Togo : Sunu Assurances close to sealing deal for BPEC’s purchase

Togo: Sunu Assurances close to sealing deal for BPEC’s purchase

Finance

Wednesday, 07 February 2018 14:36

Togo: Sunu Assurances close to sealing deal for BPEC’s purchase

(Togo First) - Initiated some months ago, the procedure for the purchase of the Banque Populaire pour l’Epargne et le Crédit (BPEC), by insurer Sunu Assurances, is about to be finalized, sources close to the deal revealed.

Sunu Assurances has already spent CFA18 billion to fix the lender’s finances which were not doing well. With 30 billion more, experts estimate, the bank should be revived effectively. The insurer, in this regard, said it is not opposed to the move. In fact, process for purchasing the bank is well advanced.

Actually, last details for BPEC’s acquisition are being finalized at the BCEAO’s headquarters in Dakar. Once the deal sealed, SUNU Investments Holdings (SIH), subsidiary of SUNU Group will hold a 58.1% stake in the former Caisse d’Epargne Togolaise (CET). Other stakeholders are Africa Invest Financial Sector (19.5%), Cauris Croissance (7.6%), the Togolese State (4.7%), Orabank Togo (2.4%) and other private shareholders (7.7%).

The bank’s sale is attributed to successive losses and bad debts, and poor management, over many years.

Truly, since 2012, BPEC’s results have been negative, excluding 2013 when it recorded a marginal profit of CFA5 million. Combined losses over the other years (2012, 2014, 2015, 2016) stood at CFA10 billion, according to Le Messager.

Let’s recall that in 2016, BPEC had been restructured and in the process, the stake of COFIP Finances Togo in its shareholding was sold to two private equity funds, namely Afric Invest Financial Sector (AFS) and Cauris Croissance (Cauris). With this, the two funds had more than 50% of the lender’s capital as well voting rights.

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.