Togo First
Togo: National Fund for Cultural Promotion secures CFA300 million for 647 projects
In response to a call for projects it launched last year, the Togolese Fund for Cultural Promotion (FNCPC) will soon obtain CFA300 million from the government. Local newspaper Togo Presse reported the news on April 9, quoting the Ministry of Culture.
The CFA300 million will be distributed as follows: CFA133.9 million for performing arts, for 323 projects; CFA51.9 million for film projects. CFA36.45 million for 86 visual arts projects; CFA23.15 million for 53 literature projects. Cultural Heritage and Cultural Space projects will be funded with CFA21.2 million (49 projects) and CFA14.4 million (11 projects), respectively.
It's worth noting that the average amount received by beneficiaries stands at 400,000 FCFA, under the "relaxed" grant framework, aimed at providing financial support to artists and creatives before the establishment of the new FNPC structures.
Ayi Renaud Dossavi
WAEMU: Togo performs well on fiscal transition front
Togo's performance in fiscal transition within the West African Economic and Monetary Union (UEMOA) is commendable, aligning well with the Union’s objectives. Despite facing a complex and uncertain macroeconomic environment, overall performance in the fourth quarter of 2023 remained positive. As per the monitoring report prepared by the National Committee for Monitoring the Fiscal Transition Program (CNPTF), adherence to both the primary and secondary criteria set by the Commission signifies the effectiveness of fiscal transition in the country.
The successful fiscal transition in Togo has been facilitated by implementing measures related to domestic and gateway taxation, along with the incorporation of community directives into domestic legislation. Upon closer examination, the analysis of tax revenues reveals a predominance of indirect tax revenues over direct taxes, signalling specific challenges that need to be addressed.
Despite notable progress, certain performance indicators still fall below the thresholds set by the UEMOA for the year 2023. For instance, the tax pressure rate, currently at 14.7%, remains below the community target of 20%.
It's important to note that the fiscal transition program was initiated in 2009 by the UEMOA Commission, aiming to harmonize the establishment of a free trade zone with the optimization of national resources. The program aims to gradually shift tax pressure from gateway taxation to domestic taxation while strengthening the common market.
Togo wants to lower domestic debt to 54.6% by 2026
Togo hopes to lower its domestic debt by 7 percentage points over the next three years, bringing it to 54.6% in 2026. The ambition was disclosed in the public administration's medium-term debt management strategy.
Last year, Togo’s outstanding public debt stood at CFA3.707 trillion–mostly denominated in CFA. External debt represented 61% (CFA2.276 trillion) and domestic debt 38.61% (CFA1.431 trillion). Over the same period, the country’s debt to multilateral partners stood at CFA864.02 billion (23.3% of the total debt or 15.53% of GDP).
Over the next three years, Lomé will focus on reducing its exposure to domestic lenders. According to the recently disclosed strategy, the country will focus on “increasing external debt to further lower refinancing risk and relying on debt raised in the regional market with maturities ranging from 1 to 10 years to meet financing needs”.
Among its fundraising tools abroad, the State plans to emphasize concessional and commercial external borrowings.
Low Foreign Exchange Risks
Regarding foreign exchange risks, it should be underscored that Togo's debt, primarily denominated in CFA and euros, remains less exposed to exchange rate fluctuations than in 2022.
“The outstanding debt consists of 71.30% in CFA and 14.95% in euros, representing 86.25% non-fluctuating debt and 13.75% debt exposed to exchange rate fluctuations.” However, “the country remains vulnerable to fluctuations in major currencies such as the US dollar and the Chinese yuan,” with exposures of 5.42% for the US dollar and 3.62% for the Chinese yuan (CNY), respectively.
From 2019 to 2023, Togo's debt has increased from CFA2.197 trillion to CFA3.707 trillion, at an average growth rate of 17% per annum.
Ayi Renaud Dossavi
Togo: MCC announces several procurement deals totaling $13 million
The Togolese government will, starting this month, launch a series of procurement activities over the next nine months. The procurement series falls under the Millennium Challenge Corporation’s (MCC) Compact program which Togo was declared eligible for in December 2022.
The estimated value of the projected procurements is $13.6 million. As part of the initiative, the MCC plans to recruit several consultants and human resources to support its actions. This includes consultants for program administration, such as interim procurement agents, financial agents, and architects. Additionally, acquisitions of goods, including computer equipment, will be carried out for the Millennium Challenge Account.
According to credible sources, specific tenders and proposal requests will be gradually published, through the Ministry of Economy and Finance.
The Togo Compact Program Implementation Unit forecasts that Lomé and the Millennium Challenge Corporation (MCC) will seal the Compact deal before this year ends. The deal will focus on developing solutions in the energy and digital sectors.
Ayi Renaud Dossavi
Revised constitution: Togolese Assembly kicks off nationwide consultation tour for second reading
A nationwide tour to consult key stakeholders about the constitutional revision project kicked off today in Togo. The 3-day tour will mainly focus on traditional leaders and organized groups. Around 30 localities will be visited, according to the assembly.
Three groups of deputies are leading the tour which is dubbed the "Information and Listening Tour of the Population on the Revision of the Constitution". With the ultimate goal of enriching the new text, the 3-day tour aims to collect stakeholders' and citizens’ opinions about the new constitution of the 5th republic adopted last month. It was launched after President Faure Gnassingbé asked the Assembly to review the revised text.
It is worth noting that the newly passed law, amidst controversies, shifts the West African country to a parliamentary regime. This means abolishing direct suffrage for presidential elections and creating a position of President of the Council of Ministers who will ensure the effectiveness of the executive power. Meanwhile, the President of the Republic will be confined to a ceremonial role.
Esaïe Edoh
Togo and Sierra Leone aim for stronger cooperation in key areas like financial inclusion and digitization
Sierra Leone's Chief Minister, David Moinina Sengeh, met in Lomé with Togo’s Prime Minister, Victoire Dogbé, on April 5, 2024. The two officials discussed their countries’ ambition to deepen cooperation in various areas, such as financial inclusion, digitization, and youth employment.
I'd an incredible meeting with the Prime Minister of Togo @DogbeVictoire today. We both share a passion for inclusion, digitization, and youth employment. Sierra Leone & Togo have a lot to learn from each other, and we will ensure we deepen our bilateral relations! #WeWillDeliver pic.twitter.com/E5tkmaawtL
— David Moinina Sengeh (@dsengeh) April 5, 2024
“We both share a passion for inclusion, digitization, and youth employment. Sierra Leone & Togo have a lot to learn from each other, and we will ensure we deepen our bilateral relations!" Sengeh posted on X after the meeting.
Last May, Sierra Leone’s President, Julius Maada Bio, visited his Togolese counterpart, Faure Gnassingbé. The two discussed ways to bolster trade between their countries among others.
Togo and Sierra Leone are both located in West Africa. For some years, they have been working to develop new cooperative bonds in sectors such as agriculture, energy, education, social protection, and gender equality.
Esaïe Edoh
ECOWAS to launch its Fund for Energy and Transport before year ends
The ECOWAS Development and Financing Fund for the Transport and Energy Sectors (FODETE) should come online by the end of this year. According to the Ecofin Agency, which reported the news, Sediko Douka, the ECOWAS Commissioner for Infrastructure, Energy, and Digitalisation, mentioned the possibility on April 4, on the sidelines of the first ECOWAS Investment Forum (EIF) in Lomé.
Approved for implementation in June 2009, the FODETE was delayed by several issues. However, recent regional tensions between 2020 and 2022 have injected new momentum into the project.
According to Sedikou Douka, the Fund will be fueled by export taxes levied in ECOWAS States: mining, oil, gas, and agricultural exports will provide the needed tax revenues. According to recent estimates, these revenues could reach $450 million yearly.
The FODETE will help improve infrastructure in the transport and energy sectors, crucial for economic growth and regional integration. It will be managed by the Lomé-based ECOWAS Bank for Investment and Development (EBID). The latter has allocated $4 billion or half of its financing for 2024 to integration infrastructure projects.
However, there are still issues of the regional consensus on the tax levy and the levy rate. Still, the FODETE should significantly help tackle the ECOWAS’ growing needs for infrastructure, estimated at an annual investment deficit of $12 billion.
Ayi Renaud Dossavi
Togo: Grain output rose steadily in 2019-2023, from 1.26 million Mt to 1.5 million Mt
Togo’s cereal production has grown steadily in the past five years. From 1.26 million Mt in the 2019 campaign, it rose to 1.5 million Mt in 2023. Togo First obtained the data from the Central Bank of West African States (BCEAO).
In detail, the output stood at 1.26 million Mt, 1.36 million Mt, 1.397 million Mt, 1.44 million Mt, and 1.5 million Mt in 2019, 2020, 2020, 2021, 2022, and 2023.
Corn, paddy rice, millet, and sorghum are the main grains grown in Togo. Most of the grain output is for domestic use.
Ayi Renaud Dossavi
Togo joins Islamic Corporation for the Insurance of Investment and Export Credit, ICIEC
Togo has joined the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The country’s parliament passed on April 4 a law approving its adhesion to the Corporation.
Joining the ICIEC allows Togo’s businesspeople to secure export loans for goods produced locally. Commenting on the development, Rose Mivedor, the Minister of Trade and Local Consumption, claimed the adhesion is “a true response to the economic and social needs and private sector financing” in line with Togo's 2025 government roadmap. The adhesion should help finance strategic and structuring projects with more ease.
Established on August 1, 1994, the ICIEC is a member of the Islamic Development Bank (IsDB) group. It helps cover the capital needs of the member States of the Organization of Islamic Cooperation (OIC), fostering the inflow of foreign direct investments into these countries.
Esaïe Edoh
Togo: Minister of Energy breaks the silence on recent outages
At last, Mila Aziable, Togo’s Minister of Energy, commented on the power outages that the country has been experiencing since January 2024. The official gave the real reasons behind the crisis on X (ex-Twitter).
"The energy crisis that has been ongoing since January 2024 in our region, mainly due to a natural gas supply shortage, is causing power cuts and disrupting our economies," Aziable said.
"The demand for natural gas in Togo is 35,000 MM BTU per day, but supplies are insufficient, sometimes nonexistent, resulting in high production costs and frequent outages," she explained following a meeting in Lomé of the West African Gas Pipeline Ministerial Committee (WAGPCo). The crisis takes place in a period of peak temperatures, and it affects Togo and neighbors such as Benin and Ghana.
Questioned on the matter, Olivier de Souza, oil and gas expert at Ecofin Agency, a pan-African economic media, said: “Liquefied natural gas (LNG) is a natural gas product. Here, Nigeria supplies gas to Benin, Togo, and Ghana via the WAPCo pipeline since 2010. Unfortunately, recent maintenance works have caused transportation issues.”
“The Nigerian organization N-Gas, which aggregates gas volumes for WAPCo, sometimes fails to gather the necessary volumes to meet demand in the countries traversed by the West African gas pipeline,” the journalist added.
“It's a contractual breach that has been going on for ages, but everyone deals with it. Ironically, Nigeria, sometimes, uses volumes intended for its neighbors since its electricity production fails to meet demand,” De Souza further noted.
Despite these recurring difficulties, ECOWAS states keep relying on the WAGPCo. This year, stressed Minister Aziable, “the WAGPCo will focus on supply security, pipeline inspection, developing a new five-year strategic plan, promoting and managing the WAGP project.” In this regard, our source at Ecofin Agency claimed that “investment in an LNG import and regasification terminal is imperative. Especially for countries traversed by the WAGP: Benin, Togo, and Ghana (underway).” A project of this kind was also announced in Togo in 2018, with Equatorial Guinea, a significant LNG producer.
Diversifying energy sources is a viable solution, but it requires substantial investments in infrastructure, a process that could prove lengthy. Indeed, the WAGP project took over 28 years to materialize, and other similar initiatives have experienced comparable delays, while some are still not operational.
In Côte d’Ivoire, several natural gas reservoirs have been recently discovered. These include the Baleine and Calao reservoirs. Leveraging these discoveries, the country wants to connect to the West African pipeline. Again, this will require substantial investments.
Fiacre E. Kakpo