Togo raised CFA110 billion on the WAEMU’s money market last Tuesday, June 27. That is CFA10 billion more than the country was seeking for the operation, according to the WAEMU-securities agency. 

In detail, Lomé secured CFA92 billion with fungible treasury bonds, which mature over 3 and 5 years, at respective rates of 6% and 6.25%, and the remaining CFA18 billion with fungible treasury bills. The latter mature over 364 days and have a multiple interest rate.  

The operation’s report added that 3 regional investors subscribed to the transaction, mobilizing a total of CFA170 billion, out of which CF110 billion were retained.

In addition to disclosing the recent fundraising, the WAEMU-securities agency noted that the CFA30 billion issue planned for June 30 was postponed.

So far this year, Togo has secured CFA404 billion on the WAEMU market; it targets CFA574 billion for 2023. The recent success bodes well for the country and shows a growing ability for raising money on the regional exchange. 

Esaïe Edoh

The Togolese Assembly allowed the government to ratify the cooperation agreement between the West African Monetary Union (UMOA) member states, countries that share the CFA franc, and France. The Assembly unanimously approved the move last Thursday, June 29, during its sixth ordinary plenary session of the year. Sani Yaya, Togo's Minister of Economy and Finance, was present.

Closer to adopting the ECO?

The new monetary cooperation agreement was signed on December 21, 2019, in Abidjan, Côte d’Ivoire. It is a "significant revision" of the agreement in effect since December 4, 1973, according to the Assembly.

The updated version, indeed, prepares the Union's states for the introduction of the ECO and "promotes Togo's growth and attractiveness."

By ratifying the document, Togo tells other WAMU States that it has completed the internal procedure necessary for the agreement to come into effect.

Both for Togo, and the region concerned, the recent announcement is one of the latest developments in a process that started in 2019, following many debates about the future of the CFA franc, which some people view as a colonial relic that should be replaced.

In the wake of these debates, the Central Bank of West African States (BCEAO) initiated reforms in the operation of the community currency, notably at the level of its operating accounts.

Note that as recently as 2020, Togo was the only ECOWAS country to meet the established convergence criteria for adopting the ECO, the future single currency of the zone.

While Togo is taking another step in this direction agreed upon by the subregion's countries, it should be noted that some observers, like the Standard and Poor's analyst, have expressed doubts about the community currency's mid-term implementation, common to the 15 countries of the sub-region.

Ayi Renaud Dossavi

Togo is updating its legal framework for approved management centers (CGA), specific structures set up to support small and medium-sized enterprises (SMEs) in their accounting, tax, and social management. On June 29,  during its sixth ordinary plenary session of the year, the National Assembly validated a law in this framework.

The previous version of the framework has been effective for 23 years and was drawn in 1997. Besides the updates, Lomé is transposing a 2022 community directive (WAEMU) aimed at improving business management by facilitating their creation and membership in CGAs.

"This new law, which takes into account the innovations of the new directive, will bring more flexibility to the creation and membership of Approved Management Centers (CGA)," said Sani Yaya, Minister of Economy and Finance, present during the session. "It allows, among other things, to improve company governance and provide CGA members or customers with assistance in management, to offer them services in terms of information and training, to support them in preventing and resolving difficulties, to maintain and present their accounting, and to assist them in tax matters and social law," he added.

Innovations and incentives

With the updated bill, CGAs can operate as capital companies, except for single-person businesses. This measure aims to encourage the development of CGAs in Togo, by offering new opportunities for financing and growth.

The government also plans other incentives, such as State subsidies for associations and a 5% preference in favor of members in public procurement procedures, cumulative with the community preference rate of 15%.

A surveillance structure should also be created within the tax administration to monitor and supervise CGAs.

Commenting on the projected developments, Minister of Finance, Sani Yaya, lauded the law’s adoption and claimed it would provide Togo with the legal means for the harmonious development of CGAs.

Ayi Renaud Dossavi

The Adétikopé Industrial Platform (PIA) currently host Togo’s first Agri-food and Agricultural Financing Fair (SAFA). Started on July 1 in Notsè, the event ends on August 9, 2023. It is organized in collaboration with its Agricultural Value Chain (AVC) branch and will take place in several cities in Togo on a traveling basis, specifically in rural markets.

According to PIA’s management, the fair will shed light on the improvements, productivity, and profitability of the agricultural sector in Togo. It will also contribute to strengthening agri-food processing industries, access to financing, and the market for Togolese farmers.

In this dynamic, during the Fair, the PIA and its partners will meet with local communities and actors in the agricultural value chain who will be made aware of access to financing.

The PIA noted that the initiative aligns with the Togolese government's roadmap, stressing that it "will reflect all the links of agriculture in Togo."

Esaïe Edoh

On June 27, 2023, the US Ambassador to Togo, Elizabeth Fitzsimmons, announced two new investments in Togo during the early celebrations of the 247th anniversary of US independence. 

The first investment-$3 million-will help local organizations fight food insecurity in northern Togo. "We are pleased to announce the provision of three million dollars, to help combat food insecurity in northern Togo," Fitzsimmons declared.

The second investment-$1 million-will finance the Togolese Federation of Disabled Persons' Associations. “Our goal is to enhance the resilience of young people and women with disabilities, and facilitate their adaptation to climate change,” the US official said.

Besides the announcements, Ambassador Fitzsimmons highlighted strong partnerships between the US and Togolese armed forces. She also announced that Togo has been included in the US presidential initiative against malaria since April–an initiative that will support Togo's most vulnerable citizens via a $12 million financing package.

Additionally, the ambassador stated that the Millennium Challenge Corporation (MCC) is set to provide Togo with a funding program to boost the digital and electricity sectors, worth hundreds of millions of dollars.

Fitzsimmons concluded by revealing that several US universities are eager to collaborate with Togolese higher education institutions, reflecting the ongoing commitment of the US towards Togo. 

Some of the Togolese officials present during the announcement included Cina Lawson, Minister of the Digital Economy and Transformation, Komla Dodzi Kokoroko, Minister of Primary, Secondary and Technical Education and Handicrafts, and Myriam Dossou, Minister of Grassroots Development, Youth, and Youth Employment.

Fiacre E. Kakpo

The Dry Port of Adétikopé received 7,339 containers and 6,364 trucks in 2022. Out of these, 6,607 containers and 5,058 trucks left the platform. 

The dry port is a strategic point for transferring goods to landlocked countries in the Hinterland, such as Burkina Faso, Niger, and Mali. It serves as a significant node to reduce the load on the Autonomous Port of Lomé and potentially enhance its traffic fluidity.

According to the data obtained by Togo First, the intermodal platform could be a key player in supporting Togo's vision of becoming a significant regional logistics hub.

Located 27 km north of Lomé within the Adétikopé Industrial Platform, the dry port is connected to a parking area reserved for transport vehicles arriving and departing from the Autonomous Port of Lomé, customs borders, and Togo's economic zones.

The Dry Port of Adétikopé was inaugurated in 2021. With a storage capacity of 12,500 TEUs, it is intended to serve as a handling and transit platform for goods coming from the Port of Lomé.

Fiacre E. Kakpo

Togo and the Central African Republic could set up a cooperation commission to strengthen their relations in various areas. The leaders of the two countries discussed the project last Tuesday, June 27, in Lomé.

The projected commission should help Togo and CAR bolster their partnership in the economic, commercial, military, security, and education sectors.

Already, the leaders have asked their respective staff to accelerate talks for setting a legal framework for cooperation, in line with the commission project.

The joint commission would materialize the commitment made by the foreign affairs ministers of the two nations last April for a stronger bilateral relationship.

Beyond strengthening their ties, the two nations have pledged to work towards achieving the goals of the African Continental Free Trade Area (AfCFTA).

Faure Gnassingbé and Faustin-Archange Touadera also called for a definitive end to the fighting in Sudan and the establishment of lasting peace in the Eastern Democratic Republic of the Congo.

Esaïe Edoh

The Prime Minister of Togo, Victoire Dogbé, met with UK’s Ambassador to Togo, Harriet Thompson, last Monday, June 26. The two women talked about the Emergency Program for the Savanes Region (PURS), with a focus on UK’s financial and military contribution to the project.

On the occasion, Thompson said British companies could invest in various areas of the project, particularly in water and energy. "We also discussed how our military forces can work with the Togolese forces to help them better fight terrorism in the northern part of the country," the British diplomat indicated.

Indeed, the people of the Savanes region in northern Togo have been facing terrorist attacks since November 2021 and the PURS was launched in 2022 to boost their resilience against the threats. Lomé put the project’s total cost at CFA200 billion. 

In February 2023, the Togolese government reported that CFA150 billion were secured from technical and financial partners (TFPs). The government also highlighted that CFA50 billion was allocated in 2022 to the project. This led to a 15 %-20% improvement in the rural road network, providing access to clean water for 80,000 people, and extending electricity to an additional 15,000 households.

The meeting between Dogbé and Thompson aligns with Togo’s efforts to build cooperative ties with the Commonwealth States.

Esaïe Edoh

Togo just revised its law on electronic transactions, on June 27th, during the fifth plenary session of the first ordinary session of the National Assembly. The update aims to match existing regulations to new challenges and issues that electronic transactions pose.

Also, the updated bill aims to create a favorable environment for the development of e-commerce and to enhance consumer trust in online transactions, according to the Togolese parliament. This initiative aligns with the rapid evolution of technology and the increasing digitalization of the global economy, and it complements the country's recent ICT reforms.

Although e-commerce still involves a small percentage of citizens (estimated at 6% based on 2019 data), the sector is experiencing significant growth, especially due to the development of mobile money. "This bill ensures inclusive, secure, and fast digitalization for socio-economic development," stated the National Assembly. "Other merits of the law include strengthening rules related to electronic copies and the preservation of qualified electronic signatures, regulating electronic stamps and digital safes, as well as increasing obligations for trust service providers in case of non-compliance," it added.

Cina Lawson, Minister of Digital Economy and Digital Transformation, who was present during the parliamentary proceedings, praised the passage of the bill, noting that it should help establish digital trust, and foster ICT usage and that it is a step more towards Togo’s modernization and digital transformation. 

Ayi Renaud Dossavi