Togo First
Togo: Ecobank, Government support young entrepreneurs with CFA1.78 billion
Since they partnered two and half years ago, the Togolese Ministry of grassroots development and Ecobank have financed 32 young native entrepreneurs with CFA1.78 billion. This is out of CFA4.72 billion of requested financing.
The figure was recently disclosed by Myriam Dossou-d’Almeilda, the minister of grassroots development. The official spoke during a meeting between Ecobank’s local subsidiary and her department.
Dossou-d’Almeida also encouraged the lender to speed up fund disbursement, since there are more requests to process. She then asked young entrepreneurs to remain committed, and keep up their performances, ambition, and focus on available business opportunities.
The deal between the two sides was signed exactly in January 2021. Under its terms, Ecobank Togo is to finance the projects of young people and female entrepreneurs with CFA5 billion. The beneficiaries are also backed by the Support Fund for Youth-Led Economic Initiatives (FAEIJ).
The project aims to secure funding for promising youth projects.It was launched by Prime Minister Victoire Dogbé with the support of the Cellule présidentielle d'exécution et de suivi des projets (CPES).
Ayi Renaud Dossavi
Togo Seeks Firm to Set Up its Digital Land Registry
Togo is looking for a third party to hand over its land register digitization project. The country’s Ministry of Economy and Finance recently launched an international tender to hire this party.
According to the tender notice, consulted by Togo First, the successful bidder must complete the task within 3 months, after securing the deal.
The tender should help modernize Togo’s land conservation system through digitalization. It falls under the Support Project for Governance and Private Sector Development (PAFDSP).
The resulting digital land registry will be an automated management system for digital data, intended for the registration of buildings and the publication of real estate rights.
The project aligns with Lomé’s land governance reform, initiated some years ago.
Esaïe Edoh
Togo Launches "Citizen's Office" to Foster Local Engagement
Togo should soon have Citizen offices that will facilitate dialogue between municipal authorities and their constituents.
The Minister of Territorial Administration, Decentralization, and Territorial Development, Payadowa Boukpessi, recently issued a decree to establish these structures. They will collect citizens’ expectations, concerns, and suggestions and relay them to mayors, thus fostering citizen involvement in the management of local affairs.
Each citizen's Office will reportedly be composed of a coordinator and a rapporteur. The two officials will be natives of the concerned municipality and members of the civil society. They will work hand in hand with the mayor to promote citizenship and facilitate communication between citizens and local authorities. Citizen's offices will also provide information on local government management to inform citizens and raise awareness about their rights and responsibilities.
Located in the capital of the municipality they cover, the offices must develop a work plan and an annual budget, which will be taken into account in the municipal budget, subject to available resources. They may also be supported by municipalities' technical and financial partners, with the government's agreement.
However, it is cautioned that in case of non-compliance with the obligations of the Office members, the mayor may terminate their duties, after consulting the municipal council.
Ayi Renaud Dossavi
Togo: Telecom Regulator Record Revenue Boost Following Strategic Reforms
Togo’s Telecom Watchdog, the ARCEP, earned the State CFA4 billion in 2022, up from 3.94 billion in 2021. This is according to the latest official data.
The regulator has, since 2020 and under the leadership of Michel Yaovi Galley, launched several sanction procedures that yielded three warnings and three major fines.
The operators most affected by the sanctions were Togo Cellulaire, Moov Africa, and Vivendi Africa Group (GVA Togo), which markets Canal Box’s fiber-to-the-home (FTTH) internet offers.
Togo Cellulaire received two fines totaling 3.4 billion FCFA, one in February 2021 and another in June 2022, for intra and extra-network price differentiation and for serious breaches of the obligation to ensure continuous availability of mobile electronic communication services.
Moov Africa Togo was also fined nearly 594 million FCFA in May 2021 for non-compliance with the service availability obligation.
As for GVA, it received a warning for serious and recurring service availability failures, a procedure whose conclusions have not yet been made public.
The ARCEP’s ongoing reforms aim to simplify its regime of royalties, which are another source of income of the regulator. The Council of Ministers adopted a draft decree to this effect on April 5, 2023. While details of this decree are yet to be known, it should facilitate the ARCEP's operations.
The revenue growth recorded last year aligns with the government’s efforts to make Togo a digital hub, in line with its "Togo Digital 2025" vision. In August 2022, the Minister of Digital Economy, Cina Lawson, indeed signed a decree setting sixteen quality indicators to be respected by the operators. Complying with these indicators should, in the long run, help improve both user experience and ARCEP's revenues, and consequently the State’s.
Fiacre E. Kakpo
Togo's State Financial Holdings Increased by 6% in 2022
From CFA14.6 billion in 2021, Togo's State financial holdings grew by 6% in 2022, reaching CFA15.5 billion. The figure, which was disclosed in a report obtained by Togo First, ends the downward dynamic that started in 2018. That year, the country’s financial holdings were estimated at CFA27 billion.
Despite the recent increase, the State’s dividends still fall short of the government’s budgetary forecast in the 2022 revised finance law; the forecast was CFA19.75 billion.
The gap between the forecast and actual figures underscores efforts needed to fully capitalize on the State’s financial holdings. For 2023, Lomé expects to collect CFA21.8 billion in dividends.
Dividends, it is worth noting, contribute almost a quarter of Togo’s non-tax revenues; about 26% in 2022 compared to 25% in 2021.
In the report, the exact contribution of the different companies was not specified, but according to a recent publication from the Ministry of Economy and Finance, the Togolese state holds stakes in 55 companies. Among these companies, 18 are fully controlled by the State, including Lonato, the Autonomous Port of Lome (PAL), UTB, SNPT, Togo Invest, and several hotels such as Sarakawa, Kara, Roc Hotel, as well as CEET.
In addition, the Togolese state owns majority shares in companies such as SOTRAL, SALT, Nosophat, Adétikopé Pineapple Factory, and T-oil, often in partnership with private entities. It also holds minority stakes in companies such as Togocom, recently sold to the Axian group, as well as Sunu Bank, BIA, Orabank, Wacem, NSCT, Scan Togo, among others.
In recent years, Lomé sold some of its assets to private actors. The goal was to boost the assets’ value, by leveraging the efficiency of the private sector in terms of business management and operation. This is a bold bet and the government hopes that in years to come it will help raise its dividends and earnings. However, the success of this strategy requires careful supervision and rigorous implementation to ensure a positive impact on the national economy.
Fiacre E. Kakpo
Togo: East-Mono 1 Municipality Adopts CFA145.4mln Preliminary Budget for 2023
Earlier this week, the East-Mono 1 municipality adopted its preliminary budget for the year 2023. The budget amounts to 145.36 million FCFA. The announcement was made on the sidelines of the works of the third 2023 municipal council session, which opened on Monday, July 10, in Elavagnon.
The overall budget breaks down into 58.85 million FCFA (40.48%) as the operating budget and CFA85.51 million for investments.
The session was chaired by the Mayor of East-Mono 1 municipality, Koffi Akaba, in the presence of elected officials, heads of decentralized state services, and heads of civil society and grassroots development organizations. Set to end today, the session focused on roadblocks to the municipality’s development.
According to Mayor Koffi Akaba, the municipality has taken many steps that align with the government's roadmap. These include drawing a five-year Municipal Development Plan, electing a coordinator for the citizen's office, setting up committees to monitor revenue mobilization, and the treasury committee. Municipal services have also been digitized.
The Mayor urged his staff to get more involved in the municipality’s development.
The East-Mono 1 municipality is located in the East-Mono Prefecture (whose population was estimated at over 70,000 at the beginning of the millennium), in the Plateaux Region.
Togo: US disburses $3M to support northern populations
The USA has disbursed a $3 million humanitarian aid package for people affected by the terrorist attacks in Northern Togo, and those who had to move because of them. The announcement, made on July 10, 2023, notes that the package is supplied by USAID.
Mainly, the funds will support over 460,000 people facing food distress.
"Thanks to this financial contribution, the USAID’s partners -the World Food Programme (WFP) and Catholic Relief Services (CRS), who are working closely with the Government of Togo, will provide vital assistance to newly displaced people and vulnerable members of the host community," reads a statement from the US Embassy in Togo.
Part of the fund will cover the basic needs of 27,000 people, and supply food to 37,000 people for three months. "This support will help vulnerable populations during the lean season when families usually need help the most."
The embassy added that besides the $3 million package, the US will extend another $1 million to the Togolese Federation of Disabled Persons.
Esaïe Edoh
CICA-RE in Togo Records FCFA 106 Billion Turnover for 2022
The Reinsurance Company of the Member States of the Inter-African Conference of Insurance Markets (CICA-RE), based in Lomé, recorded a turnover of over FCFA 106 billion for the 2022 financial year. Year on year, the figure grew by 10.4%, with a result of CFA8 billion. These results were presented to the public and shareholders at the Company’s 41st Ordinary General Assembly held in Lomé on July 7, 2023.
In the three previous years, CICA-RE’s turnover was also on the rise. According to the firm’s management, it grew from CFA87 billion in 2020 to CFA96 billion in 2021, then to CFA106 billion in 2022.
The company attributes the upward dynamic to the resolution of some key issues. "When we arrived, we audited all subscriptions and there are many businesses that pay you premiums, but the amount of claims is very high. This means that while the turnover is significant, profit does not follow. My goal is to correlate the turnover with the profit," Karim Diarassouba, the company's general manager, who took over in January 2021, told Togo Presse.
"All these achievements got CICA-RE to be rated B+ by AM Best, the highest rating in the region and even in Africa. As a result, the African Development Bank (AfDB) joined our shareholder base," the manager added. CICA-RE currently works on its 2024-2028 strategic development plan, which should help it become more visible and strengthen its internal structure.
CFA 110 billion for 2023
CICA-RE eyes a turnover of CFA110 billion this year. It is on a good track to achieve this goal, given that only six months into the year, it has already achieved almost 70% of the amount, according to the firm’s managers.
Founded in 1987 within the framework of the Inter-African Conference of Insurance Markets (CIMA), CICA-RE is a company specializing in reinsurance (the insurance of insurance companies). Based in Lomé, it brings together the member countries of the West African Economic and Monetary Union (UEMOA) and the Economic Community of West African States (ECOWAS) and thus covers Benin, Burkina Faso, Cameroon, Central African Republic, Congo, Côte d'Ivoire, Gabon, Mali, Niger, Senegal, Chad, and Togo.
Ayi Renaud Dossavi
Pierre Antoine Legagneur Appointed as the New CEO of TogoCom
Pierre Antoine Legagneur is TogoCom’s new boss. He took over from Tarik Boudiaf, who had been acting as interim CEO since Paulin Alazard's resignation in August 2022. The rumor was confirmed last Friday by the Axian Group, which holds 51% of TogoCom.
"I am pleased to announce the appointment of Pierre-Antoine Legagneur as CEO of TogoCom. I am convinced that he will bring real added value to the Togolese market," announced Stéphane Oudin, CEO of AXIAN Telecom.
Legagneur, a telecommunications expert, was previously a director at TELCO OI, a telecom operator belonging to the Axian group (like TogoCom), active in the French departments of Réunion and Mayotte.
His experience will certainly be useful to TogoCom, especially amidst the local regulator’s criticisms against the operator–criticisms resulting from the merger of Togocel and Togo Telecom. The watchdog, ARCEP, even imposed TogoCom a CFA2.3 billion fine in 2021.
More recently, on May 31, 2023, the ARCEP issued a formal notice against Togo Cellulaire (the "mobile" branch of TogoCom) and Moov Africa-Togo, the two mobile telephone operators present in Togo, for "serious breaches of their service quality obligations."
Resolving the situation and strengthening the group’s position in the Togolese telephony market are thus the main challenges that the French citizen will have to address.
Ayi Renaud Dossavi
Factoring and Leasing Continue Meteoric Rise in Togo
Factoring financing almost tripled in Togo between March 2022 and March 2023, from CFA7 billion to CFA19 billion. The figure was recently reported by Minister of Finance, Sani Yaya, at the National Credit Council.
The official also noted that leasing credits stood at CFA23 billion at the end of March 2023, nearly twice the amount recorded at the end of March 2022.
By comparison, the outstanding amount of factoring financing went from 2 billion in June 2021 to 9 billion at the end of June 2022 (an annual increase of 350%), while leasing activities grew by 16% year-on-year, reaching 14 billion at the end of June 2022.
Factoring, let’s recall, is a financing tool that allows a company to assign its customer receivables to a specialized company (which will recover these receivables) in exchange for liquidity, thus improving its cash flow and financing its activities. Leasing, on the other hand, is used for the acquisition of assets such as equipment, vehicles, or real estate, in the form of "renting". In this mechanism, the tenant pays agreed rents and ultimately becomes the owner of the equipment at the end of the contract. This allows companies to acquire equipment without overly affecting their cash flow.
In Togo, African Lease Togo (ALT) is one of the top actors offering these financing options.
Ayi Renaud Dossavi