Togo First
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
Togo disburses $1.5M to help Turkey recover from the recent earthquake
Togo joins other countries that rushed to support Turkey which was recently hit by a deadly earthquake. The West African country disbursed $1.5 million for Erdogan’s country, the Turkish embassy in Togo just disclosed.
According to the embassy, the money will help compensate the families affected by the earthquake and contribute to the country’s reconstruction.
L'Etat togolais a fait don de 1,5 million de dollars pour panser les plaies causées par les tremblements de terre massifs survenus dans notre pays. Nous tenons à remercier l'Etat togolais pour la solidarité et l'amitié dont il a fait preuve. @PresidenceTg @DiplomatieTogo pic.twitter.com/s3oV09dkhW
— Ambassade de Türkiye à Lomé (@TCLomeBE) March 30, 2023
Togo took action only a few days after calling for global support to Turkey and Syria, both recently hit by earthquakes.
Lomé and Ankara have been working to tighten their ties in recent years. Turkey’s president, Recep Erdogan, was in Togo in October 2021 in this framework.
On February 6, 2023, Turkey was struck by an earthquake that killed over 50,000 people.
Esaïe Edoh
Togo begins preparations for the upcoming African Microfinance Week
Togo has begun preparations for the African Microfinance Week (AMW) which it will host next October. Last month, the Togolese minister of financial inclusion and the informal sector, Mazamesso Assih, and the event’s organizers–African Microfinance Institutions Network (AMIN) and the Appui au Développement Autonome (ADA)-laid the groundwork for the launch.
Set to be hosted in Lomé, the capital, the event should open on October 16 and close on the 20th. Nearly 1,000 inclusive finance professionals are expected. They will mostly discuss challenges faced by inclusive finance in Africa.
Throughout the AMW, Togo, according to minister Assih, will share its experience regarding inclusive finance with other countries. The financial inclusion rate in Togo increased from 82.72% to 85.72% from 2021 to 2022. This is the best improvement rate recorded by a WAEMU country over the period, according to data released by the Togolese council of ministers on January 18, 2023. In the Union, Togo comes right before Benin (85.52% in 2022), and Côte d’Ivoire (82.2%).
"The 2023 AMW will be a bastion of hope for all stakeholders and an important step in developing and organizing the inclusive finance sector in West Africa," Mazamesso Assih added.
Esaïe Edoh
Kamala Harris announces $100M support to help Togo and three other West African countries fight insecurity
Kamala Harris, the U.S. vice president, recently announced a $100 million financing for Togo and four other West African countries, to help them fight insecurity. The American official unveiled the assistance in Accra, last Monday, March 27, at a press conference with Ghanaian President, Nana Akufo-Addo. Benin, Ghana, Guinea, and Côte d’Ivoire, are the four other nations that will benefit from the facility.
“Today, I am pleased to announce $100 million in support for Ghana, Benin, Guinea, Côte d’Ivoire, and Togo to support conflict prevention and stabilization efforts in Coastal West Africa,” said Harris.
African nations, including Ghana, play a critical role in global security.
— Vice President Kamala Harris (@VP) March 28, 2023
Today, I am pleased to announce $100 million in support for Ghana, Benin, Guinea, and Côte d’Ivoire, and Togo to support conflict prevention and stabilization efforts in Coastal West Africa. pic.twitter.com/oYXk6RRvEZ
Joe Biden’s vice president also said her country was committed to helping the five African countries rebuild their economy post-Covid-19 and deal with the security crises they face.
The recent support comes at a time when Washington has been getting closer to the African continent, and when Russia and China have been expanding their presence on the continent, respectively in the security and trade sectors. According to some U.S. observers, the two giants threaten Washington’s interests in Africa.
Ghana is the first of three African countries that Kamala Harris is visiting as part of a weeklong official tour that aims to strengthen diplomatic ties between Africa and the U.S. A few months before Harris’ trip, in December, Joe Biden had met with African leaders during the U.S-Africa Leaders summit. President Faure Gnassingbe of Togo was among the leaders in attendance.
Ayi Renaud Dossavi
World Bank boss, David Malpass, will be in Lomé this week
World Bank Group President David Malpass begins an official visit to Niger and Togo from March 29 to April 1, 2023. Malpass will meet local authorities with whom he will discuss regional and global priorities, such as bolstering security and peace, inclusive and sustainable economic growth, food security, energy access, and education.
In Niger, David Malpass will meet President Mohamed Bazoum, key stakeholders, and partners of the World Bank. They will talk about the country's development agenda and the Bank's support. According to a statement issued by the Bretton Woods institution, the World Bank boss will deliver “the position speech” at the Abdou Moumouni University of Niamey. This will be as a prelude to the Spring Meetings of the World Bank Group and the International Monetary Fund, scheduled for April 10-16, 2023 in Washington.
David Malpass will then arrive in Togo on 31 March. According to Togo First, he will spend two days there, during which he will meet President Faure Gnassinge and the World Bank’s partners in the country. They will discuss key intervention areas such as education, agriculture, food insecurity and how it is tackled in West Africa, digital transformation, and social protection. Malpass will also cover efforts to boost resilience and inclusive growth in the Gulf of Guinea countries. He should also, according to sources close to the matter, visit the Ministry of Agriculture and the University of Lomé.
During his tour in Niger and Togo, David Malpass will have on his side Ousmane Diagana, Vice President of the World Bank in West and Central Africa, and Sergio Pimenta, Vice President of the International Finance Corporation (IFC) in Africa.
Observers question the intentions behind Malpass’s move to get closer to Africa. Justly so, considering that the outgoing head of the WB has been heavily criticized for his limited African policy throughout his mandate and for his skepticism towards climate issues, knowing that Africa is one of the regions that is most affected by climate change.
For example, Malpass vetoed using IDA loans as collateral for countries wishing to access international financial markets. However, he provided a record $150 million IDA credit to Togo, forcing the country to use the Africa Trade Insurance Agency (ATI) to cover the risks associated with that debt over 10 years at an overall cost of less than 5 percent per year. Under Malpass's leadership, Togo received greater funding from World Bank subsidiaries, both in terms of volume and the number of sectors supported, such as energy, social safety nets, the private sector, education, agriculture, and mobility. Also, the IFC, which is the World Bank’s financing arm, expanded its footprint in the country, with its active portfolio growing from a few tens of millions of dollars five years ago to over $300 million (part of the related deals are about to be sealed).
At present, the World Bank backs 18 projects in Togo. Half of them are national projects and the other half are regional projects. They respectively cost $420.1 million and $535 million.
According to reliable sources, David Malpass will leave office by the end of June this year.
Fiacre E. Kakpo
Telecom: After the Comorians, Ivorians come to Togo to learn from the ARCEP
The ARCEP, Togo’s telecom regulator, received a delegation from its Ivorian counterpart on March 21 and 22. The Ivorian side came to learn from the Togoelse regulator’s experience.
The Ivorian delegation included representatives of the ministry of communication and digital economy, and of the ARTI, which is Côte d’Ivoire telecom watchdog. During their stay, they mainly had workshops with the ARCEP. The latter covered the legal and regulatory framework relating to the quality of service of electronic communications, the methods of organization and conduct of QoS measurement campaigns, as well as the tools and equipment for measuring the quality of service in both countries.
The Ivorian delegation came a few weeks only after another from Comoros, which also came to learn from the ARCEP. With the Comorian delegation, Togo inked a deal to develop a win-win partnership that will address bottlenecks to telecom regulation in both countries.
Esaïe Edoh
Togo: Two deals inked to help IFAD graduates start a business
Graduates and upcoming students of the IFAD training institutes in Togo should have more ease getting financing to launch their businesses in the coming years. This is thanks to two partnership agreements signed last Wednesday, March 22, at the IFAD of Elavagnon in the East Mono Prefecture.
The first deal was signed between the Education-Development Agency (AED) and the Ministry of Grassroots Development. It will help all IFAD graduates to secure funds for their professional integration projects.
The second deal is a tripartite agreement between IFAD Aquaculture, the Support Fund for Youth Economic Initiatives (FAIEJ), and the microfinance COOPEC-AD. It will allow the co-financing of business plans of young entrepreneurs.
The two agreements were signed about a month after the graduation of the first cohort of trainees of Elavagnon’s IFAD. The latter provides training in aquaculture.
This cohort was the first to graduate from the IFAD. It included 113 youths–27 young women and 86 young men.
Togo and South Korea look to deepen their cooperation
The minister of foreign affairs of Togo, Robert Dussey, was in South Korea last week.
On the occasion, the two countries reiterated their commitment to deepen their cooperation in key sectors like agriculture, health, education, renewable energy, and ICTs, Dussey reported on his website.
The Togolese official presented to the Korean side Togo’s 2025 government roadmap. While doing so, he highlighted the investment opportunities offered by the Adétikopé Industrial Platform (PIA), as well as Togo’s ambition to consolidate its position as a logistics and service hub in West Africa.
Regarding cooperation and support for development, "Minister Dussey also exchanged with the presidents of the Korean Cooperation Agency (KOICA), the Korean Trade and Investment Promotion Agency (KOTRA), the Korea-Africa Foundation as well as with representatives of various Korean companies."
South Korea and Togo have been cooperating for years and the Asian country has been supporting its African partner in several areas, notably technology, agriculture, and education. Earlier this year, Seoul mobilized about CFA3 billion to advance education in the Savanes region, northern Togo.
Togo: President Gnassingbe asks staff to speed up the implementation of the 2025 government roadmap
Two days ago, on March 26, President Faure Gnassingbe urged his staff to speed up the implementation of projects falling under the government’s 2025 roadmap. The Togolese Head of State did so at the close of the first annual seminar of the government held last week in Kpalimé.
"In the current global context marked by multiple crises, we must act on the levers that we have control over. We must do it and we must do it quickly," Gnassingbé declared as the meeting was closing. Accelerating the projects, according to the leader, is “in the population’s interest.”
According to the government’s statement issued after the meeting, the President “stressed the urgency of continuing the collective mobilization by mainly relying on local resources.”
Togo’s roadmap was launched three years ago, which explains the president’s call for accelerating its implementation.
Esaïe Edoh