Togo First
Togo gets CFA1 billion from EBID for agricultural project
As part of its financing strategy to revive economies in the WAEMU post-covid, the ECOWAS Bank for Investment and Development (EBID) has raised about CFA50 billion on the WAEMU’s debt market.
The sum, part of a total of CFA240 billion, is to finance various projects in 7 of the WAEMU States. So far, 19 eligible projects were preselected. One of them is Togo’s Agricultural Development Support Project (PADAT) which will receive a billion CFA.
In detail, CFA22 billion will go to the private sector-led projects and 34 billion to State-led initiatives.
“Financing these projects will not only contribute to the revival of the economy but also create jobs, boost food security, fight poverty and support SMEs through financial institutions,” said EBID.
Klétus Situ
Togo: Moov Africa summoned by telecom regulator ARCEP
Moov Africa Togo will appear in a public hearing before the Telecommunication and Posts Regulatory Authority (ARCEP) this Tuesday 18 May 2021.
The telecom operator will respond to a “failure to meet the obligation of permanence, continuity and availability of its services, in accordance with its specifications.”
The case comes after service interruptions in several localities in Togo, between June and September 2020 - interruptions that led to sanctioning by the telecom watchdog.
On November 9, 2020, the ARCEP launched a sanction procedure against Maroc Telecom's Togolese subsidiary for violating its terms of reference.
Following the hearing, the regulatory authority, which is increasingly making its presence felt in the telecoms sector, is expected to take measures to “ensure the quality of the operator's services.”
Daniel Agbenonwossi (intern)
Prices of goods and services increased slightly in April
In Togo, the National Harmonized Index of Consumer Prices (INHPC) stood at 109.7 in April 2021. This is an increase of 2.7% compared to March, according to data compiled by the National Institute of Statistics, Economic Studies, and Demography (Inseed).
The rise in inflation rate was mainly driven by higher prices of food products and non-alcoholic drinks- which grew 7.7% - and a 0.5% increase in household spending (rent, water, gas, electricity, and other fuels) and 0.6% in health costs.
Also, slight increases were noted in the restaurant and hotel sector (+0.1%) and services (+0.2%), while prices of alcoholic drinks, tobacco, and other drugs fell by 1%.
These figures are relatively higher than the general level of inflation in the WAEMU, which is 0.1% according to the commission's figures.
Klétus Situ
Togo’s tax earnings on the rise driven by tax governance support project
From CFA516.3 billion in 2015, tax earnings in Togo surged 21.29% to 626.2 billion in 2019. The increase was driven by the Tax Governance Support Project (PAGFI), indicates a report of the African Development Bank (AfDB), the project’s main financial backer.
The period corresponds to the first years of operation of the PAGFI. The project’s goal is to sustainably increase Togo’s financial resources and accelerate its transition out of the group of fragile countries.
Despite the improvement recorded, the country failed to meet, mostly due to Covid-19, the expectations of the AfDB. Indeed, the pan-African bank hoped that Togo’s economy would have grown from 5.5% in 2014 to 7% in 2020. However, according to Sani Yaya, minister of finance, at the end of 2020, the figure stood at 1.8%, up 1.1 percentage point more than national forecasts.
Regardless, “the project is on the right track to achieve its final development objectives, considering the will shown by parties concerned to speed up its activities,” the AfDB stressed.
The PAGFI benefits from a CFA12.5 billion financing and covers the 2016-2021 period.
EU to support 2020-2025 government roadmap
The EU delegation in Togo plans to financially back projects and programs under the government’s 2020-2025 roadmap.
Joaquín Tasso Vilallonga, EU ambassador to Togo, in an interview with Focus Infos, declared: “the financial instrument (formerly European Fund for Development) will be replaced with a new budget instrument and a plan for the coming years that will integrate the strategic priorities of our cooperation. As for future cooperation, it will logically be coherent with Togolese priorities as defined by the government in the 2020-2025 roadmap.”
These new financial instruments, according to the European diplomat, will be jointly designed with the embassies of France and Germany to maximize the coherence and impact of the overall cooperation with the EU.
The announcement was made some weeks after a new economic partnership agreement was signed between the African-Caribbean-Pacific (ACP) countries and the EU. The latter defined common values, principles, and goals of signees.
It should be emphasized that since the resumption of the EU-Togo cooperation in 2006, after nearly 13 years, the EU has been regularly supporting Togo in various areas: political, economic, and social.
In December 2020, to help the country tackle the Covid-19 pandemic, the EU announced it would provide budget support of €48 million (around CFA31 billion). Meanwhile, in agriculture, the Union, together with Germany, co-financed the PRACOFAT, a project aimed at making Togo’s pineapple sector more competitive; They invested CFA30 million in this project.
A new ROAD think tank established at the right time, says Sandra Ablamba Johnson
The creation of the A new ROAD (A new Round-Table On African Debts) think tank comes at the right time, says Sanda Ablamba Johnson, Minister-Secretary General of the Togolese Presidency, and also one of the founding members of the group of experts advocating for the financing of African economies at fair conditions.
The ceremony to launch the think tank which aims to dedramatize the risk induced by African nation’s debts revolved around the following themes: “Cost of debt in Africa: which obstacles are we facing and how to tackle them?” and “Debt: a tool fostering the emergence of new national and pan-African champions in strategic sectors.”
According to Ablamba Johnson, “asking ourselves these questions now will help African countries get financing at better conditions.” “This”, she adds, “depends on the cost of debt. It is the key element explaining the situation in which we currently are.”
The purpose of A new ROAD is to “initially provide a white paper of recommendations to encourage banks and lenders to take into consideration the real risk in Africa, instead of the perceived risk which doesn’t align with realities and reforms in place”. Moreover, said the think tank’s founding members, another objective will be to “foster the development of the continent and the emergence of national and pan-African champions by proposing innovative mechanisms for sharing risks and responsibilities between the public and private sectors”.
Séna Akoda
Timeless Capital teams up with Xago Technologies, a South African company
Timeless Capital Technology (TCT), the fintech of former Togolese international Donaldson Sackey, has signed a partnership with South African crypto-currency platform Xago.
This new partnership, coupled with the recent commitment of a new investor, is a milestone in the startup's growth. Xago will facilitate and accelerate the spread of the Timeless Capital Coin, offering a solution that allows its users to make fast and secure transnational money transfers, in fiat (conventional currency- dollar, rand) and crypto-currencies.
"Partnering with Xago is one of the best business decisions we've made, as they are a highly credible and trusted organization that brings crypto solutions and financial independence to customers around the world who can't afford the fees of traditional transfers," said Donaldson Sackey, CEO TCT.
"The timing is perfect as we have developed, tested and launched the functionality they need to bring stablecoin to their customers across the continent in less than 4 seconds and at a fraction of traditional banking costs," said Mark Chirnside, CEO and co-founder of Xago.
Founded in 2016, Xago Technologies is backed by Capitec Bank, which in August 2017 became South Africa's second-largest retail bank by number of customers, adding 120,000 new customers per month. The fintech company develops tailored products and services based on blockchain and crypto exchanges.
The new partnership allows Timeless Capital Technology to implement a stablecoin at 1:1 parity with the dollar.
Klétus Situ
Government to involve its officials and eminent figures in expropriation processes
On May 12, 2021, Togolese authorities approved the possibility to set up ad hoc expropriation commissions to support the Expropriation Committee created to manage expropriations for public use.
During the recent council of ministers held Wednesday, the government amended and completed the decree related to the organization and operation of the Expropriation Commission. The latter was adopted in 2019.
In effect, the expropriation commissions will enable the involvement of resource persons such as prefects, mayors, influential figures, government officials, to help free lands for strategic and complex projects. This is reported in minutes of the council of ministers.
In line with its 2020-2025 roadmap, the government of Togo seems to favor a participatory management of the process of compensation and indemnification of people affected by the planned projects. This should minimize the risk of land disputes and prevent social crises.
Séna Akoda
Togo to seek again CFA20 billion on the regional money market
To revive its economy post-Covid, Togo is proceeding again to an issue of fungible treasury bonds that will close on May 21, 2021. The country seeks CFA20 billion via the operation.
In detail, according to the UMOA-securities agency, each of the securities issued has a nominal value of CFA10,000. The proceeds raised from businesses and individuals will help “cover financing needs of the State budget, in the framework of the country’s economic recovery strategy which focuses on curtailing the effects of the Covid-19 pandemic and returning to pre-pandemic performance levels.”
The corresponding interest rate is 6% per year, while maturity period is 87 months (7 years).
Since the year began, Togo has been recording successful bond issues on the regional debt market, thus reflecting investors’ confidence in the economy. Recently, the country became the third in the WAEMU to issue a long-term bond (10 years).
Séna Akoda
UNDP launches call for projects to support environmental projects in Togo
The Global Environment Facility Small Grants Program (SGP) launched a call for projects to boost environmental initiatives in Togo. The call, which will close on June 30, 2021, is focused on innovative projects aiming at, among others, increasing forest coverage, identifying, designing, and disseminating appropriate agricultural production technologies and techniques.
Additionally, the projects should help boost the capacities of youth and women relative to environmental challenges. Particular attention will be given to projects submitted by NGOs, grassroots community organizations, and territorial collectivities.
An initiative of the UNDP, the SGP supports local initiatives that tackle global environmental issues. In Togo, it has invested over CFA 1 billion in more than 100 projects so far.
Daniel Agbenonwossi (intern)