The capital of Togo, Lomé, will host the second edition of the Interprofessional Dialogue on Taxation (DIF) on July 6 and 7, 2023. The event will delve into the tax conventions signed by African countries, with participation from Togolese taxation experts and academic scholars. This year's focus, "The African Continent Under the Test of Tax Conventions," sheds light on the region's tax realities.

This year's dialogue offers a platform to reexamine the diverse tax conventions currently in operation across African nations. The aim is to outline conventions that are either beneficial or obsolete, considering the realities of economic activities and the internal tax revenue collection, as stated by Koffi Agbénoto, the President of the Organizing Committee.

The event will be marked by 36 presentations from tax experts hailing from France and Morocco.

The Interprofessional Dialogue on Taxation is organized by the Togolese Revenue Office (OTR), through its Institute of Tax and Customs Training (IFFD), the University of Paris Dauphine and the Dauphine Association of Tax Administration (ADAF). The two-day meeting will be conducted both in-person and virtually.

Esaïe Edoh

Cassa Depositi E Prestiti (CDP) will open a €60 million credit to support Africa’s private sector. The Italian public financial institution and the West African Development Bank (BOAD) signed the related agreement on July 3, 2023, in Lomé, Togo. 

The deal was signed by Serge Ekué and Davide Petrangeli, respectively the BOAD’s boss and CDP’s investment manager. It will support private businesses in the West African Economic and Monetary Union (WAEMU) across all sectors of activity, with a focus on agriculture, gender promotion, and better living standards.

Ekué, indeed, noted that "at least 10% of the resources from this credit line will be specifically allocated to financing projects carried out by women entrepreneurs or directly benefiting them." "This is another step forward in our determined march towards more inclusive, sustainable, and equitable economic growth in the UEMOA zone," BOAD’s president added. 

The new credit line was approved in November 2021 by the BOAD's Board. Totaling over €150 million, or more than 98 billion FCFA, it will be co-financed by the CDP and FinDeva, a Canadian development financing institution.

Esaïe Edoh

Addoha Douja Promotion, a Moroccan company, will build 1,000 housing units in Lomé, Togo’s capital. The Ministry of Urban Planning revealed that the government and the firm signed the related protocol agreements on June 15. The documents were signed by Koffi Tsolenyanu, Minister of Housing, and Mehdi Zemmama, Executive Director for Africa of Addoha.

Under the terms of the agreement, the Rabat (Morocco)-based company, which specializes in leasing real estate, is expected to present to the Togolese state within five months a preliminary description of the project detailing the chosen architectural party and the major elements of the construction program.

This project falls under a larger one to build 20,000 housing units and aligns with the government’s 2020-2025 roadmap. Also, Lomé signed a similar agreement two years ago with the pan-African institution Shelter and other partners such as IFC, AfDB, and BOAD.

"This agreement will significantly boost the execution of the large program to construct 20,000 decent, affordable housing units," declared the Minister of Housing. He further noted that "the planned decent collective housing in Lomé on underused land in urban and peri-urban areas will reduce the gap between supply and demand for decent housing in Lomé, and limit sprawl." 

Esaïe Edoh

Togo raised CFA110 billion on the WAEMU’s money market last Tuesday, June 27. That is CFA10 billion more than the country was seeking for the operation, according to the WAEMU-securities agency. 

In detail, Lomé secured CFA92 billion with fungible treasury bonds, which mature over 3 and 5 years, at respective rates of 6% and 6.25%, and the remaining CFA18 billion with fungible treasury bills. The latter mature over 364 days and have a multiple interest rate.  

The operation’s report added that 3 regional investors subscribed to the transaction, mobilizing a total of CFA170 billion, out of which CF110 billion were retained.

In addition to disclosing the recent fundraising, the WAEMU-securities agency noted that the CFA30 billion issue planned for June 30 was postponed.

So far this year, Togo has secured CFA404 billion on the WAEMU market; it targets CFA574 billion for 2023. The recent success bodes well for the country and shows a growing ability for raising money on the regional exchange. 

Esaïe Edoh

The Togolese Assembly allowed the government to ratify the cooperation agreement between the West African Monetary Union (UMOA) member states, countries that share the CFA franc, and France. The Assembly unanimously approved the move last Thursday, June 29, during its sixth ordinary plenary session of the year. Sani Yaya, Togo's Minister of Economy and Finance, was present.

Closer to adopting the ECO?

The new monetary cooperation agreement was signed on December 21, 2019, in Abidjan, Côte d’Ivoire. It is a "significant revision" of the agreement in effect since December 4, 1973, according to the Assembly.

The updated version, indeed, prepares the Union's states for the introduction of the ECO and "promotes Togo's growth and attractiveness."

By ratifying the document, Togo tells other WAMU States that it has completed the internal procedure necessary for the agreement to come into effect.

Both for Togo, and the region concerned, the recent announcement is one of the latest developments in a process that started in 2019, following many debates about the future of the CFA franc, which some people view as a colonial relic that should be replaced.

In the wake of these debates, the Central Bank of West African States (BCEAO) initiated reforms in the operation of the community currency, notably at the level of its operating accounts.

Note that as recently as 2020, Togo was the only ECOWAS country to meet the established convergence criteria for adopting the ECO, the future single currency of the zone.

While Togo is taking another step in this direction agreed upon by the subregion's countries, it should be noted that some observers, like the Standard and Poor's analyst, have expressed doubts about the community currency's mid-term implementation, common to the 15 countries of the sub-region.

Ayi Renaud Dossavi

Togo is updating its legal framework for approved management centers (CGA), specific structures set up to support small and medium-sized enterprises (SMEs) in their accounting, tax, and social management. On June 29,  during its sixth ordinary plenary session of the year, the National Assembly validated a law in this framework.

The previous version of the framework has been effective for 23 years and was drawn in 1997. Besides the updates, Lomé is transposing a 2022 community directive (WAEMU) aimed at improving business management by facilitating their creation and membership in CGAs.

"This new law, which takes into account the innovations of the new directive, will bring more flexibility to the creation and membership of Approved Management Centers (CGA)," said Sani Yaya, Minister of Economy and Finance, present during the session. "It allows, among other things, to improve company governance and provide CGA members or customers with assistance in management, to offer them services in terms of information and training, to support them in preventing and resolving difficulties, to maintain and present their accounting, and to assist them in tax matters and social law," he added.

Innovations and incentives

With the updated bill, CGAs can operate as capital companies, except for single-person businesses. This measure aims to encourage the development of CGAs in Togo, by offering new opportunities for financing and growth.

The government also plans other incentives, such as State subsidies for associations and a 5% preference in favor of members in public procurement procedures, cumulative with the community preference rate of 15%.

A surveillance structure should also be created within the tax administration to monitor and supervise CGAs.

Commenting on the projected developments, Minister of Finance, Sani Yaya, lauded the law’s adoption and claimed it would provide Togo with the legal means for the harmonious development of CGAs.

Ayi Renaud Dossavi

The Adétikopé Industrial Platform (PIA) currently host Togo’s first Agri-food and Agricultural Financing Fair (SAFA). Started on July 1 in Notsè, the event ends on August 9, 2023. It is organized in collaboration with its Agricultural Value Chain (AVC) branch and will take place in several cities in Togo on a traveling basis, specifically in rural markets.

According to PIA’s management, the fair will shed light on the improvements, productivity, and profitability of the agricultural sector in Togo. It will also contribute to strengthening agri-food processing industries, access to financing, and the market for Togolese farmers.

In this dynamic, during the Fair, the PIA and its partners will meet with local communities and actors in the agricultural value chain who will be made aware of access to financing.

The PIA noted that the initiative aligns with the Togolese government's roadmap, stressing that it "will reflect all the links of agriculture in Togo."

Esaïe Edoh