Togo enjoys favorable returns from UMOA-Securities market

Economic governance

Monday, 20 May 2019 13:12

Togo enjoys favorable returns from UMOA-Securities market

(Togo First) - On May 17, 2019, Togo successfully closed its eighth issuance on the regional financial market.

A total of XOF22 billion was raised by issuing fungible treasury bonds which have a maturity period of five years and an interest rate of 6.5%. The country, it should be noted, expected to retain XOF20 billion, however, overall subscriptions for the operation exceeded XOF60 billion.

Just like the two previous issuances for the second quarter, the third was subscribed twice by investors from seven out of the WAEMU’s eight member States. From April 5 to May 20, Togo’s treasury mobilized more than XOF216 billion (of which it retained XOF66 billion) while initially seeking XOF60 billion. This represents a coverage rate of 360% while retention percentage is 110%.

The good performances of Togo on the regional market reflects better capacities to secure funding. This is to be attributed to efforts made by authorities to improve public finances, related to budget especially, after the country’s public debt exploded at end-2016. Indeed, these efforts cut by 10% the debt level bringing it below the community standard of 70% at the end of March this year. The country says it is nearing budget balance, with deficit forecast at less than 2%, as the region works to keep this figure below 3%, by 2020.

For the rest of the year, Togo plans to secure 235 billion CFA. This breaks down into 70 billion as fungible treasury bills and 165 billion as fungible treasury bonds.

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.