Victoire Tomégah-Dogbé, the Prime Minister of Togo, attended the International Labour Organization (ILO) Summit on Social Justice in Geneva, Switzerland, last week. On the occasion, she had bilateral discussions and working sessions with many key stakeholders, including Gilbert Foussoun Houngbo, the ILO's Director-General, and former Togolese Prime Minister.

While meeting his compatriot, Houngbo praised the inclusion policy initiated by the government. "It is a great and special honor for me to welcome my compatriot, Her Excellency Mrs. Victoire Tomégah-Dogbé, Prime Minister. Togo has firmly embarked on the path of sustainable development based on the values of the ILO," said Gilbert Foussoun Houngbo.

"The current preparation of a social stability pact for inclusive growth is the latest demonstration of this. The effects of this commitment at the highest level of the State are visible, with a poverty rate that has significantly declined between 2006 and 2022," he added.

PM Tomégah-Dogbé also met with Mia Seppo, Assistant to the Director-General of the International Labour Office (ILO). The two discussed Togo's commitment to the Social Protection Floor initiative.

Togo’s President, Faure Gnassingbé,  should be in Paris on June 22 and 23, for the New Global Financial Pact Summit. 

Initiated by French President Emmanuel Macron, the Summit will cover the global debt system. It will gather several African and World Presidents, senior executives from financial and development institutions such as the World Bank, and dozens of NGOs.

Mostly, the event aims to modernize the international financial architecture established by the Bretton Woods agreements in 1944, which led to the formation of the International Monetary Fund (IMF) and the World Bank. High-level debates between Heads of State and governments, international organization leaders, civil society representatives, foundations, funds, and the private sector are planned.

Overall, nearly 100 Heads of State and governments, 40 international organizations, and more than 120 NGOs and NGO coalitions are expected.

Faure Gnassingbé was in Paris a few weeks ago at Macron's invitation. The two leaders took the opportunity to discuss bilateral cooperation and security challenges in the West African region.

The Kamadama power project, under development in northern Togo, is nearly complete. Togolese Minister of Mines and Energy, Mila Aziable, after visiting the project’s site over the past weekend, made the announcement.  

"Today, the work is 90.11% complete thanks to the tireless efforts of the technical teams mobilized to finish within the scheduled timeframe," Aziable said after the visit.

La Ministre a parcouru les chantiers de construction de Kara et Mango, dans le cadre du projet Kamadama. Cette initiative d'envergure consiste à ériger une ligne de haute tension de 330 kVA sur 310 km, reliant les localités de Kara, Mango, Dapaong et Mandouri. pic.twitter.com/l35ExcEX8t

— Ministère en charge de l'Énergie et des Mines (@mineenergie_tg) June 17, 2023

Aimed at reinforcing Togo’s power grid, the Kamadama project includes a 161 KV high-voltage line spanning 310 km. It links the cities of Kara, Mango, Dapaong, Mandouri, and the Togo/Benin border. 

The project is backed by several partners, notably the Exim Bank of India, which loaned the Togolese State $52 million for its development.

Nous entamons les 2 jours de visite des #travaux de construction des 310 km de ligne Haute Tension reliant les villes de #Kara, #Mango, #Dapaong et #Mandouri et leurs postes associés (Projet Kamadama)!
Jour 1: visite du poste de Dapaong, Kara , Mango et suivi avec grand intérêt… pic.twitter.com/jqRf404xSk

— Mila AZIABLE (@MilaAziable) June 17, 2023

Dammipi Noupokou, the Deputy Director-General of CEB, which steers the project, said it will enable power supply across Togo, from the corridor of Lomé to Cinkassé, while also reinforcing and securing supply in the North.

Ayi Renaud Dossavi

Operating in Togo for nearly two decades, Prudential Beneficial Life Insurance has seen considerable growth, achieving a turnover of CFA5 billion in 2022 compared to less than CFA3 billion in 2015. This financial update was shared with the press in Lomé on June 19, coinciding with the company's 175th-anniversary celebrations.

Justin Quam Gbadago, the Managing Director of the Togolese branch of this British insurance company, attributed the enhanced turnover to the firm's burgeoning customer base, which now exceeds 52,000, and its comprehensive network of commercial agents, totaling 600. Prudential Beneficial has established a strong presence in Togo, with 11 branches: eight in Lomé, one in Atakpamé, one in Kara, and one in Dapaong.

The insurer currently provides a diverse range of 15 products, including savings-only options, end-of-career bonuses, combined products, and death insurance. However, Gbadago highlighted that a sixteenth product should follow soon as "We have received in 2023 authorization to market a new product, 'Pension Plus,' a basic savings plan that also covers funeral expenses."

Prudential Beneficial occupies the fourth position among the six active insurance companies in Togo, holding 14% of the market share. The firm continues to grow domestically and took a significant step forward in 2019 when it formed a joint venture with Beneficial Life.

Esaïe Edoh

Togo raised about $54 million (30 billion FCFA) on the WAEMU money market last Friday, June 16. Lomé secured the funds through a simultaneous issuance of Fungible Treasury Bonds and Bills.

According to the operation report, Lomé secured $47 million (26 billion FCFA) from regional investors with the fungible bonds, and $9 million (5 billion FCFA) with the bills. The former securities mature over 364 days, and the latter over 3 and 5 years.

While Togo retained the $54 million it was seeking for the operation, the total bid was $60 million (33 billion FCFA). This translates into a coverage rate of 110.8%.

So far this year, Lomé has raised $531 million (294 billion FCFA) on the WAEMU market, out of an annual target of $1.04 billion (574 billion FCFA). The Treasury mostly uses the proceeds to finance Togo’s 2023 budget.

Esaïe Edoh

Between September and October 2022, 1,342 Togolese received their certificate of citizenship. According to Togo’s Ministry of Foreign Affairs, the recipients live in Gabon, Côte d’Ivoire, Mali, and Nigeria. 

The Ministry added that more diaspora members should obtain the certificate soon. "731 applications are currently being transcribed by the technical services of the Ministry of Territorial Administration, before being processed by the Directorate of Seal, Nationality, and Civil Identity," it wrote in a statement dated June 12, 2023.

The certificate issuance operation aligns with Lomé’s policy for protecting the interests of the Togolese diaspora, and getting them to "be more involved in the country's development process."

To this end, let’s recall, the government set up, in 2019, the High Commission for Togolese Abroad (HTCE)–an organization that acts as a bridge between the government and the diaspora.

#Communiqué à l'attention de la #Diaspora en #CôtedIvoire, au #Gabon, au #Nigeria et au #Mali : 1342 certificats de nationalité togolaise produits suite aux missions foraines du 16 sept. au 05 oct. 2022 seront convoyés dans les pays concernés.@rdussey
@GouvTg @TogoOfficiel pic.twitter.com/uVF2TzGTBj

— Diplomatie Togolaise (@DiplomatieTogo) June 12, 2023

Last year, a diaspora census was also carried out, and it identified 950,436 Togolese living abroad–52.82% of the group being men and 44.18% women.

The Togolese diaspora contributed $441 million to the Togolese economy in 2020, according to the Ministry of Foreign Affairs. This is down from $458 million the previous year.

Esaïe Edoh

Togo seeks to ramp up its soybean output to 500,000 t per year by 2028. The target is set in a five-year strategic plan recently validated in Lomé. 

By boosting its production, the country hopes to consolidate its position as the leading exporter of organic soybeans to Europe. The new plan emphasizes key areas such as developing local processing, enhancing the export of organic soybeans, and strengthening human resources.

"We must reach an annual production of 500,000 tons by 2028. This will allow us to ensure a maximum stock for local processing and export the rest," declared Komlan Kadzakade, president of the soybean sector's professional committee.

Focusing on local processing and generating added value should allow Togo to leverage its competitive edge in organic soybean production. This, in turn, should increase farmers' and stakeholders’ revenues, as well as make Togo more competitive in international markets.

Nearly 30,000 farmers, 200 sellers and exporters, and around 100 firms operate in Togo’s soybean industry. The country has been actively working to advance local processing, notably by setting up processing centers at the Adetikopé Industrial Platform.

Amid a deficit balance of payments and a rising oil bill, Togo's net foreign assets with the Central Bank of West African States (BCEAO) dropped significantly in 2022.

Togo's net foreign assets with the BCEAO were in a deficit of CFA410.2 billion in 2022, against a deficit of CFA23 billion in 2021, and a surplus of 70.5 billion in 2020. The substantial drop is attributed to a series of global crises over the past three years and an increased dependency of the Togolese economy on external resources.

Balance also greatly contributed to the situation. Indeed from a surplus of CFA121 billion in 2021, it plunged to a deficit of 19 billion last year. Then, there is the oil bill, which rose by 59%, from 162.8 billion in 2021 to 259.2 billion FCFA in 2022. 

The higher oil bill, in part driven by a stronger dollar, hit Togolese importers and the country's finances. Togo, a non-oil-producing nation, saw its imports rise by 20% in a year, further deepening its trade deficit, which expanded by 24% to reach 514 billion FCFA.

Togo is not the only country in the sub-region to face economic headwinds. Others like Benin and Burkina Faso, also non-oil producers, face similar issues. The appreciation of the dollar against the CFA franc impaired import costs. And while it had a positive impact on exports, this was insufficient to offset the impact on imports.

Regardless, being a member of the West African Economic and Monetary Union (WAEMU) somehow benefited Togo in these hard times. Indeed, other WAEMU members including Côte d’Ivoire, Senegal, Niger, and Guinea Bissau recorded positive net foreign assets in 2022. They thus produced a buffer effect that cushioned external economic pressures.

For instance, Côte d’Ivoire, despite a decrease in its foreign assets, posted a robust balance of 2,303.6 billion FCFA, mostly resulting from its cocoa export revenues. Senegal and Niger also maintained substantial net foreign assets despite a downward trend. They both benefited from a burgeoning oil windfall. 

Nevertheless, the WAEMU is in a less than ideal position marked by an overall fall of 3,064.1 billion FCFA in its net foreign assets, but still robust enough amid these uncertain times.

Fiacre E. Kakpo

Banks in Togo had their net foreign assets standing at 1,487.8 billion FCFA in 2022. According to the BCEAO, WAEMU’s Central Bank, which disclosed the figure, it is 32.8% higher than that recorded in 2021. 

Banks’ net foreign assets reflect the value of claims on non-residents and obligations to non-residents, as well as claims on the Central Bank.

The upward trend started in 2020. From 905.1 billion FCFA that year, the lenders’ net foreign assets jumped to 1,119.7 billion FCFA the next year, and 1,487.8 billion FCFA last year.

Over this period, claims on non-residents increased steadily, from 1,118.3 billion FCFA in 2020 to 1,811.3 billion FCFA in 2022. This shows that banks in Togo trust foreign borrowers. 

Conversely, claims on the central bank slightly declined over the three years, dropping from 219.7 billion FCFA in 2020 to 188.3 billion FCFA in 2022.

As for the total assets of Togolese banks, they grew from 2,484.8 billion FCFA three years ago to 2,638.9 billion FCFA in 2021, and 3,239.3 billion FCFA in 2022.

In contrast with the banks’ situation, the State’s net foreign assets declined relative to the Central Bank, as the balance of payments deteriorated amid pressures that affected some essential imports like oil imports.

Ayi Renaud Dossavi