A total of 1,178,587 Togolese citizens were found to hold a bank account in 2020. According to the Banking Commission of the West African Monetary Union (UMOA) which released the information via an annual report, the figure marks a 7% increase in the bancarization rate in Togo, compared to the previous year where it stood at 1,099,990.

The accounts are held in 13 banks and 3 financial institutions. Except for 2017, the number of people with bank accounts grew steadily in the past five years. It fell from 958,321 in 2016 to 745,833 the following year. In 2018 and 2019, it stood at 1,001,270 and 1,099,990, respectively. 

At the regional level, the number of bank account holders increased by 13.2% from 13,613,849 in 2019 to 15,414,253 at the end of 2020. The number of personal accounts grew 12.7% while business accounts rose by 20.9%.

Togo has the highest bancarization rate in the WAEMU, according to the 2018 and 2019 data released by the Central Bank of the Union, BCEAO. 

Esaïe Edoh

For the first time, the ministry of economy and finance released, last June, a report assessing how much the State loses as a result of tax exemptions it introduced. In this article, Togo First takes a closer look at the 28-page document elaborated by the Togolese Revenue Office (OTR). The report, authorities said, aligns with continuous efforts to improve governance, especially in the management of public finance. These efforts help position the country as one of the most transparent in terms of budget visibility.

CFA56.9 billion or 10.3 % of tax revenues

CFA56.9 billion. That is how much the Togolese State failed to earn because of tax incentives. These incentives include abatements, reduced rates, exemptions, tax reductions, and special schemes. The amount, according to the tax authority, represents 10.3% of cash earnings and 1.3% of the country’s GDP. 

92% of the tax expenditures assessed

The report identified 312 tax expenditures or special provisions in the general tax code, the finance law, the custom code (national and ECOWAS’), the free-trade zone agreement, the investment code, the mining code (national and WAEMU’s), special conventions and other regulatory laws. The five categories of tax assessed are value-added taxes, customs duties, other excise duties, corporate taxes, statistical charges. Based on available data, 290 out of the 312 (92.9%) identified provisions were assessed.

VAT grabs the lion’s share

While most of the identified provisions fall under headquarters agreements, incentives related to the value-added tax (VAT) cost the most in the national budget. According to the OTR (the tax revenue authority), the measures related to this tax cost CFA31.7 billion. Meanwhile, for corporate taxes and customs duties, losses incurred amount to CFA18.3 billion and 5.6 billion respectively. 

Trade and industry, the biggest winners

Trade is the sector that benefited most from tax expenditures in 2019. Losses incurred due to incentives introduced in this sector cost the treasury CFA17.1 billion or 30% of the total value of tax expenditures. Again, the biggest share -CFA15 billion- went to VAT-related exemptions.

After trade, sectors that benefited most from tax expenditures two years ago were industry (CFA13 billion or 23.7%) and transport (CFA11 billion or 19.7%). Tax expenditures related to education, health, and social action represent only 1.4% of the overall value of tax expenditures. Agriculture is not better off.

The special provisions profited mainly businesses, which captured two-thirds of the value of the tax expenditures in place over the year reviewed. Next come associations, NGOs, international organizations, and diplomatic representations with respectively 12.8%. Measures targeting households represented only 3.8% or all tax expenditures.

Fiacre E. Kakpo

Togo’s National Cybersecurity Agency (ANCy) launched a logo design contest last Thursday. This aligns with its decision to build its visual identity. 

Applicants - Togolese of more than 18 years - have until September 13, 2021, to submit their design. The winner will get CFA1.5 million while the runner-up and third will respectively get CFA500,000 and CFA300,000.

The ANCy was established in February 2019, as part of “the national strategy to develop ICTs that focus on the legal, and most importantly institutional framework for better security and trust in the digital industry.” 

Esaïe Edoh

The Adétikopé industrial platform (PIA) received, for its dry port, cutting-edge handling equipment. The news was disclosed by Arise Group which manages the infrastructure. 

The equipment includes Reachstakers, empty container handlers, Terbergs, and trailers. These will serve to move containers from one place to another.

The dry port or inland container depot was inaugurated on August 13, 2013. It occupies 20 ha out of the 400 ha the PIA spans and can receive 12,500 containers.

The port will help free space at the Autonomous Port of Lomé. Also, the infrastructure will serve as a handling and transhipping platform for goods that come and go at the port of Lomé.

The PIA, let’s recall, is the fruit of a partnership between Arise IIP and the Togolese Republic. The platform, which cost CFA130 billion, was inaugurated on June 6, 2021, by President Faure Gnassingbé. 

Esaïe Edoh

Togo will hold the fourth international conference on social enterprises and corporate and social responsibility next week, on September 9 and 10. One of the organizers, the ministry of grassroots development, youth, and youth employment announced the event in a press conference organized last Thursday.

The conference’s theme is “Social Entrepreneurship: A lever to dynamize job creation in local communities.”  Over 2,000 participants are expected, according to organizers. Panelists from Cameroon, the United States, Côte d’Ivoire, Benin, Romania, Haiti, and Togo, will share their experiences regarding social responsibility.

Recommendations resulting from the conference will, according to the ministry of grassroots development, enable the implementation of a mechanism to support and advance social entrepreneurship across Togo’s local communities.

Besides the ministry of grassroots development, other organizers include the US embassy and Ecobank Group. The conference regroups political decision-makers, development partners, and social economy experts and actors.

 Esaïe Edoh

The International Monetary Fund (IMF) appointed last Wednesday its new resident representative in Togo: Maximilien Kaffo. Kaffo, a Cameroonian, replaced Burkinabe Jules Tapsoba who has held the position since September 2017. 

The Cameroonian joined the Bretton Woods institution in 2014, as a consultant. Before that, he was working in his country as an economist at the ministry of economy. 

Maximilien Kaffo is a graduate from the University of Yaoundé 1, the University of Montreal in Canada, and the National Advanced School of Statistics and Applied Economics in Côte d’Ivoire

The first mission of the newly-appointed is to take part “in the talks aimed at finalizing agreements for a new Extended Credit Facility (ECF).”  Under the first ECF, which covered the 2018-2020 period, Togo obtained around $245 million.

The talks for a second ECF were initiated by Lomé last June. If conclusive, Togo will get IMF’s support to tackle Covid-19 and restart economic activities.

A few months ago, in May, IMF announced in Paris - during the Summit on the financing of African economies - that it would disburse $240 million for Togo. Two months later, 14 African countries, including Togo, were picked to get a new package of  Special Drawing Rights (SDRs) valued at $33 billion. 

 Esaïe Edoh

Togo recently acceded to the Agreement establishing Afreximbank’s Fund for Export Development in Africa (FEDA). This was revealed in a statement issued by the Bank on Tuesday, August 31.

Togo signed the Agreement alongside South Sudan. They joined Rwanda (which has ratified the Agreement), Mauritania, and Guinea as signatories.

According to Benedict Oramah, President of Afreximbank and Board Chairman of FEDA, the accession of Togo and South Sudan gives the entity international recognition.

“The recent accessions to the FEDA Establishment Agreement by the Republic of Togo and the Republic of South Sudan and the ratification by the Republic of Rwanda is a demonstration of the growing momentum and support for FEDA as a new multilateral development platform, which will play a critical role in promoting industrialization, export development, and Intra-African trade, Oramah declared.

FEDA’s goal is to “support the expansion of industrial infrastructure and promote intra-African trade.”  It also aims to finance businesses operating key industries and sectors to better achieve Afreximbank’s development priorities.

 Esaïe Edoh

The World Food Program (WFP) will focus its activities in Togo around three axes over the 2021-2022 period. This was disclosed by the entity’s resident representative and country director, Aboubacar Koisha, during a meeting with Prime Minister Victoire Tomégah-Dogbé.

The first axis is social protection and social nets. It will cover 170,000 people struggling due to the ongoing health crisis and climate shocks. “Through this axis, we will support 20,000 people, with the food team, and 15,000 with cash transfers,” Koisha said.

The next axis aims to support and make more resilient the sustainable food system while boosting producers’ capacities across the whole value chain.

The third and last axis covers the logistics sector. “Through this axis,”  WFP’s representative indicated, “we have a logistics operation via which we’ll import food using the high-capacity ships that come to the autonomous port of Lomé and this food will be sent to landlocked countries as well as some coastal nations like Liberia, Sierra Leone, Gambia, Nigeria, and Benin.”

Between July and December 2020, the WFP distributed around 2,000 tons of food in Togo’s five economic regions. The support, which was part of the UN’s response to the Covid-19 pandemic, benefited 242,500 people. 

Esaïe Edoh