Togo First
Togo holds preparatory meeting ahead of COP26
Togo is preparing for the COP26 that will take place from October 31 to November 12, 2021, in Glasgow, Scotland. In this framework, the country’s actors of the climate and environment sector are holding a meeting, started on October 14, in Lomé where they are discussing Togo’s efforts to tackle global warming, and agreeing on arguments they will defend at the international conference.
Actors gathered will produce a roadmap at the end of their meeting, towards tapping all financing opportunities related to the fight against climate change in Togo. Another goal of the ongoing meeting is to achieve cohesion between civil society actors, the State, and the private sector, to better defend the country’s interests and ambitions.
“We must make sure that there is no spectator nor tourist in the delegations from the State, the private sector, territorial collectivities, and the civil society,” said Katari Foli-Bazi, the Togolese minister of environment.
“Togo is forming a good delegation to attend the COP26,” declared Aliou Dia, Resident-Representative of the UNDP in Togo. He stressed that the private sector’s engagement is a “fundamental” step for the country. The UNDP, it should be noted, backs Togo’s efforts to tackle climate change
During the coming COP26, leaders, bosses of major companies, and actors of civil society will come from all over the world to talk about climate changes and what should be done to help countries that are most affected by the phenomenon, and how to organize the global transition. African countries, which are some of the most affected by climate change, plan to ask rich, polluting countries, for more resources, and support to face the threat and finance their green transition.
Ayi Renaud Dossavi
Togo and Mauritania announce future cooperation in the port industry
Lomé and Nouakchott will soon cooperate in the port and fishing sectors. The announcement was made Wednesday during an official visit by Togo’s President, Faure Essozimna Gnassingbé, to Mauritania where he met President Mohamed Ould Cheikh El Ghazouani. The two leaders discussed bilateral cooperation between their nations.
According to the statement issued after the meeting, the decision to cooperate in the port and fishing sectors is explained by the major assets that both countries have in these areas. Togo has the only deepwater port in West Africa and Mauritania has a port that is strategically positioned for ships leaving for Europe.
On the matter of the fight against Covid-19, the Togolese and Mauritanian presidents reminded the international community that supplying vaccines is urgent to slow the virus’ spread, in a context where it has “greatly weakened the world economy and Africa’s especially.”
They also stressed that “one of the conditions that will ensure a rapid and sustainable economic recovery post-Covid-19 is the cancellation of African countries’ debt.”
Regarding violence in the Sahel region and the risk it spreads to neighboring States, the two presidents emphasized “the need for the international community and the G5 Sahel to strengthen their commitment in fighting terrorism.”
They also talked about climate change and deplored that Africa was the first victim of greenhouse gas emissions, though the region is a minor emitter.
Esaïe Edoh
Togo to adopt a convention to boost legal framework of the tourism sector
The Togolese government announced on October 12 it is taking measures to ratify the framework agreement related to tourism ethics. This was during the council of ministers held that day.
“This convention will help boost the legal framework and contribute to the sector’s professional exploitation,” the council said in a statement. The document will, the statement adds, help foster “responsible, sustainable, and accessible tourism.”
Tourism, the authorities claim, is one of the levers of economic development. They took several initiatives to boost the sector, and are currently carrying out a census of touristic establishments. The census, according to the minister of tourism, Kossi Lamadokou, aims to “ensure a better visibility of touristic establishments and make tourism a high-added-value sector both at the national and international levels.”
Tourism contributes 4.6% of Togo’s GDP, according to recent economic data available on the country.
Esaïe Edoh
Trading Gate: More than CFA20 billion stolen
Togolese investors lost more than CFA20 billion in the “Trading Gate” scam. Talking to France 24, Ange Ketor, head of the microfinance professionals association of Togo, said the fake trading and cryptocurrency firms “stole over CFA22 to 25 billion.”
This money, the expert added, “came mainly from formal lenders, like banks and microfinance institutions.” Thousands of savers trusted their money with these placement entities.
Over the past few months, the country’s microfinance entities have been warning the population against placement agents that promise extraordinary profits - ranging from 50% to 100%, and sometimes up to 300%.
The companies singled out, suspended at the end of March by the public authorities for illegally carrying out monetary and financial activities, include CACESPIC-IF Togo Sari, Global Trade Corporation (GTC), Société de Négoce et de Courtage en Banque (SNCB), Leader Bureau Chymall-Sairui Groupe Togo, QNET, TIENS, and J-Global Capital International. France 24 reported that J-Global Capital’s clients lost nearly CFA7 billion.
Last July, the minister of finance, Sani Yaya, announced that a committee would be set up to monitor the reimbursement of funds collected by the concerned trading firms. Recently, many leading members of these firms were arrested by the police.
Ayi Renaud Dossavi
In Togo, new entrepreneurs are not fazed by Covid-19
Despite the persistent health crisis, the number of businesses started in Togo should reach a new high this year.
By the end of September 2021, official data shows that 10,806 new businesses were registered in Togo. This represents a 13.4% increase compared to the 9,527 businesses registered over the first three quarters of 2020. The upward trend - recorded over the past few years - is attributable to several reforms introduced by the government to boost the business climate.
Business registration keeps rising
Looking at data compiled by Togo First, the upward trend was most noticeable between February and June. At the time, the Central Bank of West African States (BCEAO) put GDP growth above 10% (Q2 2021).
In July, the dynamics slowed but jumped back in August, at a slower pace, however; a situation caused by a resurgence in the number of Covid cases (delta variant), which led the government to take new restrictive measures. According to several observers, business registrations could reduce due to the measure enforcing the presentation of a vaccine pass before accessing administrative buildings.
The life expectancy of businesses
Fifteenth (15th) in the world and 1st in Africa in the 2020 Doing Business (DB) ‘Starting a Business' indicator, Togo maintains its reform dynamic. The country does not plan to stop, according to Sandra Johnson, Minister, Secretary-General of the Presidency in charge of the business climate, the linchpin of the economic reforms initiated since late 2017.
Regarding the life expectancy of businesses in Togo, a recent study carried out by the Center for Business Formalities (CFE) revealed that over 70% of businesses created between 2010 and 2015 were still active in 2018. Half of these firms, the study noted, derived their earnings from 10 clients, maximum, and these clients were either big clients or big companies. However, private individuals remain the most important clients of Togolese companies.
The same report notes that problems relating to outlets and access to financing represent 70% of the difficulties encountered by entrepreneurs.
It is worth emphasizing that over 70% of businesses registered in Togo are small-sized companies, and they were greatly hit by the pandemic and measures taken to counter it.
Greater support for MSMEs
Last August, the government updated and validated the charter of micro, small and medium enterprises (MSMEs), in a context where they have the most trouble accessing markets (outlets and financing).
The reform should allow these businesses to easily access land, help them secure certifications, and get financing. Regarding the latter, the BCEAO estimates that nearly 70% of bank loans go to the private sector (7% - 8% to individual businesses).
“This charter will allow SMEs to form a strong unit, and this will help them access funding mechanisms,” said the Minister of Communication and Media, Prof Akodah Ayewouadan.
Fiacre E. Kakpo
Togo gets ready to set up packaging production and sales plant
As part of its Reinforced Integrated Program, Togo plans to set up a package production and sales unit. In this framework, the ministry of trade launched a preliminary feasibility study for the project.
Ending on October 15, the study aims to collect data of packaging manufacturers and users that operate across the country. Information gathered will serve “to quantify, for the sub-sector of packaging, data on companies manufacturing and using the various ranges of packaging in Togo as well as those of sellers.”
The State project comes after local producers, processors and sellers made a recommendation in this regard during the “mois du consommer local” (consuming local products month) held in October 2020.
Last April, the minister of trade, Kodjo Adédzé, met with a delegation from Novus Print, a South African packaging, and labeling firm. “A packaging industry in the country is welcome, because the development of producers, promoters, and the population in general, is a major concern for the government,” the official had said at the time.
Novus Print is already set to settle in Togo and meet the country’s needs relative to packaging.
Esaïe Edoh
Decentralization: Municipalities to get CFA6.25 billion for their development this year
A total of CFA6.25 billion will be dedicated to the FACT, the Local Authority Support Fund. This was disclosed in a statement issued by the Togolese ministries of decentralization and economy on October 1.
The monies will support all 117 municipalities of the country and will be distributed based on their population size, area, and poverty level.
Part of the amount, CFA2.5 billion, will be trusted to the National Grassroots Development Agency (ANADEB). The latter will use the money to develop several projects in municipalities.
The FACT, it should be recalled, is a mechanism for financing local municipalities. Created in October 2019, its goal is to pool funds and use them to develop Togolese municipalities.
Esaïe Edoh
PIA: Construction of soybean processing factory is going well
Togo’s minister of trade, industry, and local consumption, Kodjo Adédzé, was at the Adetikope Industrial Platform (PIA) last week. He was there to evaluate how far advanced the construction of warehouses and local processing units was.
“The construction of warehouses and processing units for products such as soybeans is progressing well,” Adédzé tweeted after his visit.
The construction was started after the signing of a deal between the PIA and Togo Agro-Resources SAU, an agribusiness firm that refines soybeans. The factory will position Togo as a soybean oil exporter, the PIA’s authorities said.
It should be noted that a cotton-processing plant is also being set up on the same site. The platform’s dry port and an electric bike assembling unit (MAUTO Togo) are already operational.
Esaïe Edoh
Togo spent about 6% of its GDP to fight Covid-19 in 2020
Togo spent about 6% of its GDP to fight Covid-19 in 2020. The estimate was disclosed by the World Bank in its latest report on the state of Africa’s economy.
The percentage corresponds to around CFA260 billion, in budget expenditures, according to data from mid-2021. This includes additional spending related to Covid-19, or revenue foregone, relative to 2020’s gross GDP (about CFAF 4,300 million).
Out of the 40 African nations the World Bank evaluated in its rankings, Togo was the fifth in terms of budgetary resources spent in fighting the virus. It is right behind Mauritius (which spent nearly 9% of its GDP), Guinea Bissau (a little more than 6%), Seychelles, and Rwanda.
Steps taken by Togo to curb the pandemic include curfews, a universal revenue for all under the Novissi scheme, a fund that supports the private sector, the facilitation of deferrals by the Bank for companies, all in a context of economic contraction, with an estimated growth rate of 1.8%.
These measures increased the national debt from 51% of GDP to about 59%, a level that remained stable until last September, according to the latest data from the Ministry of Economy and Finance.
Ayi Renaud Dossavi
CUBE and the UNDP launch K-PITAL Invest platform
Centre Urbain de Business et d'Entrepreneuriat (CUBE), a Lomé-based incubator, announced on October 11 the launch of K-PITAL Invest. This is a fundraising and finance-seeking program that the incubator will launch with the UNDP’s Accelerator Lab.
“K-PITAL INVEST will be a platform dedicated to connecting projects that have validated their financial and entrepreneurial management capacities through various support programs, notably those of PRIME partners (www.saeiprime.com) with financial partners from the national, sub-regional and international ecosystem,” CUBE said.
Developed with Nunya Lab, the platform will help connect entrepreneurs and investors, enable professional monitoring of projects and investments, and ensure communication around projects.
In detail, 3 fundraising programs are planned on the platform, depending on the stage of the beneficiary projects: Seed Funding (BAEE Program, including Crowdfunding, Grants, Love Money, Competitions, Public Aid), Development Funding (U-INVEST Program, including Equity, Bank Loans, Honorary Loans, Business Angels, Public Aid, State Funds, and Growth Funding (LEADER Program, which includes Venture Capital, Export Assistance, Media for equity, Development Capital offers).
The platform is looking for entrepreneurs in a wide range of sectors, such as Agriculture and agri-food chains, Health, Construction, Energy, financial services and fintech, Biotechnology, education, and industry.
Let's recall that CUBE, together with the Lacs 1 municipality and the Organisation Internationale de la Francophonie (OIF), is behind a fish farm development program. The latter includes technical training in entrepreneurship for women.
Access the K-Pital Invest platform here.