Last Friday, Togo raised CFA82.5 billion on the regional market. This is 41.6% of the overall subscription (valued at CFA198 billion) the country recorded for the operation.

Togo, which was seeking  CFA75 billion, proceeded to three simultaneous issues of fungible treasury bonds. The respective maturity periods of these issues were five (5), seven (7), and 10 years. 

In detail, the five-year bonds raised CFA8.25 billion, while the other two (7 and 10 years) garnered respectively CFA15.5 billion and CFA58.7 billion. 

This quarter, Togo wants to raise a total of CFA165 billion on the regional market. The funds will support its post-Covid economic recovery strategy and meet its budgetary needs. 

Séna Akoda

A total of $25 million was spent to build Manumetal, the iron-recycling plant based in Davié  (30 km from Lomé). The plant was visited last week, April 15, by the minister of trade, Kodjo Adedze. 

According to the ministry of trade, the plant, which started production in January 2020, employs more than 200 people, including 150 Togolese. It makes concrete iron, metal pipes, and welding electrodes, using scrap metal and aluminum ingots.

Wu Defa, CEO of Manumetal, declared that the company is progressively penetrating the market. Regarding the plant’s commercial goals, 70%-80% of the finished product should be sold in the local market while annual output should increase by 5% over the next five years. 

While visiting Manumetal’s plant, Kodjo Adedze pointed out that the use of “irregular-sized concrete iron” is prohibited by Togolese regulations.

Séna Akoda

Togo only needs about CFA2 billion more to close the budget mobilization for its Fifth General Housing and Population Census (5ème Recensement Général de la Population et de l’Habitat, RGPH-5).

So far, the country has collected CFA7 billion out of the 8.6 billion it needs in this framework. The available funds will be used to finance primary activities scheduled as part of the program.

Out of the sum secured at the moment, CFA3 billion was mobilized last Thursday, at a virtual roundtable presided by Sandra Ablamba-Johnson, minister and secretary-general of the Togolese presidency. On the occasion, financial and technical partners of Togo, with the United Nations Population Fund (UNFPA) as lead partner, committed to providing the missing funds.

According to current estimates, the Togolese population is about eight (8) million people. The RGPH-5 will help get an exact estimate.The last major census carried out in the country dates from 2010. It estimated that a little more than six (6) million people were living in Togo at the time.

Séna Akoda

Togo’s budget deficit reached 6.12% in 2020, due to greater spending in response to the Covid-19 health crisis. From CFA856 billion in 2019, this deficit soared to CFA1,132 billion in 2020, thus nearly 31% more.  

Meanwhile, budget income grew only by 5.72%, from CFA822 billion to CFA869 billion, including CF652 billion in tax revenues. 

“The Covid-19 pandemic put the country in such a situation that it had to rapidly proceed to huge expenditures, especially in the social sector; this, in a context where economic activities and consequently tax revenues everywhere in the world were regressing, especially in the second and third quarters of 2020. In such circumstances, it isn’t surprising that the deficit widened,” said an economist contacted by Togo First. 

It should be emphasized that Togo’s budget deficit had not reached such a level since 2016 where it stood at 6.09% of the GDP. 

Regarding forecasts for 2021, Lomé expects the deficit to fall to 2.64% of the GDP by the end of the year. In detail, the government expects expenditures to come down to CFA1,050 billion, while revenues should rise by 7%, exceeding a little more than CFA960 billion.   

Klétus Situ

In 2020, loans provided by banks and microfinance institutions active in Togo stood at CFA770 billion. This was disclosed by the minister of finance, Sani Yaya, at the last meeting of the national council for credit (CNC), held on April 16. 

In detail, loans given by banks slumped by about 11%, amidst the Covid-19 pandemic. Indeed, last year, they amounted to CFA590 billion, against CFA662 billion in 2019. However, while the weighted average interest rate remained the same over the period reviewed - 7.7% in 2019 and 2020 - some borrowers, notably financial clients, rural associations, and cooperatives, were charged higher interests, despite the ministry of economy’s warnings. 

Regarding microfinance institutions, loans from these lenders stagnated over the period considered - increasing slightly from CFA179 billion to CFA180 billion. This is after growing for three consecutive years. The loan portfolio of these institutions deteriorated, with the interest rate standing at 8.3%, against the 3% standard. 

According to data from the Central Bank of West African States (BCEAO), throughout the first quarter of 2020, loans given by microfinance institutions fell. However, as it became obvious that the Togolese population had to learn how to live with the coronavirus, borrowing resumed in the last quarter. 

Séna Akoda

Started less than a year ago, the construction of Cimenterie de la  Côte ouest-africaine (CimCo) is about 70% complete. As initially scheduled, the works should be over by September this year.

This was disclosed by the ministry of trade and industry on April 15. The announcement was made after Kodzo Adedze, minister of trade and industry, visited the construction site. 

A total of 878 people, including 600 Togolese, are working to erect the factory which is a subsidiary of Cim Metal Group. The latter is owned by Burkinabe mogul, Inoussa Kanazoé. 

The plant is projected to produce about 2.5 million tons of cement, every year. The overall cost of this project is CFA65 billion, CFA20 billion of which was secured from the BOAD as a loan. In the long run, the project should create 1,000 direct and 500 indirect jobs.

In Togo, 10 new toll booths will be automated soon. This was announced by Societe Autonome de Financement de l’Entretien Routier (SAFER) which launched a tender in this framework. 

The concerned toll booths are those of Sanguera, Vogan, Dzemenyi, Adeta Badou, Sotouboua, Alédjo, Défalé, Mango and Ponio. Just like the toll stations of Davié, (Zio prefecture) Vodougbé (Lacs), and Aképédo (Avé) which were recently automated, these booths will integrate modern payment terminals and be operated digitally.

The tender launched by SAFER aims to supply and set up automats for axle-counting, in line with the government’s recent decision to sanction and prohibit the circulation of heavy-duty vehicles that increase their axles without the “required permissions.”

Regarding the already-automated toll booths, they have magnetic payment terminals that accept subscription cards. Soon, an automatic deduction system will be set up but in the meantime, drivers can top up their cards using their phones.

Séna Akoda

Last Wednesday, the Council of Ministers adopted a draft law that gives magistrates of the Court of Audit a special status that takes into account their peers from regional courts. 

The new law provides for annual assessment mechanisms that will enable the Court to comply with the best standards relative to the control of public finances and accounts. With it, the government wants to boost magistrates’ professionalism and efficiency.  

Since the last constitutional reform and the bill adopted by the government last January, the Court of Audit has been empowered to issue opinions on annual performance reports, control the visas of financial controllers, and the management of program managers within the framework of the program budget.  

Klétus Situ