In the first half of this year, loans to micro, small, and medium enterprises (MSMEs) rose, YoY. Sani Yaya, Togo’s minister of finance, revealed the improvement on October 6, 2022, during a review of the bank and finance sector. The review took place during a meeting held by the National Credit Council (CNC).

“Over the first six months of 2022, the amounts of new loans to micro, small and medium-sized enterprises reached CFA75 billion, CFA11 billion, and CFA41 billion [respectively],” Yaya said. 

Besides finding that bigger businesses are the ones that have more loans, the review noted that the sums loaned to MSMEs in H1 2022 were up by 38%, 82%, and 149% compared to H1 2021. 

Insufficient support 

According to Sani Yaya, despite having improved, credits to businesses are still lower than what the State and entrepreneurs expect of banks and financial institutions. 

For example, loans to micro, small and medium enterprises only constitute 25% of the total loaned in H1 2022 (CFA489 billion or 19% compared to H1 2021 according to the same source).

A new agency to support SMEs

To change this trend, the government announced a few weeks ago the launch of the national agency for the development of MSMEs–an agency which was set up by decree on July 4, 2022. 

The government affirmed that the new agency will centralize and steer all efforts to support SMEs, in a coherent and structured manner. 

Ayi Renaud Dossavi

South Korea wants to boost its trade with Togo. Lim Jung-Tae, the new Korean ambassador to Togo, told President Faure Gnassingbé about this ambition on October 6, 2022. This was while presenting his credentials to the West African leader.

“During my mandate, I will do my best to bolster economic and political relations between our countries, Jung-Tae said at the meeting. “For now, many Koreans export cars to the Togolese market, we import raw materials from Togo, but not in large quantities. But, I will do my best for this volume to increase,” he added. 

J'ai reçu ce jour les lettres de créance des nouveaux ambassadeurs de la République de #Corée, de la Côte d'Ivoire et de la #Hongrie au #Togo.

Je me réjouis de la bonne qualité des relations de coopération qu'entretient le Togo avec…

1/2 pic.twitter.com/UcF6xgbqTa

— Faure E. GNASSINGBÉ (@FEGnassingbe) October 6, 2022

Two other diplomats were at the presidency on the same day. They are Moriko Thiémoko from Côte d’Ivoire and Tamás Endre Feher from Hungary. They also both said their countries want to strengthen economic, commercial, and political ties with Togo.

Thiémoko, the Ivorian diplomat said the goal was to reinforce economic ties so that they reflect “the good political and historical relations” that Togo and Côte d’Ivoire share.

Feher, for his part, said Hungary is ready to have a win-win cooperation with Togo, in the agriculture and agrifood sectors notably.

Ayi Renaud Dossavi

In Africa, the penetration rate of insurance products is low, according to Togo’s finance minister, Sani Yaya. The official made the statement last Monday, at the launch of the 26th African Reinsurance Forum in Lomé. 

“The challenge is to bring even more inclusion to the insurance industry. Insurance should no longer be a luxury or for people who belong to a certain social class,” Yaya said.

The minister emphasized that insurance should not only be limited to big capitals. 

“It must extend to the most remote hamlets, offering solutions, as long as there is an economic activity since our countries are essentially home to small, medium, and very small businesses,” he said

To achieve this, Sani Yaya encouraged insurers and reinsurers to try and cover all socio-economic strata and to conduct in-depth reflections to find innovative solutions to propose to African economies.

Esaïe Edoh

The 26th African Reinsurance Forum began in Lomé last Monday, October 3. Organized by the African Insurance Organization (AIO), the event is themed: “Sustainable growth: the role of African reinsurers in economic growth and development.”

Held at the 2 Février hotel, the forum gathered reinsurers from companies like CICA RE, Africa Re Group, and Société Sénégalaise de Réassurance (SENRE). 

During the meeting, Togo’s minister of finance, Sani Yaya, who launched it, urged African reinsurance actors to support the development strategies of African countries, including Togo, as these economies struggle due to current global conditions. 

"I would like to call your attention to align yourselves, and we know that you are already doing so, but align yourselves even more and commit yourselves to the different national development plans of our different countries and the agendas of our different regions, our different sub-regions in terms of development," Yaya told the audience on Monday. "This is how you will better help our different economies, through your support, the insurance you provide, the coverage of multiple risks."

It should be noted that Lomé hosted the very first edition of the Africa Reinsurance Forum, in 1995.

Ayi Renaud Dossavi

Togolese authorities plan to create a new town to relieve congestion in the Grand Lomé area. The project was announced by the minister of urbanism, Koffi Tsolenyanu, on World Habitat Day (October 3). 

According to the official, the project will be developed in Kpomé, in the Zio 1 municipality, over 1,177 ha. The minister said the city will help “increase Togo’s housing stock, thus preventing house scarcity and perverse consequences of speculation which could, in the long run, hurt more the most vulnerable groups, concerning access to housing and a healthy habitat.”  

To facilitate the project’s concretization, the government is ready to provide secure land to real estate developers who are looking to invest in affordable housing. According to the minister of urban planning, the authorities also intend to build several roads leading to the site.

Other steps taken to improve housing in Togo include the construction of 20,000 social housing units and the capping of the deposit and rent guarantee at three months.

According to the ministry of urban development, more cities will be built in the rest of the country.

Esaïe Edoh 

The Togolese anti-corruption regulator (HAPLUCIA) and the West African Development Bank (BOAD) inked last Friday a five-year cooperation agreement to fight corruption and related offenses, in Togo. 

Through the agreement, the two entities aim to set up the proper framework to prevent, detect, investigate, and fight corruption and related offenses in cross-border transactions. 

In detail, the BOAD will allow its general audit department to share information with the HAPLUCIA.

According to HAPLUCIA’s boss, Essohana Wiyao, the deal will reinforce the regulator. "Through this agreement, we formalize our cooperation to be stronger. Together, we will strengthen our capacity to act effectively," he said just after the agreement was signed. 

The BOAD’s support aligns with its “policy to prevent and fight corruption and fraud in its operations, and its whistleblower protection policy.” 

Esaïe Edoh

Gilbert Fossoun Houngbo is officially the new head of the International Labour Organization (ILO). The handover ceremony was held on September 30, 2022, and the Togolese official was trusted with the keys to the UN organization by his predecessor, Guy Ryder, a British.

"I salute your uncompromising commitment to the founding values of the ILO, your steadfast pursuit of technical excellence within the mandate of the organization, and your continued respect for our tripartite constituents as a unique source of inspiration for the ILO. These are qualities I aspire to emulate as I embark on the mission entrusted to me," Houngbo told Ryder at the ceremony, the ILO reported.

Some of the priorities  ILO’s new boss will tackle include "the international response to the issues of the market basket, high living costs, and inflation.” He will also work on expanding social protection, in the informal sector especially, fighting child labor and modern slavery.

Though he just takes over ILO’s helm, Gilbert F. Houngbo was elected as the organization’s 11th Director General last March. He was appointed for a five-year term, renewable once. 

Houngbo was Togo’s Prime Minister from 2008 to 2012 and was recently Chief of the International Fund for Agricultural Development (IFAD).

Ayi Renaud Dossavi

From now to June next year, 125,000 Togolese households should get nearly CFA19 billion in cash transfers from the government. This is part of a cash transfer scheme started in Dankpen, Kara, on September 3, and officially launched on September 27. The official launch was chaired by Victoire Tomegah-Dogbe, Togo’s Prime Minister.

The launch, placed under the supervision of the Ministry of Grassroots Development, was marked by two symbolic payments, made via T-Money (Togocom) and Flooz (Moov Africa Togo), respectively. 

The beneficiaries of the initiative are spread across 900 villages. Each household will get CFA90,000 - in six installments of CFA15,000. An additional CFA100,000 will be sent to 15,000 households to improve their economic inclusion. 

Myriam Dossou d’Almeida, minister of grassroots development, said the cash transfers are "a circumstantial support to help beneficiaries to raise and regain control of their lives.” 

The new financing for the Social Safety Nets and Basis Services Project (FA-FSB) comes from the World Bank, the French Development Agency (AFD), and the Togolese government. It will help improve beneficiaries’ income and consumption and allow them to recover from the Covid crisis. 

It should be noted that the initial phase of the project came to its end last December. In that phase, 61,317 vulnerable households received cash transfers from the ministry of grassroots development.

Esaïe Edoh