Togo First
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
Togo: Black Divinities Festival returns after 10 years
After a 10-year break, Togo will host the Black Divinities Festival again. The ninth edition will be held in Aneho and Glidji from January 12 to 14.
According to its organizers, The Black Divinities Festival aims to promote endogenous religions and celebrate cultural diversity in Togo. The coming edition is under the theme “Togo: Land of our ancestors, unknown land”.
Also, like Benin’s Vodun Days, the Togolese festival will shed light on rituals and art performances of various communities, sacred dances, traditional songs, and more.
Traditional shows will be performed by various tribes, such as the Kondonas and the Solas from Northern Togo. There will also be Fa consultations and a carnival.
Exhibitions, food tastings, concerts, and more will be organized. The Festival is open to all.
Fiacre Kakpo
Business Creation: Togo set a record in 2023
Over the past year, 15,654 businesses were created in Togo. Togo First obtained the data from the country’s Center for Business Formalities (Centre de Formalités des Entreprises, CFE).
The figure, a new record, is up 13% compared to 2022 when the CFE registered 13,835 new businesses.
The local-to-foreigner ratio shows that Togolese nationals officially set up 13,032 businesses in 2023, against 11,659 in 2022, or 12% less. The number of businesses registered by foreigners shot up 20% to 2,622, against 2,176 in 2022.
According to CFE data, over half of the businesses registered last year were registered during the first semester. Over the period, 8,283 businesses were registered. That is 14% more than the number registered in H1 2022: 7,217. In H2 2023, 7,371 businesses were registered, against 7,351 in H2 2022 (+0.2% YoY).
The government attributes the increase to various reforms it introduced to boost the country’s business climate. Some of these include shorter delays and lower costs for setting up a business, as well as the dematerialization of related paperwork.
Esaïe Edoh
Togo: Lomé to host a Business digitalization conference on February 22
Lomé will host the Odoo Roadshow, a conference on business digitalization, next month. Initiated by Odoo, an open-source management software developer based in Belgium and the US, the event is scheduled for February 22.
On this occasion, the developer will present Odoo 17, the latest version of its software.
Last year, many Togolese firms adopted the Odoo platform to speed up their digitalization. This happened under the Lol Kelew program launched by the Chamber of Trade of Togo (CCI-Togo). Backed by the European Union (EU), the program focused on helping targeted businesses better operate, providing them training on the management of stocks, orders, sales, and customer service.
More than 5 million people use the Odoo software worldwide.
To register for the Odoo-Roadshow in Lomé, click here.
Togo: Civil Aviation Agency gets new director
Idrissou Ahabou is the new director of Togo’s National Agency for Civil Aviation (ANAC). He replaces Gnama Latta.
Ahabou was appointed in line with a presidential decree that Togo First obtained.
As the ANAC’s new boss, Lieutenant Colonel Ahabou will advance the agency’s agenda, which is to make the Togolese aviation safe and efficient.
A State company, the ANAC organizes, coordinates, and harmonizes air transport at the local and international levels.
Esaïe Edoh
Togo: National Lottery contributed CFA6.04 billion to the national budget in 2022
The Togolese National Lottery (LONATO) contributed CFA6.04 billion to the national budget in 2022. This was recently disclosed by the country’s tax office, OTR.
The figure, generated via corporate income tax, contrasts with CFA5.5 billion and CFA4.6 billion in 2021 and 2020, respectively (thus marking a 9% and 30% increase).
According to the OTR, the LONATO's contribution at the end of October 2023 stood at CFA5.4 billion. Pointing out that the contribution for 2023 could exceed that of 2022, the Tax Office attributed the increase to "profound changes" made by the LONATO from July 1, 2023. Indeed, the LONATO now carries out 12 draws per week, compared with 4 previously.
Established in 1966, the LONATO is a 100% State-owned company. It is also one of Togo’s public firms that generates the most sales. By 2021, it had generated CFA96.6 billion against CFA87.8 billion in 2020, and CFA83.4 billion in 2019.
Esaïe Edoh
Togo: Government lowers taxes on mobile money transfers with new reform
In Togo, the recently-adopted 2024 finance bill incorporates a major tax reform on the taxation of mobile money transfers.
In line with the reform, these transactions will be subject to only one tax from now on–the Tax on Financial Transactions (Taxe sur les activités financières or TAF).
Before the reform, mobile money transactions were also subjected to the Value Added Tax (VAT). According the government, this made it “difficult to manage tax declarations for these activities”.
The government told the parliamant that "the major objective is not to subject the same activity to different taxes based on the activity being incidental or principal."
The new reform came into effect on January 1, 2024. Lomé claimed it could reduce the costs borne by the end consumer, hence expanding the use of digital payments and fostering financial inclusion.
Before the reform, mobile money transfers in Togo were subject to a VAT rate of 18%. Under the new arrangements, they will be subject to a 10% Financial Activities Tax (TAF). The switch from one rate to the other - a difference of 8%, i.e. a reduction of almost half - could potentially lead to lower rates for consumers, according to Togolese civil society organizations.
The reform is good news for the country’s mobile operators, but not only. Indeed, a Lomé-based fintech expert told Togo First that the move could also benefit fintech companies, such as Gozem which plans to launch its mobile money service, and payment aggregators, whose margins could increase subsequently.
Mobile Money expanded rapidly in Togo in recent years, spurred by the country’s efforts for the digitalization of the economy.
According to an Afrobarometer survey, only one in four Togolese adults has a bank account, yet three times as many use mobile money accounts for their financial transactions.
However, some stakeholders fear that the government may decide to increase the tax on financial activities (TAF) over the next few fiscal years, from its current level of 10%, one of the lowest in the Uemoa.
Fiacre E. Kakpo
Togo: Construction of Datcha University set to begin in 2024
Togo will kickstart the first phase of its regional university construction program next year. In this phase, the country will start building a university in Datcha, Plateaux region, and continue delocalizing the University of Kara. The news was announced last week, December 22, by Sani Yaya, Minister of Economy and Finances.
“The first phase of the project to build new universities in each region begins in 2024 and concerns the University of Kara and the University of Datcha,” said Yaya, emphasizing that the project is a priority for the government. The project will be covered by the 2024 budget which stands at CFA2,179 billion.
Three months ago, the project for building the Datcha University was assessed and adopted by decree.
In Kara, the first stone for the project was laid in April by President Faure Gnassingbe.
According to the government, the project should also focus on diversifying training offerings, with emphasis on vocational, technological, and scientific courses.
" It will improve the quality of higher education and offer training pathways with a predominantly vocational, technological, and scientific focus," Lomé noted.
Esaïe Edoh