Togo First
Togo and Burkina team up against terrorists
President Faure Essozimna Gnassingbé was in Pya, a town located in Kara, in the northern part of the country, on April 12. There, the Togolese leader met with a delegation of officials from neighboring Burkina to discuss the security situation at the border of the two countries.
The Burkinabe delegation was led by Colonel Boukaré Zoungrana, the Minister of Territorial Administration, Decentralization, and Security. The talks focused on coordinating the fight against terrorist groups that Togo and Burkina Faso have been facing for several months.
During the discussions, the two parties decided to team up to neutralize the terrorists that attack them.
Last year, on May 10-11 after terrorists killed many in Kpekpakandji, in the prefecture of Kpendjal, the Togolese army intensified its response. In this framework, the Togolese government decreed a state of emergency in the Savannah region in June 2022 and it was recently extended for 12 months.
Esaïe Edoh
Togo secures $100M from the World Bank to boost access to drinking water in Greater Lomé
Togo has secured a financing of $100 million (about CFA60 billion) from the World Bank at the institution’s Spring Meetings in Washington. The funds will help the West African nation bolster access to drinking water in Greater Lomé and improve sanitation services in the surrounding area.
Sani Yaya, Togo’s minister of finance, and Coralie Gervers, who heads the World Bank’s operations in Togo and other African countries, signed the financing agreement on April 13.
Commenting on the matter, Yaya declared: "This new operation reflects the World Bank's commitment to helping Togo overcome water and sanitation challenges. It will significantly contribute to the government's roadmap, which aims to bring to 80% the drinking water coverage rate in the capital, Lomé, by 2025…By increasing access to clean water and sanitation, we will help improve the health of the population, reduce the number of waterborne diseases, and create more favorable conditions for Togo's economic and social development.”
The financing aligns with The Togo Urban Water Security Project (TUWS). This is a project that aims to boost the availability and quality of drinking water in Greater Lomé, as well as improve sanitation services in the area. Specifically, the TUWS will bolster providers’ operational performance and improve the management of water resources, and wastewater management, promote public health, and address the problem of unbilled water.
Moreover, the project involves rehabilitating water supply infrastructure, building a sludge treatment plant, carrying out technical studies to achieve sustainable water production on a large scale, and reinforcing the distribution network.
The new World Bank financing will support Togo’s plans to make drinking water accessible to more people. This year, the Togolese government aims to invest CFA25 billion in water supply initiatives (under the 2023 finance bill). This is as 61.5% of the Togolese population, according to data updated in 2021, has access to drinking water. Respectively, 60.25%, 52.88%, and 69.49% of Togo’s urban, semi-urban, and rural populations have access to the resource, according to the data.
Ayi Renaud Dossavi
African Roots Decade: Lomé will host the 9th Pan-African Congress on May 22, 2023
Togo will officially launch the 9th Pan-African Congress on May 22 in Lomé. Robert Dussey, the minister of foreign affairs announced this today, April 13, after a meeting of the High Ministerial Committee on the Decade of African Roots and the Diaspora.
Now the date is known, Togolese authorities should soon begin preparations for the congress. The event was initially announced earlier this year, in Rabat, Morocco. At the time, minister Dussey had also revealed the event’s theme: "The Rebirth of Pan-Africanism and Africa's Place in global governance: mobilizing resources and reinventing itself to take action."
"The African Roots Decade" (2021-2031), a Togolese initiative, has been validated by the African Union. Its goal is to make the African diaspora the leading actor in the development of the continent. It currently has 15 member countries.
Ayi Renaud Dossavi
Cashew: Togo takes part in two major meetings in Abidjan
Togo participated last week in the fifth session meeting of the International Cashew Advisory Council (ICAC), which was held from April 5 to 6, 2023 in Abidjan, Côte d’Ivoire. According to the Togolese Ministry of Trade, which reported the information, the meeting gathered the ministers of agriculture, industry, and trade of the ICAC member countries.
In parallel, the country also took part in the fourth edition of the International Exhibition of Cashew Processing Equipment and Technology (SIETTA), which took place from 6 to 8 April 2023. It was attended by several actors from the cashew sector who discussed innovations in equipment and processing technologies.
The Togolese delegation sent to Abidjan included the chiefs of the cabinet of the ministers of trade and agriculture, the national focal points at the ICAC, and some members of the cashew interprofessional management board.
With the ICAC’s experts, they assessed the activity report of the ICAC Executive Secretariat; reviewed and adopted the Council’s 2023-2027 Strategic Plan and its budget for 2023. They also formulated and drafted solutions and recommendations, and issued a final communiqué.
Established in 2016, the ICAC represents 84% of African cashew production and 57% of global production. It was launched by eight African countries (including Togo). Together, these countries contribute 60%-80% of global production or 1.3 million tons of cashew nuts. The ICAC aims to better control market prices by bringing together the main producers.
Ayi Renaud Dossavi
WAEMU-securities: Togo raised less money in Q1 2023 than in Q1 2022
Togo raised CFA113 billion on the WAEMU market in Q1 2023. This is 29% less than it did over the same period last year, CFA160 billion.
In detail, over the past three months, Lomé secured CFA50 billion and CFA63 billion, through fungible treasury bills (BATs in French) and fungible treasury bonds (OATs), respectively.
In Q1 2022, the treasury secured respectively CFA28 billion and CFA132 billion via BATs and OATs on the regional money market.
The decline recorded could be due to the low mobilization of investors around Togo's tenders. So far this year, Lomé has underperformed on the WAEMU market three times.
And since investors’ commitment has not been pronounced enough, the Togolese government called on financial actors active in the country to subscribe more to its issues on the WAEMU market. The call was made on March 21, 2023, at the first meeting of the National Credit Council (CNC).
Togo plans to raise CFA574 billion on the WAEMU market in 2023. The money will finance its annual budget, which stands at CFA1,957 billion, in revenues and expenditures.
Esaïe Edoh
Gas: Nigeria is set to inject $12.5B into the projected mega pipeline that will pass through Togo
The Nigeria-Morocco mega gas pipeline project could soon materialize. Recently, Nigeria's National Petroleum Company Limited (NNPCL) announced that it will invest $12.5 billion to acquire a 50% stake in the $25 billion infrastructure project.
The pipeline will stretch 5,600 kilometers along the Atlantic coast, running through 13 countries, including Togo. Morocco will host 1,672 kilometers of the pipeline.
A wake-up call from Ukraine
The gas pipeline project was initiated in 2016, by Morocco’s King Mohammed VI and Nigerian President Muhammadu Buhari, but it recently gained traction as energy prices started rising and Europe started reducing its gas supplies because of the war in Ukraine.
For now, said the CEO of NNPCL, Mallam Mele Kyari, the project is at the environmental impact study and right-of-way survey phase. Timipre Sylva also explained that the date to commence the project was yet to be set. According to him, some administrative details must be settled before the date is picked.
Togo, it should be noted, imports natural gas from Nigeria to meet its energy demand. Lomé, however, should receive right-of-way dues as the mega pipeline will cross it.
The upcoming pipeline will add to existing infrastructure, such as the West Africa Gas Pipeline (WAGP) which connects Nigeria to Ghana, via Benin and Togo.
Ayi Renaud Dossavi
Togo: A glance at external debt
Togo's external debt amounted to CFA1,296.11 billion in 2022. According to the Ministry of Finance, this is 38.84% of the public debt portfolio and more than a quarter (25.32%) of the national GDP.
Multilateral creditors (Bretton Woods institutions, development banks, etc.) hold 58.6% of the country’s external debt. Right behind are commercial lenders who hold 36.8% of this debt, and the remaining 4.6% is held by bilateral creditors.
Bilateral and commercial loans
The Kuwait Fund was Togo’s main bilateral credit last year, providing 31.51% of the bilateral loans secured by Lomé. France’s development agency, AFD, and the Abu Dhabi Fund follow, with respective shares of 26.64% and 18.32% of the loans.
Regarding commercial loans, they amounted to CFA476.79 billion in 2022. Eximbank China Société Générale and Bank of Tokyo-MUFG provided, respectively 56.97%, 17.91%, and 13.40% of the amount, making them Togo’s top commercial lenders over the year under review.
Exchange rate risk remains moderate
Since four-fifths (83.5%) of its outstanding public debt is denominated in CFA and euro, Togo is little exposed to fluctuations in international exchange rates. But it is not the case for its external debt portfolio which is sensitive to fluctuations in certain major currencies.
Indeed, 15.99% of the external debt portfolio is denominated in US dollars and 12.07% in yuan renminbi (CNY). The euro, which does not fluctuate against the CFA, accounts for 28.93% of external debt.
The IMF's recent SDR allocations also have no impact in terms of exchange rate risk. Indeed, "It should also be noted that all IMF SDR assistance, the outstanding amount of which represents 15.30% of the external debt, does not affect the exchange rate because of the agreement signed between the BCEAO and the State," says the Ministry of Finance. Finally, loans from the BOAD, a sub-regional multilateral institution, are denominated in CFA and represent 13.87% of the external debt.
In 2021, Togo's external debt was about CFA1,000 billion at the end of September, compared to CFA550 billion in 2017. The country's external debt rose due to its efforts to curb the Covid-19 crisis and post-Covid measures that the government launched for its economic recovery.
Ayi Renaud Dossavi
Togo: Finance Minister Sani Yaya leads a Togolese delegation to World Bank and IMF’s spring meetings
Togo is taking part in the World Bank and the IMF’s spring meetings which began on April 10, 2023, in Washington. The Togolese delegation is led by Sani Yaya, the country’s finance minister.
The spring meetings will last a week and will, according to experts, cover topics such as the World Bank’s reform, urgent global issues, and the management of debt which has reached levels that have not been recorded for over 50 years now.
Sani Yaya attends the summit alongside several political and economic leaders of the world. On its sidelines, the Togolese official will meet some of these actors.
It is worth noting that a week ago, the World Bank’s President, David Malpass, was in Togo, on an official visit. Also, the West African country took part in the Bank’s General Assemblies that was held in Washington, in October 2022. At the time, the Togolese delegation was led by President Faure Gnassingbé, himself. The Togolese leader then met many executives of both the World Bank and the IMF, such as the latter’s Managing Director, Kristalina Georgieva.
Esaïe Edoh
Togo: Public debt to GDP ratio grows for a third consecutive year
Togo's public debt stood at CFA3,337 billion in 2022. That is 65.84% of its GDP, according to a report recently released by the Ministry of Economy and Finance.
This is the third consecutive year that the debt ratio rises. It stood at 51.95% and 62.43% in 2020 and 2021, respectively. Back in Q3 2022, the Ministry of Finance said the country’s debt was “under control”. Indeed, despite the increase in the past three years, the public debt-to-GDP ratio is still under the 70% standard set by the West African Economic and Monetary Union (WAEMU).
According to the Ministry of Finance’s report, Togo’s total debt soared from CFA2,191.04 billion in 2018 to CFA3,337.36 billion (+52%). In detail, the external debt jumped from CFA600 billion (2018) to CFA1,296 billion (2022). Meanwhile, domestic debt rose from CFA1,590 billion to CFA2,041 billion, over the same period. The surge is imputable to the government’s efforts to curb the Covid-19 crisis and its economic impacts.
Last year, Togo cleared CFA504 billion out of its total debt. Around 21% of this amount–CFA107 billion–was dedicated to clearing part of the country’s external debt, and the remaining CFA396 billion was for domestic debt.
Ayi Renaud Dossavi
Togo and Brazil want to bolster their cooperation in the maritime sector
Edem Tengue, Togo’s Minister of Maritime Economy, recently met with Brazil’s Ambassador to Togo, Nei Futuro Bitencourt. The two men looked at possibilities to boost bilateral cooperation between the two countries, in the maritime sector.
Lomé wants to leverage its port’s position to bolster maritime trade with Brazil. According to Tengue, Brazil shares the same vision. "I am pleased with our converging views on the possibilities of cooperation in maritime matters," he said.
In addition to the maritime economy, Brazil and Togo are also exploring cooperation in the areas of agricultural research, education, and military training.
Togo and Brazil have been cooperating since 1972. In 2017, trade between the two nations was valued at $97 million. From Brazil, Togo mostly imports fish, shellfish, mollusks, meat, and edible offal.
Ayi Renaud Dossavi