TRANSFORMING TEXTILE TRADE IN TOGO - Investor's Handbook
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TRANSFORMING TEXTILE TRADE IN TOGO Investor’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
MESSAGE FROM The Government of Togo is
THE PRESIDENT proud of the successful launch
of the Industrial Platform of
Adetikopé, in partnership
with Arise IIP.
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.
Faure Gnassingbé
President of the Togolese Republic
4
TOGO IS OPEN FOR
THE
WORLD
Located in the heart of Western Africa, Togo is the most obvious and efficient Above factors, among many others, make it easy to do business in Togo.
point of entry to the region and to the adjoining countries like Burkina Faso, According to the Doing Business (2020) report by the World Bank, Togo is the
Benin, and Ghana. The Togolese economy is stable and largely fuelled by its 3rd best reformer, making it the leader in Ease of Doing Business across West
agriculture sector, making Togo replete with some of the world’s finest raw Africa. The world has now turned its head to Togo, with the country attracting
cotton. What adds to this stability is the political inclination of the Togolese greenfield projects 6.7 times the foreign direct investment that’s expected of
government toward people development, trade promotion, and economic growth. a country of its size.. Pair this attractiveness with a rise in cotton production in
In fact, the National Development Plan laid out for Togo has sharp emphasis on West Africa and Togo’s own connectivity via railway, roadway, airway, and sea
policies, regulations, and tax benefits that encourage textile trade in the country. ports; PIA Textile park is ready to up Togo’s textile market share in the globe.
5
TOGO COMES WITH
UNPARALLELED
TRADE POTENTIAL
Located on the coast of West Africa, Togo has a strong Here’s a quick snapshot of Togo:
foothold in cotton production. While the majority of the
Togolese population depends on subsistence agriculture, Area Population GDP Growth Capital
cotton production alone employs 275,000 farmers; directly or
56,785 sq.km 8 Million 5.0% Lome
indirectly supporting close to 2.5 million people. Togo has a
stable economy, projected to grow at a rate of 7.6%*.
Currency Language Population Climate
FCFA (XOF) French, English, Growth Rate Tropical Avg. temperature 27.5°C on
(1 Euro = 655.957) Regional languages 2.4% the coast to 30°C in northern region
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.
6
PLATEFORME INDUSTRIELLE D’ADETIKOPE (PIA) TEXTILE PARK
AN INDUSTRIAL PARK FOCUSED TO
TEXTILES
Equipped 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.
INVESTMENT AVENUES AT PIA TEXTILE PARK
Spinning Weaving Knitting
Woven Knit Garmenting
Processing Processing
7
5 REASONS TO GO FOR TOGO
PIA’S COMPETITIVE EDGE
#1 SUPERIOR QUALITY COTTON AT #2 ROUND-THE-CLOCK POWER AND
GLOBALLY COMPETITIVE PRICE DOORSTEP GAS SUPPLY
Cotton available at discounted 24x7 electricity from renewable sources Gas available at
prices at the price of 7 US cents per kWh doorstep
#3 AVAILABILITY OF SKILLED WORKFORCE WITH
THE EASE OF HIRING EXPATS
Unskilled and Skilled Vocational training centre to
Labor available train labour for factories
Freedom to bring expat Labour law adopted to meet industry
staff during the initial years demands while respecting Global standards
8
#4 ATTRACTIVE FISCAL FRAMEWORK
Tax holidays under Free Zone Code for Export Oriented Units
THE COMPANIES OPERATING UNDER FREE ZONE REGIME WOULD AVAIL THE FOLLOWING BENEFITS.
Customs Duties And Taxes Value-Added Tax OTHER BENEFITS
Exemption from all customs duties and taxes while importing Total exemption of the value-added tax on
machinery equipment, raw materials, office supplies, and while works and services realized for the company 100% foreign ownership permissible
exporting goods manufactured within the free zone as well. benefiting from the free zone status
Investment protection under MIGA
Other Duties And Taxes Payroll Tax Foreign currency loans allowed
Any other duty or tax not specifically mentioned herein Reduced flat rate of 2% payroll tax for the
shall be exempted lifetime of the company Loan facilities
Easy repatriation of profits
0%
during the
Corporate Land Business Dividends Tax or Income Forex availability
Tax Tax Licence Tax Tax on Movable Capital
first 5 years*
#5 ENABLED FOR REGIONAL AND INTERNATIONAL TRADE
Duty Free Treaties with US and EU Deep water port, with direct 25 day transit time to EU,
under AGOA and EBA shipping lines across the globe 40 days to US markets
Regional hub of major shipping Access to regional market
lines, annual container handling of 400 mn+ consumers in
capacity of 4 Mn TEUs ECOWAS nations
9
#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.
WHAT MAKES TOGO’S COTTON SUPERIOR
Cotton Grades Micronaire Colour
• Superior grade: OTI, • Range from • Togo’s cotton is fairly white, equivalent
ALTO/S, ALTP 3.8 to 4.4 with to the USDA Middling grade
• Middle grade: OGOU an average of 4.2 • 85% of the total production is
• Low grade: BUTO of its quality
Strength Stickiness Length
• Between 29.5 to 30.5 GPT • The cotton of • Medium staple length per
• Elongation at a good level Togo is honey campaign is 28.54mm
of 5.6 dew free’
ADVANTAGES OF COTTON PROCUREMENT AT PIA TEXTILE PARK
Cotton available at a CMiA certified Ready warehousing
competitive rate compared cotton is sustainably at the park
with global cotton prices sourced
10#2 ROUND-THE-CLOCK POWER AND
DOORSTEP GAS SUPPLY
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.
#3 AVAILABILITY OF SKILLED WORKFORCE
WITH THE EASE OF HIRING EXPATS
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 FAVOURABLE LABOUR POLICIES AND AVAILABILITY
region. With approximately 70% of its total
population under the age of 35 years, Togo is a Guaranteed freedom to hire under flexible labour code
young and growing community.
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
11#4 SUBSIDIES ON TAXES ALONG WITH NON-
FISCAL BENEFITS
Customs Duties And Taxes Value-Added Tax
TOGOLESE CORPORATE LAWS ALSO
Exemption from all customs duties and taxes while importing Total exemption of the value-added tax on
PRESCRIBE SOME NON-FISCAL BENEFITS
machinery equipment, raw materials, office supplies, and while works and services realized for the company
exporting goods manufactured within the free zone as well. benefiting from the free zone status
No ceiling on foreign and local investment
Other Duties And Taxes Payroll Tax Investment protection (through MIGA)
Any other duty or tax not specifically mentioned herein Reduced flat rate of 2% payroll tax for the Foreign currency loans allowed
shall be exempted lifetime of the company
Working capital credit facilities via reliable banks
0%
during the first
Corporate Land Business Dividends Tax or Income Ease of doing business - Single window centre
Tax Tax Licence Tax Tax on Movable Capital
5 years* on
#5 ENABLED FOR REGIONAL AND
INTERNATIONAL TRADE
TRADE BEYOND AFRICA
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.
12TRADE WITHIN AFRICA
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.
Population in Mn
+1,181
2019 2050
+273
-32
FULL DUTY-AND-QUOTA-FREE (DFQF) ACCESS TO EU AND
US MARKETS THROUGH AGOA, EBA, ACP/EU +50
+18
1,308 2,489 1,366 1,639 1,434 1,402 -10 -20
AGOA 211 299 329 379 146 136 127 107
Exempts duty on all products exported from sub-Saharan Africa India China Brazil USA Russia Japan
African (SSA) countries to the United States
Source: UNCTAD Handbook of stats - 2019, UN World Population Prospects 2019, Dept. of Eco & Social Affairs, UN
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. INFRASTRUCTURE THAT CONNECTS PIA TO THE WORLD
Togolese capital Lomé is infrastructurally equipped for export. The port has an annual processing
GSP & EBA 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
The EU’s Generalised Scheme of Preferences (GSP) removes take the load of exporting textiles to the rest of the world, helping textile manufacturers invested
duties from products vulnerable developing countries in PIA have a ready roadmap to begin and grow their trade business.
Under GSP, the EU grants partial or full tariff reductions on Togo is also equipped with a world-class airport hub with daily flights to more than 30
~66% of tariff lines international cities, including Paris, Addis Ababa, India, China, USA and major global locations.
The Everything But Arms (EBA), a part of the EU’s GSP, gives Togo also boasts of world class road infrastructure that consists of an industrial corridor
Least Developed Countries (LDCs) tariff-free, quota-free access connecting Lomé (Togo) to Ouagadougou (Burkina Faso) and other landlocked countries of sub-
to the EU market Saharan Africa.
13Distances :
From Lome City:
15 km
PERKS OF
Adetikope
PIA
N1
15 km
Agouenyive
N34
Plateforme 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.
N2
Lome
14LAND AVAILABLE TO PLUG-AND-PLAY MANUFACTURING PLANTS SINGLE WINDOW CLEARANCE
Hassle-free land provision with electricity, water, gas and internet Dedicated relationship manager
Readymade sheds at attractive prices One-stop solution to all the business needs and approvals like Company Registration
Custom, Financial, Administrative, Labour, Taxation, Environment
Ready Plug and Play shed available for Garmenting Units’
Complete transparency on time and cost of approvals
Speedy visitor and work permits and authorization under one roof.
WORLD CLASS INFRASTRUCTURE
Dedicated utilities Connectivity
Continuous high-quality Connected to the Lome seaport,
electricity supply at an attractively airport 25 kms/30 mins from PIA
discounted rate
Access landlocked countries via
Water supply highway N1
CETP with Zero Liquid Discharge Wide lane roads
High-speed internet connectivity
Security
PIA is secured in sync with Fire station
the local law enforcement for
controlled, lawful, and well The zone sports a fire station and
monitored movement. a fully equipped hospital to ensure
global standards of safety
Logistics facility
Container yard and ICD (Stuffing,
destuffing, container storage and
custom benefits inside zone
15A GLANCE AT THE FACILITIES OF THE PROPOSED N
INDUSTRIAL ZONE DRY STORAGE
INDUSTRIAL CONTAINER YARD FACILITY
COMMERCIAL DRY STORAGE GREEN WATER RETENTION BASIN
WAREHOUSE PARKING WATER BODY
CONTAINER YARD
TEXTILE UNIT-1
LONG VEHICLE
LONG VEHICLE
RN 1
30.00
TYPE 'D' ROAD = 30.00M WIDE
RN 1
RN 1
-01
MC
ad
RENAULT
Ro
IE
LONG VEHICLE
LONG VEHICLE
TSEV
30.00
TYPE 'C' ROAD = 30.00M WIDE TEXTILE UNIT -2
RN 1
RN 1
FUEL
STATION
E
ETTE
ETT
CUN
CUN
ACCE
SNB
S FIRE
RENAULT
STATION
LONG VEHICLE
LONG VEHICLE
TRUCK PARKING
ETTE
CUN
RN 1
45.00
RN 1
POLICE
TYPE 'B' ROAD = 45.00M WIDE STATION
Government
PIA
Coordinator
officer's
Workspace
Office
+300
Documentation
Plinth
Protection
Room
Server
/ Lan
Room
+300
+00
Toilet
Pantry
SWC
WAREHOUSING
ETTE
RN 1
CUN
RENAULT
RN 1
LONG VEHICLE
LONG VEHICLE
60.00
ETTE
CUN
TYPE 'A' ROAD = 60.00M WIDE B
MC-02 WATER
LOME
Road
WORKS-1
ETTE
NOTE:- Master plan subject to change without prior information
CUN
16
RN 1
RN 1COMMERCIAL TOWERS
A thoughtfully planned commercial zone that offers investors plots to
develop offices, retail centers and hospitals right next to the entrance.
SWC
Permits and authorization for all investors and visitors from across the
Globe under one roof.
FIRE STATION
The zone sports a fire station
and a fully equipped hospital to
ensure global standards of safety.
Single-window Clearance
POLICE STATION (SWC) Building
PIA is secured in sync with
the local law enforcement for
controlled, lawful, and well-
monitored movement.
17ARISE INTEGRATED
INDUSTRIAL PLATFORMS
ARISE IIP is a joint venture between the Africa Finance Corporation (AFC) and Olam ARISE IIP’s bespoke industrial zones and integrated logistics services create value for all
International Limited (Olam). It conceives, develops, and builds industrial ecosystems stakeholders involved, from local communities and partners to our host governments
designed to make Africa thrive. and investors.
Arise IIP identifies unmet industrial potential across Africa, and then helps realise this Current IIPs: the Gabon Special Economic Zones (GSEZ) in Gabon, the Glo-Djigbé
potential by designing, financing, building and operating tailor-made infrastructure. Industrial Zone (GDIZ) in Benin and the Adetikopé Industrial Platform (PIA) in Togo.
18GSEZ IIP’S SUCCESS IN
TIMBER INDUSTRY
IN A NUTSHELL
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 Investors 76 32,000
million $ of from 15 different companies cmb of finished
turnover countries specialized in products / month
timber industry out
of 124 in total
800 100% 16,000 Hundreds
containers sustainable, jobs of social initiatives
exported / traceable and legal created conducted
month wood used in GSEZ
19ABOUT
SUSTAINABLE PRACTICES
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.
20INITIATIVES
Easy Traceability Certification
PIA will rely on AtSource software Oekotex certification for the
to ensure our supply chains are management of hazardous chemical
traceable and transparent and dyes
CMiA Social Sustainable Initiative
Use of Cotton Made in Africa (CMiA) Equal participation, Fair pay, Gender
certified cotton neutral work policies
Renewable Energy (Solar) Circular Economy
100% of the Park’s energy PIA Textile Park will ensure effective
requirements will be from a waste management across all aspects
dedicated Solar farm of the Textile & Apparel process
Natural Gas Environment, Social
Availability of Natural Gas to ensure
Compliance
low carbon footprints The Textile Park will be compliant to
the HIGGs Index by end 2023
Effluent Treatment Plant (ETP)
Zero Liquid Discharge (ZLD)
Technology to minimise waste by
recycling water and treating all A combination of all the measures mentioned
other effluent. 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.
21GET IN TOUCH WITH
PIA TEAMS
IN VARIOUS LOCATIONS
UAE India China Togo
Vikas Budhiraja Heena SABOO Beatrice NIE Mariama ALOU
+971 544 494 702 +91 838 305 7074 +86 183 9381 0844 +228 7059 0140
vikas.budhiraja@arisenet.com heena.saboo@arisenet.com yingjuan.nie@arisenet.com mariama.alou@arisenet.com
22TO INVEST, PARTNER OR INQUIRE:
REACH OUT TO
email: Address:
pia@arisenet.com Parc Industriel d’Adetikope,
Phone: Route Nationale Nº 01
+228 92681609 BP 12917 Lome - TOGO
Website:
pia-togo.com
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