Togo's textile focused SEZ aims to create value-added textile supply chain

Togo's textile focused SEZ aims to create value-added textile supply chain
Credit: pia-togo.com
Published date:
Tuesday, 05 October 2021

Togo’s ‘PIA’, a textile focussed SEZ, aims to create an eco-system for textile value chains and offer multiple incentives to foreign investors investing in the Textile Park. 

A West African nation ‘Togo’ recently established the Adétikopé Industrial Platform (PIA), a Special Economic Zone (SEZ) conceptualised by ARISE IIP, 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.

‘PIA’ is a vertically integrated industrial zone of 400 hectares, focused on creating thriving value chains for the textile industry – from ensuring raw material at park and integrated manufacturing processes in a sustainability induced setup to exporting final 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’, no need for a local partner, no currency devaluation risk as the country’s currency is pegged to Euro, easy visa and work permits, captive solar power plant, easy availability of raw materials, world-class infrastructure as well as connectivity through road, rail, air and water.

The country ensures availability of skilled and unskilled labour. Textile & Garment Training facilities are also provided within the PIA for the work force, a spokesperson from ARISE Integrated Industrial Platforms (IIP) told Fibre2Fashion.

Some of the other benefits extended to the potential investors include 24x7 solar power supply, credit availability to meet Capital Expenditure (up to 50 per cent) and Working Capital (up to 80 per cent) need and many other fiscal incentives. The products made in the Textile Park will be completely traceable, the goods produced will be sustainable and will have a lower impact on the environment as well as on the 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 percent 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.

The 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 (ZDHC) technology; 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); for a polyester garment to US – 25-35 per cent import duty benefit to the buyer; for a polyester garment to EU – 10-18 per cent import duty benefit to the buyer; for cotton garments to the US – 19.6 per cent import duty benefit to the buyer and for cotton garment to the EU – 10 per cent import duty benefit to the buyer.

A truck terminal, 15,00,000 square feet storage warehouse and dry port are also available within the zone. The Textile Park will also give the industries an 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.

-Ready plug n play sheds as per requirements                

-ETP plant based on ZLD/ZDHC technology

-Economical work force                

- For first 18 months, 50% of worker’s wages will be borne by the Govt                              

-Proximity to Seaport (25km) & Airport (20km)

- ‘0’duty into US (under AGOA) & EU/UK (under EBA)  

-Competitive solar power 24x7 at 8 cents/Kwh

-Duty advantage of 10% up-to 35% to US/EU buyers    

-Easy access to booming African market

-Single Window Clearance for all legal paperwork         

-Textile & Garment Training centres

-Inland Container Depot (ICD) in the park                       

-Truck terminal, Warehouses, Dry port  

-Credit Availability (Capital as well Working capital)

- Fiscal & Non-Fiscal Incentives

- Repatriation of Profits & capital is allowed                 

- Flexibility to Co-Invest/JV


  Togo AGOA country profile: Link

  More information on the SEZhttps://pia-togo.com/textile-park/

 

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