Togo Moves to Replace 1989 Free Zone System With New SEZ Rules

FTZ News: Togo’s Council of Ministers approved a draft law Thursday that would replace the industrial free-zone regime in place since 1989 with special economic zones. Incentives under the new setup would be time-limited and conditional, and they would differ by location.

The same meeting also cleared a 2027 budget of 2,684.1 billion CFA francs, roughly 2.5% below the initial 2026 figure of 2,751.5 billion CFA francs. Separately, officials revised the 2026 deficit projection to 3.4% of GDP after fuel prices rose. The bill still needs parliamentary approval before it can take effect.

Ministers said the old free-zone system concentrated most investment around Lomé and created only weak links to the rest of the economy. The new framework is intended to encourage more local sourcing and to make sites outside the capital more competitive for investors. How far those goals translate into actual rules remains to be seen once the text moves through the legislature.

Whether the shift can pull projects into other parts of the country without dulling Togo’s appeal for export-oriented manufacturers is the practical question the reform will face.