Togo cooks up a national strategy to boost financial inclusion
Thursday, 08 July 2021 16:32 
(Togo First) - The Togolese government is on the brink of adopting a national strategy for financial inclusion. A seminar was held yesterday, July 7, to discuss this strategy.
The document will be a formal framework consolidating initiatives related to financial inclusion. Official sources said it aims to “tackle regional disparities in accessing financial services." "This," they added, "will help achieve the objectives of the government roadmap which has financial inclusion as one of its main focuses.”
In recent years, Togo has established several instruments to allow the poorest people to access financing. One of these tools is the National Fund for Inclusive Finance (FNFI). Launched in January 2014, this Fund has loaned more than CFA94 billion to over 1.7 million people, so far.
Between 2014 and 2020, the Togolese government distributed CFA8.61 billion in cash transfers to vulnerable households. These transfers, managed by the Agence nationale d'appui au développement à la base (Anadeb), reached 90,000 beneficiaries.
Last year, amid the pandemic, the Novissi program was launched to support those who were affected the most by the crisis and measures taken to curb its impact. The program - backed by the International Development Association (IDA) and the international NGO GiveDirectly - leveraged mobile money and artificial intelligence (AI) technologies.
Besides these efforts made by the public sector, there has been a growth in the performances of private microfinance institutions. Data from the BCEAO shows that 53% of Togolese aged 15 and more have an account in these institutions.
Similarly, mobile money services have been booming since 2015. Between that year and 2019, the country’s two mobile money platforms - Flooz and T-Money - totaled CFA2,000 billion of transfers. The figure was disclosed by the ministry of the digital economy in January 2020.
Regarding the number of users, these platforms, a report from the digital communications and posts regulator (ARCEP) revealed, had respectively five million and four million users in the same year. Also, 72% of mobile users in the country have a mobile money wallet.
Due to these achievements, Togo was lauded as a model in terms of financial inclusion.
Klétus Situ
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.
