Togo

The International Secretariat’s assessment is that Requirement 1.5 is mostly met, as in the previous Validation while stakeholders consider it fully met. The objective of this requirement is to ensure that the annual planning for EITI implementation supports the implementation of national priorities for the extractive industries while laying out realistic activities that are the outcome of consultations with the broader government, industry and civil society constituencies. The annual EITI work plan should be a key accountability document for the MSG vis-à-vis broader constituencies and the public. The Secretariat is of the view that the work plan does not sufficiently translate the priorities as identified in the multi-year work plan objectives into the annual work plan. The 2024 work plan is integrated into a well-designed and comprehensive five-year action plan spanning 2021 to 2025. The presentation of most activities in the 2024 work plan is focused on internal EITI operations, such as publishing EITI Reports, governing the MSG and the country’s Validation. However, the link between the activities in the multi-year work plan and the most recent annual work plans (2023 and 2024) remains unclear regarding activities in key areas of EITI implementation. The 2024 work plan is fully costed and time-bound, totalling just under USD 1 million, but indicates a lack of funding. Notably, the government's planned contribution amounts to less than 15%, while funding from the AfDB constitutes 25% of the total. The work plan includes activities for publishing and disseminating EITI Reports, MSG governance and stakeholder participation. The plan includes several capacity-building activities for MSG members, companies and government. The 2024 work plan and the multi-year action plan have been developed with input from all constituencies and beyond. Stakeholder consultations found that the process for preparing the multi-year action plan and the annual work plan update was transparent and inclusive, incorporating the views of members of each constituency. Stakeholder consultations on the objectives of the work plan were conducted. For example, a workshop in the Tsévié municipality was held in August 2021 on the draft 2021-2025 action plan. The 2023 and 2024 work plans make general connections to national priorities. It references the objectives of the National Development Plan (the 2020-2025 government roadmap), aiming to enhance the extractive sector’s significance for the economy, particularly in exploration, output, and investment. Chapters 21 and 22 of the National Development Plan focus on the mining sector, emphasising the need to develop the phosphate upstream sector and map mining resources in the country. However, while the five-year action plan covers most aspects of the EITI Standard, recent work plans (2023 and 2024) fail to address several priorities identified by stakeholders, such as beneficial ownership, social and economic contributions, and environmental impact mitigation. Additionally, none of the activities in the 2023 or 2024 work plans address artisanal and small-scale mining (ASM) or illicit gold flow topics. The annual work plan does not address the legal barrier to beneficial ownership disclosures either and contains minimal activities to promote systematic disclosures. These gaps impede Togo from achieving the overall objective of ensuring that annual EITI planning aligns with national priorities for the extractive industries. The 2021-2025 action plan refers to the follow-up of recommendations and has formulated actions in the work plan based on their tracking of the status of recommendations from the Validation and previous EITI Reports. The yearly work plan should be used as a tool to revisit the prioritisation, update it given changing conditions and factors, and ensure the prioritised recommendations are translated into activities that can result in the expected outcome. In its comments on the draft Validation report, the MSG agrees with the International Secretariat's assessment and notes the forthcoming increase in government funding for EITI implementation activities.

The International Secretariat’s assessment is that Requirement 7.1 is fully met, as in the previous Validation. Most consulted stakeholders considered that the objective to enable evidence-based public debate on extractive industry governance through active communication of relevant data to key stakeholders is fulfilled. While there is room for stepping up efforts, several activities were undertaken to disseminate EITI Reports in local languages, and the findings of the anti-corruption report were covered in the media. EITI Reports released during the reviewed period (2018-2021) were posted on the Togo EITI website. Although the MSG did not generate written summaries of EITI Reports, it conveyed findings through dissemination missions, including in two local languages. Despite the slowdown in EITI communication efforts due to the COVID-19 pandemic, there are indications of active dissemination events, notably in 2023, where civil society and the press were involved. Several stakeholders cited financing and resource constraints as barriers to further dissemination and awareness activities but expressed overall satisfaction with current communication efforts. Constituency representatives contributed to Togo EITI's communication efforts through an anti-corruption project, culminating in a report publication in December 2023. Throughout the anti-corruption project and its report, there is evidence of civil society using extractive data, on topics such as contract disclosure in the mining sector. As part of the project, the EITI engaged various stakeholders who are involved in Togolese anti-corruption efforts, particularly the High Authority for the Prevention and Fight against Corruption and Related Offences (HAPLUCIA), the National Financial Information Processing Center (CENTIF Togo), the Court of Auditors (CdC), the Personal Property Credit Register (RCCM), the Togolese Revenue Office (OTR), and the two SOEs in the mining sector, TdE and SNPT. Launched in December 2022 with funding from USAID, this project used EITI data (with the 2021 EITI report as the main reference) and inputs from relevant national institutions and companies to diagnose corruption risks in the Togolese extractive sector and propose recommendations to counter these risks. Through the project, Togo EITI facilitated workshop events supported by civil society and government representatives. The national secretariat includes a communication team tasked with overseeing EITI communication, and the design of a Communication Strategy is included in the 2024 Work Plan (activity 3.14). In practice, there is documentation of press articles and radio programs1 where EITI stakeholders discuss and raise awareness about transparency in the extractive industries. There is some evidence of the MSG explicitly considering the information needs and access challenges of different stakeholder groups, and Togo EITI appears to have prioritised outreach to relevant government agencies and civil society, including communities hosting extractive activities. Stakeholder consultations highlighted the need for capacity building within government agencies and at the local level to facilitate increased use of EITI data and findings.

The International Secretariat’s assessment is that Requirement 7.2 is fully met. Consulted stakeholders did not provide specific feedback on progress towards the objective of data accessibility. From the Secretariat's perspective, the objective of facilitating broader use of EITI data has been achieved. Togo EITI established an open data policy in 2016. EITI Togo ensures that data contained in PDF reports are accompanied by Excel files containing figures and tables of the report. Summary data files are regularly submitted. There are opportunities for increasing the volume of data available in open format on the EITI national website and through systematic disclosures. Both government and extractive companies have limited availability of extractive sector data published in an open format.

The International Secretariat’s assessment is that Requirement 7.3 is fully met, as for the previous Validation. Togo EITI has advanced in pinpointing and addressing the causes of information gaps or discrepancies in EITI implementation and has made progress in responding to the Independent Administrator's recommendations. Mechanisms within the MSG to monitor recommendations and discrepancies are in place and operational. In particular, the 2021-2025 action plan makes clear reference to the follow-up of recommendations and has formulated actions in the work plan based on their tracking of the status of recommendations from the Validation and previous EITI Reports. Stakeholders consulted and the Outcome and Impact template of this Validation indicate that the objective is nearly achieved, while the supporting documentation indicates rather that the requirement is fully met. The MSG, supported by the Togo EITI national secretariat, appears to function as the primary mechanism for tracking recommendations from EITI Reports and Validations. The 'Outcomes and Impact' template and the 2021 EITI Report set out the mechanism for identifying, investigating, and addressing gaps in EITI reporting, and the recommendations from thematic studies and EITI Reports, along with corrective actions. In particular, when preparing the multi-year work plan, EITI Togo has collected recommendations relating to EITI implementation and good governance in the extractive sector, analysed the recommendations of the second Validation report, the EITI reports and the report of the 2017 self-assessment workshop. Additionally, MSG meeting minutes reveal efforts to address implementation gaps following the publication of previous EITI Reports, including meetings with key government agencies and departments. The 2021 EITI Report features a table listing 21 recommendations and their progress. Nine recommendations remain unaddressed, nine are in progress, and two have been fully implemented. A central recommendation from the 2023-2024 work plan and MSG meetings emphasises capacity building for stakeholders, particularly MSG members, civil society from national and local communities, and civil servants. However, little progress has been made in significant implementation areas, such as contract disclosure, cadastre efficiency, beneficial ownership, or gender. While Togo's five-year action plan acknowledges the need to implement recommendations, concrete activities are lacking in the last annual work plan.

The International Secretariat’s assessment is that Requirement 7.4 is mostly met, representing a regression from the previous Validation. While the Multi-Stakeholder Group (MSG) had previously maintained a consistent practice of publishing annual progress reports (APRs), this practice has not been continued for 2022 and 2023. Consequently, the Secretariat considers that the objective is only mostly achieved. In its response to the draft assessment, the MSG noted that it had in the meantime published the 2022 progress report and that the submission of the outcomes and impact template for the Validation covered 2023. While the International Secretariat welcomes the comprehensive review of activities and expenditures for 2022, it notes that the MSG has not yet reviewed the outcomes and impact of its activities against the objectives set in the 2023 work plan. The Togo EITI website contains nine annual progress reports (2013-2022). The 2022 and 2023 APR are noted in preparation for the last annual work plan (see activity 4.6). The latest Annual Progress Report, covering 2022, includes a section on the assessment of the implementation of the 2022 work plan, identifies the strengths and weaknesses of the implementation of the EITI Standard in Togo and documents the progress made in following up on the corrective measures arising from Togo's second Validation (see Annex 1, pp. 30). This report also provides a summary of EITI activities in 2022, developed as part of the 2021-2025 Action Plan. This more thorough progress report and reflection seems to have been elaborated in connection with the preparation of the 2021-2025 work plan. Stakeholders beyond the MSG appear to have been consulted regarding the outcomes and impact of the EITI ahead of the preparation of the 2021 Annual Progress Report, as outlined in section 3.2 of the report. Civil society stakeholders confirmed their involvement in preparing the 2021 APR. EITI implementation, progress towards objectives, reflection on whether the activities achieved the desired outcomes, and consideration of the changing context (sector and political environment) must be revisited annually to ensure the EITI remains an effective intervention in the national context. Hence EITI Togo should build on its existing practice, link it with follow-up on recommendations and note the lessons learned. For 2022 it remains unclear if all constituencies provided input to the annual review of progress. By November 2024, the MSG had not yet published a review of progress and reflection of impact for 2023.

The International Secretariat’s assessment is that Requirement 1.1 is mostly met, which is a regression from the previous Validation. The objective of ensuring a full, active and effective government lead, through both high-level political leadership and operational engagement, is mostly fulfilled. Consulted stakeholders considered that there was room for the government to demonstrate more engagement in terms of funding. The International Secretariat found that the low and unchanged level of funding and the lack of support in solving issues regarding implementation are barriers for the objective to be fully met. Implementation in Togo is overseen by two EITI entities: the National Supervision Council (CNS) and the Steering Committee (CP). The Prime Minister is the head of the CNS, which is composed of several ministers, representatives from companies and civil society. The CNS’s mission is to establish the political and strategic orientations of the EITI implementation in the country. Although it is supposed to meet twice a year by decree, only one meeting was noted for the period under review, on 28 December 2023. However, the stakeholders consulted did not see this lack of meetings as a lack of commitment on the part of the government, as they felt that the CP was effectively fulfilling the role of the CNS. The CP is considered in Togo as the multi-stakeholder group. The MSG Chair is the Minister of Energy and Mines. Appointed in 2020, she has regularly led the CP meetings during the period under review. According to stakeholders, the Minister shares regular reports on the progress of EITI implementation with the Prime Minister. Senior government individuals from various ministries and government agencies compose the government constituency of the CP and some of them, from the mining, environmental or revenue authorities, have taken part in regional outreach activities. There is little evidence that government agencies use EITI data. Similarly, there is no clear evidence of public declarations of support for the EITI by high-level political leadership in recent years. In its response to the draft Validation report, the MSG notes that the Prime Minister had made a statement in support of the EITI at the last NSC meeting on 28 December 2023 in Lomé, which was televised in December 2023 and therefore considers that the score merits improvement. While the Secretariat recognises the continuity of the government's commitment through the meeting of the National Supervisory Council at the end of December 2023, it maintains that the objective has largely been met in the absence of concrete operational developments, as noted below. At the operational level, the financial support that the government provides to the EITI implementation has not increased during the period under review. The government only covers 15% of the implementation budget. Government sources indicated during consultations that there are ongoing discussions to increase the amount of financial support from the government. Furthermore, EITI implementation requires government officials and leadership to resolve some constraints on public disclosure of information. These include the audited financial statements of the state-owned enterprise SNPT, the reasons for the non-renewal of SNPT's mining permit, the closure of the Directorate-General for Geology and Mines' website, and the beneficial ownership registry.

The International Secretariat’s assessment is that Requirement 1.2 is fully met, as in the previous Validation. The objective to ensure that extractive companies are fully, actively and effectively engaged in the EITI, both in terms of disclosures and participation in the work of the MSG, and that the government ensures an enabling environment, is fully met. Stakeholder consultations and available documentation indicate that the objective has been fully met despite varying engagement levels from extractive companies. Representation of companies to the MSG reflects the structure of the extractive sector in Togo: The hydrocarbons, phosphates, limestone, iron and marble sectors have two representatives; the precious minerals and water sectors have two representatives; the building materials sector has one representative; and the Professional Association of Extractive Industries in Togo (APIET) has one representative. In practice, three out of the five companies within the scope of the 2021 report are part of the industry constituency: the state-owned Société Nouvelle des Phosphates du Togo (SNPT), WACEM and Société Togolaise des Eaux (TdE). Industry representatives have raised no obstacles to participating in the EITI process and indicated that they participate fully, actively and effectively. Additionally, all five companies in the scope of the report have participated in reporting by submitting their data templates. The participation of the industry constituency in MSG meetings is generally high, especially for state-owned enterprises. All companies within the scope of the 2021 report have provided their declaration template.

The International Secretariat’s assessment is that Requirement 1.3 is fully met, as in the previous Validation. This requirement aims to ensure full, active, and effective engagement of civil society in the EITI process, leveraging transparency for enhanced accountability and better governance of natural resources. Stakeholders within the MSG, including civil society, view this objective as fulfilled and civil society as highly engaged. Stakeholder consultations and documentation review the Secretariat found very uneven levels of engagement of constituency representatives in the EITI process. While the International Secretariat has not identified a breach of the Protocol: Participation of civil society2 developments under the period under review (2020-2024) raise concerns about the enabling environment for civil society members engaged in EITI implementation to raise sensitive issues. Some civil society members voiced concerns about tightening civic space but noted that this has had no effect on their involvement on speaking on the governance of extractive resources. The MSG is strongly encouraged to actively monitor the environment for civil society participation in extractive industry governance to ensure it remains safeguarded. In terms of engagement in EITI implementation, civil society capacity needs strengthening to allow more meaningful contributions of all constituency members of the MSG. Composition and nomination procedures: The civil society nomination procedures are detailed in the assessment of Requirement 1.4. On composition, the National Supervision Committee includes one full member and one alternate member from civil society while the Steering Committee has seven full members and seven alternates, representing various CSOs, state-owned media, private media, the National Assembly, and trade unions. The Decree institutionalising EITI Togo does not provide term limits for the members of the civil society constituency, but the nomination ruling dating 2020 has set three-year terms. It is civil society, during a meeting for the preparation of the renewal in 2019 that has determined that the terms are non-renewable for civil society representatives. According to the documentation available, most of the members of the CSO constituency are recent members and joined in 2020, except one member who joined in 2012. In its comments on the draft Validation report, the MSG explained that no member of civil society or of the other colleges of the MSG had served more than one term plus one additional year, and that there had been an error in filling in the declaration forms and in the consultations concerning the 2012 date. Civic space general context: Several international civil society organisations share the view that the broader environment for civil society is restricted. Freedom House ranks Togo as ‘partly free’, with the rating remaining relatively stable between 2019 and 20243 citing laws restricting press and assembly freedoms. Civicus considers Togo ‘repressed’ due to similar concerns, a worsening from ‘obstructed’ which was the status during the previous Validation. In desk research and consultations, the International Secretariat could not find identify any evidence that the relatively closed civic space affected civil society stakeholders engaged in the EITI process. Expression: Although freedom of the press is constitutionally guaranteed, its enforcement is inconsistent. Restrictive press laws may contribute to media self-censorship. Some civil society stakeholders noted that they may choose to speak on sensitive issues, mainly politically related but not pertaining to the extractive industries, through publications abroad through foreign journalists, to protect themselves from local prosecutions. Press laws typically protect journalists, but publishing on social media can result in imprisonment if sued. According to international reports, Togolese journalists were targeted by Pegasus spyware in 2021 with no evidence indicating whether this spying has ceased. International organisations have reported media suspensions and trials against journalists. Various stakeholders interviewed indicated that the defamation prosecutions against journalists were not related to the governance of extractive resources. Stakeholders confirmed that trials originate from defamation that is neither related to the EITI implementation nor the governance of natural resources in Togo. There is no evidence of any critical views towards the government and extractive companies, either through the MSG or in the public sphere, that civil society has expressed, but consulted CSOs within and beyond the MSG reported they can express their views on extractive sector governance freely and without reprisal. They cited the fact that civil society leads an anti-corruption project and advocates for community rights. In its submission to the International Secretariat in the self-assessment on ‘expression’ remained empty. There seem to have been no follow-up by civil society on allegations of corruption that were published in 2017 through the Panama papers on the phosphate trade4. In its comments to the draft report, the MSG reiterated that discussions related to the extractives sector and the EITI process have not been impacted by the above-described developments. Operation: Although the Constitution guarantees freedom of assembly, several laws limit it. Police occasionally use deadly force to disperse gatherings, and there are penalties for unapproved protests. In 2019, the parliament imposed additional restrictions on protests. In early 2024, Amnesty International highlighted bans on CSO and political party meetings opposing constitutional changes. No protests, however, were linked to the governance of extractive resources. While stakeholders did not raise any issue or mention any barrier to CSO registration or access to foreign funding, they noted a decree requiring NGOs to align activities with government priorities and notify local officials, raising concerns within civil society. For CSOs involved in the EITI, however, these added requests for documentation do not constitute a hindrance to EITI participation. Association: Freedom of association is constitutionally guaranteed. CSOs communicate and cooperate regarding the EITI process, with room for increased consultation beyond the MSG. Togo’s civil society initiated a WhatsApp platform for EITI and extractive sector information (‘Information forum on EITI and the extractive sector’), engaging freely with communities in dissemination efforts. Civil society members have not expressed concerns over their ability to communicate with each other in relation to the possible use by the government of the Pegasus spyware. Engagement: CSOs are engaged in the EITI process, contributing valuable input and advocacy, while admitting that they are limited in their activities by financial capacities. They participate in MSG meetings, working groups, and other outreach activities, encountering no significant obstacles. Consulted CSOs have indicated that the interests of civil society are reflected in EITI implementation, including the EITI work plan objectives and activities, the scope of the EITI reporting process, the annual review of outcomes and impact, Validation, and other relevant issues. CSOs took part in an anti-corruption project and a Datathon, unveiling infographics on company voluntary social payments and participated in different dissemination and consultation events. Despite occasional non-attendance by some representatives, civil society remains actively involved in MSG meetings. However, except for report dissemination and the anti-corruption project, there is little evidence of civil society organising or taking part to public debates on EITI data and other topics related to the governance of natural resources. Additionally, while one CSO in charge of implementing the anti-corruption project seems very active on the project, there is no evidence of data use or public debate activities undertaken by the other members of the civil society constituency, within or beyond the MSG. Access to public decision-making: CSOs engaged in the EITI undertake advocacy activities related to extractive sector governance, including community rights in one particular village or the anti-corruption project, which has seen the participation of entities like the CENTIF (anti-money laundering agency) or the RCCM (trade and personal property credit register). However, there is room for more advocacy on issues like the environmental impact of phosphate, sand production and other topics related to the governance of natural resources, using data from EITI Reports.

The International Secretariat’s assessment is that Requirement 1.4 is mostly met, as in the previous Validation. The objective of this requirement is to ensure an independent MSG that can exercise active and meaningful oversight of all aspects of EITI implementation, balancing the interests of the three main constituencies consensually. As a precondition for achieving this objective, the MSG must include adequate representation of key stakeholders appointed based on open, fair and transparent constituency procedures, inclusively make decisions and report to wider constituencies. Stakeholders believe this objective is fully met. The Secretariat found the incomplete terms of reference, particularly the lack of provisions on required approvals from the MSG, the deviations in the MSG’s terms of reference regarding the oversight by the CNS, and the lack of clarity on the allowances (per diem) policy. Hence it is of the view that the underlying objective is not yet fully met. Composition, appointment process and attendance of MSG members: The Decree 2010-024/PR provides the composition of the MSG. An additional document dated 2015, approved by all parties, clearly explains the procedures for renewing MSG membership within each constituency. Nomination procedures for industry clearly describe the criteria for the designation of the representatives and the minutes of the corresponding designation meeting demonstrate large outreach and consensual decisions. The civil society nomination procedures clearly outline criteria for selecting representatives. Meeting minutes demonstrate broad outreach and consensual decisions, with agreed criteria ensuring adequate technical participation. Civil society organisations outside the MSG confirmed the nomination process was open, with the national secretariat issuing a public call for interest. Documentation and stakeholder consultations indicate that the MSG functions effectively. Invitations to participate in the MSG were open and transparent, with the last membership renewal in 2019. Minutes from constituency meetings confirm that procedures were followed during the 2019 renewal. Although a renewal was planned for 2023, the MSG agreed to extend the current members' terms until the end of the Validation process. No stakeholder has reported any coercion in the nomination process. Consultations suggest that MSG members can speak freely at meetings and raise issues for discussion. Independence of civil society, capacity of members, compliance with the Code of conduct and decision-making: Stakeholders have not reported any conflict of interest that might compromise the independence of civil society from other constituencies. There is no evidence or allegation of EITI Code of Conduct breaches by any MSG stakeholders. Decisions made during meetings were generally reached by consensus. Compliance with the MSG’s terms of reference: Decree 2010-024/PR and the internal rules (‘Réglement intérieur’) of the EITI outline the role and responsibilities of the MSG. However, the documentation lacks specifics on the MSG’s mandate for approving annual work plans, appointing the Independent Administrator, and establishing the corresponding terms of reference. As mentioned in the assessment of Requirement 1.1, the National Supervision Council should meet once a year according to the Decree, but only met once during the period 2019-2023. While some stakeholders considered that the Steering Committee fulfilled the CNS’ role during the period, there is no evidence that the work of assessing the impact of EITI implementation on sustainable development and poverty reduction, which is the responsibility of the CNS according to the Decree, has been carried out by the Steering Committee. In practice, the MSG (i.e. the Steering Committee) oversees the production of EITI Reports, approves work plans and other documents, organises outreach and training events, and follows up on recommendations. Meetings are held regularly with adequate advance notice, and discussions and decisions are documented in minutes published on the Togo EITI website. All constituencies actively contributed to preparing documentation for this Validation, supported by the national secretariat. The abovementioned decree specifies that roles within the National Supervisory Committee and the Steering Committee are unpaid. However, consultations revealed uncertainty about whether meeting allowances are paid in practice, as no per diem policy is published on the Togo EITI website. Stakeholders from all constituencies reported having processes in place to communicate with their constituency groups. In its comments on the draft Validation Report, the MSG indicated that draft provisions to formalise the per diem policy have been prepared and are awaiting signature. It also indicated that the CNS resumed its annual meetings on 28 December 2023. The draft minutes of the CNS meeting were published on the EITI-Togo website. The meeting was also reported on the Télévision Togolaise (TVT) news programme. Although the Secretariat considers these elements to be a positive development, it believes that the review of the multi-stakeholder group's terms of reference still needs to be formalised and put into practice, and therefore maintains that the objective has mostly been met for the time being.

The International Secretariat’s assessment is that Requirement 3.1 is fully met, as in the previous Validation. This requirement aims to ensure public access to an overview of the extractive sector and its potential, including recent, ongoing, and planned significant exploration activities. Based on available disclosures and stakeholder views, the Secretariat considers Requirement 3.1 to be fully met. Stakeholders did not express specific views on progress toward transparency in extractive deposits and exploration activities. Despite limited systematic disclosure of exploration activities, Togo’s EITI Report provides an overview of the extractive industries, including major deposits, companies engaged in the sector, ongoing exploration activities, data on reserves, and artisanal and small-scale mining. On ASM, the EITI report provides data on the number of sites with ASM authorisation, provides the link to a mapping of ASM illegal sites and mentions the different reports on ASM prepared with the support of the World Bank project PDSM, including a mapping of informal mining sites published in 2022.

The International Secretariat’s assessment is that Requirement 6.3 is fully met, as in the previous Validation. This requirement aims to ensure public understanding of the extractive industries’ contribution to the national economy and the level of natural resource dependency. Stakeholders and available documentation confirm that this objective has been fulfilled. Togo’s 2021 EITI Report details the extractive industries’ GDP contribution (in nominal and percentage terms), which is 1.4% based on Togo’s balance of payments. According to EITI reporting, using data from the Central Bank of West African States (BCEAO), the extractive sector contributed 13.54% of total exports in 2021. However, discussions with stakeholders revealed this percentage includes the re-export of oil products, which are not extractive products. Without these, the contribution drops to 9.88%. In 2021, phosphate exports contributed 6.55% to total exports. The report also provides the contribution of the extractive revenues to total government revenues (2.54% in 2021). Additionally, the report indicates the regions where production and commercialisation are concentrated. The 2021 EITI Report, using data from the National Institute for Statistics and Economic Studies (INSEED), discloses that 1.4% of employed persons work in the extractive sector, with a gender breakdown of 92% male and 8% female. While the total number of people employed in the extractive sector is not provided, the five reporting companies disclosed their total number of employees, disaggregated by gender but not by professional level. Although there is no estimate of the informal sector or artisanal and small-scale mining (ASM), the 2021 EITI Report includes a section on the importance of the artisanal mining sector. It partially cites a 2019 INSEED study indicating the number of ASM economic units (1,621).

The International Secretariat’s assessment is that Requirement 2.1 is fully met, as in the previous Validation. This requirement aims to ensure public understanding of all aspects of the regulatory framework for the extractive industries, encompassing the legal framework, fiscal regime, roles of government entities, and reforms. Available documentation and stakeholder consultations confirm that this objective has been achieved. EITI reporting includes a comprehensive list of laws and taxes applicable to Togo’s extractive sector and a description thereof. The Report also details various types of licenses and settlement agreements, along with explanations of the roles and responsibilities of government agencies. Recent revenue management and taxation by the government are documented. Upcoming reforms are not mentioned. This is encouraged. However, given that the government announced plans to modernise its oil and gas legislation, EITI could ensure that the key plans are captured, and the MSG is consulted in those efforts, to ensure alignment with the EITI’s principles and requirements.

The International Secretariat’s assessment is that Requirement 2.4 is mostly met. The objective of this requirement is to ensure the public accessibility of all licenses and contracts underpinning extractive activities (from 2021 onwards) as a basis for the public’s understanding of the contractual rights and obligations of companies operating in the country’s extractive industries. Available documentation and stakeholder consultations indicated that this objective is mostly met. There is no inventory of all active licenses, corresponding contracts including the dates of amendments and existence of annexes, and indication of where those documents can be found. It seems that all active contracts are published on a website platform which is no longer maintained, which raises doubts about the comprehensiveness and reliability of current and future disclosures. There is no evidence of the MSG reviewing contracts, which would aid the fulfilment of the objective of this requirement. There are no active petroleum licenses, which implies the non-applicability of disclosures of licenses and contracts for oil, as confirmed in the MSG comments to this draft assessment. According to the 2021 Togo EITI Report, transparency legislation from 2014 mandates the disclosure of contracts, particularly for natural resource investment contracts in the mining sector. In practice, however, reporting and stakeholder feedback confirm that only four contracts have been signed between the government and companies (since only mining investment projects considered important for the national interest are subject to a contract). These contracts, all signed before 2021 and involving MM Mining, WACEM, SCANTOGO Mining, and POMAR SA, are published on the Mining Governance Development Project’s (PDGM’s) website. Stakeholders from the government confirmed during consultations that there were no amendments to contracts since the last Validation. However, annexes are not comprehensively disclosed. There is no contract inventory available outlining the active contracts, annexes, amendments and status of publication, link to publications. Mining licences, including those for artisanal activities, are also available on this site,6 though it has not been updated since November 2022. During Validation, the Directorate-General of Geology and Mines (DGMG) website, was inaccessible. No list of all active licenses, indicating which are publicly available and which are not, is available. Additionally, the online National Gazette (official journal) does not include rulings (“arrêtés”) on mining licenses. In the oil sector, reporting indicates no specific Code of Hydrocarbons provision regarding contract transparency. According to stakeholders, although the Transparency Act 2014 in theory requires disclosure of contracts, it does not apply to the oil and gas sectors due to the absence of active licenses in these areas. In its comments on the draft Validation report, the Multi-Stakeholder Group reiterates the International Secretariat's assessment, noting that no contracts or licences have been signed, granted or transferred in the oil and gas sector. It confirms that the lack of publication of oil contracts is not due to a lack of specific provisions in the Hydrocarbons Code on transparency, but simply to the absence of contracts or licences in this sector.

The International Secretariat’s assessment is that Requirement 6.4 remains not assessed, given that several encouraged aspects of this requirement remain to be addressed by Togo EITI. A 2019 Global environmental impact study by the PDGM reviewed literature and gathered expert opinions on the state of mining in Togo. The study focused on the major challenges facing the sector and the environmental impact of mining. It also surveyed a representative sample of local populations near mining sites to assess their exposure to environmental impact. The EITI Report does not contain information on how the environmental impact of extractive projects is managed and monitored. It does not detail legal, regulatory, and administrative provisions related to environmental management and monitoring of extractive investment projects in Togo. Civil society stakeholders noted during consultations that environmental impact mitigation is a key concern to them.

The International Secretariat’s assessment is that Requirement 2.2 is mostly met, which represents backsliding since the previous Validation. The objective of this requirement is to provide a public overview of awards and transfers of oil, gas and mining licenses, the statutory procedures for license awards and transfers and whether these procedures are followed in practice. This allows stakeholders to identify and address possible weaknesses in the license allocation process. Stakeholders consider that this requirement is fully met. However, available documentation and stakeholder consultations indicate that this objective is mostly fulfilled as several disclosures are lacking, such as an assessment of non-trivial deviations from the statutory procedures and comments on the efficiency of the license allocation process, which is encouraged. For the mining sector, Togo’s 2021 EITI Report details the process for awarding and transferring mining licenses, which operates on a "first-come first-served" basis. The Report outlines the required documents for applications and the roles of government agencies. Together with stakeholder feedback, it confirms that no competitive bidding occurs in Togo, and license criteria are determined based on applicant submission assessments by the Ministry of Mines and Energy. We understand that technical and financial capacity are not assessed for transfers. In its comments to the draft report, the MSG noted that the same criteria are applied as for the application of a license. The Report lists permit awards and active authorisations for artisanal mining activities, with no transfers reported during the review period. However, an analysis of the efficiency of the license allocation process is lacking in available documentation, which is encouraged, and there is no evidence of an assessment of significant deviations from statutory procedures. Notably, the cadastre reveals that SNPT's permit expired in 2017 and remains unrenewed, despite ongoing operations by the state-owned enterprise. Stakeholders could not provide reasons for this six-year delay. In its comments to the draft report, the MSG notes that the Ministry of Mines reviews the technical and financial criteria necessary to request a license, as outlined in Article 6 of the mining code. In the oil sector, the Report notes that while the Hydrocarbons Code lacks detailed licensing procedures or award criteria, it stipulates that transfers require Ministry authorisation. Stakeholders confirm no hydrocarbon licenses were awarded or transferred in 2021.

The Secretariat’s assessment is that Requirement 2.3 is mostly met which is a regression since the previous Validation. The objective of this requirement is to ensure the public accessibility of comprehensive information on property rights related to extractive deposits and projects. Available documentation and stakeholder consultations indicate that Togo has not yet fully met the objective, given that several application dates for licenses held by material companies are missing, and have their status set as “under renewal,” such as the two production licenses held by the SOE SNPT. Togo’s online mining cadastre contains the material license and contract holders except for WACEM, a material company that was producing in the year under review. Details include the license holder's name, extracted commodities, award and expiry dates, and geographic coordinates. Government stakeholders indicated that the mining cadastre is updated regularly, particularly regarding mining licenses, to ensure comprehensiveness. Some minor application dates seem to be missing for older licenses. In addition, despite continuous activities, the two licenses held by SNPT are marked “under renewal” since 2017, a status that has not been updated since the conclusion of the second Validation of Togo. Stakeholders were of the view that the lack of clarity of the license status of the largest license holder in the extractive sector, the SOE SNPT, represented a weakness for the comprehensiveness of information related to the register of license. One material company, WACEM, is not recorded in the cadastre. For quarrying, five licenses were allocated in the period under review. Those are recorded in the online registry, however, some of those have expired in the meantime and remain marked as ‘valid’.7 This raises questions on the accuracy of the information being displayed and the management of the licenses. Togo has not oil and gas cadastre and not active licenses. In its comments to the draft report the MSG noted that the online mining cadastre had been updated. A review of the International Secretariat found that the gaps identified above still remain, hence the assessment is maintained at mostly met.

The International Secretariat’s assessment is that Requirement 2.5 is partly met. Stakeholder consultations and document reviews indicate that the objective of publicly disclosing ownership and control of companies in Togo's mining sector has not been fully achieved. The MSG has not adequately identified high-risk companies or assessed the reliability and comprehensiveness of beneficial ownership data. Although there has been recent progress in disclosing beneficial owners of mining companies, significant aspects of the requirement remain unmet, and effective disclosures are lacking. Government stakeholders expressed confidence in data collection progress, while civil society did not provide specific views on this requirement. The MSG has established an appropriate (publicly available) definition of the term “beneficial owner” aligned with Requirement 2.5.f.i, incorporating international norms and relevant national laws. However, the implementing decree does not mention politically exposed persons (PEPs), and it is unclear whether the OTR has effectively collected any beneficial ownership data, as indicated in government stakeholder consultations. The available information does not confirm consistent reporting of beneficial ownership information to the register by mining companies applying for licenses or holding material licenses. There is no evidence of a risk analysis conducted on material companies or companies holding licenses, despite red flags identified through the Panama Papers. The comprehensiveness of legal ownership data is uncertain, and verification against the legal owners published separately in an undated dataset (published February 2023) could not be completed due to the RCCM website's malfunctioning. In its comments on the draft Validation report, the MSG considers that this requirement is mostly met. The MSG considers that progress has been made on the application of Requirement 2.5, in particular the adoption of a new definition of beneficial owner and the adoption of a definition of Politically Exposed Person. The International Secretariat considers that the adoption of a definition of beneficial owner has already been taken into account in its assessment, but that the shortcomings mentioned above prevent an assessment higher than "Partly met”. For further details on technical criteria and effectiveness, refer to the previous section and the transparency template.

The International Secretariat’s assessment is that Requirement 2.6 is mostly met, which is a regression from the previous Validation. Stakeholders consulted broadly praised the transparency of the main SOE engaged in extractive, SNPT. The objective of this requirement is to ensure the effective mechanism for transparency and accountability for well-governed SOEs and state participation more broadly through a public understanding of whether SOEs’ management is undertaken in accordance with the relevant regulatory framework. Based on available disclosures and stakeholder views, the Secretariat concludes that the objective is only mostly fulfilled due to the lack of information on the rules and practices governing fund transfers between SOEs and the state, and the non-publication of SNPT's audited financial statements since the previous Validation. The 2021 EITI Report identifies two material SOEs for the year under review, SNPT and TdE, respectively engaged in the phosphates and groundwater extraction. According to Togo’s 2021 EITI Report, the state holds a 10% free carried interest in the share capital of operating companies, except for artisanal activities and construction materials. The report lists 13 mining companies with state participation in Togo, comprising five large-scale mining projects and eight small-scale mining companies. SNPT (Société Nouvelle des Phosphates du Togo) is the only fully state-owned mining company in Togo. The report also includes a fully state-owned groundwater extraction company, the Togolaise des Eaux (TdE). Both companies made significant payments to the government during the review period. The report, confirmed by stakeholders, indicates that the state has no participation in the oil sector. The report mentions the role of the SOEs within its scope, noting that state approval is required for specific operations such as taking out loans, acquiring or selling buildings, and signing contracts with third parties where a conflict of interest may arise. However, it does not address the rules and practices governing fund transfers between SOEs and the state, retained earnings, reinvestment, or those related to SOE joint ventures and subsidiaries. Neither companies nor the government reported loans or loan guarantees to SOEs. Audited Financial Statements for several extractive companies are available on the PDGM website, but they do not cover the year 2019 and onwards. As noted previously, PDGM is no longer updated. Neither the audited financial statements of SNPT nor TdE are publicly available, and the rules and practices related to SOEs’ operating and capital expenditures, procurement, subcontracting and corporate governance were not disclosed. It should be noted that these aspects are encouraged, and not required by the 2019 EITI Standard. However, the lack of publication of these details is a regression from the previous practice.

The International Secretariat’s assessment is that Requirement 4.2 is not applicable, as in the previous Validation. The objective of this requirement is to ensure transparency in the sale of in-kind revenues of minerals, oil and gas to allow the public to assess whether the values correspond to market values and to ensure the traceability of the proceeds from the sale of those commodities to the national treasury. Based on the 2021 EITI Report and confirmed by stakeholders, the state did not receive any in-kind revenues, either directly or through an SOE in the period under review. However, SNPT used to disclose its sales of phosphate in previous EITI reporting cycles. Those sales represent a significant part of the mining sector and economy since Togo’s mining sector mainly revolves around phosphate. SNPT has by far the most significant production value in 2021 (estimated at USD 121 million, the equivalent of USD 37 per tonne according to the EITI Report). EITI Togo could improve the transparency on the valuation of phosphate by resuming to disclose phosphate sales.

The International Secretariat’s assessment is that Requirement 4.5 is mostly met, which is a regression from the previous Validation. The objective of this requirement is to ensure the traceability of payments and transfers involving SOEs and strengthen public understanding of whether revenues accruable to the state are effectively transferred to the state and of the level of state financial support for SOEs. It is partly fulfilled only as the lack of published financial statements prevents any analysis of such transactions. The lack of information in the EITI Report on government transfers to SOEs combined with the unavailability of audited financial statements of the SNPT and the TdE represents a weakness in SOE disclosures, highlighted by several stakeholders during consultations. SOEs did not collect material extractive revenues during the review period. The SOE Togolaise des Eaux (TdE) began collecting revenue from water usage by companies in 2022. While the EITI Report notes that TdE retains this revenue stream, stakeholders indicated during consultations that it will be fully transferred to the treasury. Regarding transfers from SOEs to the government, they have been disclosed under Requirement 4.1. The government did not receive dividends from the two SOEs in 2021. Regarding the transfers from the government to SOEs, while the consultations revealed that the SNPT benefited from state-owned buildings without paying rent for several years, the lack of publicly available audited financial statements prevents confirmation or analysis of such transfers or subsidies from the government to the SNPT.

The International Secretariat’s assessment is that Requirement 6.2 is not applicable, as in the previous Validation, due to the lack of evidence of any quasi-fiscal expenditures. The objective of this requirement is that where SOEs undertake extractive-funded expenditures on behalf of the government that are not reflected in the national budget, these are disclosed to ensure accountability in their management. Although there is little evidence that the MSG has discussed and agreed on a definition of quasi-fiscal expenditures or a reporting process for their eventual disclosure, Togo’s 2021 EITI report and stakeholder consultations indicated that Togolese SOEs did not report any quasi-fiscal expenditures. This was confirmed by the Independent Administrator, who had access to TdE’s unpublished audited financial statements (but not SNPT). The International Secretariat recommends the MSG assess whether the sales price for phosphates for national agriculture aligns with market prices or constitutes a quasi-fiscal expenditure.

The International Secretariat’s assessment is that Requirement 3.2 is fully met, as in the previous Validation. The Secretariat’s view is that the objective of ensuring public understanding of extractive commodities production levels and their valuation is fulfilled, given Togo’s use of its EITI reporting to provide information on mineral production, including estimates of artisanal and small-scale mining production. Consulted stakeholders did not express any views on progress towards this objective. There are no systematic disclosures of mineral production data at present, either on the DGMG website or elsewhere. The 2021 EITI Report provides mineral production volumes and values for phosphates, limestone, and several other commodities used for construction. Togo also covers groundwater extraction in its EITI Report. The production volume and values are disaggregated per commodity and company and include non-material companies’ production. The latest study on artisanal and small-scale mining (ASM), supported by the World Bank, dates from 2019. In the same year, a mapping of artisanal mining sites and clandestine quarries was produced with the support of the World Bank, focusing largely on employment and income generated by the sub-sector, and including production values of small-scale mining in the country, but no estimates of volumes.

The International Secretariat’s assessment is that Requirement 3.3 is mostly met, representing a regression since the previous Validation. The Secretariat’s view is that the objective of ensuring public understanding of extractive commodities export levels and the valuation is not yet fully fulfilled, given the lack of clarity on Togo’s gold exports. Consulted stakeholders did not express any views on progress towards this objective. While the export volumes and values from industrial mining are disclosed and reconciled in the 2021 EITI Report, the absence of estimates of smuggling supports the Secretariat’s view that the objective of ensuring public understanding of extractive commodities export levels is only mostly fulfilled. The DGMG confirmed during consultations that very little gold is produced in Togo through the artisanal sector, yet gold exports from Togo vary annually between 10 and 25 tonnes11. The absence of an estimate or a discussion of informal mineral exports as part of EITI implementation means that the necessary data to address issues related to exports is not available. Consequently, the objective is considered to be mostly met. In its comments on the draft Validation report, the MSG indicated that the marketing of gold and precious metals is no longer part of the scope of EITI reporting since the gold trading desks (‘comptoires’) were closed in Togo in 2018, and therefore considers that there is no basis for including gold and precious metals exports in EITI reporting. However, the subject of informal gold exports in relation to other countries in the region remains an important issue in terms of resource mobilisation for Togo and identifying governance weaknesses. In addition, the lack of information on actual exports from the informal extractive sector, particularly gold, represents a weakness in terms of the underlying objective of Requirement 3.3.

The International Secretariat’s assessment is that Requirement 4.1 is fully met, as in the previous Validation. Most consulted stakeholders seemed satisfied with the country's EITI reporting coverage regarding companies and revenues. The Secretariat considers that the overall objective is fully met despite some weaknesses in the scoping of reporting companies and revenue flows. There is also room to strengthen the systematic disclosure of payments and revenues by the government and companies. The 2021 EITI Report provides comprehensive disclosures of government revenues from the extractive sector and a positive assessment of the comprehensiveness and reliability of these disclosures. In its comments to the draft assessment, the MSG noted that it follows the conventional process for EITI reconciliation. Material government entities, revenue streams, and companies are identified, and the materiality threshold discussions are documented in the EITI Report. The national secretariat undertook the scoping phase and used the thresholds from the previous (2020) EITI Report to map the revenue streams and reporting companies. While this approach could have led to the omission of material revenue streams or companies, the IA and other stakeholders confirmed that material omissions were highly unlikely due to the small size of the sector. All reporting entities provided their reporting templates, and full government disclosure (including nonmaterial revenues) disaggregated by revenue stream, company, and government agency. Audited financial statements are publicly available for 25% of the material companies (3 out of 5). While the 2021 EITI Report contains a review of the audit status of significant companies, not all audited financial statements of extractive companies are accessible to the public.

The International Secretariat’s assessment is that Requirement 4.3 is not applicable in Togo. According to the EITI Report and data reviewed during this Validation, no active infrastructure provisions or barter arrangements were reported or identified during the period under review.

The International Secretariat’s assessment is that Requirement 4.4 remains not applicable in Togo. According to the EITI Report and data reviewed during this Validation, no government revenues from the transportation of minerals were reported or identified during the period under review.

The International Secretariat’s assessment is that Requirement 4.7, which aims to enable the public to assess the extent to which the government can monitor its revenues as defined by its fiscal framework and ensure that the government receives what it should from each extractive project, is mostly met. This is due to the lack of disaggregation of project-level payments from companies holding multiple projects. Financial data in the 2021 EITI Report is adequately disaggregated by government agency, company, and revenue stream. The MSG has approved a definition of ’project’ for the mining sector in September 2024. However, the EITI Report does not include a list of revenues levied on a project basis and notes that revenue data could not be disclosed at the project level. Several government agencies (CI, CDDI, DGMG) are responsible for collecting all revenue flows, but none have included project-level disaggregation in their disclosures. In practice, the five material companies (SNPT, Scantogo, WACEM, Midnight Sun and TdE) reported their tax and non-tax payments disaggregated by revenue stream, but not by project for the fiscal year 2021. However, material mining companies such as SNPT and ScanTogo hold at least two licenses each. It is unclear if these companies did not make payments for their production licenses or if the share of the project-based payments has not been reported in a disaggregated manner. Substantially interconnected or overarching mining licenses have not yet been documented.

The International Secretariat’s assessment is that Requirement 4.8 is fully met, as in the previous Validation. Although Togo has been suspended from February to June 2023 for the delay in the publication of its 2020 EITI Report, most stakeholders consulted considered that the objective of timely EITI disclosures to inform policy-making and public debate has been fulfilled. The Secretariat concurs but notes the potential for further improvements in the timeliness of EITI disclosures by increasingly relying on new systematic disclosures by the government. Delays in publishing the 2020 EITI Report led to a temporary suspension of Togo by the EITI Board in February 2023, although the suspension was lifted once the report was published in June 2023. Despite this delay, the subsequent EITI Report was published within the two-year timeframe mandated by Requirement 4.8, with the 2021 EITI Report released in December 2023. The MSG has consistently approved the reporting period and adopted cash-based accounting for EITI disclosures.

The International Secretariat’s assessment is that Requirement 4.9 is fully met, as in the previous Validation. Most MSG members consulted expressed satisfaction with the reliability of financial data disclosed in Togo EITI Reporting. Consulted stakeholders had mixed opinions on whether EITI strengthened routine government and company audit systems and practices, with some considering EITI recommendations focused more on the reporting process than on broader audit practices. However, it was noted that the data reported through EITI gained credibility from the work of the Independent Administrator. The only systematic disclosures related to data quality and assurances in Togo are found on the SAI (“Cour des comptes”) website, which only discloses annual reports up to 2021. Togo’s 2021 EITI Report appears to be based on a robust methodology for data quality and assurances. There is evidence that the MSG approved the reporting templates and quality assurances for EITI reporting by both material companies and government entities, and an overview of statutory audit procedures is provided in the EITI Report. In practice, all government agencies provided the agreed quality assurance for the year under review. Three out of five companies did not provide the agreed quality assurance for their reporting templates (22% of the total revenues, or 20% of the reconciliation). However, since the payments of these three companies were reconciled with government revenues subject to credible, independent audits applying international auditing standards, the 2021 EITI Report includes the IA’s assessment of the comprehensiveness and confirmed during consultations the reliability and comprehensiveness of the reconciled financial data. The total company payments matched government revenues at 99.89%. The 2021 EITI Report reviews audit and assurance procedures and practices in both government revenue-collecting entities and material extractive companies and sets out the methodology and results of the reconciliation. The EITI Report includes the IA’s clear assessment in line with its procedures. There is scope for Togo to expand its use of EITI reporting as a regular diagnostic of government revenue collecting systems and controls, as well as extractive companies’ practices, to formulate recommendations for broader reforms in government and company audit and assurance policies and practices.

The Secretariat’s assessment is that Requirement 5.1 is mostly met, a regression from the previous assessment. The underlying objective of this requirement is to ensure the traceability of extractive revenues to the national budget and the same level of transparency and accountability for extractive revenues not recorded in the national budget. The Secretariat believes that this objective has not yet been fulfilled, as payments collected from companies paid into a development fund are not reflected in EITI reporting. During consultations, stakeholders from companies and civil society noted the lack of extractive revenues’ traceability. The 2021 EITI Report states that while different government entities collect extractive industries (EI) cash revenues, they are all recorded in the national budget. There are no off-budget revenues. However, as noted in Requirement 6.1, consultations revealed a mandatory social contribution of 0.75% of company turnover for local development, enacted by decree no. 2017-023/PR based on the law of 5 May 2011 on the contribution of companies to local development. This has been reflected in the assessment of Requirement 4.1. This payment does not enter the national budget but is captured by a subaccount of the treasury according to government stakeholders. EITI reporting does not disclose the amount and disbursement of this payment to a fund managed by a committee, making it unclear how this payment is traced. Additionally, the EITI Report lists two types of royalties: mining royalties and royalties for quarrying and mining (table 32). Only the mining royalty is captured through EITI reporting and transferred to the treasury, with its amount recorded in the EITI Report. The quarrying and mining royalty is noted to be redistributed to the sub-national level, but this warrants clarification by the MSG. In its comments on the draft Validation report, the MSG noted that quarrying and mining royalties are a newly created local tax12 which could be considered as a direct subnational payment (see Requirement 4.6). The distribution key between the various local authorities is publicly available13, and the amounts paid by extractive companies are listed in the EITI 2021 Report. With regard to the contribution of 0.75% of turnover paid by companies, the MSG adds that as the newly created (in 2019) communes and their management committees for the mandatory social contribution fund began their activities in 2021, little information was available about the management of the fund. However, the International Secretariat notes that no new information on the payment of the contribution or its management has been made available since the publication of the EITI 2021 Report, which represents an obstacle to the underlying objective of requirement 5.1, on an issue of concern to local stakeholders in territories hosting extractive activities. Furthermore, there is no reference to international standards on revenue classification systems, such as the IMF Government Finance Statistics Manual, as encouraged by the EITI Standard.

The Secretariat’s assessment is that Requirement 5.3 remains not assessed, as several encouraged aspects of this requirement remain to be addressed by Togo EITI. The Secretariat considers the underlying objective - to strengthen public oversight of the management of extractive revenues, the use of these revenues to fund specific public expenditures, and the assumptions underlying the budget process - has not yet been fully met. The EITI Report notes that there are no earmarked revenues and includes a description of the country’s budget and audit processes. The Ministry of Finance has published a handbook for citizens on the 2022 budget (Loi des Finances 2022). However, it remains unclear if the mandatory social payments identified in consultations (see Requirements 6.1 and 5.1) are earmarked for specific programmes. Additionally, there is no information on projections for production, commodity prices, and revenue forecasts for extractive industry revenues. While the handbook reflects on some risks associated with the budget, it does not link these risks to the extractive sector context.

The International Secretariat’s assessment is that Requirement 4.6 is mostly met, a regression from the first Validation where it was fully met. Company stakeholders noted a lack of transparency on municipal taxes for companies. This obscures the objective of benefits accruing to local governments and hinders stakeholders’ understanding of companies’ direct payments to subnational entities. There is a lack of clarity on the origin and determination of two other revenue streams identified as subnational payments above the materiality threshold, but not reconciled. The 2021 EITI Report lists three types of subnational direct payments, mandated by law: quarrying royalties, mandatory contributions by the SOE SNPT, and direct payments to municipalities and prefectures (the latter below the materiality threshold). The report reconciles the mandatory contribution by SNPT, with an unexplained discrepancy of over FCFA 190 million (see annexe C(3)). This discrepancy is later categorised (see Table 47) as a tax payment from SNPT to municipalities (not as an obligatory payment). For the quarrying royalty, which is above the materiality threshold, it is unclear which companies have paid it as it does not appear in the reconciled data. In its comments on the draft Validation Report, the MSG indicated the legal basis14 for establishing the levels of these payments for quarrying royalties. This municipal tax applicable to extractive companies comes under the law on decentralisation, which confers certain taxes on the communes, including the royalty on quarries and mines. Municipalities set these taxes by deliberation of their councils. On the basis of these decisions, quarrying and mining royalties are levied on extractive companies in the municipalities. While including direct payments to municipalities is welcome, companies stated during consultations that the levels of local taxes are unclear, creating uncertainty about the payments due. There is no evidence that the MSG agreed on a procedure to address data quality and assurance for subnational payments, in accordance with Requirement 4.9. The significant unexplained discrepancies in mandatory payments by SNPT, which the company categorised as tax payments to municipalities, raises questions about the reliability of these revenue disclosures. For taxes paid to municipalities and prefectures, there is no evidence that the MSG adopted a different materiality threshold for subnational direct payments. In previous EITI reporting it has opted for no materiality threshold. Companies noted during consultations that the practice of municipalities levying taxes not enshrined in national law seems arbitrary and requested clarity on the legitimacy and amounts of these levies for different municipalities. There is an opportunity for the EITI to map the fees levied by communes on companies and assess if these are in line with the allowed maximum set each year. The types of direct payments need to be clarified and delineated to ensure that companies and local stakeholders understand the payments made. The MSG should clarify its materiality approach to direct subnational payments.

The International Secretariat’s assessment is that Requirement 5.2 is mostly met, which represents a regression from the previous Validation. While the EITI Report identifies the different taxes collected by the tax collecting entity (Commissariat d’impôt, CI), the key of redistribution and amounts paid to the communities in 2021, it does not clarify which of those payments are related to revenues generated by mining companies and which are generated by other companies. While disclosures on subnational transfers are welcome given the interest expressed by civil society to understand the level of subnational transfers, the Secretariat considers that the underlying objective, to enable stakeholders at the local level to assess whether the transfer and management of subnational transfers of extractive revenues are in line with statutory entitlements, is mostly fulfilled. The reason is that there is a lack of delineation of subnational transfers relating to the extractives sector from all transfers. Stakeholders from civil society and companies agreed that it was a priority to understand the transfers of extractives-generated taxes and payments to the local level. The MSG has determined that the EITI Report shall include all (regardless of whether they are related to the extractive industries or not, for example, a gambling tax) revenue streams transferred from the tax office to the communes. One payment stream, the mining and quarrying royalty is related to the extractive industry. It is unclear if this is the same revenue stream identified under “direct subnational payments” called quarrying royalty. The table listing the actual figures of subnational transfers per municipality does not list the royalty. There is no comparison of payments due and payments made according to the revenue-sharing formula. To improve the understanding of local stakeholders on what subnational transfers are linked to the extractive industries, the MSG is invited to clarify which of the taxes listed in the report relate to the extractive industry and if they were material in the period under review. Where extractives-related transfers were material, the MSG is required to disclose any discrepancy between the revenue-sharing formula and the actual amount transferred, disaggregated by the local government unit. On the encouraged aspects of the requirement, there is no evidence of the MSG agreeing on a procedure to address the quality and assurance of the information on subnational transfers, evidence of material discretionary or ad-hoc transfers, nor information on whether extractive revenues are earmarked for specific programmes or investments at the subnational level.

The International Secretariat’s assessment is that Requirement 6.1 is mostly met, a regression compared to the previous Validation, where the requirement was exceeded. Civil society stakeholders have highlighted the importance of understanding the social and environmental contributions made by companies operating in local communities. However, due to the lack of clarity on the types of mandatory environmental payments and social expenditures, the omission of mandatory social expenditures paid by all companies, and the absence of data quality assurance for these payments, the Secretariat believes that the objective to enhance public understanding of extractive companies’ social and environmental contributions and to assess their compliance with legal and contractual obligations in this regard is not yet fully achieved. Regarding mandatory social and environmental contributions, the EITI Report lists an expenditure from SNPT without specifying the legal basis for the payment. In its comments on the draft Validation Report, the MSG stated that the mandatory social and environmental expenditures made by all mining companies fall within the requirements of the Framework Law on the Environment. In this context, each company, including SNPT, carries out the planned expenditure to mitigate social and environmental impacts in accordance with the Environmental and Social Management Plan (PGES), under the supervision of the National Environmental Management Agency (ANGE). Consultations have also identified a mandatory social contribution equivalent to 0.75% of company turnover for local development15, as noted as well in Requirement 5.1 on the traceability of revenues. This mandatory payment is not captured in EITI reporting, raising questions about its materiality. It is not clear if it is a social payment given that the treasury sub-account collects the revenues, but it is not captured in the budget. The MSG did not apply a threshold for mandatory social payments, suggesting that this payment stream should have been included. According to information shared during company and government consultations, these contributions are collected by an account at the treasury but are not registered in the budget. A management committee (Comité de Gestion) oversees fund allocation, with the treasury disbursing funds to municipalities as determined by the committee. Documentation on these transfers from the treasury to municipalities was shared by the national secretariat but is not accessible to the public. In its comments to the draft assessment, the MSG noted that this was not a mandatory contribution but regular payment stream. In the official gazette of Togo however, the contribution of 0.75% of company turnover is described as an expenditure managed by a local management committee. The International Secretariat is of the view that more clarity needs to be provided on this specific contribution, given the high public demand. Consultations also revealed that artisanal sand mining companies are legally bound to pay FCFA 5 million into a local development fund each time a license is granted or renewed, with the incoming funds used by the municipalities. EITI reporting lacks information on the existence and operation of these funds. Given the absence of a materiality threshold for mandatory payments, disclosure of such payments is warranted. Companies noted during consultations that, as part of the national reforestation strategy,16 obligations exist for companies engaging in forest destruction to replant three times the number of trees destroyed. Trees are donated and planted directly by the company in affected communities, constituting an obligatory environmental expenditure, albeit not specific to the extractive industry. The MSG should discuss whether such environmental expenditures should be disclosed by mining companies. Regarding voluntary social and environmental expenditures, only one company, WACEM, declared these payments. Other companies indicated making similar payments although they do not systematically capture these payments. Additionally, Scantogo SA (a subsidiary of Scancem International, member of Heidelberg Materials) detailed voluntary payments in the Heidelberg Materials Togo Annual Report, available online but not referenced in EITI reporting. For current disclosures on social contributions, the MSG opted for unilateral company disclosures. The multi-stakeholder group is required to establish a procedure to address data quality and assurance concerning information on social and environmental expenditures, per Requirement 4.9.