Togo First
WAEMU securities: Togo raises CFA32 billion in the latest issue, a success
Togo’s latest issue on the WAEMU-security market was successful. Lomé had a target of CFA30 billion but raised CFA32 billion on the market last Friday, April 7th.
The operation -a simultaneous issue of fungible treasury bills (BATs in French) and bonds (OATs)-attracted 19 investors. The latter subscribed for FCFA 33 billion, thus representing a coverage rate of 111.7%.
According to the issue’s report, CFA19 billion was raised through the BATs which mature over 182 days. The OATs, which mature over 3 and 5 years, raised CFA1 billion and CFA12 billion, respectively.
Out of the CFA32 billion mobilized, CFA26 billion were raised from Togolese investors.
Adding the latest issue, Togo has raised so far this year CFA143 billion on the WAEMU market. This is against an annual target of CFA574 billion.
Esaïe Edoh
Togo creates a state-owned manganese company
On Wednesday, April 5, 2023, Togo announced the creation of Société Togolaise de Manganèse (STM), a state-owned manganese mining company.
According to Togolese authorities, STM was created to ultimately "develop the mining value chain, boost job creation and improve the country’s economy by helping efficiently take advantage of mineral resources.
Indeed, despite a mineral-rich subsoil, Togo’s mining industry was mostly focused on phosphates. However, things are gradually changing with the discovery of an important manganese reserve with a potential estimated at 8.5 million tons for about 15 years lifespan.
Manganese is the fourth most used metal in the world. It is notably popular because of its ability to enhance the strength and ductility of steel. Its use for battery manufacturing is also growing because of its ability to notably stabilize cathodes in batteries used in electric vehicles and electronic devices.
The global manganese market is expected to grow by more than 4.19% between 2022 and 2027. In addition, more than 40% of the steel produced globally is used in the construction sector, which is expected to grow by an estimated $12.9 trillion by 2030, primarily in countries such as India, China, and the United States. Togo intends to take advantage of these robust prospects. It has already taken some steps in that regard.
On October 18, 2019, the Council of Ministers approved a decree granting its manganese exploitation rights to Société Générale des Mines ("SGM"), 85% owned by the British group Keras Resources. Under the initial agreement, SGM was to become a state company but, Keras never received the approval required to secure its mining license.
The Togolese government decided to take further actions to achieve its great ambitions for its manganese, which it considers a strategic resource. The Mines Ministry launched a national geophysical survey to evaluate the subsoil and identify the available mineral resources to inform an efficient plan for the development of the national mining sector.
For the time being, there is no information on the results of the survey. The government also did not provide information on the shareholding of the newly-created manganese development corporation. Nevertheless, Keras Resources previously circulated a memorandum of understanding about the deal that was to see its subsidiary SGM secure manganese exploration rights. In the memorandum, Keras revealed that the government demanded and received an additional 10% stake in SGM, bringing the British company’s share to 76.5% and increasing the government’s to about 24%
Doubling the mining sector’s contribution to GDP by 2025
Togo aims to double the contribution of its mining sector to GDP by 2025. In that context, it wants to exploit "its mineral resources in an "optimal" manner, starting with critical minerals like manganese, which is considered a transition metal because of its growing use in clean energy technologies - rechargeable batteries for electric vehicles and large-scale energy storage systems.
As a reminder, the Nayega manganese deposit is located in the Kpendjal West prefecture in the Savanes region, in the northern part of Togo. It spans over 29,819 hectares and consists of four exploration permits, namely the Pana permit, the Tandjoare permit, the Naki-Est permit, and the Borgou permit. It is Togo's largest known manganese project. According to Keras Resources, which conducted the exploration and sampling stages, it is at an advanced stage. A "Silicomanganese smelter test work was completed in Santander, Spain during July 2019 [...]” and the installed production capacity is 6,500 tonnes per month, the AIM-listed company detailed.
Fiacre E. Kakpo
DizzitUp, the marketplace that wants to become the African alternative to Alibaba (Interview)
The e-commerce industry has grown exponentially in recent years and the number of online marketplaces has followed suit. The marketplaces that were developed in the wake of the e-commerce boom include DizzitUp, an African start-up and finalist of the Ecobank Fintech Challenge 2022. The platform has great ambitions and wants to become the African alternative to Alibaba. During the Lomé chapter of the Africa Fintech Tour, Togo First interviewed its CEO, Solofo Rafeno, to learn more about this marketplace which is getting popular by the day in Benin, Togo, and Madagascar.
Togo First: Could you tell us what DizzitUp is about?
Solofo Rafeno (SR): DizzitUp is an online marketplace that offers African SMEs access to financing solutions to develop their activities. The start-up also helps these businesses increase their revenue by providing an online store that enables them to showcase their products and services to locals and the African diaspora, which is constituted of over 40 million individuals.
DizzitUp is focused on essential goods and services sold exclusively by African companies in 6 categories: food, renewable energy and construction, health, education, tech (phones, computers & internet), and shortly, new decentralized financial services (DeFi).
As a result, DizzitUp enables the digital and financial inclusion of African VSEs/SMEs while bringing them additional revenues.
In 4 months of operation, DizzitUp Marketplace has registered 150 merchants and we plan to exceed 1,000 merchants in Togo, Benin, Madagascar, and Ivory Coast by the end of 2023.
Togo First: What are the main consumer profiles targetted by DizzitUp?
SR: DizzitUp buyers are divided into two main groups: locals that buy for their consumption and members of the African diaspora -more than 40 million individuals- that buy for their relatives based in Togo, Benin and Madagascar to date, and soon in Côte d’Ivoire.
Togo First: How does your marketplace address trust issues?
SR: 80% of the African economy is made up of informal small and medium enterprises (SMEs). To encourage trust between merchants and consumers, one solution is to carefully select merchants, verify them, and focus on essential products and services such as food, self-sufficient solar power equipment, building materials, phones, computers, and health and education services.
DizzitUp field teams verify that the stores have physical addresses and offer products that meet our criteria. We then take pictures and videos and only selected products are posted on our platform.
Also, since logistics is crucial to guaranteeing service quality, our platform offers an extra service: delivery, which is carried out by independent deliverymen.
Togo First: How are the deliveries made?
SR: Our main aim is to always boost the activities of our [registered] merchants. So, we prefer buyers picking their products directly from stores so that the flow of customers can be increased. Package pickup is the default choice but, each merchant can suggest delivery services, which are offered by local DizzitUp partners.
Let’s say for instance that a relative living in Kara buys on the platform and pays using TMoney or Flooz, the beneficiary, a family member in Lome, can come and pick up the goods at the store in Lome or the goods can be delivered by DizzitUp's partner.
Another case is the recurrent purchase of food baskets, "FoodBox", by a Togolese living in New York for his relatives living in Lome. Once the order is paid via Visa or Mastercard, the relatives living in Lome can pick up the goods at the selling store or have them delivered. The merchant is immediately paid by DizzitUp -via TMoney or Flooz or by bank transfer- after the goods are delivered. It should be noted that for any order exceeding CFA30 000, there is free delivery anywhere within the Greater Lome region.
Togo First: You have a Blockchain-based strategy. Do you think that payment methods such as crypto-currencies can be game-changers for marketplaces like yours in Africa?
SR: It is important to note that blockchain is not a payment method in itself, but rather an infrastructure similar to Swift.
Currently, our marketplace accepts Visa and Mastercard international bank cards and mobile money from seven French-speaking countries in West Africa.
We will soon launch our DizzitApp application, based on the Blockchain infrastructure, allowing the diaspora and young urban Africans to pay in Bitcoin and other crypto-currencies knowing that merchants will still be paid in local currency, FCFA, and Ariary for Madagascar. This third means of payment on DizzitApp will allow those with digital assets to use part of their assets to support their families back home with their needs (buying them food, paying school fees and medical procedures, etc.).
Cryptocurrencies are becoming a global medium of exchange with 200-400 million users, including over 40 million in Africa. These people will soon be able to use their cryptocurrency assets to buy essential goods such as food for their consumption or their families in other African countries
Togo First: What do you think of regulations, notably those related to crypto-currency use?
SR: Togo is the second African country with the largest number of crypto-currency users after Nigeria, which represents huge opportunities for the African economy.
Decentralized blockchain networks and associated crypto-currencies are an opportunity for emerging countries. They can allow African countries to accelerate intra-continental trade and facilitate the financial inclusion of VSEs/SMEs and citizens as mobile money services have done for a decade.
But all these new technologies can only be beneficial to businesses and citizens if there is a clearly defined regulatory framework that is regularly amended over time.
Regulators have realized that there is a need for this regulatory framework. We are eagerly expecting them to comply with them to sustain our investments and boost our merchants’ activities.
Togo First: Why did you choose Togo as your base? Do you think that Togo can accelerate the deployment of your startup in the sub-region?
SR: We created our first subsidiary in Togo, which is a real financial hub in the sub-region. We chose to set up here in Togo because the country has a legal infrastructure and a favorable business environment that attracts many financial institutions. The presence of Ecobank's global headquarters in Lomé was also a decisive factor.
Despite our start-up status, they welcomed us into their multinational division. This partnership allowed us to integrate their payment gateway to manage bank cards worldwide and mobile money in 7 countries in the sub-region.
As a result, we were able to create our subsidiary in less than a month, which is an important comparative advantage.
Togo First: You were one of the finalists of the annual competition organized by your partner Ecobank. Was the initial partnership a decisive factor in that selection?
SR: Our partnership with Ecobank was not the decisive factor in our selection in the competition, as other start-ups also had significant partnerships. However, our ambition to expand in 21 countries, of which Ecobank is absent in only two, and our vision and ambition to be an economic player impacting the VSE/SMEs in Africa gave us a definite advantage.
We were one of the six finalists, selected among 700 startups from 59 countries, in the Ecobank Fintech Challenge 2022.
Togo First: You have already raised venture capital funds once. Do you intend to raise additional funds?
SR: Indeed, DizzitUp has already managed to raise $340,000 in funding from 44 individual investors, called "business angels". About a third of these investors are Africans living in Africa or Europe. The funds raised helped develop the start-up and its technology platform over 3 years.
The company is currently planning a second round of $3 million in equity to finance its expansion in Côte d'Ivoire and Nigeria and to develop the new decentralized finance services for VSEs/SMEs merchants of DizzitUp Marketplace.
For this new round, DizzitUp aims to attract private African investors for about 20% of the total amount sought and international investment funds (VCs, international institutions, and corporate funds) for the remaining.
Togo First: What are your future expansion plans?
SR: Regarding our plans, we have decided to strengthen our presence in Madagascar, Togo, and Benin in 2023 and launch a subsidiary in Côte d’Ivoire. We also plan to expand in Nigeria, in 2024, to consolidate our position in West Africa.
I am convinced that Nigeria is not only Africa’s economic driver but also the key to success for a pan-African expansion. No one can claim to be a pan-African company without being present and operational in Nigeria.
Togo First: What are your strategies to achieve those plans?
SR: Our marketplace model is quite simple: purchases are proportional to the number of merchants and products listed. The more offers we have, the more accounts are created, because people can buy what they want. We invest in advertising for merchants and have already made sales in 2022. One of our competitive advantages beyond our decentralized payment infrastructure is our ability to attract merchants by combining digital and on-ground approaches.
We always start with a physical presence approach, deploying teams on the ground to recruit merchants. We also have student recruiters and an incentive system to encourage recruiters, who are also marketing managers for merchants. We provide full free support to merchants, including creating visuals, photos, and videos that we post on Facebook. Recruiters become marketers for our merchants.
Interview by Fiacre E. Kakpo
Togo: Dapaong to soon house a 30MWp solar plant
The Council of Ministers of Togo approved, on April 5, 2023, the construction of a PV solar plant in Dapaong (about 610km north of Lomé). This is the second PV plant the country will have after Blitta’s.
The upcoming infrastructure will be built over 115 ha and have a production capacity of 30MWp. The project falls under the regional solar project of emergency intervention (RESPITE).
Dapaong’s power plant will help reduce Togo’s dependence on external suppliers and boost its energy sovereignty. In detail, the power produced at the plant will electrify around 60 rural localities in the Savanes region, in line with the Emergency Resilience Building Program in the Savanes region (PURS).
Moreover, not only will the plant contribute to the country’s goal to achieve universal power coverage by 2030 but it will also help promote renewable energies in line with the government's 2020-2025 roadmap.
Regarding Blitta’s plant, its output capacity is set to rise from 50 MW to 70 MW. Works to expand the capacity were launched a few days ago by President Faure Gnassingbe himself.
Esaïe Edoh
Togo moves to update its exporters’ guide
Last March 28-31, the Togolese Ministry of Trade held a meeting with local exporters. The meeting was organized in the framework of the country’s plan to update its "Exporters’ Guide" published in 2014, to guide economic operators. The country plans to add new information to allow Togolese entrepreneurs to be competitive and meet the requirements of international markets.
According to the Ministry, this updated Guide will “clearly highlight the trade facilitation tools contained in the 2017 WTO Trade Facilitation Agreement, the 2019 Agreement establishing the African Continental Free Trade Area (AfCFTA) and the Togolese National Policy for Trade Development issued in 2022.”
With the updated information, Togolese authorities want to guide economic operators in potential African markets. For the Ministry of Trade, the trade facilitation tools to be highlighted by the updated exporters guide offer operators the opportunity to conquer new markets.
Let’s note that the exporters' guide is not the only initiative taken by Togo to enable its private sector to take advantage of continental business opportunities.
Esaïe Edoh
Togo: State of emergency extended for 12 months in the Savanes region
The Togolese National Assembly approved, Thursday, a 12-month extension of the state of emergency in the Savanes region.
This extension -which comes after a six-month state of emergency that ended on March 12, 2023- was requested by the government to continue and intensify its terrorism-combating actions in this northern area under terrorist threats since November 2021.
According to Minister of Security Yark Damehame, this new state of emergency period -which started on March 13, 2023- will allow the defense and security forces to make more provisions, keep the population alert and adapt the combat to new developments on the ground.
Ultimately, the initiatives planned for this new period should, according to the official, help stop the jihadist groups threatening the region and lead to victory against terrorism and violent extremism.
The state of emergency security decree in the savannahs was first introduced on June 13, 2022. In September 2022, it was extended for six months.
Esaïe Edoh
Afri-Plastics Challenge winner, GIP-Togo, wants to create 20,000 jobs
Gado Bemah, the founder of the start-up GIP Togo and winner of the Afri-Plastics Challenge prize, was received by Prime Minister Victoire Tomegah Dogbé last Wednesday.
During the audience, the Togolese entrepreneur -whose startup specializes in plastic recycling- was congratulated by the Prime Minister for winning the Pan-African competition and getting over CFAF700 million to develop his activities in Togo, with some 20,000 jobs to be created in the waste recycling sector.
"Congratulations to Mr. G. Bemah, founder of GIP Togo, a start-up specializing in plastic waste recycling, for winning the 1st prize of the Afri-Plastics Challenge. With this prize of more than CFAF700 million, he will modernize his startup and create more than 20,000 jobs," the Prime Minister said. She also praised the founder’s "determination and boldness" that "paid off" to inspire the country’s youth to venture into entrepreneurship.
As a reminder, GIP-Togo, created in 2017, sets up plastic waste collection units and sorting facilities in the country's main cities, in collaboration with local authorities. It was supported by the Support Fund for Youth Economic Initiatives (FAIEJ).
IFC provides BOA Group $77M facility to support SMEs in 10 African countries, including Togo
The Bank of Africa Group (BOA) recently obtained $77 million (about CFA46 billion) from the International Finance Corporation (IFC). IFC announced the news on April 3, noting that the facility would cover half of the risks on a $154 million loan portfolio dedicated to SMEs in 10 African countries, including Togo.
The nine other countries are Benin, Burkina Faso, Côte d’Ivoire, Ghana, Madagascar, Mali, Niger, Senegal, and Tanzania.
With the monies, the BOA will support businesses active in the following sectors: agriculture, trade, construction, and energy. The bank will also increase lending to women-owned SMEs.
Leveraging the risk-sharing facility, the BOA should extend 12,000 new loans, including at least 2,000 to businesses owned by women who often have trouble getting loans.
“One of the three pillars of our strategy is to reorganize our assets toward focusing more on SMEs. We are convinced that these companies play a driving role in the economy and we welcome IFC's initiative which will help our group increase its commitment to SMEs with greater strength and confidence," said Amine Bouabid, CEO of Bank of Africa Group.
The new financing should also help create jobs in the 10 target countries which face various conflicts and threats.
In June 2018, IFC provided the BOA Group $60 million to cover half the risks on a $120 million loan portfolio which targeted SMEs in eight African countries, including Togo.
Esaïe Edoh
The French Secretary of State in charge of the Francophonie inks financing agreement for a hospital rehabilitation in Togo
French Secretary of State in charge of the Francophonie, Chrysoula Zacharopoulou, was in Togo last week, as part of a working visit. On the occasion, she signed financing agreements to rehabilitate the University Hospital Centers (CHU) of Kara and Lomé. The documents were inked on March 31, 2023, by the French official and Moustafa Mijiyawa, Togo’s Minister of Health.
Mijiyawa said the funds–CFA70 billion in all–should help strengthen the Togolese health system. In detail, they will be used to extend and equip the two health facilities, in line with international standards. The project aligns with the Togolese government’s ambition to deploy universal access to health care.
Chrysoula Zacharopoulou explained that "France supports this project because health is the key to development.” “This new partnership wanted by French President Macron is based on a mutual interest to address all issues including health," she added.
A few days before the financing agreements were signed, Ecobank, the Lomé-based pan-African banking group donated $500,000 (about CFA300 million) to the University Hospital of Kara to build a hemodialysis center.
It is worth noting that Togo’s Ministry of Health has a budget of CFA127 billion this year. This is nearly 20% more than last year (CFA105 billion).
Esaïe Edoh
Disarmament in Africa: Togo could host an international seminar this year
By the end of 2023, Togo could host an international seminar on disarmament in Africa. The seminar was announced, Tuesday, by the African Union's High Representative for Arms Reduction, Mohamed Ibn Chambas, who is currently visiting Lomé.
The seminar, whose details are to be worked out with the government, will enable significant advances in the implementation of the continental disarmament agenda.
"It is urgent to recover the small arms circulating in our West African and Sahelian space and throughout the continent. These weapons pose a real threat to peace and security in Africa, especially in the current context marked by a surge in terrorism," the African Union executive told the press on Tuesday.
He also announced a strong partnership between the African Union and the United Nations.
As a reminder, Togo, which hosts the regional headquarters of the United Nations Centre for Peace and Disarmament in Africa (UNREC), served as the launch point for Amnesty Month. In 2022, the country destroyed over 1,500 seized small arms.
Octave Bruce