Togo First

Togo First

The pilot phase of WAEMU’s community college project will be launched in Togo. The workshop to validate the technical document for the project commenced on Sept. 8 in Lomé.

During the four-day workshop, regional experts will validate the legal framework that will ease the project’s implementation and draw a list of professions falling under the pilot phase. This phase will be carried out at the regional center for technical education and professional training located in the coastal region.   

“The difference between a community college and other vocational training institutions is that at community colleges, there is flexibility in training offerings that are modulated to the needs of the community,” said Sow Essoyobawè, who coordinates Togo’s mutualization entity.

The project, let’s note, aligns with various education-focused actions that the Togolese government took in recent years via its Education and Development Agency (AED). 

Let’s also recall that the AED is in charge of the construction and management of training schools providing sandwich courses focused on development (IFAD).

Klétus Situ

With its social partners in the health and education sectors, the government of Togo held last Tuesday, in Lomé, a special session of the National Council for Social Dialogue (CNDS). After the talks, the authorities took measures aimed at keeping tensions down within these two sectors - health and education. 

Regarding health, Lomé said it would disclose, this week, the results of the last exam held to recruit 698 medical, paramedical, and administrative workers. The government added it would look into the issue of the arrears of the rapid intervention and sampling teams, and set up a new mechanism to ease dialogue between actors in the sector.

Still, in the health sector, the government talked about having talks with actors regarding: the provision of scanners to University Hospitals (CHUs), concerns of under contract staff, health workers’ special statuses, and the recruitment of experts to assess the contract-based management model of hospitals.

In education, the government said it would soon publish the results of the latest exam held to recruit public teachers and career advisors and launch the second phase of the reimbursement of funds collected from auxiliary teachers. Talking about special or regular premiums, the State assured of its will and commitment while emphasizing the need to assess and operationalize all measures related to premiums and wage increases at the global level, following the overhaul of the general status of the public administration. Measures were also taken for retired civil servants.

“All these measures and initiatives,” the government said, “prove that we are open-minded and open to dialogue, to preserve a peaceful social climate and foster social cohesion.”

In recent years, let’s recall, Togo has experienced social crises and multiple protests in the health and education sectors.

Esaïe Edoh

Togolese microfinance institutions made 1.8 billion of profit in 2020, amidst the health crisis that negatively impacted business activity in the country. The figure was disclosed in the latest annual report of the Banking Commission of the West African Monetary Union (WAMU).

Total assets in the microfinance sector were valued at CFA266 billion over the period, up 5.7% compared to 2019’s CFA251 billion. 

By asset value, Togo ranked 4th in WAMU last year. It was behind Senegal (CFA868 billion), Côte d’Ivoire (CFA499 billion), and Burkina Faso (CFA448 billion), but came ahead of Benin (CFA239 billion) and Niger (CFA16 billion). 

While the region’s net result dipped by 38% from CFA30.3 billion in 2019 to CFA18.8 billion in 2020, Togo was the fifth in terms of profit made. Senegal, Burkina Faso, Cote d’Ivoire, and Benin were the first four with respectively CFA8.5 billion, CFA5.4 billion, CFA4.2 billion, and CFA3.2 billion. Mali and Niger, however, recorded losses of CFA2.9 billion and 1.4 billion.

Wednesday, 08 September 2021 17:07

Togo adheres to UN’s Safe Schools Declaration

Togo has adhered to the UN’s Safe Schools Declaration, SSD. This was disclosed by NorwayUN, the permanent mission of Norway in the UN. 

Adhering to this declaration will allow Togo to have more projects aimed at protecting and maintaining education (and education actors) amid potential armed conflicts.

In line with the declaration’s implementation, Togo and 110 other countries will attend the annual conference scheduled to take place on October 24 and 25, in Abuja, Nigeria. 

Access to education for all children is a priority for the Togolese government. Many programs were launched by Lomé in this regard. These include making primary school free since 2008, taking care of examination fees, a school canteen program, and more recently the cancellation of school fees in public middle and high school in the next academic year.

Esaïe Edoh

The Togolese representation of the UN Food and Agriculture Organization (FAO) is looking for local consultants for its forest and landscape restoration project in the country. 

Four experts will be recruited - one in forestry, one in cartography and geo data systems, one in the environment and land law, and the last in agricultural and forest statistics. Applicants have until September 24, 2021, to submit their applications. 

Under the project, forest agents will be taught techniques for seed production, how to collect cartographic data on restoration sites and be informed about the framework agreement signed by the ministry of environment and cooperatives that produce seeds. 

Last March, FAO-Togo announced that 20 agroforestry cooperatives could get financial support (of up to $10,000) for their projects.

Klétus Situ

A year into their partnership, the Cube incubator launched its first support program backed by Cofina Group. Prime XL is the program’s name and it solely targets businesses that are at least 3 years old.

Up to 500 businesses could get access to a maximum of CFA25 million, under the scheme. The monies, loans, will be provided based on the needs of the businesses and their nature. Eligible companies could get investment loans, operating funds, and front-payment on rents.

“This is an acceleration program, and businesses that will be selected need to be ready to get, use and valorize the loans. These businesses must also agree to be monitored by the CUBE incubator before, during, and after getting the funds,” the incubator’s executives said.

While the closing date for the submission of applications is yet to be disclosed, the process is exclusively online on the incubator’s website.

This program adds to the many technical and financial support initiatives the government launched for businesses, to boost entrepreneurship in Togo.

Klétus Situ

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

Monday, 06 September 2021 12:54

PIA Receives New Equipment for its Dry Port

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

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