Togo First
IFC provides BOA Group $77M facility to support SMEs in 10 African countries, including Togo
The Bank of Africa Group (BOA) recently obtained $77 million (about CFA46 billion) from the International Finance Corporation (IFC). IFC announced the news on April 3, noting that the facility would cover half of the risks on a $154 million loan portfolio dedicated to SMEs in 10 African countries, including Togo.
The nine other countries are Benin, Burkina Faso, Côte d’Ivoire, Ghana, Madagascar, Mali, Niger, Senegal, and Tanzania.
With the monies, the BOA will support businesses active in the following sectors: agriculture, trade, construction, and energy. The bank will also increase lending to women-owned SMEs.
Leveraging the risk-sharing facility, the BOA should extend 12,000 new loans, including at least 2,000 to businesses owned by women who often have trouble getting loans.
“One of the three pillars of our strategy is to reorganize our assets toward focusing more on SMEs. We are convinced that these companies play a driving role in the economy and we welcome IFC's initiative which will help our group increase its commitment to SMEs with greater strength and confidence," said Amine Bouabid, CEO of Bank of Africa Group.
The new financing should also help create jobs in the 10 target countries which face various conflicts and threats.
In June 2018, IFC provided the BOA Group $60 million to cover half the risks on a $120 million loan portfolio which targeted SMEs in eight African countries, including Togo.
Esaïe Edoh
The French Secretary of State in charge of the Francophonie inks financing agreement for a hospital rehabilitation in Togo
French Secretary of State in charge of the Francophonie, Chrysoula Zacharopoulou, was in Togo last week, as part of a working visit. On the occasion, she signed financing agreements to rehabilitate the University Hospital Centers (CHU) of Kara and Lomé. The documents were inked on March 31, 2023, by the French official and Moustafa Mijiyawa, Togo’s Minister of Health.
Mijiyawa said the funds–CFA70 billion in all–should help strengthen the Togolese health system. In detail, they will be used to extend and equip the two health facilities, in line with international standards. The project aligns with the Togolese government’s ambition to deploy universal access to health care.
Chrysoula Zacharopoulou explained that "France supports this project because health is the key to development.” “This new partnership wanted by French President Macron is based on a mutual interest to address all issues including health," she added.
A few days before the financing agreements were signed, Ecobank, the Lomé-based pan-African banking group donated $500,000 (about CFA300 million) to the University Hospital of Kara to build a hemodialysis center.
It is worth noting that Togo’s Ministry of Health has a budget of CFA127 billion this year. This is nearly 20% more than last year (CFA105 billion).
Esaïe Edoh
Disarmament in Africa: Togo could host an international seminar this year
By the end of 2023, Togo could host an international seminar on disarmament in Africa. The seminar was announced, Tuesday, by the African Union's High Representative for Arms Reduction, Mohamed Ibn Chambas, who is currently visiting Lomé.
The seminar, whose details are to be worked out with the government, will enable significant advances in the implementation of the continental disarmament agenda.
"It is urgent to recover the small arms circulating in our West African and Sahelian space and throughout the continent. These weapons pose a real threat to peace and security in Africa, especially in the current context marked by a surge in terrorism," the African Union executive told the press on Tuesday.
He also announced a strong partnership between the African Union and the United Nations.
As a reminder, Togo, which hosts the regional headquarters of the United Nations Centre for Peace and Disarmament in Africa (UNREC), served as the launch point for Amnesty Month. In 2022, the country destroyed over 1,500 seized small arms.
Octave Bruce
Water supply monitoring: SOFIE now covers 92%+ of the national territory
Four years after its deployment, SOFIE (Suivi des Ouvrages de Forage et des indicateurs pour l'Eau), the digital program that allows the population to quickly report issues on water infrastructures has reached 366 cantons out of the 394 in the country.
Since its launch in 2019, the program has connected 9,052 public boreholes to its monitoring platform, below the 9,460 initially planned, we learn.
The SOFIE program was initiated to improve access to clean water in rural areas. It is jointly implemented by the Ministers of Water and Digital Economy. Its platform helps quickly locate problems on boreholes and conduct repair works within a max of 72 hours.
In addition to ensuring a continuous supply of drinking water by limiting breakdowns, SOFIE aims to substantially save time and money.
Its deployment in Togo is in line with the government's policy of digitizing public services. It is also in line with the United Nations' Sustainable Development Goals, in particular SDG6, which aims to guarantee universal access to drinking water and sanitation.
Togo: The electoral census will start next Apr 29 (Government)
Togo will conduct the electoral census in preparation for the upcoming regional and legislative elections from April 29 to June 3, 2023. This census schedule, proposed by the Independent National Electoral Commission (INEC), was approved by a decree issued during the April 5, 2023, ministerial council.
The census, which will be preceded by the training of census agents (data entry operators), will lead to the establishment of the electoral lists, a crucial step in the electoral process.
The census is announced after the establishment of the Autonomous National Electoral Commission and independent electoral commissions.
According to the government, more information on the voter registration process will come later.
Esaïe Edoh
Togo: Tax reforms helped to double the collected amounts in 2013-2022 (OTR)
The tax collected by the Togolese Revenue Office (OTR) doubled between 2013 and 2022, rising from CFAF403 billion to CFAF865 billion. The figures, representing a 114.8% rise, were released by the OTR on Tuesday, April 4, 2023, during the orientation seminar organized to review the 2022 performance and set the 2023 action plan.
In 2022, the institution even exceeded mobilization targets, thanks notably to effective collaboration with taxpayers, the OTR indicates. That year, the tax office collected CFAF865 billion, exceeding the CFAF814 billion target.
According to the OTR, the improvement in tax collection is also driven by the digitalization of payment procedures. In the 2023 finance act, the target is CFAF 912 billion to finance the public budget.
To effectively achieve the collection target, Philippe Kokou Tchodie, the Commissioner General, and his collaborators are counting on the optimization of property tax revenues and the modernization of the land registry. They also plan to improve taxpayer relationships and enhance staff capacities. According to Philippe Kokou Tchodie, the planned actions will help the country cross the CFAF1 trillion collection mark in 2024.
Esaïe EDOH
Population Census: Togo has 8 million inhabitants, 51% of whom are women
In 2022, Togo had a population of 8.095 million, according to the fifth population census presented at Hotel 2 Février, Lomé, yesterday. The census found that 51.3% (4.15 million) of the population were women and 48.7% men (3.94 million).
The census was conducted by the National Institute of Statistics and Economic and Demographic Studies (INSEED), from October 23 to November 16, 2022, with the support of partners such as the United Nations Population Fund (UNFPA)-Togo's lead partner- and the World Bank.
The results were officially presented in the presence of partners and representatives of stakeholders during a ceremony organized by the Ministry of Territorial Administration.
A mostly rural population
The figures presented show that Togo has a predominantly rural population, with 5.820 million people living in rural areas, compared to 3.473 million in urban areas.
The Greater Lomé region, which includes the prefectures of Golfe and Agoè-Nyivé, naturally has the largest urban population with 2.188 million people. The maritime region is the second most populated region with 1.346 million inhabitants.
The population is expected to double in 31 years
AT 2.7%, the rate of natural increase is higher in the Greater Lomé region compared with 2.4% for the Maritime region, and 2.3% for the country as a whole. At this rate, the population should double in 31 years.
At the census presentation ceremony, UNFPA said it was particularly "satisfied" because the findings are likely to guide and inform public policies and investments in the country, particularly in the areas of health, education, and employment.
Ayi Renaud Dossavi
Umoa-Titres: Togo seeks CFAF30 bln to finance its budget
Togo will try a comeback on the WAEMU public securities market after a not-so-successful operation on March 24. This time, the country is issuing two types of treasury bonds and T-bills to raise CFAF30 billion from West African investors.
After its poor performance on the WAEMU public securities market last March 24, Togo will go back to the market to try to raise CFAF30 billion from investors. This time, the country plans to raise CFAF30 billion. It intends to issue 3 and 5-year fungible treasury bonds to raise CFAF20 billion with each of the bonds carrying a face value of CFAF10,000 with interest rates of 5.7% and 6% respectively.
The remaining CFAF10 billion will be raised through the issuing of treasury bills with a face value of FCFA 1 million at a multiple interest rate for 182-day maturity. According to the regional institution Umoa-titres, the securities will be auctioned on Friday, April 7. The proceeds will enable the Togolese public treasury to finance the country’s 2023 budget set at CFAF1,957 billion FCFA. This year, the country has already raised CFAF111 billion out of a CFAF574 billion target.
Esaïe Edoh
Regional market: WAEMU countries seek $12.3 bln, this year, in an overheated market
Faced with rising financing needs, a widening budget deficit, and difficult access to international financing markets, WAEMU countries are turning to the regional financial market. Once again, their target is up year-on-year this year in an overheated market.
The eight West African Economic and Monetary Union (WAEMU) countries recently unveiled their funding expectations from the regional public securities this year. Overall they want to raise CFAF 7,429 billion ($12.3 billion) by auctioning public securities through Umoa-titres, a regional central bank institution specialized in the management and promotion of public securities.
The targeted financing is up by 59% compared to 2022 when they were targeting CFAF4,672 billion from the market but finally raised CFAF 5, 254 billion.
As usual, Côte d'Ivoire has the greatest demand with a target of CFAF 2,080 billion. It is followed by Senegal, which seeks CFAF 1,565 billion to meet its financing needs. Mali, which was out of the market for the first half of 2022, is coming back with full force, aiming to raise CFAF 1,109 billion. Niger plans to raise CFAF 830 billion, while Burkina Faso plans to raise CFAF 630 billion. Togo plans to mobilize CFAF 580 billion against CFAF 515 billion for Benin. As for Guinea-Bissau, it seeks CFAF 120 billion.
The increased targets reflect the growing financing needs of WAEMU countries. The countries face large budget deficits and increasingly urgent financing needs. But because of restrictions on international financial market access, they are forced to turn to the regional financial market to meet their financing needs. This solution also poses some challenges.
The regional financial market has been an important tool for WAEMU countries to raise financing in recent years. However, the heavily pressured market is getting overheated.
Over the past nine months, the central bank (BCEAO) has raised policy rates four times to curb rising inflation, which was partly triggered by the massive liquidity injections made in 2020 and 2021 to boost the regional economy. The tightening of the Central Bank's monetary policy has led to an increase in market interest rates, which has made financing more expensive for countries.
In addition, with the rise in the supply of government securities, the market is getting saturated, resulting in higher interest rates being charged for these securities. Issuance operations are no longer as successful as they used to be, with yields rising wildly since the middle of last year and continuing to rise this year.
Fiacre E. Kakpo
Togo launches investment opportunities platform, in partnership with Citi Bank
The Togolese Ministry of Investment Promotion and Citi Bank launched today, March 30, a platform dedicated to investment opportunities in Togo named City builder
This platform presents key social data including demographic, educational, tourism, and economic information about Togo. It also presents sectors of activity where investments are most needed, by region.
City Builder offers investors a global view of the economic assets of Togo's five administrative regions, with a focus on growth sectors. It also allows the investors to assess various undergoing projects.
Through this platform, which is mainly intended for Citi Bank customers, Togo wants to boost foreign direct investment (FDIs), which according to the Minister of Investment Promotion, Rose Kayi Mivedor, is crucial for Togo’s economic development.
Citi Bank (Forbes Global 2000) was the 12th largest company in the world in 2017, with total assets of US$1,795.1 billion that year. The bank has about 200 million customers, spread across more than 100 countries.
In recent years, Togo has introduced several reforms to improve its business climate, in hopes of attracting more FDIs. These efforts paid off looking at available data: FDIs in Togo soared from CFA191 billion in 2019 to CFA352.5 billion in 2020 (+85%).
Esaïe Edoh