Togo First
Togo’s phosphate output soared 87% in 2020
From about 700,000 t in 2019, Togo’s phosphate production almost doubled to over 1.3 million t in 2020. This is an 87% increase according to latest data from the Central Bank of West African States (BCEAO).
This surge drove the WAEMU’s output up by 23.5% - the latter reached nearly 2.9 million tons last year. Senegal, which produced 55% of the region’s output, over the period reviewed, recorded a 3% decrease in its production.
Sales up
Volumes exported by Togo also rose by 61%; from 800,000 t in 2019, the country sold 1.3 million tons the following year, in a context where global prices slumped by 13%.
In 2019, let’s recall, Togo earned CFA92 billion from its phosphate exports.
Togo-Turkey: Robert Dussey announces upcoming business forum in Lomé
Robert Dussey, the Togolese minister of foreign affairs, announced on June 3 an upcoming business forum between Togolese and Turkish business operators. The announcement came just after the official ended a five-day official visit in Turkey.
“With my counterpart, Mevlüt Çavuşoğlu, we have decided to organize a business forum this fall in Lomé with the participation of Turkish and Togolese businessmen and businesswomen,” Dussey tweeted.
A day before the announcement was made, the two countries inked new economic cooperation agreements. The latter, which plans for the establishment of a mixed economic commission, consolidates the legal framework that will help boost economic ties between Togo and Turkey.
“There are two agreements, the first is on the mutual promotion of investments and the second on the prevention of double taxation,” said Mevlüt Çavuşoğlu.
The Togolese for his part told Agence Anadolu that “for us, the goal is mainly to encourage Turkish investment in Togo. (...) We think Turkish investments, which are growing in Africa, West Africa in particular, are welcome in Togo, especially since we have a relatively open business environment.”
In 2019, exports from Togo to Turkey generated more than CFA24 billion. According to the BCEAO, cotton and coffee were the main exports that year.
"Although the trade balance between our two countries is in favor of Turkey, which is normal since Turkey is a much more industrialized country than Togo, we have a volume of trade that is very satisfactory, " he added.
On Monday, Dussey met, in Istanbul, with representatives of the Turkish private sector. He told them about investment opportunities Togo has. This desire to boost economic ties between the two nations is the reason their ministries of foreign affairs got closer.
Indeed, in July 2020, as the Turkish minister of foreign affairs was in Togo, three cooperation deals were signed by the two governments. Among other things, these contracts established the reciprocal exemption of visas for holders of diplomatic passports, and a mechanism for political consultations between the Ministries of Foreign Affairs of both countries.
Klétus Situ
COVAX: Togo, and others, to get new funds to fight Covid-19
The Global Alliance for Vaccines and Immunization (GAVI) and Japan will disburse $2.4 billion to support the States adhering to the COVAX initiative, Togo included. The decision was taken on the sidelines of the One World Protected summit, which is dedicated to Covid vaccines.
The funds, raised by 40 private and public donors, add up to $6.3 billion mobilized before the One World Protected campaign launched on April 15. The total amount exceeds the target initially set ($8.3 billion) for the Gavi COVAX AMC initiative.
It will also enable COVAX to reach its goal of delivering 2 billion doses globally in 2021 and to order, by early 2022, 1.8 billion doses of vaccine for low-income countries that adhere to the initiative.
Commenting on the summit, which he took part to virtually, President Faure Gnassingbé: “This summit, which brings together leaders from donor countries, COVAX-eligible countries, and international stakeholders in the fight against Covid-19, is a timely opportunity to discuss the challenges of equitable access to vaccines and funding for the COVAX program.”
As a member of the COVAX initiative, Togo received 200,000 doses of AstraZeneca, out of three million expected by August 2021.
Togo: Wood sector contributes 11% to GDP
Wood production contributes 11% of Togo’s GDP, a study by FAO indicates. These are mainly wood fuels, sawn timber, poles and posts, and forest products including medicinal plants, fodder, household utensils.
In addition, the first national forestry inventory conducted in 2016 indicates that timber trade generates about CFA7.77 billion per year. This report notes that in 2015, the exploitation of forest resources in Togo contributed 18.32% to GDP and created 9,095 direct and indirect jobs in the forestry sector between 2013 and 2014.
In the country, timber, firewood, charcoal, and even non-timber forest products (shea butter, honey) are mainly used by rural and urban populations, every day.
Togo, let’s emphasize, has adopted the National Forestry Investment Plan (PNIF), a 5-year (2018-2022) plan valued at CFA60 billion. It aims to protect and improve the country’s forest ecosystem.
Togo to inaugurate its first datacenter tomorrow
Next Friday, June 4th, President Faure Gnassingbé will inaugurate Togo's first data center. This was disclosed by the ministry of the digital economy and digital transformation.
The center, carrier hotel, was built in two and half years. It will be used to house sensitive data in a secure environment and will provide companies with space, energy, and a cooling circuit, allowing them to safely store their servers, network, and storage equipment.
The Tier III+ reliability level infrastructure will be a neutral colocation and sensitive data hosting facility.
Built over a hectare, by CFAO Technologies, and monitored by APL France, it will also offer the latest tech solutions.
According to the ministry of the digital economy, “this infrastructure has a major place in the realization of the 2020-2025 presidential roadmap.”
The World Bank injected CFA12.2 billion into the project, in the framework of the West Africa Regional Communications Infrastructure Program (WARCIP).
On May 21, 2021, the World Bank approved additional financing of $11 million from the International Development Association (IDA) to complete the facility’s construction.
Covid-19: How much did Togo get from lenders?
In 2020, Togo received more than CFA135 billion in budgetary support to fight Covid-19. The figure comes from the annual report on public debt issued by the ministry of finance and economy.
The supports were provided by the International Monetary Fund (IMF) and the International Development Association (IDA), mostly. The two Bretton Woods institutions detain nearly 69% of Togo's external debt, CFA329 billion. Other lenders were pan-African bodies.
IMF and IDA provided 76% of funds secured by the West African country to tackle the pandemic. While the first disbursed over CFA79 billion, the World Bank, which supported the Novissi program via the IDA, provided a little more than CFA23 billion.
Other entities such as the African Development Bank (AfDB) and the Banque Ouest Africaine de Développement (BOAD) disbursed respectively 12 billion and 21 billion for Togo. The BOAD mobilized 196 billion to help its member States fight the pandemic when it was at its peak.
Klétus Situ
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.