Togo First
Togo: late rains could push prices of cereals higher this year
The National Agency for Food Security (ANSAT) announced on May 31 it is selling part of its grain reserves. This should bring down prices which soared in the recent weeks.
Indeed, between April and May, prices of consumption cereals jumped drastically, contrasting with performances announced for the 2020-2021 campaign. For example, the price of a bowl of corn reached CFA1000, and that of beans currently stands between CFA1200 and CFA2000 depending on the quality and variety. As for the price of sorghum, it almost doubled.
Though the reasons behind this inflation remain blurry at the moment, Akodah Ayewouadan, minister and spokesman of the government, ties this situation to three major factors: less cultivated areas dedicated to corn, a decrease in stocks due to illegal exports, and speculation by some sellers...
Also, late rains, which most producers depend on, are concerning. These, paired with the various actions undertaken by Col. Ouro Agadazi, are bearers of bad news for the ongoing agricultural season.
"We have two months of delayed rains, which is enough for us to anticipate a poor harvest, and therefore a weakness in supply, while demand is expected to increase as we gradually emerge from covid-19. We are expecting a rebound in the economy, therefore an increase in the consumption of commodities," said an agronomist. However, if rains keep delaying, the ANSAT may have to release new stocks on the market.
Klétus Situ
Here are the Top 4 international commercial banks that account for Togo’s 2020 debt
In 2020, Eximbank China was the commercial bank that provided the highest portion of Togo’s foreign debt. According to data recently published by the Ministry of Economy and Finance, Togo borrowed XOF279 billion from the Chinese bank, representing 59.9% of the amount the country raised from foreign commercial banks.
Year on year, Togo’s debt to Eximbank China is down by 7% since, in 2019, it was XAF300 billion. The 2020 debt was raised with an average of 2% interest rate repayable over 20 years. It was raised to mainly implement large infrastructure projects like the construction and renovation of the Gnassingbé Eyadéma international airport and the construction of by-pass roads, according to Togolese authorities.
Eximbank China is followed, by far, by French bank Société Générale, which provided over XAF96 billion to Togo. The commercial debt Togo owes to Société Générale represents 20.75% of the overall commercial debt while in 2019, the country incurred no commercial debt from the French bank. This debt was incurred during the second phase of the domestic debt restructuring operation Togo organized in June 2020. During the operation, Togo raised funds at an average interest rate of 4.54% with roughly 6 years maturity to refinance two loans from the West African Development Bank (BOAD) and one from Ecobank.
The third commercial bank that accounted for Togo’s 2020 foreign debt is the Japanese Bank of Tokyo MUFG, with XAF67 billion (14.55%) lent to the country. That fund was also borrowed during the above-mentioned refinancing operation. In the framework of the operation, in December 2020, Togo raised €103.625 million (XOF67.97 billion) from Bank of Tokyo MUFG, repayable over 10 years, with two years of differed payment. The average interest rate for this debt is 4.68%.
The commercial bank which closed the top4 is Eximbank India. With XOF22.3 billion, repayable over 22 years, and a 1.75% interest rate, Eximbank India accounts for 4.77% of Togo’s foreign commercial debt.
In 2020, Togo’s commercial debt was XOF467 billion, up from XOF387 billion in 2019. This rise was mainly due to the refinancing operation the country organized that year.
Government prepares communication campaign for e-ID Togo project
The government will soon launch a sensitization, education, and information campaign for its e-ID Togo project, a biometric identification initiative. In that regard, the ministry of digital economy and digital transformation has launched the recruitment (open till June 7, 2021) of a consultant who will draw a communication strategy for the project, which is partly financed by the World Bank.
The recruited consultant will, among others, "identify the stakeholders and their responsibilities relative to the implementation of the communication strategy. The selected party will also clearly identify related goals, elaborate key messages to be conveyed, and propose a multi-year action plan" for the information, education, and awareness campaign.
According to the schedule announced by the government on March 3, 2021, the coming campaign will be organized before the launch of registrations for this project aimed at providing a unique ID number to every resident in Togo.
Authorities explain that the move will ease the government's task when it comes to providing various services, social services notably, to citizens. Indeed, the e-ID project is a key project in the country's 2020-2025 roadmap and its implementation will lead to the creation of the Unique Social Registry, and offer Universal Health Coverage, as that will facilitate social support mechanisms.
Daniel Agbenonwossi
Togo raised CFA27.5 billion in the latest bond issue on the regional money market
On Friday, May 28, Togo successfully finalized its fifth bond issue on the regional money market, steered by UMOA-securities agency. The bond, which will mature over five years, helped the country’s treasury mobilize CFA27.5 billion, while it was seeking CFA25 billion. The fixed interest rate for the operation is 5.8% and the weighted average maturity is 5.66%.
The successful issue reflects investors’ interest in Togo’s public securities - primary dealers and management and intermediation companies, located in Togo and Côte d’Ivoire, were the biggest subscribers. Overall, the order book passed a little more than CFA92 billion, thus corresponding to an effective subscription rate of more than 370%, a trend recorded since end-2019.
Counting this last issue, Togo has raised over CFA300 billion on the regional money market since the year began. And, the country plans to raise the same amount before the year ends, despite the ongoing health crisis.
In 2020, let’s recall, Togo raised more than CFA620 on the UMOA-securities market; this is CFA200 billion more than it aimed to.
Ethiopian Mesfin Tarsew appointed as director of Asky Airlines
Mesfin Tarsew, an Ethiopian, has been appointed as the new head of the pan-African airlines Asky, based in Lomé. During his mandate, he will be responsible for getting the carrier, which was badly hit by the COVID-19, back on track.
In August 2020, Asky resumed flights after a halt of nearly four months caused by the Covid-19 pandemic.
According to the International Air Transport Association, African airlines lost about $6 billion throughout the period planes were idle.
Tarsew, Asky’s new director, was previously Director of the Information Technology Department, and Chief of Maintenance and Engineering for several years, at the same company.
ASKY, let’s recall, is owned at 20% by Ethiopian Airlines. It serves twenty-two cities in 19 countries on the continent.
Togo adopts law to establish sports development fund
Levies will be deducted on revenues generated by sports and other bets and fixed winnings, and parafiscal taxes, to constitute the National Fund for the Development of Sports (FONADES).
This fund was established by a new law setting the rules of organization, development, and promotion of physical and sports activities in Togo. The latter will allow public and private sports actors to benefit from technical and financial support in the practice of sports.
“The new law will serve as a basis for the professionalization of sports in Togo and will allow the emergence of high-level athletes and national teams competitive both on the continental and global level,” said Lidi Bessi-Kama, Minister of Sports and Recreation as the law was being adopted.
Overall, the objective of the Togolese authorities via the fund is to “contribute to the social and economic development of our country by promoting the practice of sports through the establishment of a mechanism for mobilizing resources necessary for the development of sports.”
Sandra Johnson launches the national phase of the statistics harmonization project
The Minister Secretary-General of the Presidency of the Togolese Republic, Sandra Ablamba Johnson, launched on May 27, the national phase of the project to harmonize and improve statistics in West Africa (PHASAO).
The project, which covers seven (7) countries including Togo, will improve and modernize national statistics and increase the performance of the National Statistical System (NSS) in the production and dissemination of data.
In her address, Johnson stressed the progress made by Togo to improve its national statistics system. This progress is reflected by the rebasing of Gross Domestic Product (GDP), a phone survey to monitor how households face the Covid-19, and a general census of businesses.
“The commitment and willingness of the government and the World Bank to harmonize and improve national statistics in Togo through the PHASAO project is part of the effort to improve the quality of the National Statistical System in the social, economic and administrative sectors,” the senior official said.
“The project should help in the formulation of development policies, plans and programs and in the monitoring of national and international development strategies, which will enable our country to respond effectively to current challenges.” It will, she added, greatly support the fifth general census of people and housing (RPGH).
“This project will contribute to a better implementation of the government roadmap (2020-2025) which takes into account the priorities of development actions to make Togo a country of cohesion, peace and a modern nation with an inclusive and sustainable economic growth,” said for her part Hawa Cissé Wagué, Resident Representative of the World Bank in Togo.
Scheduled to last five years, the PHASAO is financed by the World Bank. In Togo, the Bretton Woods institution spent $30 million - half as a loan and the other half as a grant - for the project. Burkina Faso, Cape Verde, Côte d'Ivoire, Ghana, Liberia, and Sierra Leone are the other beneficiary countries of the project.
Togo inks €55M deal to develop a major agro-industrial project in Mono Valley
Yesterday, May 27, a financing agreement worth €55 million (CFA36 billion) was signed to develop an agro-industrial project called Africa Europa Farm. The project aims to valorize the Mono Valley.
The signing by concerned parties “concretized their commitment to the effective implementation of the Africa Europa Farm project,” said the trade ministry.
The project, according to its promoters, focuses on “the production, transformation, and commercialization of rice and maize over more than 4,000 hectares in the Mono River Valley, as well as on measures to foster local development in the prefectures of Bas-Mono (Afagnan) and Lacs (Aklakou).”
Kodjo Adedze, the minister of trade, was present during the signing ceremony. On this occasion, he commented: “The signing of this memorandum of understanding is perfectly in line with the ambitions of the highest authorities of our country reflected in the National Development Plan (2018-2022) and in the government roadmap 2020-2025, which aim at ensuring Togo’s emergence by 2030.”
Rose Mivedor, minister in charge of the promotion of investment, also welcomed the deal saying it consolidates the government’s efforts in the agricultural sector, a true lever for the Togolese economy. This is in a context where the authorities leverage agribusiness to drive growth by 2025.
For his part, Philippe Pacquier, Africa Europa Farm Chairman, said the project will allow “the production of 100% Togolese-grown rice. The first phase concerns 4,500 hectares and should allow the creation of 250 jobs to reduce unemployment in the locality. It is planned to set up a stable water pumping system, the creation of a training center in new cultivation techniques for the transfer of skills and a dispensary.”
Togo: Multilateral debt increases by almost 50% from 2019 to 2020
Due to the economic damage caused by Covid-19, Togo’s multilateral debt surged from CFA331 billion in 2019 to CFA478 billion at end-2020, a difference of 44% approximately.
This is in a context where Togo says it has reimbursed around CFA12 billion as principal, subsequent to the cancelation of the IMF debt. Moreover, fluctuations in exchange rates saved the country about CFA3 billion on its multilateral debt.
The latter, let’s emphasize, currently represents nearly 49% (48.8%) of Togo’s external debt portfolio. Other types of debts in this portfolio are bilateral and commercial debts.
Togo’s three biggest multilateral lenders - the IMF, the World Bank, and the Islamic Development Bank (IDB) - detain nearly 82% of its multilateral debt.
The IMF comes first with 42% of the amount that the country owes multilateral institutions; this corresponds to CFA201 billion against CFA126 billion in 2019. The huge difference was driven by a loan of CFA79 billion that the entity provided to Togo in April 2020, to support its anti-Covid-19 plan. According to national data, the average maturity of the IMF's outstanding debt is 10 years, with an annual interest rate of 0.5%.
Behind the IMF is the World Bank’s International Development Association (IDA) with 26% of the debt. At end-December 2020, Togo was owing the financing body CFA128 billion (against CFA81.41 billion).
In 2020, Lomé received about CFA37 billion from the IDA to finance the socio-economic recovery, amid the covid-19. The country is to pay back what it owes within 36 years, with a grace period of six years. Each year, the country pays interest of 0.75%.
The last of the big three lenders of Togo is the Islamic Development Bank (IDB). It detains 12% of the country’s multilateral debt portfolio - CFA61.45 billion. This is 15% more than the CFA53.36 billion provided in 2019.
Esaïe Edoh
Togo secures €1M deal to boost access to drinking water in the northern region
The government of Togo and Vergnet Hydro, a French company, signed a €1.1 million deal to set up sanitation facilities and boost access to drinking water.
The initiative is part of the Projet d’amélioration des conditions sanitaires en milieu scolaire et rural des régions de la Kara et des Savanes (PASSCO), a scheme that aims to improve sanitary conditions in rural areas and schools.
In detail, under the new deal, 300 hydraulic pumps will be installed, benefiting the people of Kara and Savanes. It aligns with the government's roadmap which aims to bring access to clean water to 85% (from 77%) in Kara and 72% (from 67%) in Savanes. This is in a context where about 43% of the Togolese population lacks access to drinking water.
Looking at the latest data from the government, access to drinking water in Togo soared from 25%, in 2005, to 57% now.
Daniel Agbenonwossi (intern)