The government of Togo wants to set up a free-trade zone in its textile and clothing sector. The Council of Ministers held last Wednesday examined and adopted a draft bill that aligns with this goal. 

“This draft bill defines an incentive framework for the textile and clothing industries. It is part of efforts to make the legislative framework for investment more attractive, hence accelerating the transformation of the national economy, enhancing job creation and social inclusion amidst the implementation of the Industrial Platform Adetikope (PIA),” the government noted.  

This will, the authorities add, especially “equip our country with a real tool to rapidly set up textile and clothing industries, and bolster this sector which has a high labor intensity.” 

It should be recalled that the PIA is looking to set up a textile factory. Earlier this year, it also partnered with the ANPE to train 1,000 young Togolese (from 18 to 30 years old) in textile works. 

Ayi Renaud Dossavi

Gathered last Thursday, the council of ministers of Togo assessed and adopted a draft bill amending laws in favor of strengthening women’s rights in the country.

The Council, in line with its ambition to promote equal rights between women and men, approved the draft bill. The latter aims to “further strengthen the rights of women in the areas of marriage, maternity, work, protection against domestic abuse and economic violence, social security,” according to the Council’s minutes.

Now, the draft bill is to be validated by the parliament. 

Meanwhile, the government lauds “constant efforts” that “helped improve women’s conditions and put our country at the same level as exemplary States, especially in the economic, social, legal, and political areas.”

Togo is one of the countries that improved the most in the women's economic inclusion area in recent years, according to a World Bank report. With a score of 84.4 over 100 in this report, Togo was the seventh in Africa (just after Mauritius), and second in West Africa (after Cape Verde), when it comes to protecting equal opportunities between men and women.

Ayi Renaud Dossavi

Togo raised CFA30 billion on the WAEMU market last Friday, July 8. The country issued recovery bonds with maturities of three and seven years.

In detail, CFA20 billion was retained on the five-year bond and the remaining CFA10 billion on the 10-year bonds. 

According to the WAMU securities agency, regional investors mobilized more than CFA87 billion for this operation. This corresponds to a coverage rate of 292%. 

The bonds have a nominal value of CFA10,000 and interest rates of 5.8% and 6.15%. Proceeds will help finance the State’s budget as part of efforts to recover from the pandemic and return to the performance levels recorded prior to the subsequent health crisis.

Esaïe Edoh

As part of its contribution to Togo’s recovery from Covid-19, Orabank reiterated its ambition to support the country’s agricultural sector and financial inclusion.

Guy Martial Awona, MD of Orabank Togo, disclosed this ambition during a meeting with PM Victoire Tomegah-Dogbe, held on July 5 in Lomé. 

“We discussed several issues, mainly financing the economy in the areas of agriculture and financial inclusion. Agriculture has been one of Orabank's financing objectives for several years. Subsequently, we have financed, within the framework of the PAEIJ-SP and the MIFA, many projects with convincing results, but also lessons to be learned,” Awona said.

In detail, the bank will take steps focused on processing products, to reduce imports. "Covid-19 and the Russia-Ukraine war have shown that there is an opportunity in agriculture for a country like Togo," the lender’s boss added. In this framework, support will be provided to the informal actors, the youth and women especially, working in the agricultural sector.

Esaïe Edoh 

For the 2022-2023 agricultural campaign, the government of Togo provided 82,000 t of fertilizer to farmers across the country. This is about 7% more than the 76,000 t initially announced. 

In detail, the supplies include 43,000 t of NPK and 39,000 t of urea. They add to 3,000 t of certified seeds that were distributed to various regions at a subsidized price of CFA18,000 (for a bag of 50 kg). 

The moves aim to further improve the country’s agricultural output. Besides subsidizing fertilizers, the State pre-financed the purchase of products for poor farmers with CFA500 million. 

Esaïe Edoh 

The National Federation of Cotton Farmers of Togo (FNGPC) increased its shareholding in the New Cotton Company of Togo (NSCT). From CFA800 million, the Federation’s stake now stands at CFA6 billion, which represents nearly 25% of the firm’s total shareholding.

The news was disclosed at the FNGPC’s ordinary general meeting, held last week in Lomé. On the same occasion, financial and budget reports covering the year 2021 were presented. 

The stake increase comes as the cotton sector struggles to achieve the performances expected concerning a reform that was recently introduced, though several efforts have been implemented to this end. 

According to Koussouwè Kouroufei, chairman of the FNGPC, Togo produced 67,185 t of cotton seed and cultivated over 100,050 hectares, which corresponds to an average yield of 672 kg per ha. In 2021-2022, the country’s output slumped by 12.24%, to 52,528 t. Over the period, however, yield per hectare rose. 

Moreover, cotton also faces rising competition from soybeans, which farmers believe to be more profitable.

Ayi Renaud Dossavi

The Togolese Ministry of Housing and Urban Planning introduced a standard contract for residential leases and rentals, which is aimed at harmonizing the rent caution and guarantee fees across the country. The move aligns with the new housing contract regulation in place in the Grand Lomé region. 

The new contract was presented and adopted on July 5, 2022, during a meeting organized by the Togolese Association of Real Estate Agents (ATAI). 

"Our fellow countrymen must understand this. There are no more verbal leases. Now, all residential leases must be in writing," said Akakpo Iroko, Director of Legal Affairs and Litigation at the Ministry of Urban Planning, Housing and Land Reform, at the meeting. 

Initially, the capping contract was submitted to the council of ministers on January 5, 2022. The goal stated then was the end of speculation in the housing sector.

Ayi Renaud Dossavi

Over the past year, the Togolese State received CFA14.7 billion in dividends from the companies it owns fully. That is 22.6% less than it did in 2020, according to the 2023-2025 Multi-year Budgetary and Economic Programming Document (DPBEP), which was examined by the parliament on June 30.

Thus, the decline started in 2019 continues. Indeed, dividends collected that year stood at CFA25.5 billion, down from 27.8 billion in 2018.  Between 2019 and 2021, the figure shrank by 42.3%. 

The decrease was induced by a 44% slump in the net income of the 11 State firms. From 26.1 billion in 2019, the earnings fell to 16.6 billion the following year, then to 14.5 billion in 2021.

According to the government,  the net earnings dwindled mainly because of poor performances recorded by the UTB whose net income fell by 94.1% between 2019 and 2021, though its turnover rose in the past two years. Another factor that pulled down the State’s dividends is the sale of 51% of its shares in Togocom, a telecom operator that it owned, fully, until the end of 2019. It is worth noting that between 2015 and 2017, the annual profits of this operator exceeded CFA10 billion.

Increasing turnover

The lower dividends and net earnings, however, contrast with a stronger activity of State firms. At the end of 2021, their total turnover stood at CFA167 billion, against 149.8 billion in 2020 (+11.5%). In 2019, they stood at CFA146.3 billion.

These are statistics from 11 out of the 16 State-owned companies listed in the country’s public company registry. The remaining five (Lonato, TdR, SP-EAU, ODEF, and La Poste) are being audited.

To this end, the financial indicators must be put into perspective, as they concern only 11 of the 50 or so state-owned companies that are potential suppliers of dividends, including some semi-public companies in which the Togolese state holds a majority stake and has control over the distribution policy. This is, for example, the case of Sotral, T-oil and SALT.

Improvement expected by 2025

According to the government, profits of State-owned companies should return to their pre-2019 level by 2025. They are expected to grow from CFA18 billion this year to CFA23 billion in 2023, CFA24 billion in 2024, and CFA26 billion by 2025.

Fiacre E. Kakpo