From 6.2%, the African Development Bank (AfDB) scaled down its 2022 growth forecast for the Togolese economy to 5.8%. The drop, which the AfDB attributes to the Russia-Ukraine war, Covid-19, and climate change, was disclosed during the Bank’s latest general assembly held in Accra. 

"For 2022, the economic outlook seemed favorable. However, the invasion of Ukraine by Russia could slow down the recovery that Togo initiated in 2021 (6% against 1.8% in 2020), with GDP growth expected at 5.8% against an initial forecast of 6.2% in early February 2022," said the Abidjan-based pan-African institution.

It should be emphasized that the AfDB’s initial forecast slightly exceeded that of the Togolese government; the latter expected a 6.1% growth rate in 2022.

Read also: Togolese government expects 6.1% economic growth in 2022, amidst post-Covid recovery

Growth slows, inflation rises

Regarding inflation, the AfDB now expects it will reach 4.6%, up from 2.4% initially. Most significantly, it will affect imported products like wheat.

"Togo could be affected because of its trade relations with Russia and Ukraine. About 40% of Togo's wheat imports in 2020 came from Russia, suggesting a strong likelihood of a negative effect on the availability and price of the grain," the AfDB wrote in a report.

Other issues concern relations with Togo’s partners, in Europe and Asia (China, India notably) who have to overcome energy (gas) supply hurdles paired with other consequences of sanctions imposed on Russia.

"The country could also be affected by the negative effects of the conflict on partner countries, such as those in the eurozone and Asia," the report says.

Let’s not forget Covid-19 and its variants, whose economic and health impacts still impair supply chains. This is particularly the case in China, whose strict anti-covid policy affects its major ports.

A new Novissi is needed

In response to the situation, characterized by soaring prices of consumer goods and energy, the AfDB recommended measures to bolster consumption and revive Togo’s economy. The measures resemble the government’s Novissi cash-transfer scheme launched in 2020 to help people cope with the Covid-19 crisis.

"Awareness of the above risks would make it necessary to scale up stimulus measures such as the NOVISSI program to alleviate the burden of soaring prices on households already hard hit by the effects of the health crisis," the AfDB said. 

Ayi Renaud Dossavi

In Togo, the second reforestation campaign will start on June 1, which coincides with the 46th edition of National Tree Day. The announcement was made on May 27, 2022, by Ministers Foli-Bazi Katari and Akodah Ayewouadan, respectively in charge of the environment and communication (and government spokesman), at a press conference.

This year, Togo aims to plant 21 million trees, against around 3 million trees planted last year, according to Katari. This is in line with the objective of planting 1 billion trees by 2030, an average of 100 million per year.

"This year, because we started early, we were able to mobilize 133,000 hectares of land, which we just need to plant 100 million trees," said the minister.

The government plans to finance reforestation initiatives, led by municipalities or private actors, to achieve its goal. 

On June 1, 2022, one million seedlings are scheduled to be planted.

For its latest recovery bond issue on the WAMU securities market, Togo retained CFA11 billion from a little over CFA36 billion. The operation closed last Friday, May 27.

According to the WAMU securities report, 10 investors subscribed to the issue. Compared to the initial target of CFA35 billion aimed by Togo, the amount subscribed translates to a coverage rate of 104%. 

The bonds have a nominal value, a maturity period of 180 months, and an interest rate of 6.1% per year. 

Including this latest issue, Togo has obtained on the regional money market CFA236 billion so far into the year. Throughout 2022, Lomé plans to raise CFA550 billion in this market; the funds will be used to finance its budget. 

 Esaïe Edoh

Togolese authorities are preparing to fight off monkeypox which is currently affecting some Western and African countries. They are taking measures though no case has been recorded yet in the country. 

Preventive measures were presented to some infectious disease specialists, virologists, bacteriologists, and other medical staff gathered at the Regional Hospital Center (CHR-Lomé Commune) of Lomé. Ihou Wateba, who coordinates the CHR’s care and is also the minister of higher education, presented them.

Wateba said Togo is preparing the necessary reception and support structures for possible confirmed cases of this disease. 

Towards an efficient response, the official took stock of the recommendations of the health sector on strategies to adopt. Their recommendations, he added, will be studied by the government.

By anticipating the virus, the government intends to protect the Togolese people and limit the impact of the virus in case it spreads to Togo.

The symptoms of monkeypox are very similar to those of smallpox–generalized or localized adenopathies, single or bilateral submaxillary and cervical. It is transmitted by direct contact, with an animal or a human, and through objects.

Esaïe Edoh

A project for sustainably managing waste and reducing organic pollutants in six WAEMU states, including Togo, was launched last Tuesday in Lomé. The regional project was launched in the presence of Kako Nubukpo,   WAEMU Commissioner for Agriculture, Water Resources, and Environment.

Funded by the West African Development Bank (BOAD) through a Global Environment Facility (GEF), the project aims to promote best practices and techniques to eliminate dioxin discharges (which are carcinogenic) and build local solid waste treatment facilities in various municipalities.

“The goal is to set up a robust waste management mechanism that integrates all waste management stages, namely collection, disposal, sorting, recycling, recovery, and final treatment," said Ibrahim Sow, Regional Coordinator of the Global Environment Facility (GEF).

"Urban waste management is one of the most pressing environmental issues for developing countries. In most African cities, less than 30% of waste is evacuated," said Foli-Bazi Katari, Togo's Minister of the Environment.

According to Katari, "West African cities produce between 20,000 and 30,000 tons of household waste daily, nearly half of which is not managed properly, causing health problems that impact the living environment of urban populations.

The sub-regional initiative is expected to be the subject of a signed convention between UEMOA and BOAD.

COFINA, a West African meso-finance company, has just secured nearly CFA40 billion from Development Partners International (DPI), a London-based investment firm focused on Africa.  

According to the related statement relayed by Ecofin Agency earlier this week, DPI made the payment in exchange for a minority stake in COFINA. The firm said it would use the funds to boost its activities in West and Central Africa.

Among others, it will launch “new and differentiated products and services to reach a greater number of customers."

COFINA, let’s note, is already present in Togo, Senegal, Côte d’Ivoire, Guinea, Gabon, Mali, Congo, and Burkina Faso.

"Despite issues caused by the pandemic, the Cofina Group has proven its resilience and most importantly the relevance of its business model adapted to African ecosystems. Building on this success, we now have DPI, a particularly experienced and trusted investor, at our side. As Cofina Group opens this new chapter, this transaction will allow us to strengthen our equity to consolidate our positioning and accelerate our digital transformation," commented Jean-Luc Konan, Founder, and CEO of Groupe COFINA.

"There is significant demand in the SME market for Cofina Group’s products and services which help entrepreneurs grow their businesses while promoting financial inclusion and creating a positive impact on African economies. We are delighted to join Groupe Cofina as investors and look forward to working with Jean-Luc and his team to keep materializing his vision," said Babacar KA, Partner at DPI.

For the deal, DPI was advised by ASAFO & Co, a law firm co-founded by Pascal Agboyibor of Togo, and KPMG. Meanwhile, Cofina was advised by ADNA.

In Togo, Cofina is well-positioned when it comes to SME support. It provides intermediate solutions between microfinance and traditional banking. The fast-growing group has, among other things, concluded agreements with public and private support companies to support financial inclusion and entrepreneurship projects, such as in agribusiness. 

Ayi Renaud Dossavi

The World Health Organization (WHO) and the University of Lomé (UL) signed an MoU last Monday in Lomé, to enable more Togolese to get training and do research in public health. The document was signed in Lomé by the UL's chairman Dodzi Kokoroko and WHO's resident representative in Togo, Fatoumata Binta Tidiane.

In detail, the memorandum sets the practical modalities of WHO-Togo's technical support to the Centre de Formation et de Recherche en Santé Publique (CFRSP) of the UL and health training schools.

As part of the deal, both parties are to mobilize resources, draw course curriculums, and lead research in line with healthcare-related quality assurance standards.

On the occasion, Kokoroko told WHO's representative that his university would ensure that everything goes according to plan. 

In response, Binta Tidiane lauded "the commitment of the University of Lomé to support the development of public health in Togo." 

As a reminder, according to university authorities, this agreement was yielded by the partnership agreement signed on June 11, 2019, with Heidelberg University to introduce a Master's degree in Public Health, with the support of the United Nations System (UNS).

 Esaïe Edoh

As the world keeps dealing with wheat supply issues spurred by the war in Ukraine, the Togolese authorities encourage the transformation of local tubers and cereals into bread. Yesterday, May 23, the country’s Prime Minister, Victoire Dogbé, visited some companies based in Lomé that make and use local flour. She was with the minister of trade, Kodjo Adedze, and the minister of grassroots development, Myriam Dossou d’Almeida.

The companies visited include Wesa Glory Corporation (WGC), Boulangerie Jérusalem and Minagro Group. They make flour and bread using cassava, yam, soybean, maize, and rice.

During the visit, the PM reiterated the government’s ambition to boost the local processing of local products. Dogbé stressed the need to integrate local flour into the production of bread and other bakery products.

Since February 24, 2022, when Russia invaded Ukraine, Togo, like several other countries, has been suffering from the resulting wheat crisis. 

In 2020, Togo imported around 70,000 t of wheat and meslin from Russia, according to the World Trade Organization (WTO).

Esaïe Edoh