The Togolese government and its social partners (central trade unions and professional employers' organizations) recently agreed to raise the country’s minimum wage to CFA52,500 from CFA35,000 (since 2012). 

Announced last Friday, the change came into effect on January 1, 2023.

In his end-of-year address to the Nation, President Faure Gnassingbé welcomed the change saying: "I would like to congratulate the social partners who were able to reach an agreement to raise the guaranteed minimum wage."

Besides raising the minimum wage, the social actors committed to keeping working "together for the continuous improvement of the overall working conditions of employees, and particularly the purchasing power of workers and households.”

The increase is the latest of a battery of social measures that the government has undertaken in recent months, to mitigate the impact of high living costs and rising inflation on the Togolese economy. 

While the decision to raise the minimum standard is a major improvement, implementing it, in all socio-professional strata, the informal sector especially, is another issue.

Togo received last Monday, another white rice shipment from Japan, the third this year, as part of the 2021 Kennedy Round (KR). This shipment (2,748 tons) is worth about CFA1.7 billion (350 million yen).

A delegation from the Togolese ministry of agriculture, led by Konlani Dindiogue, head of the ministry’s cabinet, received the shipment at the Autonomous Port of Lomé (PAL).

Under the terms of the KR project, the rice will be sold and subsequent earnings will be used to set up a fund for financing socio-economic projects across the country.

The Kennedy Round is a non-reimbursable financial cooperation assistance that allows developing countries facing food difficulties to receive cereals such as rice and wheat for the benefit of their populations, especially the most vulnerable.

Mainly, it supports the efforts of these governments to cut the rice deficit, boost food security, and improve nutritional balance, and the living standards of the poorest.

According to the Togolese ministry of agriculture, since 2008, Japan’s support for Togo, as part of the KR project reached 4.6 billion yen (a little more than CFA23 billion). The West African country has received from the Asian country 849 tons of wheat and 29,205 tons of white rice.

Esaïe Edoh 

On the night of Dec 22-23, the Togolese Parliament adopted the budget for 2023. The bill, which was approved unanimously, totals CFA1,957.9 billion in revenue and expenditure. This is 4.4% more than 2022’s rectifying budget.

Defending the bill during its adoption, Sani Yaya, the minister of finance, talked about the current international context, which is “marked by the persistent effects of the health crisis and the impact of the Russian-Ukrainian conflict”. “These crises”, the official continued, “have spurred strong inflationary pressures and tighter monetary policies, which in turn induced a slowdown of economic activities.”

Yaya was representing the government at the assembly, with Christian Trimua, the minister of human rights and spokesperson of the government

Social and development-oriented projects 

The 2023 budget focuses on social and development-oriented projects. Indeed, 48% of projected spending under the bill will be dedicated to the first axis of the government’s roadmap (Togo 2025). This axis covers inclusion and human capital development ; 35% of projected spending will be dedicated to the roadmap’s second axis which focuses on supporting productive sectors, while the remaining 17% will, according to minister Yaya, help boost the State’s capacities.

Next year, CFA623.4 billion should be allocated to social sectors–thus nearly 49% of the whole budget which is close to CFA2,000 billion. In the 2022 budget, the amount dedicated to these sectors was lower: CFA522.2 billion.

Private sector gets new support

Besides the social sectors, the government announced several incentives for the private sector. They include the suspension of installment payments if turnover falls sharply or the business shuts down, the exemption of the payment of custom duties and taxes on construction equipment and machinery, the renewal of customs duties and VAT exemption for new electric and hybrid vehicles, and tax abatements for vehicles that are less than five (5) years old.

The measures “reflect the government’s firm commitment to mitigating inflation’s impact on the purchasing power of both public and private sector employees and households and on businesses’ capacity to create wealth and support (Ed.note: economic) growth,” Sani Yaya added. 

Ayi Renaud Dossavi

Rose Kayi Mivedor, Togo’s minister for the promotion of investment, had an official meeting with several Togolese embassies yesterday, December 22. Mivedor and her staff were looking to establish a collaboration framework with the embassies to attract more investments in Togo. 

Around 30 embassies -including France, England, the U.S, Japan, and India’s- took part in the talks.

"You are the international channels through which these reforms and actions implemented by the government will be relayed to our international partners," said Mivedor, while stressing the importance of "transparency, availability of information, facilitation" in the interactions.

"Our country is open to sustainable partnerships, and an enabling legal framework has been put in place with the PPP law that was adopted in December 2021. The structures of reception, support and facilitation are present and operational. It is this message that I would like you to relay," she added, while assuring that the Investment Promotion Agency and the Free Zone (API-ZF) are pursuing reforms to make things easier for investors and boost trust and transparency between them and public administrations.

"The agency is therefore your go-to source for information, and it ensures that our future partners and investors know about the various investment opportunities that our country offers."

Also during the meeting, the ministry for investment promotion and its operational arm, the API-ZF, briefed participating diplomats on the favorable conditions put in place for foreign investors, as well as on results achieved leveraging technical and financial supports. The MPI’s motive in sharing this information with the embassies was to encourage them to organize activities and spark foreign investors’ interest for Togo.

Regarding the results achieved, in 2021, 38 projects were approved in the Free Zone and under the Investment Code, for a total amount of CFA277 billion–58% of which were FDIs. According to the MPI, sectors that attracted most of the investments were clothing, wood and building, agrifood, mechanics and services.

At the end of September 2021, 24 more projects were approved, totalling an investment of CFA107 billion–81.9% of FDIs and 25.3% as national direct investments (NDIs). 

The ministry for investment promotion also presented various Togolese sites that attract investment, notably the Industrial Platform of Adetikope (PIA). 

"The PIA stands today because of five investment projects, including three in the free zone and two in the investment code, valued at about CFA125 billion," said Rodrigue Akue-Atsa, adviser to the Ministry of Investment Promotion.

Mivedor’s ministry added that several roadshows, similar to the ones organized in the UK, or with clothing investors at the PIA, are scheduled for 2023, both within and outside the country.

Ayi Renaud Dossavi