Robert Dussey, Togo’s Minister of foreign affairs, was in Morocco last week to host a forum on the reduction of the costs of remittances sent by the African Diaspora.  Dussey co-hosted the event with his Moroccan counterpart, Nasser Burrita.

The forum, which is part of the 2021-2031 agenda of the Decade on African Roots and the African Diaspora, focused on mechanisms and tools likely to help boost the flow of money sent by members of the African diaspora to their home countries. It also focused on efforts to cut costs associated with the transfers.

Aligned notably with MDGs and multilateral ambitions to make remittances faster, safer, and less costly for migrants, this meeting comes in particular in a context where the African diaspora makes a significant contribution to the economies of their countries of origin.

"As an indication, remittances to the African continent amounted to 85.9 billion dollars in 2019 and 78.4 billion dollars in 2020 and represent an average contribution of between 7 and 10% of the GDP of our various countries," noted Dussey, whose ministry is also in charge of the Togolese diaspora.

In 2021, remittances to Africa were estimated at more than $150 million–two-thirds of them came from people living on the continent.

The forum included three plenary sessions, respectively themed: "Reduction of remittance costs and contribution of the African diaspora to development and poverty alleviation in Africa through remittances", "Perspectives of remittances from the African diaspora: regulatory and operational framework" and "Digitization of financial services and innovative mechanisms for the reduction of transfer costs".

The conclusions of the forum will be forwarded to the African Union Summit, for the AU to take a decision that will help increase African remittances and cut their costs. The AU Summit is scheduled to take place next month.

Ayi Renaud Dossavi

The Togolese minister of trade and industry, Kodjo Adedze, and the U.S. ambassador in Togo, Elizabeth Fitzsimmons, met last Thursday,  Jan 12. 

According to the Togolese Ministry of trade, the two talked mostly about the African Growth and Opportunity Act and opportunities for boosting trade between the U.S. and Togo.

Since its introduction, 23 years ago, by President Clinton, and Togo’s adhesion to the Act, very few exporters have been able to take advantage of it to sell to the United States, a market of over 300 million consumers. However, some steps were taken by the Chamber of Commerce of Togo to help local trade actors benefit from the mechanism.

During the recent meeting between Adedze and Fitzsimmons, the U.S. diplomat praised the efforts of the Togolese government, under the leadership of His Excellency Mister Faure Gnassingbe, President of the Togolese Republic, for a dynamic and fluid commercial and industrial partnership between the two countries.

The meeting took place just a few weeks after the U.S.-Africa Leaders Summit which was held in Washington and to which President Gnassingbe was invited by Joe Biden. The Summit’s objective was to strengthen ties between the U.S. and Africa.

The African Guarantee Fund (AGF) plans to bolster its action in Togo, especially in terms of financing SMEs/SMIs and promoting green finance. Felix Bikpo, chairman of the Fund’s board of directors exposed the ambition to President Gnassingbe on Jan 10.

During his audience with the Head of State, Bikpo emphasized that the AGF’s plans align with Togo’s new socio-economic development policy that is part of its 2025 roadmap. 

It’s worth noting that the two men met only a few weeks after the Africa Finance Industry Summit (AFIS) was held in Lomé. This is a Summit that gathered leading actors of Africa’s finance industry. 

Established in 2011, the AGF helps SMEs secure funds with more ease, so that they can fully play their role as a growth driver of Africa’s economy. The Fund opened its West African headquarters about two years ago, in Togo. 

The AGF and the Togolese government are partners. They support entrepreneurial actions carried out by women and the youth. They also support job creation and the financing of agricultural value chains. Formerly known as the Gari Fund, the AGF aims to help create 50,000 jobs, by 20225.

Togo’s government recently adopted a bill to boost digital and technological innovation. The bill was passed on January 11, during the council of ministers. 

A “Tech” labeling mechanism

The bill aims to foster the innovation ecosystem in Togo, by creating a labeling mechanism for startups and companies in the Tech industry. According to the authorities, this labeling will be done based on objective criteria that integrate "creativity, innovation, creation of high added value, as well as growth potential."

Once the parliament approves it, the law will help set up an environment favorable to “the modernization of the Togolese economy.” It will do so mainly by supporting digital projects, both in the public and private sectors, ”for the good of the people and businesses.”

Tax and customs incentives

The bill should also enable the establishment of a regime of tax and customs incentives, to facilitate the development and adoption of digital technologies. There will also be “measures favoring the emergence of Togolese technological startups.”

Though it has few big tech startups, Togo still has a certain number of tech startups, such as SEMOA, a fintech that provides mobile-banking and digital ticketing services in Togo and abroad, or DizzitUp, a recent finalist of the Ecobank Fintech Challenge.

Ayi Renaud Dossavi

Between August 2021 and December 2022, the government of Togo poured around CFA 2 billion into the WEZOU program, against a forecast of CFA3 billion for the scheme’s first year of operation. Mamissilé Akla Agba Assih, Minister Delegate in charge of Universal Access to Health Care, presented the assessment to the Council of Ministers on, January 11, 2023.

The money covered the healthcare services–over 1.3 million in all–of about 290,000 women over nearly a year and a half. These services included 281,796 prenatal consultations and 148,275 deliveries performed over the period.

The government claimed that the figures reflect "the support of the population and the medical sector" for this program. The latter, Lomé added, has helped boost social protection, at a time when the authorities plan on launching universal health insurance.

The WEZOU program covers pregnant women and newborns with the main goal of reducing maternal and neonatal morbidity and mortality.

Esaïe Edoh

In Q3 2022, Togo’s exports generated CFA140.8 billion for the country. This is 4.3% lower than during the same quarter the previous year, and 12.4% lower than in Q2 2022. The figures were disclosed by Togo’s institute of statistics, INSEED.

Phosphates ("Natural calcium phosphates, natural alumino-calcium phosphates, and phosphate chalk") made up 16.9% of the exports over the quarter under review, with a value of CFA23.76 billion.

They were followed by plastic-made products (“bags, sacks, pouches and plastic cones"), representing 10.5% of total exports. These exports were valued at CFA14.8 billion.

In the third position were “Petroleum or bituminous mineral oils (excluding crude oils).” Generating CFA11.07 billion, these made up 7.9% of the country’s exports.

Cotton and Soybeans

Cosmetics and beauty products (excluding drugs) came fourth. They generated CFA8.6 billion and represented 6.1% of all exports. 

"Clinker" or non-pulverized cement, accounted for 5.9% of Togo's exports in Q3 2022, with a value of CFA8.35 billion. It is thus fifth.

Cotton and soybeans, both cash crops, ranked 6th and 7th, respectively, earning the country CFA8.2 billion (cotton not carded or combed, excluding linters) and CFA5.9 billion. These represent 5.8% and 4.2% of the total exports, for cotton and soybeans, respectively.

The top 10 is rounded off by "Wigs and hair products" (beards, eyebrows, eyelashes, locks, and similar articles made of hair or textile materials), with CFA5.7 billion, or 4.1%; refined palm oil and its fractions, with CFA5.3 billion, for a share of 3.8%; and finally, petroleum bitumen (and other residues of petroleum oils or bituminous minerals), with a value of CFA4.39 billion, for 3.1% of Togo’s exports in Q3 2022

Overall, these 10 products earned Togo CFA96.3 billion, or 68.4% of its exports by value, during the quarter concerned.

Ayi Renaud Dossavi

This year, Togo expects to collect CFA912 in tax and customs revenues, according to its 2023 finance bill. This is 12% more than the CFA814 billion expected in 2022. 

In detail, the Tax Office should mobilize CFA472 billion and the Customs and Excise Office, CFA440 billion.

To help these offices achieve their goal, the government will maintain its tax base expansion policy, strengthen measures for controlling and fighting fraud and tax evasion, and further simplify tax procedures.

By September 30, last year, Togo’s general tax office had CFA646 billion or 79% of its annual target already secured. 

Esaïe Edoh 

Togo produced more grains last year than the year before, 2% more to be exact, thus sustaining the sector’s growth dynamic that started in 2018.

Indeed, recent data from the Central Bank of West African States (BCEAO) puts the country’s grain output in 2022-2023 at 1.433 million metric tons, against 1.404 million metric tons in 2021-2022. 

In 2018, 2019, and 2020, respectively, Togo produced 1.19 million Mt, 1.26 million Mt, and 1.35 million Mt of grains according to the BCEAO. 

In 2021, the production of corn, the most consumed cereal in the country, stood at 929,000 tons (up by 4.5% YoY), while the production of paddy rice and millet-sorghum stood at 165,50 tons (+3.5%) and 304,600 tons (down by 2,000 t).

Ayi Renaud Dossavi

For its first issue on the UEMOA market this year, which will close on January 13,  Togo will seek CFA30 billion. 

The corresponding operation is a simultaneous issue of fungible treasury bonds. The securities have a nominal value of CFA10,000, respective maturities of 3 and 7 years, and interest rates of 5.3% and 5.9%. 

According to the terms and conditions of the issue, the operation’s proceeds should allow Togo to finance its annual budget; the latter stands at CFA1,957 billion (revenues and expenditures). 

Last year, Lomé raised CFA473 billion on the same market, against a forecast of CFA663 billion under the amending finance law 2022. This year, the country plans to raise CFA574 billion on the UEMOA market to finance its budget. 

Esaïe Edoh