Togo First
Togo: Five ministries capture half of the ministerial budget allocations in 2024
Over half of the total budget allocated to Togo’s 31 ministries this year will go to five of them. The big five are the Ministry of Primary and Secondary Education, the Ministry of Defense, the Ministry of Health, the Ministry of Public Works, and the Ministry of Mines and Energy. They are set to receive CFA563 billion (out of CFA1,030 billion for all ministries), which they will share as follows:
1- Ministry of Primary and Secondary Education
Just like in the four previous years, this ministry will get the lion's share; CFA191 billion this year. In 2023, it was set to receive CFA175 billion, or 9% less than in 2024.
Dodzi Kokoroko’s ministry will use the funds to pursue its reforms and programs. Among others, new teachers will be recruited and volunteer teachers will be trained. Regarding the latter, some training sessions have already been launched, according to reliable sources.
The ministry will also keep improving school infrastructure across the country.
2- Ministry of Defense
Right after the ministry of primary and secondary education is the ministry of defense. This ministry should receive CFA118 billion this year, against CFA167 billion in 2023.
The Ministry of Defense will leverage the funds to preserve the peace and safety of the Togolese people, especially in the north which has been recording terrorist attacks since November 2021.
3- Ministry of Health
Next comes the Ministry of Health, with a provisional allocation of CFA110 billion, against CFA138 billion FCFA in 2023.
Mainly, the ministry will focus on doubling down on its universal health insurance (UHI) project. The UHI came into force on January 1, 2024.
With this in mind, emphasis will be placed on the SSEQCU, a World Bank-backed project for building and rehabilitating health centers. The ministry will also ramp up efforts to fight diseases such as malaria and tuberculosis.
4- Ministry of Public Works
Like last year, this ministry comes fourth in terms of budget allocation. This year, it is set to secure CFA85 billion.
It will continue major projects, including the development of the country's road network. Specifically, 180 km of roads (including those currently under construction) will be made ready.
5- Ministry of Mines and Energy
This year, the Ministry of Mines and Energy should receive CFA59 billion from the State budget, up from CFA52 billion in 2023 or 13% more.
It will direct the funds to projects that will contribute to Togo’s goal of achieving universal access to energy by 2030. The extension of the Blitta solar power plant, the start of construction work on the Sokodé photovoltaic power plant, and the installation of street lamps are just some of the projects on the department's agenda.
Esaïe Edoh
Togo allocates CFA18 billion to water supply projects under the 2024 finance bill
Togo will devote CFA18 billion to clean water projects this year. The budget was set under the 2024 finance bill and aligns with the country’s ambition to achieve universal coverage by 2030.
Compared to the amount set last year, CFA17 billion, the new allocation (provisional) is up by 5.8%.
The funds will help advance the national water supply strategy launched in February 2021. In detail, they will enable the launch of the PASSCO3. This is the third phase of a project that aims to improve sanitary conditions in the schools and villages of the Kara and Savanes regions.
Under the PASSCO3, 850 boreholes equipped with human-powered pumps will be built in the targeted regions. Subsequently, over 200,000 people will be able to drink potable water by the end of 2025.
Part of the allocated funds will also help improve the water supply in Lomé, the capital. It will serve to equip and connect the 40m3 per hour borehole at Apédokoe to the new 1,300m3 water tower under construction at Sagbado.
The operational phase of the Togo Urban Water Security Project (PaSH-MUT), launched in October 2023, could also be launched. Through this project, six autonomous drinking water supply systems in outlying areas of Lomé will be set up.
According to recent data communicated by the Minister of Water and Village Hydraulics, the national coverage rate by the end of 2022 was 67%.
Esaïe Edoh
West Africa: Coris Bank Group secures €70M financing from EBID to support SMEs in Togo and four others
The ECOWAS Investment and Development Bank (EBID) approved on January 9 a $70 million financing for the Coris Bank Group. With the package, the lender will support SMEs in Togo, Burkina Faso, Benin, Côte d’Ivoire, and Senegal.
The facility was approved on the sidelines of the EBID’s 86th board meeting.
The funds will support trade and the private sector, with a focus on agribusinesses.
Coris Togo was the country’s third-biggest lender in 2022. That year, the bank loaned out CFA143 billion, against CFA100 billion in 2020.
Ayi Renaud Dossavi
Togo: Government to spend CFA53 billion on rural road rehabilitation and expansion in 2024
Togo plans to allocate CFA53 billion to its Ministry of Rural Roads this year. The ministry will use part of the funds to implement 21 projects that will help open up rural areas across the country.
The government is already negotiating with companies that build modular metal bridges, in line with the initiative. Ultimately, the project will make it easier for people in rural Togo to access basic socio-economic services and sell farming produce.
The ministry will use another part of the resources to finance urgent works announced in October 2023 to rehabilitate several bridges and major axes in the countryside.
Lastly, some of the money will serve to build and rehabilitate 4,550 km of rural tracks by 2025.
This year, the Ministry of Rural Roads received 43% more than the sum it was allocated in 2023 (CFA37 billion), under the rectifying finance bill.
Esaïe Edoh
Togo: Tax office launches communication campaign to get population acquainted with new tax reforms
The Togolese tax office, Office Togolais des Recettes (OTR), launched a campaign to publicize the 2024 Finance Act on January 11. The campaign aims to get the population more acquainted with the Act and the new tax reforms it includes.
As part of the move, the OTR held a first meeting with the local press yesterday. According to Philippe Tchodié, General Commissioner of the Office, the campaign will allow the media to communicate about the reforms and help bolster the partnership with business owners.
"Taxation is a fairly complex field and to promote fiscal civic-mindedness, the OTR has made it its mission to explain the finance law properly. We expect our partners to be able to take this message and relay it correctly so that what the government has in mind and which is translated into the finance law, can be understood by the whole population", Tchodié told the press.
The reforms drawn under the 2024 finance bill revolve around three key areas: greater inclusion and harmony, job creation; and service modernization via digitalization.
In line with the bill, this year, the OTR plans to collect CFA1,042 billion in taxes to finance the national budget. To this end, it raised tax rates on some products and renewed certain tax measures.
Esaïe Edoh
WACA ResIP: Togo completed 22 sub-projects at end-2023
In total, 22 community sub-projects were completed in Togo by the end of 2023 under the West African Coastal Zone Resilience Investment Project (WACA ResIP). This is half the number of projects that are being implemented in the country as part of the larger program. WACA ResIP is financed by the World Bank Group.
"Of these 22 sub-projects, we have sub-projects on which activities have been 100% completed, everything planned, and others where there are still residual activities in progress. These residual activities concern a certain number of infrastructures that are being built,” said Dr. Assimiou Adourahim Alimi, WACA coordinator in Togo.
The completed projects include development and management plans and address the management of high-value biodiversity ecosystems, flood control, pollution control, and the development of income-generating activities.
WACA ResIP will now monitor residual activities’ progress. "Infrastructures that are yet to be completed will be monitored to make sure that financing for project developers continues," Dr Alimi added.
Concentrating backlogs
To avoid the delays and other issues recorded with many of the small contractors initially hired to carry out the projects, the program plans to concentrate worksites into larger contracts, entrusted to larger, better-equipped contractors capable of meeting deadlines.
"We have seven sub-projects involving IGAs (income-generating activities), six of which today involve work to set up processing units", added the coordinator. To overcome the delays and challenges encountered with small businesses, the WACA project management unit's new approach is now to "take steps to organize a new contract grouping together all the work and using larger-scale businesses."
WACA ResIP received additional funding from the French Development Agency (AFD), notably for the major coastal protection works on the Agbodrafo-Gbodjomé section and the works at Goumoukopé. With an estimated cost of CFA29 billion, the project includes building 22 groins, reloading 770,000 m3 of 22 basins, and filling 450,000 m3 of the lagoon arm at Aneho. The project should be completed in 2026.
Ayi Renaud Dossavi
International Finance Corporation (IFC) provides €55M loan to Togocom
The International Finance Corporation (IFC) will provide a €55 million (CFA36 billion) loan to the Togolese mobile operator TOGOCOM. The two sides inked the agreement on January 11, at the 13 February Hotel in Lomé, the capital.
Togocom will use the funds to modernize its infrastructure, expand its 4G network, and its fiber optic network, and improve the quality and speed of its internet offer.
“At TOGOCAM, we are very proud of playing a key role in the acceleration of the country’s digital transformation and improved connectivity for all Togolese citizens, wherever they are on the territory. This investment attests to our commitment to consistently support economic growth and service digitalization in Togo,” commented Pierre-Antoine Legagneur, Managing Director, TOGOCOM.
Under its digital transformation strategy, Togo aims to provide mobile internet to 95% of its population by 2025. Within the same timeframe, the country intends to provide internet access to all public administrations, and 95% of hospitals and schools.
“The partnership with the IFC is a major milestone, not only in regards to the better access to equipment and high-speed internet but also in terms of economic opportunities it will help generate for our people, ” declared Cina Lawson, Minister of Digital Economy and Digital Transformation. “Togo’s commitment to digital innovation, bolstered by this partnership, translates our determination to build a progressist and technologically advanced nation for future generations,” she added.
Ayi Renaud Dossavi
WAEMU-securities: Lomé seeks CFA607 billion on the regional market in 2024
Togo plans to raise CFA607 billion on the WAEMU securities market this year. This is 5.7% more than last year’s target (CFA574 billion).
The new target represents 28% of the country’s annual budget, which stands at CFA2,179 billion.
As usual, Togo will raise the funds by issuing fungible bonds and bills (ed. Note: respectively OATs and BATs in French).
An issue is open and will close on January 12. Lomé seeks to raise CFA25 billion through the operation.
Last year, Togo raised CFA580 billion on the regional stock market, thus slightly exceeding its expectations.
Esaïe Edoh
Togo: Tax office targets CFA1,042 billion in revenues for 2024
The tax office of Togo, OTR, plans to collect CFA1,042 billion this year. This is 14% more than its 2023 target, which was CFA912 billion. The new goal was set under the country’s 2024 finance bill.
The targeted amount is nearly half of Togo’s budget for 2024 which is close to CFA2,179 billion (or $3.6 billion).
This year, budget revenues are expected to reach CFA1,279 billion. Tax revenues should contribute 81% of the amount. The rest regroup non-tax revenues (CFA62 billion), program grants (CFA 13 billion), and project grants from external partners (CFA 162 billion).
Public securities and other loans
Cash resources, which are forecast at about CFA896 billion, will add up to these resources. Public securities, raised on the regional stock market, should make up 67% of this amount. Besides, the State plans to issue CFA287 billion in loans for various projects and programs.
In addition to the general budget revenue, which should stand around CFA2,175 billion, special Treasury revenues are expected to stand around CFA4 billion.
It is worth noting that this is the first time Togo’s budget exceeds CFA2,000 billion.
Ayi Renaud Dossavi
SUNU Bank Togo: Benito Fado replaces Myriam Adotevi as Managing Director
Myriam Adotevi passed the baton to Benito Fado as managing director of SUNU Bank Togo.
Adotevi has been the bank’s managing director since 2018 and under her leadership, SUNU Bank Togo transformed remarkably.
Over the five years she led the company, its total resources have doubled and its total balance sheet has quadrupled. Also, the bank rose to become the country’s top eight bank, out of 15 lenders. The bank’s net banking income also doubled under her reign.
Shock therapy
Before Myriam Adotevi’s arrival, Sunu, formerly Banque Populaire pour l’Epargne et le Crédit (BPEC), had indicators in the red. By 2020, however, the lender started showing improvements. That year, Sunu Bank Togo recorded its first profit–CFA249 million–since its acquisition. This was the bank’s second profitable year since 2014. In 2021 and 2022, the lender consolidated its performances, with profits standing at CFA759 million and CFA503 million, respectively.
Other improved indicators include assets, which grew from CFA97 billion to CFA132 billion in 2020, and CFA155 billion in 2021. The balance sheet total rose to CFA190 billion in 2022.
Meanwhile, shareholders' equity was reduced, to around CFA11 billion. This drop, however, was for a good cause, as it aligned with Sunu’s recovery efforts, which mainly involved a two-pronged capital reduction/increase operation.
Firstly, Sunu Bank reduced its capital from CFA20.8 billion by writing down the nominal value of its shares by more than 50%, from CFA10,000 to CFA4,500. It then made a public offering via an operation arranged by Société de Gestion et d'Intermédiation (SGI-Togo) to raise CFA1.8 billion and increase its capital by issuing 400,000 new shares at CFA4,500 each. The operation was a near-success for SUNU Investment Holding. The bank has since relied on this tandem to clean out its stables.
SUNU Investment Holding holds 71.64% of SUNU Bank Togo and owns Sunu Assurances, a heavyweight in Togo's insurance sector.
Recapitalization, QoS, loans, acquisitions
Benito Fado officially took over the head of SUNU Bank Togo on January 2, 2024. Before Myriam Adotevi left, he was the bank’s Deputy Managing Director. He will work to consolidate the bank’s results and help it thrive. Maintaining customer service quality is another priority he will tackle as well.
Fado, a former executive at Ecobank Development Corporation (EDC), the Ecobank Group's investment and capital markets subsidiary, will face the challenge of recapitalizing the bank to comply with the new CFA20 billion share capital standard imposed by the BCEAO in the banking sector. Moreover, Sunu Bank, which has positioned itself for the takeover of UTB, a public bank in difficulty, will have to pursue this project while maintaining the financing of the economy, which constitutes the core of its business, and assume its digital transformation, notably with WhatsApp Banking, which the bank is almost pioneering in Togo, assisted by Semoa.
Myriam Adotevi is the new General Manager of SUNU Investment Holding, the SUNU Group's bank holding company.
Fiacre E. Kakpo