World Bank Vice President for the Africa Region Visits Togo

LOME, September 11, 2008 — World Bank Vice President for the Africa Region, Ms. Obiageli Katryn Ezekwesili, paid an official visit to Togo from September 10–11, 2008.

The main objective of this visit was to hold discussions with high-level Togolese authorities and the main development actors regarding the socioeconomic challenges faced by Togo. To this end, the Vice President met with His Excellency Faure Gnassingbé, President of the Republic of Togo, and held working sessions with government officials. She also met with Togo’s main development partners, civil society and private sector representatives, and with the press.

Discussions revolved mainly around the current situation in the country, in light of its reengagement with international donors and the opportunity created by this reengagement for Togolese authorities to reinvigorate the national economy, with a view to poverty reduction. The Vice President expressed her satisfaction with the resolution of Togo’s political situation as well as its economic performance, which led to the reengagement.

With regard to the economic reforms underway, Ms. Ezekwesili warmly commended the Togolese authorities for the work done and progress made to date, particularly in the following areas: (i) taxation, with the implementation of reforms aimed at enhancing transparency. These have paved the way for the collection of tax arrears and an increase in customs revenue; (ii) improved oversight of public expenditure and greater budget discipline; (iii) a comprehensive audit of domestic debt; (iii) financial and strategic audits of the Société Togolaise de Coton (SOTOCO) ; and (iv) efforts underway to strengthen the Togolese banking system. She called on Togolese authorities to continue this reform work, which she acknowledged is difficult but necessary in order to pave the way for Togo’s economic recovery.

During her visit, the issue of World Bank support for Togo was also discussed. In view of the effects on the Togolese economy of recent flooding, as well as the future impact of collapsed bridges on agriculture, industries, the Port Autonome de Lomé, and several other sectors of Togo’s economy, Ms. Ezekwesili agreed with Togolese authorities that the Bank needed to be flexible in reallocating some of the available resources to help with the rebuilding of roads. The Vice President informed the authorities of efforts by the World Bank to mobilize funds from the LICUS (Low Income Countries Under Stress) Trust Fund in order to assist with the reconstruction of a number of collapsed bridges.

In the context of World Bank budgetary assistance to Togo, the Vice President reassured authorities that preparation of the new budget assistance program will be expedited, and that the amount may be increased [the current projected amount is US$12 million], in order to respond rapidly and appropriately to the pressing needs of the State.

In the area of external debt, Ms. Ezekwesili called on the Togolese authorities to step up the drafting process of the final Poverty Reduction Strategy Paper, with a view to reaching the completion point of the Heavily Indebted Poor Countries (HIPC) Initiative and benefitting from a substantial reduction of this debt.

The Vice President stated that while the current food crisis is creating hardship for African countries, it is also offering a golden opportunity for these countries to revive their agriculture sectors and establish systems aimed at boosting their agricultural productivity.

During her meeting with civil society and private sector representatives, the Vice President stated: “After more than 15 years of suspension of international assistance, economic and institutional reforms are essential in order to put in place functioning systems. We acknowledge and commend the Government for the work done. I came to Togo to convey to the Togolese authorities and people that we stand ready to assist them in this process of economic recovery that they have undertaken. While the task is difficult, it is only when the work is over that the results will become apparent. At the World Bank, we expect to see an improvement in governance. It is important for rules to be clear and communicated to everyone, and we urge the authorities to move in that direction.”

During the visit, the Vice President was able to see firsthand the destruction of roads in Lomé and to discuss this situation with the Minister of Public Works as well as an AGETUR-Togo delegation. Work is currently in progress, and funding to help rebuild Lomé’s infrastructure is expected in 2009.

The visit ended with a press conference given by Ms. Ezekwesili on Thursday, September 11, which was attended by journalists from the government and private press in Togo.