Togo First
Togo: Over 30% of the government’s spending in 2019-2021 went to public investments
The Togolese government dedicated nearly a third (32%) of its budget spending to public investment over the past three years, according to data compiled by Togo First.
From CFA241.2 billion in 2018, capital expenditures rose to CFA379.8 billion in 2019 and peaked at CFA394.2 billion in 2020. This represents an average increase of 59.8% over the period. It is, however, below what the government was aiming at in its 2021-2023 state program budget. In 2019, Lomé planned to devote CFA241 billion to capital expenditures, 474 billion in 2020, and 431 billion last year.
The government claims that the surge was driven mainly by “spending on the rehabilitation of health centers, the construction, and rehabilitation of roads and rural tracks, as well as on spending to get the equipment needed to fight the coronavirus pandemic.”
On its Public Investments Program (PIP), the country spent a little over CFA890 billion, with over 47% of this amount or CFA423.8 billion coming from internal resources. The remaining monies were external loans and grants (466.5 billion).
Meanwhile, spending excluding the PIP more than doubled to a total of CFA125 billion. Togolese authorities attribute this unforeseen situation to defense and security expenditures, spurred by the jihadist threat which has grown in the northern part of the county in recent years.
Fiacre E. Kakpo
Togo: Government spent over CFA25 billion on fuel subsidies so far this year
The Togolese government has spent more than CFA25 billion on fuel subsidies since the beginning of this year. Togo First obtained the information in a context where fuel prices were increased, again, in the country.
To cover the recent price hike, the government subsidized super unleaded, kerosene, and diesel. The respective subsidies are CFA178, CF160, and CFA233 for the three products.
“The subsidy that helped mitigate the price increase has become a trap considering that it keeps rising,” and this profits foreign actors. “People come here to buy and sell elsewhere,” a source close to the matter said.
This price increase corresponds to a "technical adjustment" induced by surging global oil prices.
The government added that it largely exceeded the amount it initially planned for subsidies for the period under review.
"If we maintain this level, it will be impossible to support other sectors. Meanwhile, the subsidy on fertilizers for farmers, for example, is also necessary,” our source added.
Oil prices have been volatile in the past two months, amidst uncertainties spurred by the Russia-Ukraine conflict, which gives rise to an energy crisis, in Europe especially. The Brent, one of the main indices of evaluation of the barrel price, remains above the $100 mark, and many experts expect its price to reach around $150 per barrel.
Things are particularly tense for French-speaking countries in West Africa, as their currency, the CFA, which is pegged to the Euro, has been losing ground against the dollar over the past weeks.
AfDB grants Togo $5.4 million to boost its agricultural production
Togo will get $5.39 million from the AfDB to boost its food sovereignty and help its small farmers be more resilient as the war in Ukraine continues. The grant was recently approved by the regional lender.
"The sharp rise in fertilizer prices and the difficulty for small and vulnerable producers to obtain fertilizer are likely to cause a drop in the rate of fertilizer use and affect future agricultural production," said Wilfrid Abiola, AfDB Country Manager in Togo.
With this money, 25,500 farmers, 40% of them being women, should get 500 tons of certified climate-resilient seeds and 7,700 tons of fertilizers, according to the Abidjan-based bank.
Besides, part of the funds will be used to valorize 25,500 ha of land. Also, farmers will frequently get information to cope with climate change issues, and institutions–such as the Agricultural Inputs Management and Supply Central, the Technical Support and Advice Institute, the National Agency for Food Security, and the Agricultural Financing Incentive Mechanism (MIFA)–which contribute significantly to agriculture in Togo will benefit from capacity-building missions.
Subsequently, Togo hopes to produce 37,00 tons more of grains over the current and coming agricultural seasons. The resulting output should guarantee food and nutritional security for nearly 120,000 people according to the AfDB’s forecasts.
“The budget support just approved by our Board of Directors is to assist the government in its efforts to support vulnerable small-scale producers,” Abiola said.
The grant is part of AfDB’s $1.5 billion African Emergency Food Production Facility launched on May 20, 2022. This facility aims to provide 20 million African smallholder farmers with certified seeds (wheat, rice, corn, soybean). It should enable these farmers to produce 38 million tons of food in the next two years.
Besides Togo, other beneficiaries include Chad, South Sudan, Niger, Burundi, Senegal, and Madagascar.
Ashden Awards 2022: Energy Generation among finalists
Togo-based incubator Energy Generation is a finalist of the Ashden Awards 2022, a Britsh contest that promotes access to renewables. The incubator which trains young entrepreneurs and technicians runs in the Energy Access Skills category.
Other finalists include Zimbabwe’s Zonful Energy which trains rural youths in the solar energy sector, Community Energy Malawi which creates training opportunities for locals, and Uganda’s EnergGrow, an institution that finances and teaches micro-enterprises to use energy productively.
Chaired by Prince Charles, Ashden is a British NGO that wants to accelerate climate innovation, by helping businesses, charity organizations, and governments have a greater impact in the UK and developing nations.
The winners of the Ashden Awards 2022 will be known next fall. The winner in the Energy Access Skills will receive £25,000.
In 2020, Togo’s renewable energy and rural electrification agency (AT2ER) received an award in the Systemic innovation for energy access category.
Ayi Renaud Dossavi
Togo: Minister Tengue met with Niger’s public transport council last week
On July 14, 2022, the Togolese Minister of Maritime Economy, Edem Tengue, met with the Director General of Niger’s Council of Public Transport Users (CNUT), Tchima Moustapha. The latter was in Lomé on a work trip.
During the meeting, the two officials reviewed trade relations between their countries and good transit to Niger, via the dry port of the Adétikopé Industrial Platform (PIA). This port has been operational since the beginning of the year and receives containers that go to neighboring landlocked countries.
Covering 20 hectares, the PIA’s dry port can house up to 12,500 containers. Its objectives include accelerating transit and centralizing container-related formalities at the PIA’s single window. Another objective that the government has with the infrastructure is to reinforce its position as a supplier of Sahel countries and to become a logistics hub in the region.
Tunisia to carry out an economic mission in Togo next September
The Tunisian-African Business Council (TABC), which supports Tunisian investments and businesses in Africa, will dispatch a delegation to Togo from September 11 to 15, this year. The news, disclosed by the organization on July 12, was relayed by several Tunisian media.
The delegation will be carrying out an economic mission, the first of its kind. This mission will be organized in partnership with the Togolese Ministry of Investment Promotion, the Agency for the Promotion of Investment and the Free Trade Zone, and the Chamber of Commerce and Industry of Togo.
It will assess Togo’s strengths for investment and explore the opportunities the West African country has to offer.
According to the TABC, Togo is “a dynamic destination” with many assets and great opportunities for investors; especially because of “its advantageous geostrategic position in West Africa”. Togo, indeed, connects the coast to many of its landlocked neighbors, such as Burkina Faso, Niger, and Mali. Its position on the Abidjan-Lagos axis also facilitates exchange with other coastal countries (Benin, Nigeria, Ghana, and Côte d'Ivoire).
"Togo also has a growth rate of 5.3%, a port, and a world-class airport–which make the country a reference regional hub, political stability and leads West Africa’s banking sector, in terms of hosted headquarters,” the Tunisian council noted.
Ayi Renaud Dossavi
Margba attack: The Togolese army admits to having wrongly shot civilians
Seven civilians were killed and two injured on the night of July 9 to 10, 2022, in Margba, a village located in the Tône prefecture, northern Togo. Subsequently, the Togolese army announced it would investigate the incident.
The investigation revealed that it was the army that accidentally shot the civilians, mostly teenagers, mistaking them for terrorists. “An aircraft on night patrol hit a group of people who were thought to be a column of jihadists on the move,” reads a statement from the army.
“The Togolese army deeply regrets this tragedy and again extends its sincere condolences to the grieving families, and wishes those injured a speedy recovery,” the note adds, while stressing that “necessary measures will be taken to avoid such drama in the future”.
A government delegation visits grieving families
Yesterday, July 14, a delegation from the government visited the grieving families to also extend their condolences and wish a quick recovery for the two who were injured.
Brigadier General Dada Maganawé, Chief of Staff of the Armed Forces of Togo, in an official note addressing the incident, has reiterated the commitment of his men to serve and protect the people and country, while emphasizing the need to better cooperate with local populations to better protect them.
The Commonwealth has a lot to offer Togo (Robert Dussey)
Joining the Commonwealth is interesting for Togo on three levels: commercial, diplomatic, and political. That is what the country’s minister of foreign affairs claimed in a recent interview.
More Business
"On the commercial level first, given the Commonwealth’s two billion inhabitants, Togo gains in terms of business, and export of its products," Dussey said.
The country will, however, need to expand beyond its traditional Francophone sphere.
"We have a greater openness, we are no longer restricted only to the Francophone world, but while being in the Francophone area, we benefit by having more economic partners in the Commonwealth."
Diplomacy
Regarding diplomacy, one of the expected benefits of this membership is the expansion of Togo's sphere of influence, especially in the English-speaking world where it is less known: "In a diplomatic framework, Togo's influence in West Africa, at the level of ECOWAS, and especially in the resolution of Sahel issues, allows Togo to have more influence in this region where it wasn’t known.”
Togo will also strengthen its relationship with the UK, in a context where the latter has left the European Union and needs stronger diplomatic channels.
"Today, Britain is no longer a member of the European Union, with which Togo has a very strong partnership. It should develop a special relationship with Britain," he said. "So, Togo, as a member of the Commonwealth, will bolster this political, economic, and commercial partnership with Great Britain, an important actor in Europe.”
At the language level, joining the Commonwealth will help Togo better master English, a language considered the language of business and science.
For Robert Dussey, "Togo can gain so much considering the capacity of the Commonwealth; this membership is a great satisfaction for the government. And the government is now working to ensure that the Togolese people are impacted by this membership.”
Ayi Renaud Dossavi
Togo: Gozem gets electric bikes
Gozem is adding electric motorcycles to its fleet in Togo. Raphaël Dana, the co-founder of the startup, disclosed this on his LinkedIn profile.
The project, currently in its pilot phase, should extend to the other markets where the firm operates.
Let’s note that not long ago, Gozem teamed up with IFC to provide financial support to 6,000 of its bike drivers. It also recently partnered with TotalEnergies to allow its Champions to pay digitally at the former’s gas station.
The recent developments also occur in a context where the government has introduced some tax incentives to facilitate the import and sale of electric vehicles in Togo.
Ayi Renaud Dossavi
Togo: Two trucks were seized in Sokode for illegal food export
On the night of July 7 to 8, two trucks were seized in Sokodé as they were exporting food from the country, without the necessary authorization.
The trucks carried 25 tons of food: 251 100kg-bags of gari and tapioca. The goods will be sent to the ministry of local consumption for further procedures,” said Fioklou-Toulan Erick, Regional Manager of the Central Customs
This seizure, the third this year, takes place a few months after a ministerial decree forbade the export of consumer products without authorization from the ministry of trade.
Esaïe Edoh