Togo First
Nigeria Opens New Embassy in Togo
Nigeria inaugurated its new embassy in Togo earlier this week. The move is aimed at strengthening bilateral relations between the two countries. The inauguration ceremony was hosted by Nigeria's Minister of Foreign Affairs, Yusuf Maitama Tuggar.
On the occasion, Nigerian Minister Tuggar emphasized the importance of collaboration between the two countries, stating that Nigeria aims to promote an inclusive and proactive foreign policy.
The new embassy is located at the "Place de la Réconciliation" in Lomé. The first phase of the building includes a residential complex with three apartments. The second phase will involve the construction of the chancellery.
Nigeria and Togo are joined by several treaties and memorandums of understanding, covering key areas such as the economy, security, transport, mutual assistance, and energy.
Ayi Renaud Dossavi
Togo Launches Action Plan to Support Entrepreneurs and Green Financing
Last Tuesday, Togo unveiled its action plan to support entrepreneurs and mobilize funds for their benefit. This was during a strategy meeting in Lomé, which was part of preparations for the upcoming launch of the Entrepreneur Agenda and green financing initiatives.
At the meeting, various stakeholders involved in environmental protection in Togo reviewed the action plan. The latter will serve as the foundation for the Entrepreneur Agenda. The project aims to boost the Togolese economy while also preserving the environment.
The action plan is based on studies conducted in the country emphasizing the importance of innovation and adaptability in the green business sector. The initiative is supported by the United Nations Development Programme (UNDP) and is part of a broader program that includes other African nations, such as Angola and Malawi.
Contributions and recommendations made during the meeting will be used to enhance the Entrepreneur Agenda, reflecting Togo's commitment to fostering a sustainable economic environment for its entrepreneurs.
Esaïe Edoh
Togo: Telecom Watchdog Fines Moov Africa Togo CFA1.26 Billion for Network Disruptions
Togo’s telecom regulator, ARCEP, has imposed a CFA1.6 billion on Moov Africa Togo. This amounts to 2% of the mobile operator's sales in 2023. The regulator disclosed the news on July 24, after a public hearing held the same day in Lomé.
ARCEP accused Moov Africa Togo of "serious breaches of its obligation to provide permanent, continuous and regular availability of mobile electronic communications services." Significant damage to Moov Africa Togo's network resulted in service interruptions that affected several subscribers.
Moov Africa Togo has six months to remedy the situation. Failure to do so could result in further sanctions, by the law.
This is not the first time Moov Africa Togo has faced sanctions. In 2021, the operator was sanctioned for similar breaches.
Esaïe Edoh
Egypt Seeks to Strengthen Economic Ties with Togo
Egypt wants to bolster trade and bilateral partnerships with Togo. Ahmed Mohamed Eid Moustapha, Egypt's ambassador to Togo, unveiled the ambition last Monday, July 22.
"I have been tasked by my country to achieve several objectives during my tenure, primarily to strengthen bilateral cooperation and improve economic relations between our two countries," the ambassador said, as reported by Togo Presse.
The ambassador noted that this economic partnership will create opportunities for the private sector and facilitate discussions on joint projects, particularly in the fields of energy, construction, and infrastructure.
Moustapha recently met with many Togolese officials to explore ways to develop relations in these areas and establish an action plan.
During the talks, the two sides decided to focus on increasing trade between them. Egypt wants to identify major Togolese projects with guaranteed international funding that Egyptian companies help develop.
Already, Elsewedy, an Egyptian manufacturer of distribution and power transformers, is considering operations in Togo. "Today, Elsewedy has begun negotiations with the Togolese government to start its activities in Togo in the coming months," the ambassador noted last Monday.
Ayi Renaud Dossavi
Togo: ECOWAS-backed Rice Project, RICOWAS, Begins
The RICOWAS, a sub-regional rice project, was launched in Togo earlier this week. In Togo, the project is led by the Institute for Technical Supporting (ICAT). It is backed by the Economic Community of West African States (ECOWAS).
The RICOWAS aims to transform rice farming in West Africa by integrating advanced and sustainable agricultural techniques. Madjoulba Batocfetou, General Manager of ICAT, noted that Togo's rice trade balance is currently in deficit, with the country importing large quantities of rice due to rising consumption. "This initiative aims to reduce this trade deficit and help Togo move closer to self-sufficiency in rice," he said.
The RICOWAS builds on the Rice Offensive initiative launched in 2013 and promotes cultivation methods such as the System of Rice Intensification (SRI), sustainable soil management, optimal water use, and the use of organic fertilizers to enhance soil health and crop productivity.
The program will benefit 13 countries over four years. Each of the countries will receive about $200,000 for implementing it.
West Africa currently faces economic challenges, and improving local rice production could be a major step toward greater food security.
Ayi Renaud Dossavi
Customs: Alliance of Sahel States Want to Strengthen Trade Ties with Togo
The Alliance of Sahel States (AES) is working to enhance trade relations with Togo and has invited the country to participate in a meeting of Customs Directors General on Tuesday, July 23, in Niamey, Niger.
During the meeting, customs officials from AES member states agreed to interconnect their customs systems, including Togo, which is crucial for regional trade. They instructed their technical teams to establish an interconnected customs area within the AES.
Adama Ilboudo, Burkina Faso's Director General of Customs, stated that these measures will improve transit management and facilitate cross-border trade.
Philippe Kokou Tchodie, Commissioner General of the Togolese Office of Revenue (OTR), welcomed the initiative, noting that the port of Lomé has always served as a key access point for landlocked countries. He urged customs authorities in the region to expedite the interconnection process to maximize the benefits of this initiative.
This project comes at a challenging time for the region, particularly following ECOWAS economic sanctions against Sahel countries with military governments. Since these sanctions and the closure of borders between Benin and Niger, Togo has increased its efforts to strengthen trade relations with its neighbors.
Esaïe Edoh
Togo: Adenia Partners Buys Air Liquide Now Erium
Air Liquide has officially changed its name to Erium. The change comes after Adenia Partners acquired Erium operations in 12 African countries.
This marks a new beginning for the company in countries like Benin, Burkina Faso, Cameroon, Congo, Côte d'Ivoire, the Democratic Republic of Congo, Gabon, Ghana, Madagascar, Mali, Senegal, and Togo.
The acquisition was completed on July 23, 2024, and includes an investment of €30 million to improve Erium's operations. Adenia Partners also inked with Erium a long-term industrial and specialty gas supply contract. The deal aims to ensure a smooth transition and continued services.
"With a presence in 12 countries, sales nearing 60 million euros, and unique expertise, we are seeing the rise of a continental leader that will benefit from infrastructure development and growing industrial activities in Africa," said Christophe Scalbert, Partner at Adenia Partners. He added that Adenia plans to invest heavily in production and storage capacity.
Togo: IB Bank Records First Profit in Over a Decade
IB Bank Togo (formerly BTCI) recorded a net profit of over 3 billion FCFA in 2023, way above 2022’s CFA8.8 billion loss. Khalid Yacoubou Boukari, the bank's Director of Commitments, recently disclosed the data on LinkedIn, without providing further details.
In 2021, the BTCI (now IB Bank Togo) was privatized–a moved that aimed to to help it be more financially healthy and better contribute to Togo’s economy. The government holds a 10% stake in the bank and IB Holding holds the remaining 90%. The purchase, led by Mahamadou Bonkoungou, a construction mogul and head of IB Holding, was intended to reshape the bank and strengthen its foundations.
Last year, IB Bank Togo recorded a net profit of CFA3 billion, a first win since 2013.
A Turning Point in 2022
IB Bank had been losing money until 2023. However, the bank's assets grew from CFA292 billion in 2021 to CFA418 billion in 2022. The surge was mostly driven by a doubling of customer loans, which rose from CFA111 billion in 2021 to CFA250 billion in 2022. Although the bank was undergoing restructuring, the reasons behind this growth remain unclear. However, the bank faces heightened risks and increased provisions for bad debts.
Still in 2022, IB Bank Togo recorded a net banking income of CFA13.4 billion in 2022, against CFA8.6 billion in 2021. Higher interest and commission income drove the spike. Nevertheless, the latter was insufficient to offset the impact of operating expenses and risk costs.
In 2022, the bank reported a net loss of CFA8.8 billion, against CFA1.3 billion in 2021. The widening was consequential to a significant rise in risk costs–they lept from CFA221 million to CFA11.9 billion.
Customer Confidence Remains Strong
In spite of the various hurdles the bank faces, customer confidence appears intact. Deposits surged to CFA409 billion in 2022, up from CFA275 billion in 2021, indicating a level of stability despite the bank's negative equity of -CFA4.5 billion.
Cutting Existing Negative Earnings
Last year’s profit, CFA3 billion, should help curb the negative retained earnings accumulated over the past decade. While details are still pending, the 2023 reports are anticipated to provide more insight into the performance of the former BTCI.
Fiacre E. Kakpo
Togo: Microfinance Institutions Collected More and Loaned Less in Q1 2024
From January to March 2024, microfinance institutions in Togo saw their deposits rise by CFA17 billion, up 4.6% compared to Q4 2024. This was the highest increase among decentralized financial systems in the West African Economic and Monetary Union (WAEMU) for Q1 2024, according to data from the Union’s Apex bank, the BCEAO.
In comparison, Benin's deposits grew by CFA15.3 billion, Burkina Faso's by CFA12.5 billion, and Senegal’s by CFA9.6 billion. Côte d'Ivoire also saw an increase of CFA9.6 billion. Overall, Togo's deposits rose by 4.6% from the previous quarter.
Across the WAEMU region, total deposits increased by CFA64.5 billion, or 2.8%, reaching CFA2,356.4 billion.
On the other hand, loans from microfinance institutions in Togo fell by 2.5%, a decrease of CFA9.2 billion. This trend was seen across the region, with total loans dropping by CFA72.6 billion, or 2.8%, compared to Q4 2023. In Benin, the drop was more significant: 10.9%. Côte d’Ivoire and Senegal only loaned less money, respectively 3.9% and 1.1%, in Q1 2024.
BCEAO attributes the decline in loans to seasonal factors. The Bank explained that people tend to spend less after the holiday season. Regardless, compared to Q1 2023 where they had loaned CFA2,515.4 billion, microfinance institutions loaned 15.9% more.
Ayi Renaud Dossavi
ECOWAS: EBID Unveils 2024 West African Development Report
The ECOWAS Bank for Investment and Development (EBID) released its 2024 West African Development Outlook (WADO) report today. The report was presented in a webinar hosted from 10:00 to 11:00 GMT.
The central theme of this year's report is "Building resilience to recurrent shocks". The report is expected to examine the development challenges and opportunities facing countries in the West African region.
The 2024 edition will review the challenges the sub-region has faced in recent months and years. This includes external factors like rising financing costs, fluctuating oil prices, economic sanctions, and energy shortages. It may also address internal political challenges for ECOWAS, such as the desire for some countries to split away.
Strengthening member states' ability to cope with economic and climate shocks is a key focus.
Since its creation, EBID has provided $4.17 billion (CFA2,537 billion CFA) to support its member countries. As of the end of 2023, Togo accounted for 6.1% of EBID's total commitments.
Ayi Renaud Dossavi