating tailor-made infrastructure.
ARISE IIP’s bespoke industrial zones and integrated logistics services create value for all stakeholders involved, from local communities and partners to our host governments and investors.
Current IIPs: the Gabon Special Economic Zones (GSEZ) in Gabon, the Glo-Djigbé Industrial Zone (GDIZ) in Benin and the Adetikopé Industrial Platform (PIA) in Togo.
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Launched in 2010, GSEZ Nkok is Gabon’s first industrial platform, based in Nkok, just 20 minutes from the capital, Libreville. A national timber shortage in 2015 resulted in a government ban on the export of logs. In response to local and international needs, GSEZ redesigned its business model to enable the growth of the local timber processing industry.
Within a few short years, Gabon became the largest exporter of veneer in Africa and second in the world. Thanks to the GSEZ, Gabon GSEZ Nkok is:
250
800
Investors
100%
76
16,000
32,000
Hundreds
million $ of turnover
containers exported /
month
from 15 different countries
sustainable, traceable and legal wood used in GSEZ
companies specialized in
timber industry out of 124 in total
jobs created
cmb of finished products / month
of social initiatives conducted
GSEZ IIP’S SUCCESS IN
IN A NUTSHELLTIMBER INDUSTRY
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The PIA Textile Park will be designed on the international guidelines for sustainable industrial parks and will ensure compliance with all standard norms.
The Textile Park will host a community of textile units with shared objective to achieve of enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues.
Our aim for the Textile Park is to eventually become a benchmark sustainability leader in the West African textile industry.
ABOUT
SUSTAINABLE PRACTICES
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INITIATIVES
Easy Traceability
PIA will rely on AtSource software to ensure our supply chains are traceable and transparent
CMiA
Use of Cotton Made in Africa (CMiA) certified cotton
Renewable Energy (Solar)
100% of the Park’s energy requirements will be from a dedicated Solar farm
Natural Gas
Availability of Natural Gas to ensure low carbon footprints
Effluent Treatment Plant (ETP)
Zero Liquid Discharge (ZLD) Technology to minimise waste by recycling water and treating all other effluent.
Certification
Oekotex certification for the management of hazardous chemical and dyes
Social Sustainable Initiative
Equal participation, Fair pay, Gender neutral work policies
Circular Economy
PIA Textile Park will ensure effective waste management across all aspects of the Textile & Apparel process
Environment, Social Compliance
The Textile Park will be compliant to the HIGGs Index by end 2023
A combination of all the measures mentioned above will enable the PIA Textile Park to work collaboratively and transparently to create, at the least, a climate neutral value chain that provides fair jobs to thousands of people.
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GET IN TOUCH WITH
IN VARIOUS LOCATIONSPIA TEAMS
UAEVikas Budhiraja
+971 544 494 [email protected]
India Heena SABOO
+91 838 305 [email protected]
China Beatrice NIE
+86 183 9381 [email protected]
Togo Mariama ALOU+228 7059 0140
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TO INVEST, PARTNER OR INQUIRE:
REACH OUT TOemail:[email protected]
Phone:+228 92681609
Address:Parc Industriel d’Adetikope, Route Nationale Nº 01BP 12917 Lome - TOGO
Website:pia-togo.com
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