Cina Lawson, Togo's Minister of Digital Economy and Digital Transformation, is in Davos, Switzerland for the World Economic Forum (WEF). During the event, which opened on January 20 and ends on January 24, Lawson will share the Togolese vision for digital transformation.

Among others, Lawson will cover artificial intelligence (AI), how it should be governed, and the leadership needed during this technological change. She will also share her thoughts on fostering an inclusive and innovative future based on Togo's experiences in the digital field.

Honorée de participer au Forum Économique Mondial (@wef) 2025, une tribune majeure pour échanger sur les défis mondiaux et explorer des solutions innovantes.

Je m'exprimerai principalement sur l'#IA, sa gouvernance et le leadership adapté à son ère, des sujets clés pour… pic.twitter.com/patfErwzXG

— Cina Lawson (@cinalawson) January 20, 2025

The Minister will also try to establish partnerships with other attendees to secure funding for projects supported by the Togolese government, especially for digitizing public services.

Launched in 1971, the WEF is an annual meeting that gathers global business leaders, politicians, academics, and influential bankers. It aims to foster international cooperation on important political, social, and economic issues.

This article was initially published in French by Esaïe Edoh  

Edited in English by Ola Schad Akinocho

The Togolese government has repurchased Union Togolaise de Banque (UTB) headquarters and IB Bank to help stabilize these struggling banks, which hold 20% of Togo's banking sector assets. The IMF has advised that after UTB completes its restructuring, the government should consider privatizing the lender.

Last year, the government took control of the buildings. These banks account for 20% of Togo's banking sector assets. The IMF confirmed that buying UTB's head office alone cost CFA31 billion.

UTB: Positive Equity at Last

UTB has struggled with negative equity for years, but it is starting to recover thanks to this acquisition and an additional capital injection of CFA12.6 billion. An independent audit shows that the bank is getting closer to meeting the capital requirements set by the WAEMU Banking Commission. However, a restructuring plan must be completed by April 2025, with full implementation by October. During this time, UTB will remain under public control before being privatized.

This plan will be based on findings from an external audit conducted in 2023 and aims to ensure UTB's profitability and stability while it is still publicly owned. The IMF encourages authorities to pursue privatization soon after restructuring to reduce long-term financial risks.

IB Bank: Mixed Signals

IB Bank, which was sold to Burkinabe businessman Mahamadou Bonkoungou in 2021, has had mixed results. Selling its former headquarters has eased some financial pressure and improved its regulatory capital but has not guaranteed stability. A reform plan is already in place and has been submitted to the banking commission. This plan includes increasing capital from private sources, reducing loans linked to shareholders, and withdrawing loans from institutions with negative equity. The IMF warns that without significant private investment and these reforms, IB Bank will continue to face structural challenges.

Despite these issues, IB Bank is starting to recover. After several years of losses, it returned to profit in 2024. Reports suggest these positive results should continue this year, supported by significant write-backs of provisions and a focus on government commitments.

A Hefty Bill

These actions are costly. The Togolese government set aside over CFA69 billion ($108.2 million) in its 2024 budget to support both banks. The IMF notes that this spending could worsen an already strained public deficit, estimating that restoring the banking sector might cost 1.5% of GDP.

According to the Togolese officials, there is a need to improve governance and economic fundamentals to prevent the banking sector from declining further. Some IMF documents reviewed by Togo First reveal that two smaller banks representing 9% of sector assets have started failing to meet prudential standards according to IMF documents. The same source indicates that one bank exceeds limits on non-operational assets and capital requirements; the other breaches risk concentration standards.

Fiacre E. Kakpo

Togo plans to issue its second operation on the West African Monetary Union (WAMU) public securities market next Friday, January 24. The treasury will issue fungible bonds (OATs) and fungible bills (BATs) to raise CFA20 billion.

In detail, Lomé plans to raise CFA10 billion via the BATs, and the same via the OATs.  The former securities have a face value of CFA1 million, multiple interest rates, and mature over 364 days, while the latter securities have a nominal value of CFA10,000, an interest rate of 6.25%, and mature over three years.

Proceeds will help fund Togo's 2025 budget, set to stand at CFA2,397 billion, income and expenses. 

Togo targets CFA332 billion on the WAMU market this year. It has already secured CFA22 billion in its first issue.

Esaïe Edoh

Applications for the "Investment Readiness" program are open. The program helps Togolese startups learn how to raise money, organize their projects better, and attract investors. It is run by the Ministry of Digital Economy and backed by the European Union(EU).

The six-month program, supported mainly by the European Union (EU), will offer practical training, personalized coaching, and chances to connect with experts. The goal is to create funding strategies matching each company's growth stage and help them better communicate with investors.

This initiative is part of the Togolese government's efforts to promote technological innovation, especially in the digital field. To apply, businesses need to meet certain criteria, including having a viable business model, being innovative, making an impact, having financial capacity, and being ready to raise funds.

Applications are open until February 3, 2025.

Togo is looking to improve its railway connections with South African partners. On January 16, 2025, a meeting was held at the Togo High Commission in Pretoria. The Togolese delegation was led by John D. Fintakpa Lamega, Minister-Counsellor, and Chargé d'Affaires.

The meeting included people from Mathupha Capital, an investment company focused on infrastructure, and Invest SA, an agency that promotes investment. They discussed Togolese railway projects and how they could fit into the West African logistics network. At the end of the meeting, a joint working group was created to explore funding and implementation options.

These discussions are important for Togo as it aims to improve infrastructure for better regional integration and economic growth. The country has been working to diversify its partnerships, focusing on the railway sector, which has not yet reached its full potential.

Several promising projects are planned but have not yet started, such as a railroad connecting the Port Autonome de Lomé (PAL) to Togo's northern border and a rail loop linking countries in the West African Economic and Monetary Union (WAEMU).

Ayi Renaud Dossavi

The Sokodé bypass project was kicked off on January 16, 2025. President Gnassingbé attended the launching ceremony.

The project has a budget of CFA24.5 billion, with 82% of the funding, or CFA16 billion, coming from the Japan International Cooperation Agency (JICA). The bypass will include a 16-kilometer asphalt road, divided into two parts: Tchalo-Kpario (12.7 kilometers) and Kpario-Kidèoudè (3.3 kilometers).

Other projects besides the bypass include rehabilitation works on National Road 14, which connects Sokodé to the Benin border, upgrades to National Road 17 (Sokodé-Bassar), and improvements to National Road 1 (Aouda-Alléhéridè).

The Sokodé bypass aims to reduce traffic on National Road 17 and cut congestion in the town center. This new road will also help boost trade and economic growth in the area.

Esaïe Edoh

Togo might join the Alliance of Sahel States (AES), which includes Burkina Faso, Niger, and Mali. Robert Dussey, the Togolese Foreign, recently mentioned the possibility in an interview with Voxafrica. The move, he said, should be approved by the Parliament and the President. "It's not impossible," Dussey noted. "It's not impossible," he said"If Parliament and the President agree, why wouldn't Togo?"

Dussey emphasized that Togo wants to keep talking with all parties and focus on its interests. "Today, African peoples everywhere want to be themselves, whether in Togo, Benin, Côte d'Ivoire, Guinea, Cameroon, or South Africa. We are not against anyone... The problem is that some of our partners want us to be at their service, so we say 'NO,'" he explained.

In 2024, Burkina Faso, Mali, and Niger exited the ECOWAS block, amidst political tensions. Since then, Togo has been mediating between the two sides. By August 2024, trade with AES countries represented 74% of Togo's total trade, up from 64% five years ago.

Ayi Renaud Dossavi

The regional councils of Togo started their term on January 15, 2025, with their first meetings across the country. Council officers were elected during the meetings.

The sessions took place in the regional capitals and were led by the governors. A designated group supervised the voting, counting, and announcement of results in each region.

In all regions, the councils will be mainly run by representatives from the ruling Union pour la République (UNIR) party. This reflects their success in the regional elections on April 29, 2024, where they won 137 out of 179 seats.

The formation of these councils marks the official start of the councilors' term and begins a new phase in Togo's decentralization efforts that have been ongoing for several years. Elected for a six-year term, councilors will work on regional development to improve local governance.

Before the regional councils’ establishment, governorates and communes were created in 2024 and 2019, respectively. This new phase will help Togo strengthen its decentralization policies.

Esaïe Edoh 

New cases of meningitis have been confirmed in the Kara region, northern Togo. On January 15, the Minister of Health, Tchim Darré, revealed the disease, which had already been spotted in the Savanes region, had spread to Kara. 

Health authorities are taking steps to detect new cases early and ensure patients receive proper care. These include mobilizing health facilities to treat patients and running awareness campaigns to inform the public about symptoms and the importance of seeking medical help quickly.

The Ministry of Health is investigating affected communities to identify new cases and act swiftly to prevent further spread. A potentially fatal infection, Meningitis spreads through contact with respiratory droplets or saliva from an infected person. Symptoms include sudden fever, severe headaches, vomiting, stiff neck, and in severe cases, loss of consciousness or seizures.

Togo is part of the African meningitis belt and often experiences meningitis outbreaks. The current outbreak is caused by the Streptococcus pneumoniae which is unusual for Togo. The World Health Organization (WHO) has rated the risk level as high nationally, moderate regionally, and low globally.

To combat this outbreak, WHO recommends improving vaccination coverage and enhancing surveillance for early case detection. However, the global organization recommended no travel or trade restrictions, for now.