Togo First
Togo: State Joins Asky’s Shareholding with CFA6 Billion Investment
The Togolese State has joined the shareholding of Lomé-based pan-African airlines Asky. It has bought 600,000 shares or 14.39% of the group with about CFA6 billion.
The deal was signed on August 21, 2023, by the Togolese Minister of Finance, Sani Yaya, and Asky’s founder, Gervais Djondo. Several Togolese officials and representatives from partnering institutions, including Serge Ekue (of the West African Development Bank or BOAD) and George Agyekum Donkor (of the ECOWAS Bank for Investment and Development–EBID), were present.
"We are firmly convinced that this acquisition of a stake of 6 billion CFA francs, or 14.39% of ASKY's share capital by the State, will undoubtedly contribute to the financial and operational consolidation of this airline, to which the Head of State and the Government are paying the utmost attention," said Sani Yaya.
Besides supporting the airlines, the move aligns with Togo’s ambition to become a regional logistics hub. An ambition that Asky has greatly contributed to in recent years.
"For the Government, taking a stake in ASKY's capital is, therefore, more than just a financial investment. For the State, it is a strategic investment in line with its policy of integrating the sub-region and opening up our country to the rest of the world," said Minister Yaya.
Founded in 2008, Asky Airlines currently has a fleet of 13 airplanes–nine new Boeings 737-800, and four Boeings 737-700. From Lomé, it serves 26 cities in 24 African countries. About two years ago, amidst the Covid crisis, the carrier, with the support of Ethiopian Airlines, its strategic partner, revealed an ambition to double its capital, from CFA35.69 billion to CFA60 billion.
Year-on-year, Asky’s passenger traffic at the Lomé Airport soared by 35.7% in the first quarter of 2023.
Ayi Renaud Dossavi
Public Reforms: Togo Records Significant Progress in H1 2023
The technical and financial rates of implementation of reforms initiated by Togolese ministries and public institutions reached 47% and 28%, respectively, in the first half of this year. The figures were disclosed last Thursday, August 17, by Affo Tchitchi Dedji, permanent secretary in charge of monitoring the country’s reform strategy and financial programs.
The official revealed the statistics during a special meeting to assess the reforms’ implementation level. The meeting also aimed at initiating talks, identifying roadblocks to the implementation, and finding ways to accelerate it.
On the occasion, the result-based management method adopted by Togo three years ago was discussed. According to the officials present, additional steps are taken to support the method, in collaboration with Technical and Financial Partners. Affo Tchitchi Dedji, in this regard, assured that the reforms would continue being assessed, regularly, and improved upon to deliver optimal results by the end of 2023.
The meeting was opened by Akou Mawussé Afidenyigba, cabinet director of the Ministry of Economy and Finance. "These reforms notably affect the public finance management system, agriculture, health, education, digital, land, environment, decentralization, employment, and social sectors with a particular focus on private sector development. These reforms, which are aligned with the vision of the Head of State, have made it possible, among other things, to improve the functioning and performance of all socio-economic sectors, and to maintain a sound macroeconomic and budgetary framework, despite the various shocks recorded," said the official cited by the ATOP. He took the opportunity to remind that major reforms had already been launched, with success, across various economic sectors, to boost Togo’s economic growth.
Togo Collected CFA368.32 Billion in Tax Earnings in H1 2023, up by 5.8% YoY
Over the first half of this year, the Togolese Tax Office collected and contributed to the State budget CFA368.32 billion in tax revenues. This is 5.8% more than the figure recorded in the same period, last year, which is CFA348 billion. The data was disclosed by the Ministry of Economy and Finance.
Tax revenues collected over the first six months of 2023 represent 48.1% of the annual target–CFA912 billion.
The year-on-year increase is attributable to efforts to modernize the tax administration and enhance the collection of taxes and duties.
The revenues collected over the period under review break down into CFA200 billion collected by the tax commissioner’s office (up from CFA196 billion in H1 2022), and CFA168.13 billion collected by the customs department (against CFA152.25 billion).
Most of the tax revenues come from turnovers (value-added tax and financial transaction tax) for domestic taxing and from value-added tax on imported goods for external taxing. Combined, these taxes amounted to 116 billion in H1 2023, against 128 billion the year before, over the same period.
Customs duties are the next most important contributors to Togo’s tax income. They stood at CFA61 bullion in H1 2023. Right behind them came corporate tax revenues which stood at CFA59 billion.
Despite the evident progress, significant challenges remain, regarding taxation. Indeed, Togo’s tax burden remains below the 20% standard for the region. To improve this situation, Lomé, repeatedly, reiterated its commitment to expand its tax base and modernize tax collection mechanisms. By 2025, the country hopes to bring this tax base to 15%, against 13.6% in 2021. The ambition has been set under its tax office’s 2023-2025 strategy.
Fiacre E. Kakpo
Togo Launches Another Simultaneous Issuance on the WAEMU Market, Seeks CFA25 Billion
Togo’s treasury just launched another simultaneous issue of fungible bonds and bills on the WAEMU market. With the operation, which closes on August 25, the country aims to raise CFA25 billion on the regional market.
In detail, the fungible bills or Bons Assimilables du Trésor (BATs) have a nominal value of CFA1 million, a maturity period of 364 days, and multiple interest rates. The bonds or Obligations Assimilables du Trésor (OATs) have a nominal value of CFA10,000 and interest rates of 6% and 6.25%. They mature over 3 and 5 years, respectively, according to UMOA-Titres, the agency in charge of the operation.
Proceeds of the issue will be used to finance the State budget which stands at CFA1,957 billion. So far this year, the Togolese treasury has raised over CFA500 billion on the WAEMU market.
Esaïe Edoh
Togo: Business Climate Cell Speeds Up Modernization of State Institutions
In a bid to modernize State institutions, Togo’s Business Climate Cell has been equipping them with state-of-the-art IT hardware. Last week, the Ministry of Housing’s department in charge of issuing permits, and the Trade and Movable Credit Register (RCCM), received high-end servers.
The new server supplied to the Ministry of Housing should improve its processing system, make application management easier, and bolster the ongoing digitization in the housing sector. According to Farah Jean-François, Director of Housing within the Ministry of Urban Planning, Housing, and Land Reform, "This new server is designed to strengthen the existing building permit issuance system set up by the Togolese presidency in 2016 to expedite the process. Previously, these procedures took several months, but now, they take less than two weeks, meaning ten working days to obtain a permit."
"The new IT equipment will mainly be used for data backup, reducing the risk of data loss in the system, and making the system much more responsive during updates or operational phases," he added.
The initiative to provide the servers aligns with the government’s efforts to modernize public services. Togo First reached out to Sandra Ablamba Johnson, Minister and Secretary-General of the Presidency, and she stressed that "these efforts will be intensified and accelerated in the coming days, with support to other structures, in the quest to enhance the business environment."
Regarding the Trade and Movable Credit Register (RCCM), it received two servers. These will speed up the issuance of RCCM numbers, during business registration. Other equipment was also procured to enable online hearings at the Lomé commercial court.The Togo Arbitration Court (CATO) is also set to get a server that will help it set up a fully dematerialized platform for online hearings.
It is worth noting that the move to supply the equipment was spearheaded by the Business Climate Cell, as part of the Trade Facilitation and Logistics Services Competitiveness Project (PFCCSL). With the goal of boosting commercial logistics services in Togo, the project benefits from $18 million in financing from the World Bank.
Ayi Renaud Dossavi
WAEMU Securities: Togo Raised CFA38 billion in Recent Issue
Togo recorded another successful issue on the WAEMU market last Friday, August 11. The operation, a simultaneous issue of fungible treasury bonds and bills, gathered over CFA48 billion from investors, but Lomé retained 38.4 billion–that is 3.4 billion more than its initial target.
According to the issue’s report, the treasury secured 24 billion with fungible bills which mature over 364 days. The bonds raised the remaining 4 billion. They mature over 3 and 5 years, at interest of 6% and 6.25%.
The report further indicates that 31 investors took part in the operation.
Including this latest operation, Togo has raised 504 billion on the regional market so far this year; Only 70 billion more to reach its target for the year.
Esaïe Edoh
Togo Halts Trade with Niger due to Recent Coup d’Etat
Togo halted trade with Niger on August 1, 2023. The decision, taken by the Togolese Revenue Office (OTR), was formalized in a press release issued by the tax authorities. It followed economic sanctions imposed on Niamey at the extraordinary summit of ECOWAS Heads of State and Government in Abuja on July 30, 2023.
"Commercial and transit service transactions to and from Niger are suspended until further notice," stresses the statement signed by Philippe Kokou Tchodié, Commissioner General of the OTR, made public late last week.
This decision is likely to deal a blow to trade flows between the two countries. According to statistics compiled by the United Nations Organization (UNO), in 2019, Togo exported over $80 million worth of goods to Niger, which at that time was Togo's 4th largest export market.
As a reminder, the ECOWAS sanctions were imposed following the overthrow of President Mohamed Bazoum, who had officially taken over the reins of the country in April 2021. The aim is to force the putschists to restore the deposed leader's rights.
Esaïe Edoh
Renewables: Sarakawa Hotel Gets 500 KWp Solar Plant
A 500 KWp photovoltaic solar plant was recently set up at the Sarakawa Hotel in Togo.
The new plant spans 4,000 m2 and includes 1,224 solar panels laid on the roof of the hotel’s main building.
The facility, which cost CFA496 million, was inaugurated last Friday, August 11. Several Togolese officials, including the ministers of environment and higher education, were present.
The project was developed in partnership with Cool Solar Energy, a German company. It runs in symbiosis with the national grid and two power generators.
The new plant should save the Sarakawa Hotel a lot of money spent on power. "Currently estimated at over half a billion FCFA, these costs could be reduced to 350 million FCFA per year despite the extension of our hotel", said the hotel’s manager, Nathalie Bitho.
On the sidelines of the inauguration, the minister of environment, Foli-Bazi Katari, took the chance to laud the initiative, saying it concretely translates Togo’s commitment to tackling climate change and achieving energy transition.
Togo: General Budget Expenditures Exceeded CFA451 Billion in Q1 2023
Togo’s general budget expenditures are estimated at CFA451.53 billion for the first quarter of 2023. The estimate was disclosed by the Directorate General of Budget and Finance (DGBF) in the "Report on the Execution of the State Budget at the end of March, fiscal year 2023." The figure disclosed corresponds to 23.11% of the annual forecast of CFA1,953.48 billion.
At the same time, the realization rate for general budget revenues came out to 18.53%, or CFA362.05 billion, of the total annual forecast.
Year-on-year, expenditures for Q1 2023 rose by about 17%. In Q1 2022, they stood at CFA383.49 billion.
The rise is due to a growth in expenditures in revenue mitigation (CFA43.04 billion versus CFA24.36 billion in 2022), transfer expenses (CFA63.46 billion versus CFA54.14 billion in 2022), and investment projects (CFA75.12 billion against CFA57.28 billion the previous year).
Personnel expenses have also increased by 18%, from CFA55 billion in Q1 2022 to CFA65.42 billion in Q1 2023.
Esaïe Edoh
Togo: Registration for African Microfinance Week Opens
Registration for the upcoming African Microfinance Week (SAM 2023) in Togo opened on August 10, 2023.
The event is organized by the Network of African Microfinance Institutions (MAIN) and Support for Autonomous Development (ADA), in partnership with the National Inclusive Finance Fund in Togo (FNFI) and the Secretariat in charge of financial inclusion. Scheduled for October 16-20, the international meeting aims to promote and explore opportunities relative to inclusive finance. It will gather several microfinance stakeholders from Africa.
The SAM 2023 is a platform for exchange and sharing of best practices, through in-depth discussions on innovations, technologies, and strategies that focus on improving access to financial services for populations often excluded from traditional systems.
As a reminder, in Togo, the financial inclusion rate increased from 82.72% to 85.72% from 2021 to 2022, a rise of 3 percentage points. Within the WAEMU, the country leads Benin (85.52%) and Côte d'Ivoire (82.2%).
Register for the event here.