Togo First

Togo First

Gilbert Bawara, the Togolese minister of labor and social dialogue, met with representatives from some local unions on Labor Day, May 1. During the meeting, they requested the government's help to ensure the new minimum wage of CFA52,500 is applied to all companies.

Emmanuel Agbenou, Spokesman for the trade union centers, said, "We have asked the government to strengthen and improve state support for trade union organizations to provide training and labor education for workers." 

The representatives also urged the implementation of a plan to support Small and Medium Enterprises and Industries affected by economic conditions. “We have also requested the extension of social measures to the informal sector, including health insurance and social protection. And we asked employers to promote social dialogue to resolve problems and avoid conflicts,” Agbenou reported, adding that they also asked the government to “strengthen the partnership between the state and denominational education.”

Progress acknowledged

However, the unions acknowledged the progress made in recent years, such as the 10% improvement in civil servants’ wages, transport allowances, and the revitalization of the national framework for social dialogue through the National Social Dialogue Forum. They also noted a 50% increase in the minimum wage in the private sector and the launch of universal health insurance.

After taking stock of the unions’ requests, Minister Bawara praised the unions and employers for having acknowledged, "with honesty and sincerity, the significant progress made by the government""No work is perfect, and we will keep listening," the official added.

Ayi Renaud Dossavi

Financial company Afrik Créances has launched its first subsidiary, "Afrik Créances Togo," in Togo. The launch ceremony was held on May 2, 2023, with several finance actors, from Togo and Africa, as well as Togolese officials present. The official ribbon-cutting ceremony, marking the opening of the Lomé branch, was performed by Blaise Ahouantchede, the head of Afrik Créances, and Akou Mawussé Afidenyigba, the Director of Cabinet for the Ministry of Economy and Finance.

The new subsidiary aims to support African SMEs by facilitating their access to financing in West Africa. After Togo, Afrik Créances plans to first expand to Senegal and Ivory Coast.

"Our wish for banks and decentralized financial systems this year is that they can increase financing to micro, small, and medium enterprises at affordable costs; increase financing to the agriculture and housing sectors, strengthen the digitalization of financial services, and improve their quality. All these challenges can be met with the input and new business model proposed by Afrik Créances," said Akou Mawussé Afidenyigba.

3imoe

For his part, Afrik Créances’ CEO, Blaise Ahouantchede detailed the scope of activities of the company. “Afrik Créances’ activities are centered around three main areas: representing financial services, credit brokerage, and debt recovery…We also have two secondary projects: digitizing financial services and providing training for students and professionals in the financial and banking sectors”, he declared.

4imoe

To start up in Togo, Afrik Créances received financing of 1.75 billion CFA francs, 14% from equity and 86% from bank loans. The UTB has covered the company for 1.5 billion CFA francs and has been guaranteed up to 80% by the African Solidarity Fund (FSA), providing financial security of 1.2 billion CFA francs. Regarding the FSA, it is considering a partnership with Afrik Créances to support SMEs in the countries where it operates, according to Olivier Amani, Deputy Director of Commitments and representative of the Fund’s boss.

Afrik Créances announced the arrival of its holding in Lomé a year ago during the first International Forum on Digital and Innovation Intermediation (FONI). The Togo subsidiary is expected to have a General Manager within the next three months. The subsidiary will contribute to the Togolese government's goal of making Lomé the "capital of African finance" and a "regional financial and logistics hub," according to Togolese authorities. Afrik Créances plans to cover 10 to 15 countries in the next five years.

Ayi Renaud Dossavi

In a recent interview with New World TV, the President of Togo, Faure Gnassingbé announced a new census, a biometric census. The operation is separate from the ongoing general and electoral censuses.

On the air, Gnassingbé said: "I also take this opportunity to tell the population that it is true that we have the general census and the electoral census. There will be a third census to offer a biometric card to every Togolese so that we can be effective in our social protection policy".

Through the additional census, personal and biometric data of citizens will be collected and they will receive a Unique Identification Number or UIN. This is a number assigned to all Togolese residents to facilitate interactions between citizens and administrations, as well as for the digitalization of public administration.

The government already took the first steps to materialize the project.

In March 2022, for instance, Lomé approved a bill to facilitate the creation of a social register of individuals and households, by leveraging the UIN.

A National Identification Agency was also set up in line with the project, and it is already operational. 

Moreover, in May 2022, a meeting was held in Lomé for the WURI, a program that aims to help people in the ECOWAS move more easily across the region and access public and private services by creating a biometric registry. Six countries are involved, and the program has received $400 million from the World Bank. Joachim Boko, a social protection expert at the World Bank, said that Togo is doing well in implementing this program.

The biometric census project should have started at the end of 2022 but was delayed. Though he said it would still happen, President Gnassingbé did not specify exactly when.

Fiacre E. Kakpo

Togo and the Central African Republic want to enhance their bilateral cooperation, with a focus on trade and investment. The countries' foreign ministers, Robert Dussey and Sylvie Baïpo-Témon, recently discussed the topic in Lomé, Togo's capital.

The officials committed to "work closely" to establish a legal framework fostering cooperation between Lomé and Bangui. Subsequently, their respective chambers of commerce should ink various agreements aimed at promoting mutual investments and avoiding double taxation.

Robert Dussey, Togo's foreign affairs minister, spoke during the meeting about maintaining continuous dialogue with Bangui to consolidate this ambition.

Togo and the Central African Republic already cooperate in areas such as air transport and commerce. For instance, the Central African minister mentioned the Lomé-based Asky airline, which facilitates connections between Bangui, Togo, and other African countries.

Also, since July 2018, Lomé and Bangui have agreed on a visa exemption for citizens holding diplomatic, service, and regular passports, further strengthening their relationship.

Esaïe Edoh

Togo should soon amend its military programming law which was adopted in 2020. President Faure Gnassingbé announced the move on the sidelines of the country's recent 63rd independence anniversary. 

"This law is no longer adapted since the threat has evolved," Gnassingbé said referring to the escalating terrorism threats that the country faces. Already, steps are being taken to get the law revised in some weeks.

The Islamic State in the Greater Sahara and the Islamic and Muslim Support Group are the two primary terrorist organizations posing a threat to Togo. The president warned that though the national forces of defense have won against them a few times, staying alert is a must, given the sporadic and unpredictable nature of the attacks.

Togolese citizens must brace themselves for a "long and difficult fight" to safeguard their nation, all while upholding their core values and humanity, Gnassingbé said.

Togo has relocated nearly 12,000 of its residents in a bid to bolster border security and has welcomed refugees from neighboring countries affected by terrorism.

The current military programming law earmarks over CFA430 billion for defense spending through 2025. The budget includes allocations of 183.4 billion CFA francs in 2023, 107.6 billion CFA francs in 2024, and 138.5 billion CFA francs in 2025.

Ayi Renaud Dossavi

Togo will try to raise another CFA30 billion on the WAEMU market. Lomé, to this end, just launched a simultaneous issue of fungible treasury bonds and bills. The operation closes on May 5th. 

In detail, the country seeks CFA20 billion through the bills and CFA10 billion through the bonds. The former has a nominal value of CFA1 million, a multiple interest rate, and two maturity periods of 182 days and 364 days, while the latter have a nominal value of CFA10,000, an interest rate of 6% and maturity over 3 years. 

Proceeds of the issue will finance the 2023 budget which stands at CFA1,958 billion. 

Esaïe Edoh

The African Development Bank (AfDB) is giving $5.13 million to build 20,000 cheap homes in Togo. Announced last week and validated on 26 April 2023, the facility will fund the feasibility studies for the project.

The West African Development Bank also disbursed almost a million dollars ($932,893.83) for the project, which should benefit around 100,000 people or 1.25% of Togo’s population, according to the AfDB.

Experts think the 20,000 homes project can boost social inclusion and accelerate progress in Togo. Making homes affordable, they believe, should improve access to education, healthcare, and jobs, and overall positively impact beneficiaries.

The 20,000 homes project aligns with the 2025 roadmap of Togo. In a context where the country, in 2019, recorded an additional house deficit of 15,000 homes, bringing the total deficit of decent homes to 500,000. In the same year, only 1,800 homes were built. The project also aligns with AfDB’s 2021-2026 country strategy for Togo.

Access to decent housing is indeed a challenge for most Togolese. And that is why the government is doubling down on efforts to change things. Lomé reports that in 2018, 93% of the economic activity was informal, and the minimum wage was $63. Meanwhile, cheapest homes built by developers cost on average $24,763, more than 28 times the average annual income per capita–$880 (CFA520,000).

To move the delayed 20,000 housing project forward (it should have been implemented under Togo's 2018-2022 national development plan), Lomé considered, in 2021, a draft decree authorizing the establishment of a land reserve. Subsequently, Togolese authorities announced the establishment of a land reserve in the cantons of Dalavé and Kpomé in the Zio prefecture on an estimated area of 1,177 hectares, around 30 km from Lomé.

Written by: Fiacre Kakpo

Translated from French by Schadrac Akinocho

In Togo, the Youth for Youth Association (Y&Y) launched a training program for young professionals last Wednesday, April 26, 2023. The program, titled Skills for Young Professionals, is backed by the private sector. 

The National Coalition for Youth Employment and the University of Lomé teamed up to launch the project. Its goal is to equip young professionals with less than five years of experience with the tools and know-how they need to develop their skills and succeed.

The first batch of trainees includes 200 people who work in the public sector –ministries, the tax office, city halls, etc., and the private sector –SANLAM, SGMT, ECOBANK, and Total Energie. International organizations such as the World Bank also sent some representatives. 

The program will include modules on Problem Solving, Strategic Communication, Feedback Culture, Teamwork, Project Management, Storytelling, Business Writing, and Professional Branding.

"It's about enabling them to adapt quickly to the demands of their jobs, accelerate their learning curve, and improve their performance," said Abdul-Fahd Fofana, founding president of the association, and a senior economist now at the OECD Development Centre.

Potential recruits for the private sector 

Commenting on the private sector’s involvement in the program, Fofana said the latter has “the potential to become a framework for exchanges, networking, sharing of experiences and good practices.

Regarding the sharing of experience, it will enable the trainees to contribute more to the country’s development.

Representatives from the Ministry of Youth, GIZ, the World Bank, the UNDP, and eminent figures such as Patrice Anato, a former deputy, and Togolese entrepreneurs Ayité Ajavon (Africube) and Yao Azoumah (KYA Enervy Group) took part in the virtual launch of the program. 

"As an entrepreneur, I need young people who have a real skill applicable to the business right away, we need a strong offer and this program is welcome ", said the promoter of AHOUENOU Sarl, a culinary broth business. 

"We support this project and will be happy to receive regularly at our place young people of this cohort", added Mansour Touré Tia, MD, Kekely Efficient Power, another private actor who showed his support. 

The first training sessions are scheduled for mid-May. 

Octave Bruce

The National Council of Togolese Employers (CNP-Togo) and  G&A Africa Consulting, an Ivorian law firm specializing in business engineering, inked on April 25 a partnership agreement to train and build capacities of economic operators in Togo.

Under the deal, G&A Africa will support Togolese companies in management and leadership to "stimulate business growth, create decent jobs, and promote innovation and the adoption of new technologies."

According to Gilles Atayi, the firm's associate director, this support is now essential to meet the competitive challenges faced by companies worldwide.

For his part, Coami Tamegnon, President of CNP-Togo, said the deal aligns with the Council’s commitment to empower Togolese companies and make them more performant and responsible. 

G&A Africa Consulting provides African companies and professionals with authentic solutions and pragmatic tools that bolster their performance. The law firm operates in French and English-speaking African countries.

The cooperative of cotton farmers of Ogou and Anié, two prefectures of Togo, produced 3,887 t of the crop in the 2022-2023 campaign. This is about 7% of the total quantity marketed across the country over the period–52,000 t. 

The cooperative disclosed the figures last week referring to its campaign report for the sector. The document further indicates that the farmers of the two prefectures grew the crop over 5,683 ha of land, and recorded an average yield of 778 kg/ha. 

These results were yielded by 3,746 farmers, including 454 women, and spread over 293 groups of farmers. For the next campaign, the cooperative plans to cultivate 6,000 hectares, and produce 4,800 tons, thus corresponding to a yield of 1,000 kg/ha.

In recent years, Togo’s cotton sector has been facing several challenges, including unfavorable rainfall, and competition from soybean, which farmers believe to be more profitable.

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