Togo’s PIA, a textile-focussed Special Economic Zone aims to create an ecosystem for textile value chains and offer multiple incentives to foreign investors investing in the textile park
Togo, a west African country, recently established the Adetikopé Industrial Platform (PIA), a Special Economic Zone (SEZ) conceptualised, build and managed by ARISE IIP, the Panafrican developer of state of-the-art infrastructure to unlock the growth potential and promote the industrialisation of Togo. Located along the strategic location of Lomé-Burkina industrial corridor, PIA is the country’s first industrial platform. It is a vertically integrated industrial zone of 400 hectares focused on creating thriving value chains for the textile industry – from ensuring raw material supply on the park, to integrating manufacturing processes in a sustainably induced setup and exporting finished textiles and garments across the globe.
The Government of Togo works with PIA to simplify the process of setting up units in the industrial zone. Benefits offered for setting up businesses in the park include single window operations, the non-obligation of having a local partner, no currency devaluation risk as the country’s currency is pegged to Euro, easy visa and work permits, captive solar power plants, easy access to raw materials, world-class infrastructure as well as connectivity through road, rail, air and water.
The country also ensures availability of skilled and unskilled labour. Textile and garment training facilities are also provided within the PIA for the workforce, a spokesperson from ARISE Integrated Industrial Platforms (IIP) told Textile Magazine.
Some of the other benefits extended to the potential investors include solar power supply, credit availability to meet capital expenditure (up to 50%) and working capital (up to 80%) and many other fiscal incentives. The products made in the textile park will be completely traceable considering the sustainability of the goods produced, and in terms of its impact on the environment and people of the society at large. Additionally, cotton sourced for the park will be from cotton made in Africa (CMIA) – verified cotton farms. Cotton is a strategic crop in Togo, representing 44.4% of the country’s agriculture export revenue.
Approximately 120,000 tons of seed cotton is produced annually in the country, translating to lint cotton production of 56,000 MT in 2019. Togo is one of the top 10 producers and exporters of cotton in Africa. PIA offers the following for companies willing to establish textile units within the industrial park – ready plug-n-play sheds as per the specific requirements of the investors (spinning, weaving, dyeing, garmenting or integrated operations), an effluent treatment plant based on zero liquid discharge (ZLD), zero discharge of hazardous chemical technology (ZDHC), economical labour force, proximity to the airport (20 km) and the seaport (25 km) of Lomé, zero duty benefits for import into the US (under AGOA) and Europe (under EBA).
The benefits also include for a polyester garment to US – 25-35% import duty benefit to the buyer, for a polyester garment to EU – 10-18% import duty benefit to the buyer, for cotton garments to the US – 19.6% import duty benefit to the buyer and for cotton garment to the EU – 10% import duty benefit to the buyer. A truck terminal, a 1,500,000 sq. feet storage warehouse and a dry port are also available within the zone. The textile park will also give the industries easy access to the booming African market. Additionally, the government ensures duty-free imports of inputs like raw material, new or used machines, accessories used in construction and manufacturing. ARISE IIP is the same group that has developed the timber-focused Gabon SEZ where more than 48 Indian companies have invested in manufacturing units.
Benefits Offered by PIA
- Ready plug-n play sheds as per requirements
- ETP plant based on ZLD and ZDHC technology
- Economical workforce
- For first 18 months, 50% of workers’ wages will be borne by the government
- Proximity to seaport (25 km) and airport (20 km)
- Zero duty into US (under AGOA) and EU and UK (under EBA)
- Competitive solar power 24 x 7 at 8 cents per Kwh
- Duty advantage of 10% up to 35% to US and EU buyers
- Easy access to booming African market
- Single window clearance for all legal paperwork
- Textile and garment training centres
- Inland container depot (ICD) in the park
- Truck terminal, warehouses, dry port
- Credit availability (capital as well as working capital)
- Fiscal and non-fiscal incentives
- Repatriation of profits and capital allowed
- Flexibility to co-invest or joint venture
- Ready to move in industrial sheds
- Assured traceable and CMIA certified raw material for spinning and weaving industries
- Support in Working Capital Financing