weighted score 3.7 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Togo
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Togo as a sourcing destination.
Labour cost competitiveness
8
Among the lowest labour costs in West Africa. Large young population. Most workers in informal agriculture but availability for manufacturing is high.
Supply base depth
3
Limited manufacturing base. Phosphate processing, cement, food processing, and light manufacturing. Free trade zone has attracted some assembly operations.
Logistics & infrastructure
4
Port of Lomé is a major regional asset (Lloyd's List top 100). Road infrastructure variable. Transit corridor to landlocked neighbours.
Workforce skills
3
Large low-skill labour pool. Technical training infrastructure limited. Phosphate sector has semi-skilled workforce. STEM graduates limited.
Scalability
5
Port capacity provides scalability for logistics. Manufacturing scalability limited by infrastructure and skills gaps. Growing population provides long-term labour supply.
Ease of doing business
4
Free trade zone offers favourable terms. Business climate reforms improving. Corruption remains significant challenge. Regulatory complexity moderate for region.
Trade access & tariffs
3
EBA duty-free access to EU. ECOWAS membership for regional access. AfCFTA expected to expand market access further.
Sustainability baseline
3
Low industrial emissions footprint. Deforestation pressure on remaining forest cover. Cocoa and coffee production face EUDR due diligence requirements.
Innovation & IP
1
Minimal R&D infrastructure. No significant patent activity. Digital economy growing from low base.
Quality standards
3
Port meets international standards. Phosphate sector has quality systems. Agricultural product quality and traceability infrastructure underdeveloped.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage level
- Low labour costs relative to global benchmarks. Minimum wage is among the lowest in West Africa. Large young population (~9 million) provides a growing labour pool, but most workers are in informal agriculture.
- Workforce availability
- High labour availability for low-skill manufacturing and agriculture. Phosphate mining sector has developed a semi-skilled workforce. Technical and vocational training infrastructure is limited but expanding.
- Cost structure
- Energy costs are moderate — Togo imports electricity from Ghana and Nigeria. Free trade zone (Zone Franche) offers tax incentives for export-oriented businesses. Input costs competitive for basic manufacturing.
Supply Base & Infrastructure
Supply Base & Infrastructure
- Port of Lomé
- Only sub-Saharan African port in Lloyd's List top 100. Natural deep-water harbour (16.6m draught) requires no dredging. Handles container traffic for landlocked Burkina Faso, Niger, and Mali. Significant competitive advantage in the region.
- Manufacturing base
- Limited but growing. Phosphate processing, cement, food processing, and light manufacturing (textiles, plastics). Free trade zone has attracted some export-oriented assembly operations.
- Road infrastructure
- North-south corridor connecting Port of Lomé to Burkina Faso and Niger is the primary transit route. Road quality variable — main corridors adequate, secondary roads challenging during rainy season.
Trade Access & Business Environment
Trade Access & Business Environment
- EU trade access
- EBA beneficiary as an LDC — duty-free, quota-free access to the EU market. This is among the most favourable trade access arrangements available globally. Tariff advantage score of 2 reflects this.
- ECOWAS membership
- Full member of ECOWAS, providing preferential access to West African markets. AfCFTA implementation expected to further expand market access and boost Port of Lomé traffic.
- Free trade zone
- Zone Franche operational since 1989. Offers 10-year tax holidays, duty-free import of raw materials, and simplified customs procedures for export-oriented businesses.
- Business environment
- GDP growth ~5%. Government has invested in business climate reforms. Regulatory complexity moderate for the region. Corruption remains a significant challenge (TI CPI 2025: 32).
Innovation, IP & Quality
Innovation, IP & Quality
- Innovation capacity
- Limited domestic R&D infrastructure. No significant patent filing activity. Digital economy growing from a low base — mobile money adoption advancing.
- Quality standards
- Port of Lomé meets international standards. Phosphate sector has established quality management systems for export. Agricultural product quality variable — cocoa and coffee lack the traceability and certification infrastructure of major producers.
- Education
- University of Lomé is the primary public university. Technical training expanding but STEM graduate output remains limited relative to labour market needs.