Togo First
Togo: Lomé to host a youth entrepreneurship forum next month
Lomé will host a forum for young entrepreneurs next month, on the 16 and 17. The forum, called National Congress for the Young Entrepreneurs of Togo (CoNJET) was announced on May 17 during a press conference organized by the Association of United Young Entrepreneurs for an Emergent Togo (JEUNE-Togo in French). The event will be held at the Palais des Congrès de Lomé.
The CoNJET is expected to gather 3,000 young entrepreneurs, including 1,000 from the interior of the country. The theme picked for the forum is “Ecosystem, performance, and Perspectives for youth entrepreneurship in Togo”.
"We have conducted a field analysis on the accompanying measures and their deployment. And we noticed that several young entrepreneurs close their businesses within three years of existence. This was the subject of our survey and it is after all that we have identified here and there that we decided to organize a national conference," said Well-off Boukpezi, president of Jeune-Togo.
He added that the upcoming forum aims to promote policies that make young entrepreneurs more resilient, amid current global crises–health and security. Emphasis will be put on sustainable, shared, and durable growth.
This is the first time the forum will be held. It will include roundtables, training workshops, talks with technical and financial partners and young entrepreneurs, workshops, and works revolving around entrepreneurship, ways to reinvent support to the youth, dependence on public and private financing, and the perspective of government action on the MSMEs.
For more information, visit: www.jeunetogo.org.
Ayi Renaud Dossavi
Ecobank and Japan Motors launch a car financing offer in Togo
Ecobank and Japan Motors launched a car financing offer on 17 May 2023 in Lomé. The offer, aimed at employees and SMEs, should make it easier for the latter to get loans to buy cars.
These car loans range from 8 million FCFA to 54 million FCFA, repayable over up to four years, at a rate of 7.5% to 8% depending on the customer's profile and the repayment period.
According to the agreement, the Pan-African Bank will make the credit available to the client and Japan Motors will provide the vehicles.
"This credit is initiated to revitalize the Togolese car fleet and offer the population the possibility of acquiring quality machines that guarantee their safety," stressed Yvon Kpativor, General Manager of Japan Motors.
Esaïe Edoh
Togo: Keras transfers its stake in the Nayega project to the government
Togo wants to double the contribution of mining to its GDP by 2025. To do so the country relies on the recovery of its phosphate industry, and its manganese-rich subsoil.
Togo’s government inked with the British firm Keras Resources a deal that will double the mining sector’s share in the country's GDP by 2025. Under the deal, Keras gave up on its operating permit for the manganese-rich Nayéga project. Now, the permit is exclusively held by Société Togolaise de Manganèse, a 100%-State owned company established in April 2023.
According to the agreement, Keras will transfer “its intellectual knowledge on Nayéga to the State, and provide consulting and brokerage services to accelerate Nayéga’s development”. The British firm, which ran the project for many years, will also start selling its participation in SGM, the subsidiary through which it held a stake in the project.
In return for the participation, the State will pay Keras $1.7 million in cash on July 17, 2023. Additionally, Keras will receive 1.5% of the gross revenues from the mine for its consulting services for three years, and 6% of the gross revenues from the asset for its brokerage services for three years or 900,000 tons of enriched manganese ore produced and sold from the mine.
“This Agreement is a reflection of the constructive relationship we have with the State and sets a very clear picture of how the asset will now be developed to the benefit all stakeholders and reward Keras for its investment to date,” said Graham Stacey, CEO of Keras. He added that the company would begin a transition to focus on its Northern American projects.
A good formula for Togo?
The deal aligns with the objectives that Togo announced when it created the Société Togolaise de Manganèse in April. Indeed, the company was tasked with enhancing the country's manganese reserves in a bid to “double the mining sector’s contribution to GDP by 2025”.
The first hurdle the public company will have to overcome is to realize Nayéga’s potential. A project which hosts mineral resources of 13.97 million tonnes grading 12.4% manganese and ore reserves of 8.48 million tonnes grading 14% manganese.
According to Agence Ecofin, production at Nayéga was initially expected to start in 2020 at a nominal monthly capacity of 6,500 tons of marketable ore but these milestones were not met, and works were suspended to allow the State to negotiate better terms for the project.
Though the new deal could be the right formula to restart the project, only the following developments will tell more about the plans of Sociéte Togolaise de Manganèse. Will the firm stand by Keras’ initial plans and when will production begin?
While these questions remain unanswered, the manganese sector continues to face new challenges, with increased needs in steelmaking and growing demand for electric batteries. The ore, according to a report that Ecofin Pro released earlier this year, is “an additional asset for the African continent in the industry of tomorrow.” Africa, let’s emphasize, produces more than 60% of the world’s manganese output, and several African countries, such as Togo, South Africa, Gabon, Ghana, Ivory Coast, and Botswana, are positioning themselves to take advantage of new opportunities in this market.
Louis-Nino Kansoun
Ecobank shareholders approve dividend payout and plan to raise $500mln
Shareholders of Ecobank Transnational Incorporated (ETI) approved a dividend payout of $28 million, equivalent to 0.11 cents per share. This decision took place at their annual general meeting held on May 17, in Lomé, Togo.
The challenging economic environment, characterized by escalating inflation and high-interest rates, has led to a 32.25% reduction in dividends compared to the previous year. At first, the Board’s proposal to reduce the dividends was met with discontent among some minor shareholders. They viewed the move as too prudent and not generous enough. Compared to 2021 when ETI paid 0.16 cents per share, the amount recently approved by the shareholders is 32.5% lower.
To justify the reduction, Alain Nkountchou, who heads ETI’s board of directors, referenced the recommendations of the West African Union’s Banking Commission. The latter, indeed, urged financial and lending institutions that operate in the Union to exercise caution with dividend distribution for 2022. "It's not a matter of you against us. We are on the same side. We should be proud that we have picked up and maintained the distribution policy for the second year in a row," Nkountchou said.
Despite the reduction in dividends, the financial performance of ETI in 2022 remained strong. “In 2022, Ecobank posted robust financial results, navigating high-interest rates, inflation, and the restructuring of Ghana's debt,” indicated Jeremy Awori, Managing Director of Ecobank.
Last year, ETI posted a net income of $222 million, down from $295 million in 2021. However, “pre-tax income rose by 13% to $540 million, and net banking income rose by 6% to $1.9 billion. The total balance sheet, for its part, grew by 5% to stand at $29.004 billion,” Nkountchou detailed.
"The financial strength of the group is also satisfactory, with an adequate level of equity and sufficient capital. As of December 31, 2022, our projected Tier 1 capital ratio stood at 10.2%, down slightly from 10.7% in December 2021," The Cameroonian added. Return on tangible equity stood at 21.1% in 2022, the highest that Ecobank has recorded in the last decade.
Awori, who became MD on 1 March 2023, attributed Ecobank's performance in 2022 to the bank's diverse business model, its expertise in the digital domain, its innovative strategies, and its operational effectiveness.
After the ordinary general meeting, an extraordinary meeting was held, during which shareholders approved a plan for raising $500 million in 2023, to boost ETI's sustainable resources.
Fiacre E. Kakpo
Translated in English by Schadrac Akinocho
Togo lands a $250M deal with the IsDB to bolster the energy, agriculture, and private sector
Through its International Islamic Trade Finance Corporation (ITFC), the Islamic Development Bank (ISDB) will provide Togo with $250 million to lay the groundwork for expanding its partnership into three new key sectors: energy, agriculture, and private sector development.
The related agreement was signed last Friday, May 12th, on the third day of the IsDB’s annual meetings in Jeddah.
According to the ITFC, which disclosed the information, the deal will give Togo the means to develop its private sector and stimulate economic growth. It will also help the country have a more efficient and secure trading system for imports and exports.
Besides extending their partnership to more sectors, the two partners also inked an agreement for a 3-year program for capacity-building in trade facilitation, promoting export value chains, Islamic finance, e-commerce, and private sector development.
Last Friday, the ITFC signed a dozen major agreements with several countries, including Algeria and Cameroon, as well as regional organizations such as Afreximbank, and the ECOWAS Bank for Investment and Development (EBID). Afreximbank will receive $325 million in financing for its UKAPFA program, and EBID will get $27 million to meet the needs of its private sector clients. The ITFC also concluded a memorandum of understanding with OCP Africa to set up an innovative financing mechanism for African farmers.
Ayi Renaud Dossavi
Germany to help Togo fight terrorism
In a recent meeting between Togo's prime minister, Victoire Dogbé, and the German minister of foreign affairs, Katja Keul, it was announced that Germany will assist Togo in combating terrorism. The discussion primarily revolved around fostering cooperation between their respective countries, addressing the security concerns in Togo and the Sahel region, as well as focusing on matters of inclusion and the environment. The meeting took place on May 15.
"We discussed the security situation and Germany wants to listen and understand Togo's needs to be ready to provide support. The fight against terrorism is a concern for all of us, it is not only a regional problem, but a security issue for all of us," said Katja Keul.
The German minister also lauded the social protection initiatives underway in Togo, particularly the inclusion of women and the poor.
Ayi Renaud Dossavi
WAEMU-Securities: Togo launches new issue on the regional market, seeks CFA30 billion
Togo will, again, try to raise CFA30 billion on the WAEMU stock market. The country’s public treasury just launched a simultaneous issue of fungible treasury bonds and bills. The operation closes next Friday, May 19.
According to the issue’s notice, Lomé seeks CFA20 billion through the bonds and 10 billion through the bills. The former has a nominal value of CFA10,000 and two interest rates–6% and 6.25% (with respective maturities of 3 and 5 years). The latter matures over 182 days and has a multiple interest rate and a nominal value of CFA1 million per unit.
It is worth emphasizing that Togo has successfully carried out its three latest issues on the regional money market.
Esaïe Edoh
Togo: Government works on new plan to improve urban transport in Lomé
Togolese authorities are working on a plan to equip Lomé, the capital, with an urban transport system that integrates changes in demographics. Works for the document’s elaboration started on May 16, after a ceremony organized by the Ministry of Road, air, and rail transport.
Known as the Sustainable Urban Mobility Plan (SUMP), the plan’s elaboration is co-funded by the European Union Commission and the Covenant of Mayors for Sub-Saharan Africa (CoMSSA). The two entities pumped €600,000 into the project.
"Based on an approach that heavily relies on the multimodality of a transport system which is currently structured primarily around motorcycles and private cars, the SUMPs should guide the evolution of the transport system towards a greater balance between the different modes of travel," said the representative of the Minister of Transport, Michel Komlan Tindano.
This plan should help to address challenges such as road congestion, air pollution, road safety, and limited access to basic social services and equipment for inhabitants of the peripheral neighborhoods of Greater Lomé.
Lomé’s SUMP should be available in 14 months, according to the Ministry of Transport. During this period, a restructuring study of the Lomé Transport Company (SOTRAL) will be conducted.
The elaboration of the new mobility plan falls under a strategic project titled: "Development Plan for the 10 main municipalities". The latter is also part of the Togo 2025 Government Roadmap.
After Lomé, the project will be replicated in other cities of Togo.
Esaïe Edoh
Lomé to host a key African forum on infrastructure financing next month
Lomé will host Africa50’s Infra for Africa forum and the General Assembly of its shareholders on June 3-4, 2023. This will be the event’s first edition, and it will be held under the patronage of Togo’s President, Faure Gnassingbé.
The forum, which will focus on financing infrastructure in Africa, will gather leaders from different sectors, including banking; with "Bankable, scalable, reproducible", as the guiding theme.
Africa50 is a pan-African fund established by African governments and the African Development Bank (ADB). Its main goal is bridging Africa’s financing gap in infrastructure. Africa50 prioritizes investments in sectors such as energy, transport, ICT, midstream gas, fintech, health, and education.
With a capital valued at $740 million, the Fund’s shareholders include African countries, including Togo.
Esaïe Edoh
Maritime sector: Togo and Senegal want to cooperate more
Togo and Senegal want to bolster their cooperation. The subject was discussed last Thursday, May 11, during a meeting between Edem Tengue, Togo’s minister of maritime economy, and Achille Gueye, director general of the Senegalese Agency for maritime affairs (ASAM).
The two officials covered various issues, such as ways to fight piracy and illicit trafficking in the Gulf of Guinea. They also agreed to cooperate more to better protect ships in this area. There was also the issue of the L’Everest, a Togolese ship held in Senegal. The two men explored ways to handle the issue favorably.
The meeting was also the occasion to highlight the challenges and opportunities of the Maritime Organization of West and Central Africa (OMAOC), to develop the maritime sector in the region.
Tengue and Gueye met on the sidelines of the WAEMU’s 8th Advisory Committee meeting on maritime transport. The latter was held in Togo, on May 9-11. And some weeks ago, Edem Tengue also met Brazilian officials, to discuss how to boost cooperation with the Southern American country in the maritime sector.