In Togo, tax exemptions cost the State almost CFA140 billion between January and September 2023, an increase of 18% year-on-year.

The government expects to miss out on CFA146 billion for the whole year. These "illiquid" revenues, i.e. not collected, have a direct impact on public finances but are part of a government strategy to support the economy during crises.

In recent years, Lomé has introduced several major tax exemptions to make people’s lives easier and cope with inflation. The latest exemption introduced is the VAT cancellation for university and company canteens.

In the corporate world, tax exemptions are aimed at fostering investment and economic recovery. For example, construction and public works equipment are exempted from customs duties and taxes. 

Agriculture is another sector that benefits from several exemptions, especially on input costs. There are also incentives for new investors, notably in the free trade zones. Companies in difficulty receive temporary support, and NGOs and international institutions benefit from advantageous tax conditions. Customs exemptions are also targeted at certain crucial imports, supporting the local economy.

Despite the impact of these policies on public finances, the Office Togolais des Recettes (OTR) records promising results. The tax office has collected CFA590 billion between January and September 2023, up by 11% year-on-year. This represents about 77% of its annual liquid tax revenue target, CFA765 billion.

However, while the relevance of these exemptions is debated, no recent study has yet assessed their positive or negative impact on the economy. The OTR took a first step in this direction: for some years now, the OTR has been elaborating a detailed table of tax expenditure, including exemptions, reliefs, and tax breaks. This approach, essential for greater transparency, could eventually provide the data needed for an objective assessment of the real impact of these policies on the Togolese economy.

Fiacre E. Kakpo

Cotton farmers from 15 West and Central African countries have gathered in Lomé, Togo, since Tuesday, for a meeting that aims to define new strategies for improving the industry. Set to close on November 23, the meeting is organized by the African Cotton Producers Association (AProCA).

The meeting mainly focuses on issues such as the difficulty in setting international market prices and scarce funding for farmer training.

The roundtable should yield solutions for professionalizing the sector, increasing yields, and improving the socio-economic conditions of African cotton farmers.

"Associations of African cotton farmers have become aware that the problems of the cotton sector in Africa can only be resolved if all players in the sector become true professionals, each at their level..,." said Kouroufei Koussouwè, President of AProCA.

AProCA was founded in December 2004 in Cotonou, Benin, with the mission of defending African farmers’ interests in regional and international cotton bodies.

Esaïe Edoh

Anne-Marie Couderc, non-executive chairman of Air France's board, met Togolese Prime Minister Victoire Tomegah-Dogbé on November 20. The women talked about the airline’s activities in the country. Air France is 90 years old this year.

"We took the opportunity of celebrating 90 years of Air France, including 76 years of liaison with Togo, to take stock of our relations and see how we could improve and develop them. We were lucky enough to meet the Prime Minister, who welcomed us. We were able to discuss both areas of satisfaction and areas requiring improvement," said Anne-Marie Couderc after the meeting.

Air France wants to strengthen its relations with Togo, as the region faces some turmoil, especially the Sahel countries including Mali, Burkina Faso, and Niger.

"It seems to us that in these periods, which are a little bit complicated, we need to strengthen our ties," said Couderc.

Air France plans to add a new aircraft to operate its Togo route.

"Today, we have a direct Paris-Lomé route, 5 routes a week, direct.", it notably states.

Ayi Renaud Dossavi

The West African Development Bank (BOAD) will invest CFA30 billion into Togo’s Emergency Program for the Savannah Region (PURS). The regional lender made the announcement just after its 138th Board of Directors meeting, on November 21, in Lomé. 

The financing, a loan, was approved to improve infrastructure, basic social services, and economic resilience in the northern part of the country.

In detail, the funds will be used to develop 125 km of rural tracks to open up the region's localities, set up basic infrastructure in several localities (solar-powered pumps, equipped warehouses), and improve basic social services, such as health, education, territorial administration, and security.   

The PURS, it should be noted, benefited from CFA50 billion financing last year. Since then, the government mobilized several other partners around the project, notably the World Bank and the United Kingdom.

Earlier this year, Lomé revealed that it was seeking around CFA35 billion for the same project.

Ayi Renaud Dossavi

Pan-African technology firm CSquared raised $25 million this month to reinforce and expand its footprint in Africa where it operates. The firm announced it raised the funds from new and old shareholders. These include Convergence Partners Digital Infrastructure Fund (CPDIF), the International Finance Corporation (IFC), and the International Development Association Private Sector Window (IDA PSW). 

“Broadband connectivity is critical for Africa’s development. Our investment in CSquared is aligned with our regional strategy to develop digital infrastructure and promote the digital economy which can help leapfrog development for many African countries, support economic growth and stimulate job creation”, said Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa. 

This fundraising is the first step in a larger investment program, worth $65 million, to support CSquared's expansion and growth.

Csquared is active in Togo, through Csquared Woezon, a joint venture with the State. The JV exploits the capacity provided by Google's Equiano submarine cable, operational in the West African country since last August. Csquared Woezon also aims to extend Togo’s fiber optic network, covering more cities from the south to the north.

Based in Kenya, Csquared was founded in 2011. The firm operates in the fiber optic sector. Besides Togo and Kenya, it is present in Uganda, Ghana, Liberia, and the Democratic Republic of Congo (DRC).

Ayi Renaud Dossavi

Togo could soon secure $200 million from the World Bank for the Improved Digital Access and Electricity Access Project (IDEA). The latter aims to boost access to the internet and power in the country. 

In case it comes through, the $200 million financing would be the biggest Togo ever received from the World Bank. 

According to someone familiar with the matter, a deal could be signed soon. Referring to the IDEA, the source said: “This project has been in the pipeline for some time”.  Documents consulted by Togo First indicate that the project has four goals. 

Firstly, it aims to improve the reliability of transmission services in northern Togo, where current losses in electricity distribution represent over 17%, according to the latest statistics. 

Secondly, it seeks to extend the coverage of electricity services, both on and off the grid, in target areas.

Thirdly, the IDEA project aims to increase broadband network coverage and access to digital services, in a country with an internet penetration rate of 35% (DataReportal). 

The last objective of the IDEA is to bolster the operational performance of the CEET, Togo’s power utility.

Under the project, a 161 kV high-voltage transmission line will be built to reinforce the CEET’s grid. Also, around 262 km of lines will be laid across the country, thus supplying power to remote areas. At the same time, the new project incorporates an innovative digital dimension. Fiber optic cables will be installed along the new high-voltage transmission lines, creating a state-of-the-art communications infrastructure.

"These lines will be equipped with fiber optic cables to extend the reach of the fiber optic network of SIN [the company responsible for managing the state's digital and public telecoms infrastructures, ed. note], thus enabling equitable distribution of bandwidth to all telecoms operators in Togo," said sources close to the matter. This is a major development, according to the sources who added that "it will reduce the digital divide and boost socio-economic development in previously isolated areas of Togo".

The project also supports the deployment of smart stand-alone solar systems in rural areas, like other national projects in the CIZO which provides affordable solar home systems.

Fiacre E. Kakpo

At the third Intra-African Trade Fair (IATF2023), Vista Group secured a $275 million loan from the African Export-Import Bank (Afreximbank). The funds will help Vista Group acquire 61.4% of Oragroup, the Lomé-based lender.

The funds will be provided in two installments. The first, €140 million, will go to Ora SPV, a special fund set up by Vista Group to buy the stake. The second installment, €113 million, obtained by ADI SVP/Vista Bank, will be deployed in Burkina Faso.

Before this package, Vista had secured funds from the West African Development Bank (BOAD) in March 2023, also for the stake acquisition.

Afreximbank will support Vista Group’s expansion strategy, to establish a presence in 25 African countries. Afreximbank will also advise Vista on its intra-African trade financing operations.

Ayi Renaud Dossavi

Lomé is hosting a workshop on anti-laundering and terrorism financing in the ECOWAS, Sao Tomé, and Comoros. Organized by the Intergovernmental Action Group against Money Laundering in Africa (GIABA), the workshop began on November 20. It ends on November 24.

The meeting has gathered representatives of financial intelligence units, criminal investigation and prosecution authorities, judicial authorities, and other specialized prosecution agencies from GIABA member countries. They are working on different laundering and terrorism financing methods.

Muazu Umaru, Director of Research at GIABA, said: "None of the member countries has been able to develop an effective investigation strategy.” The Lomé meeting should yield recommendations for tackling shortcomings of national mechanisms focused on fighting laundering and terrorism financing.

The Lomé meeting also aims to revitalize interactions between operational authorities on warning signals and content indicators.

GIABA is an institution that fights and monitors money laundering and terrorism financing in the ECOWAS region.

Esaïe Edoh

Togo seeks a firm to take on the Aléhéridè-Kpaza-Tchamberi road project. The Ministry of Public Works just launched an international tender in this framework.

According to the tender notice published in the national daily, the hired firm will conduct right-of-way clearance, earthworks, pavement laying, and surfacing, as well as set up public lighting. The deadline for bid submission is January 23, 2024.

This 30 km-long section, which leaves the Nationale 1, will have a 7.4 m wide carriageway. Related works include the construction of 5 boreholes, 5 three-classroom school buildings, 30 covered market sheds, and 10 latrine blocks.

In June 2022, the Board of Directors of the West African Development Bank (BOAD) approved a CFA28 billion funding for the Aléhéridè-Kpaza-Tchamberi road project. It is set to begin next April and be completed 24 months later.

The initiative, according to the authorities, "will contribute to opening up the zone and facilitating economic, social, and cultural exchanges at national and sub-regional levels."

Esaïe Edoh