Togo First
Togolese government expects 6.1% economic growth in 2022, amidst post-Covid recovery
Togo should record economic growth of 6.1% next year, according to its government. The figure was disclosed last Friday, after the council of ministers which focused mainly on the 2022 budget.
The forecast aligns with the post-Covid recovery started by the country this year. Indeed, economic growth in 2021 is expected to stand at 5.3%, against 1.8% in 2020.
Lomé is also optimistic about inflation, which it expects to stay below the WAEMU 3% ceiling.
“The 2022 budget, drawn amid economic recovery, provides for a 3.5 points increase in real GDP growth rate, from 1.8% in 2020 to 5.3% in 2021. This rate is expected to rise to 6.1% in 2022 as the government implements its roadmap projects. Also the inflation rate has been brought under control below the region’s ceiling of 3%,” reads a statement from the ministers’ council.
The 2022 budget (income and spending) is expected to total CFA1,760 billion, with 46% allocated to social sectors. While the figure is 15.7% up compared to the initial 1,521 billion forecast under the finance bill for this year, it's only 3% more compared to the budget package that was approved by the National Assembly (1,702 billion).
Ayi Renaud Dossavi
Togo to allocate 46% of 2022 budget to social sectors
Togo will dedicate CFA493.3 billion to social sectors out from its total budget for 2022. The figure is written in the budget draft bill that was validated last Friday, by the ministers’ council.
Next year the country will thus allocate an increased 10.8% to social sectors than it did under the 2021 budget - knowingly CFA445.1 billion.
Succintly, 151.6 billion will be made available to primary, secondary, technical education, and the craftsmanship sector, while tertiary education will get 40.9 billion. This, according to the council of ministers, should “reinforce school infrastructure, help build centers of excellence and sandwich training institutes”.
As for the health sector, it will receive 97.1 billion which will be used mostly to provide universal healthcare and ensure access to health services for all. Moreover, the allocation will enable authorities concerned to sustain anti-Covid actions such as “rehabilitating, building, and equipping health facilities”.
To foster social inclusion, Lomé plans to spend about 70 billion next year on various projects aimed at boosting youth employment, financial inclusion, setting up a social registry of individuals and households, maintaining social nets for grassroot populations and improving access to clean water.
Service digitization, which is one of the government’s priorities, will benefit from a 15.7 billion budget whereas programs focused on preserving peace and security will get 124.5 billion.
“To accelerate the economic transformation of our country in line with the government's roadmap, the agricultural, energy, mining and infrastructure sectors will be allocated 20% of the amounts set aside for ministries and institutions”, Togolese authorities indicated.
Under the 2022 budget, income and expenditures are forecast at a total of 1,760 billion, against 1,521 billion in 2021. This represents an increase of 15.7%.
Esaïe Edoh
Public procurement : Govt’ should reduce provision delays soon
Companies that handle road construction and expansion works in Togo’s rural areas could soon get contracts faster. The related suggestion was made by the Minister of rural roads, Bouraima Kanfitine Tchédé-Issa, during the latest council of ministers.
“This sector faces great challenges in regards to the time taken to complete projects, notably because it is impossible to work during the rainy season,” the minister said. According to the minutes of the council, the official “seeks the council’s approval for a strategy including amendments to procedures and measures to accelerate planned actions”.
The minister added that the strategy, which also aims to improve the public procurement framework, should most importantly allow the government to better tackle delays recorded in rural development (road construction and expansion) projects.
By 2025, Togo plans to build 4,000 km of rural roads across its five (5) economic regions. The project aims at helping people living in rural areas access basic socio-economic infrastructure more easily, but also opening up zones with a strong potential for farming - places where cotton, coffee, and cocoa can be grown for example.
ECOWAS: EBID gets CFA40 billion from Moroccan BOA Group to finance the private sector
Moroccan group Bank of Africa (BOA) will spend CFA40 billion to support the private sector in 15 ECOWAS States. The funds - a credit facility - will be provided to the ECOWAS Bank for Investment and Development (EBID) which is based in Lomé, Togo.
BOA and EBID signed the related partnership agreement last Wednesday in Lomé. The credit facility concerns the trade and industry sectors.
“This credit line will strengthen EBID's capacity to continue financing private sector projects that align with the Bank's primary intervention areas, notably the energy, infrastructure, and industry sectors,” said George Agyekum Donkor, president, EBID.
For his part, Youssef Ibrahimi, MD, BOA-TOGO, and the representative of the Moroccan group at the signing ceremony, said: "The provision of a credit line of CFA40 billion to our partner EBID demonstrates the commitment of the BANK OF AFRICA Group to contribute to the financing of ECOWAS economies which are affected by the health crisis we are aware of. And as an African bank, we reiterate our commitment to promote the economy of our countries.”
EBID covers 15 ECOWAS countries, supporting several key sectors in the region. In Togo for example it supports the growth of agriculture and agribusiness.
Ayi Renaud Dossavi
Togo: Parliament adopts amended finance bill
On Thursday, the Togolese parliament adopted, unanimously, the 2021 amended finance bill which increased the State budget from CFA1,521 billion to CFA1,702 billion, up 11.9%. The amendment is attributable to economic conditions that were more favorable than the government had expected for this year.
"After budget analysis, it appears that despite the persistence of the coronavirus health crisis, several socio-economic sectors have been recovering. This augurs a favorable macroeconomic outlook, and confirms the transition to a strong economic recovery,” the National Assembly said.
More favorable economic conditions plus a boost from IMF
In addition to improved tax earnings, the government received around August financial support from the International Monetary Fund (IMF) in the form of Special Drawing Rights (SDRs).
"The budget bill that you just adopted makes it possible to take into account more favorable macroeconomic projections than expected" due to "the economic situation, a stronger economic activity in 2021 and its positive impact on the mobilization of resources, in particular tax revenues and cash resources linked to the collection of special drawing rights from the International Monetary Fund up to CFA111.7 billion,” Sani Yaya, the minister of finance, told deputies following the vote.
"By passing this amended bill, you are giving the government the means to act. This being said, the government plans to keep implementing structural reforms aimed at stabilizing the macroeconomic framework and consolidating public finances, feats that will require greater efficiency in managing public spending,” Yaya added.
The increased budget, the official stressed, will enable Lomé to sustain reforms that will help improve the business climate, but also accelerate the implementation of socio-economic measures identified across all socio-economic sectors existing in the country.
Ayi Renaud Dossavi
Togo considers new ways to boost women entrepreneurship
During a meeting held this week, the ministry of trade, representatives of the African Development Bank (AfDB), and a group of Togolese businesswomen (Nana Benz) agreed on a few measures to take to improve women-led entrepreneurship in the country. These include ways to boost women’s access to financing, boost their capabilities for entrepreneurship, secure logistics, receive cash transfers, and tackle unfair competition.
The roundtable has given participants the chance to review women's entrepreneurship and identify real needs the sector has, as well as ways to support its growth.
Participants concluded that “even if there remain issues impeding the creation and management of businesses by women, numbers (confirmed in 2019) point to an improvement in the contribution of women to business creation.” According to Togo’s Business Formality Center (CFE), the number of businesses established by women rose from 2,701 in 2018 to 3,426 in 2020 (+27%).
One of the key conclusions of the meeting is the potential creation of a museum for the “Nana Benz” businesswomen.
Esaïe Edoh
Togo makes a reappearance on the UMOA securities market, seeks CFA50 billion this month
Togo will attempt to raise CFA50 billion on the regional money market, UMOA Securities, throughout this month. It will issue recovery bonds with a nominal value of CFA10,000.
The issue - the first this quarter, given that Lomé canceled those scheduled in October - is set to close on November 19. The securities issued will mature over 180 months (15 years), and they have an interest rate of 6.3% per annum. The proceeds should enable Togo to finance its post-Covid recovery strategy.
So far into the year, the Togolese State has secured CFA502 billion on the UMOA securities market, via 19 issues. In 2020, the country carried out 23 issues, raising CFA623 billion.
Esaïe Edoh
Cooperation: the Togolese minister for investment promotion visits Rwanda
The Togolese minister for investment promotion, Rose Kayi Mivedor, is currently in Rwanda where she is meeting local officials and investment actors.
Midevor on Tuesday met with Béata Habyarimana, the Rwandan minister of trade and industry. The two officials talked about common interest topics.
The following day, the Togolese minister visited the Rwanda Development Board (RDB), which is a government institution that brings together all public institutions in charge of attracting, retaining, and facilitating investment in Rwanda.
Togo, it should be emphasized, was inspired by Rwanda’s RDB to establish its tax revenue authority (OTR).
The two countries inked a deal on the liberalization of air transport services across the continent in 2018. This deal enabled Rwandair (Rwanda’s public airline) and Asky Airlines (based in Lomé), to connect Kigali and Lomé with direct flights.
Esaïe Edoh
Coris bank to soon launch its e-currency in Togo
Coris Bank International (CBI) will soon launch in Togo its e-currency, Coris Money, sources close to the group told Togo First.
The app, which is being tested in Burkina Faso, since 2018, will allow the Togolese people - with or without an account at CBI Togo - to withdraw and deposit cash, make local and international transfers and pay their bills.
Ahead of the app’s launch, the bank’s management is recruiting sales agents. In the same framework, the lender was recently appointed the chief of digital banking.
Present in Togo since 2015, Idrissa Nassa’s bank is growing rapidly. In 2020, it generated a total balance sheet of CFA309.9 billion against CFA205.38 billion in 2019, up by 50.9%. Over the same period, the number of bank accounts soared from 12,171 to 18,994 (+56.1%).
Esaïe Edoh
Togolese government seeks a consultant to coordinate its 2025 development roadmap
The Togolese ministry of economy and finance seeks an expert to coordinate the 2025 government roadmap, and adjust it to the African Union’s 2030 and 2063 objectives.
According to the related tender notice, the selected consultant will among others draw a schedule for all activities that fall under the roadmap’s coordination. They will also advise, support, monitor, and contribute to the preparation of technical documents needed for the coordination, as well as write reports for the implementation of SDGs and the 2030 Agenda.
The consultant will provide strategic advice to the cabinets of the President of Togo, the Prime Minister, the Minister of Economy and Finance, and the Minister of Planning and Cooperation, to ensure the optimal execution of the 2025 government roadmap.
The coordination is backed by the African Development Bank (AfDB), which finances part of the initiative, and the Projet d’Appui ciblé à l’exécution du plan national de développement (PAE-PND).
The selected consultant will provide its services over five months and they should start in February 2022, according to the ministry of economy and finance.