The BCEAO injected CFA511 billion at a 5.5% rate into Togolese banks this week as part of its routine liquidity operations. A total of CFA7,400 billion was granted in the auction on April 30, 2024, with 110 financial entities from the eight WAEMU countries participating. Ivorian banks received the most: CFA1,741 billion. They were followed by Burkinabe banks which obtained CFA1,312 billion.

These liquidity injections are crucial for the region's economies, helping banks maintain adequate reserves to meet client needs and short-term obligations.

However, the cost of acquiring these funds presents challenges for banks. While the 5.5% rate has been consistent since the first quarter, it is notably higher than the 3.2% average in December 2023, indicating increased financing costs that could impact credit dynamics in the Union. Faced with these higher rates, financial institutions have adjusted their lending offers slightly to protect their margins. This rise in financing costs is expected to keep the cost of accessing financing in the regional market high for states, limiting budget flexibility.

Fiacre E. Kakpo

It is a first for the Togo-based holding. It achieved the record amidst challenging monetary conditions in key markets like Nigeria and Ghana.

According to the 2023 certified financial results, the Ecobank Group reported a pre-tax profit of $581 million, up 8% year-on-year. This was supported by a net income of nearly $2.1 billion, up 11%.

For the first time since 2015, the group's revenues exceeded $2 billion. However, currency fluctuations in Nigeria and Ghana limited the performance, as the naira and cedi weakened against the dollar. At constant exchange rates, pre-tax profit would have increased by 34%, and net income by 31%.

The revenue growth was driven by a 15.3% rise in net interest income, from $1.014 billion in 2022 to $1.169 billion in 2023. Non-interest income, including fees and commissions, investment income, trading revenue, and foreign exchange gains, also grew modestly by over 5%.

Profit was impacted by significant asset losses, as provisions for financial asset impairment increased by 66.7% to $330 million. Loan losses surged by 1405% to over $145 million, from about $10 million in 2022. The losses were more pronounced in Nigeria, where impairments rose by over 80%.

As a result, the bank's total assets declined for the first time(-6%) since at least 2019, partly due to lower loans and advances to customers, which made up 39% of total assets. As of December 31, 2023, the total gross loans and advances amount to $11.062 billion, with the bank estimating impairments on these loans at $519 million. This represents a 4.2% decrease compared to the $11.003 billion in the previous year.

The financial report analyzed by the Ecofin Agency reveals that loan portfolio quality remained relatively stable, with the non-performing loans (NPL) ratio slightly increasing to 5.4% in 2023, compared to 5.2% in 2022.

Deposits slumped by about 4%, while equity plummeted by 14.4%, from $2.027 billion in 2022 to $1.734 billion in 2023. The fall is mainly attributable to currency conversion losses and asset value adjustments, in a challenging operational environment marked by unfavorable market conditions, economic challenges, or significant fluctuations in exchange rates.

Despite the challenges, Ecobank created value for shareholders, with its tangible return on equity increasing by 3.8 percentage points to 24.9%..

Fiacre E. Kakpo

In 2023, the number of French volunteers in Togo reached a record high of 2,113. This included 1,988 short-term missions, 72 civil service assignments, and 53 International Solidarity Volunteers, according to the France Volontaires (FV) 2023 report.

From one year to the other, the number of volunteers deployed shot up by 176% (766 in 2022). According to FV, the surge reflects "a clear evolution in the dynamics of International Volunteering and Solidarity Exchanges (VIES)..." This illustrates the "effective resumption of French mobility to Togo" after reduced mobility due to COVID-19 restrictions”.

"Togo remains a welcoming destination for French individuals eager to engage in international solidarity," FV wrote in its report.

The reported figures are likely underestimated, as FV's Volunteer Spaces estimate that the 2023 numbers represent only a small portion of the actual number of volunteers in Togo that year.

Ayi Renaud Dossavi

Rumors of low voter turnout in Togo's April 29 elections quickly spread on social media. The day following the elections, Dago Yabré, President of the Independent National Electoral Commission (CENI), dismissed these claims. Yabré explained that the perception of low turnout was due to the many polling stations nationwide.

A total of 14,271 polling stations were set up nationwide for these elections. CENI took steps like reducing the number of voters per station from 500 to 350 to prevent “long lines and potential fraud”.

While official voter turnout numbers are not yet available the commission started sharing initial trends on April 30, 2024.

Overall, 4.2 million Togolese citizens were eligible to vote, choosing 113 parliamentary representatives and 179 regional councilors. This election is a significant step in the country's democratic progress.

Esaïe Edoh

International Workers' Day in Togo was marked by a meeting between the Minister of Public Service, Gilbert Bawara, and representatives of the Coordination of Trade Union Centers of Togo (CCST) and employers. They discussed the challenges of social dialogue and preserving social peace.

The talks focused on traditional concerns and implementing the Universal Health Coverage (UHC), a subject of ongoing discussion and negotiation. Minister Bawara emphasized the importance of improving UHC and workers' living conditions to ensure a serene social climate. "We have discussed how to address the major issues of social dialogue, such as Universal Health Coverage (UHC), social security, better living conditions for workers, and how to improve them to preserve the climate of peace and social security," he said, as quoted by Togo Presse.

The government is committed to supporting social partners in their determination to seek the well-being of workers. The President of the Togolese Employers' Association, Laurent Tamegnon, welcomed the maintenance of the Social Pact and Social Dialogue, highlighting their contribution to a peaceful social year for workers.

The spokesperson for the CCST, Vissikou Sénouvo, explained that the trade union grievances addressed issues such as UHC and the challenges faced by informal workers. These concerns will be integrated into the list of demands before being submitted to the government.

It's worth noting that the National Social Security Fund (CNSS) launched a one-stop shop for its services to private sector workers in April.

Ayi Renaud Dossavi

Observer missions from the African Union (AU), ECOWAS, and CEN-SAD praised the smooth and transparent conduct of Togo's legislative and regional elections on April 29th.

AU's Positive Assessment

Ambassador Calixte Aristide Mbari, leading the AU Electoral Observation Mission, met with President Faure Essozimna Gnassingbé on April 30th. The AU mission, present since April 21st, expressed satisfaction with the elections, highlighting their potential to strengthen democracy, peace, and national stability. Ambassador Mbari noted the increasing participation of women in the process, stating, "We are pleased with these discussions and we hope that the results can contribute to democratic consolidation, peace, and stability in the country."

Le Président de la République, @FEGnassingbe a reçu ce 30 avril 2024, une délégation de la Mission d’observation électorale de l’ @_AfricanUnion (MOE UA) conduite par l’Ambassadeur Calixte Aristide Mbari.https://t.co/LIf24T3eDw pic.twitter.com/OiELV4xYKJ

— Présidence Togolaise/Togolese Presidency (@PresidenceTg) April 30, 2024

CEN-SAD's Approval of Transparency

The CEN-SAD mission, led by Sangaré Youssouf, praised the elections as "free, fair, and transparent." They commended the quality of electoral materials and the setup of polling stations for ensuring transparency and confidentiality. The professionalism of security forces was particularly acknowledged for guaranteeing a smooth voting process.

ECOWAS Praises Youth Engagement

President Faure Gnassingbé welcomed the ECOWAS Electoral Observation Mission, led by former Gambian Vice President Fatoumata Jallow-Tambajang. The ECOWAS mission highlighted the transparent nature of the electoral process, emphasizing the presence of all stakeholders and effective communication by the Independent National Electoral Commission (CENI). Mrs. Jallow-Tambajang noted the significant participation of voters, especially the youth, facilitated by effective communication strategies. "All stakeholders were present, and the Independent National Electoral Commission (CENI) ensured effective communication, facilitating massive participation of voters, especially the youth," she reported.

La Mission d’observation électorale de la @ecowas_cedeao a partagé, ce 30 avril 2024, avec le Président de la République, @FEGnassingbe les conclusions de sa mission au Togo dans le cadre du double scrutin législatif et régional.https://t.co/5i6fJoCIZd pic.twitter.com/iaPrchLj4c

— Présidence Togolaise/Togolese Presidency (@PresidenceTg) April 30, 2024

The preliminary results of the elections will be released gradually, marking the renewal of the National Assembly with 113 deputies and the election of 179 regional councilors for the first time.

Last year, the Tinga Fund achieved 20,971 grid connections in Togo. This is about half, 52.42%, of the number the project had set eyes for 2023. The Ministry of Economy and Finance reported the data in its "Implementation Report of Reforms for the Year 2023".

Meanwhile, the Minister of Energy, Mila Aziablé, highlighted that these electrical connections were predominantly executed in the Savanes, Kara, and Plateaux regions, helping electrification rates surge. In the Savanes region, the rate grew from 22% to 33% between 2022 and 2023. In the Kara and Plateaux regions, it rose by 9% and 10% respectively (from 35% to 44% in the former, and from 29% to 39% in the latter).

The Tinga Fund recently launched in the Central and Maritime regions, but the project was launched in April 2022. Since then, it has reached over 42,000 households and nearly 300,000 people, said Mila Aziablé.

This initiative allows underprivileged Togolese to access electrical connections for a monthly fee of CFA1000 over a period ranging from 4 to 10 years.

Esaïe Edoh

The Tinga Fund, after successful trials in various parts of Togo, is now being introduced in the Maritime region. On Friday, April 26th, the Minister Delegate for Energy and Mines, Aziablé Mila, officially launched pre-financed electricity connection offers in Tsévié.

This initiative allows Togolese residents to access electricity for 1000 CFA francs per month over 10 years. Following the launch, the Togolese Electricity Company (CEET) entered into contracts with 700 individuals.

Mila Aziablé mentioned that the Tinga Fund has benefitted close to 300,000 people since its inception in April 2022. Additionally, plans are in place to expand the fund's coverage to all cantons in the Maritime region, including the construction of 240 km of electrical network in Tsévié.

The Tinga Fund is operational in the Savanes, Kara, Central, and Plateaux regions.

Ayi Renaud Dossavi