Togo First
IMF more optimistic than World Bank regarding economic growth this year
Togo should record a 3.5% economic growth this year. The figure was recently published in an IMF report on the latest economic outlook in sub-Saharan Africa.
While the forecast is more optimistic than the World Bank’s, knowingly 3%, they are more modest than the African Development Bank’s (AfDB) who forecast economic growth in Togo at 4.3% in 2021.
The Pan-African's expectation is the closest to the Togolese government. The latter indeed, in its latest forecasts, expects the growth rate to stand at 4.8%.
The government attributes its optimism to the anti-Covid-19 measures it has been introducing to mitigate the pandemic’s effects and other efforts to Fastrack economic recovery.
It should be highlighted that last year, the Togolese economy was more resilient than expected, with a growth rate of 1.8%, up 1.1 percentage point compared to what the authorities had projected.
Ayi Renaud Dossavi
Togocel and ARCEP to settle dispute in court
On April 26, Togocel, a subsidiary of TogoCom Group, will be in court to defend against an accusation from the Togolese telecom regulator ARCEP, which claims it has violated its on/off-net tariff differentiation rule.
According to a source contacted by Togo First, Togocel affirms that it was accused of unfair competition, and not for violating ARCEP’s on/off-net tariff differentiation rule. The telecom operator adds, unfair competition practices do not fall under the ARCEP’s prerogative but is settled by the law on competition. This difference, and notably the CFA1 billion fine imposed on TogoCom’s subsidiary by the ARCEP, is the main reason that took the operator and the regulator to court.
While so far, Togocel did not comment on the matter, it may be recalled that on February 20, the company controlled by Axian had announced that its call tariffs applied to all networks. A few days later, on February 25, the ARCEP in turn said it had taken note of the ceasing unfair call rates by Togocel.
Séna Akoda
Eurocham-Togo’s members generate around CFA200 billion per year
Every year, businesses that are members of the European Trade Chamber in Togo (CCET), also known as Eurocham-Togo, generate a turnover of around CFA200 billion. The Chamber, which is chaired by the CEO of Bolloré Africa Logistics Togo, Charles Kokouvi Gafan, employs nearly 2,000 people.
Eurocham is a real interface connecting European investors active in Togo with Togolese authorities, but also Togolese companies that have a commercial, industrial, or economic relationship with one or more European countries.
The CCET was established to defend the interests of European investors in Togo and consolidates business relationships between Togolese and European private firms. In this regard, a memorandum of understanding was signed between Eurochm and the Chamber of Trade and Industry of Togo (CCIT).
Eurocham has 45 members at present. It was created on the sidelines of the first Togo-EU economic forum (FETUE) organized in June 2019.
Séna Akoda
200,000 doses of SINOVAC vaccines received
Togo received last Friday 200,000 doses of China’s SINOVAC vaccines against Covid-19. This happened in the presence of the Togolese minister of health, Moustafa Mijiyawa, and China’s ambassador Chao Weidong. The vaccines arrive only a few days after the government proceeded to the strategic reorganization of its vaccination campaign across the country. The supply will cover 100,000 people who will each get two shots.
The SINOVAC vaccine was made in Chinese laboratories Sinopham and Sinovac. Tested by the WHO’s Strategic Advisory Group of Experts (SAGE), it has demonstrated efficacy and safety against Covid-19 in patients showing symptoms. Also, experts from Brazil estimated that it has an effectiveness rate of 50% for preventing infection, and 80% for avoiding medical intervention in infected individuals - even if there is no sufficient data concerning old people and those suffering from other diseases.
It should be reminded that Togo expects to receive three million vaccine shots by August 2021. The country also recently received 45,000 AstraZeneca doses.
Daniel Agbenonwossi (intern)
Togolese PM tells UN top official about Togo’s progress in financial inclusion
Last Thursday, Togo’s Prime Minister, Victoire Tomegah-Dogbe, and the Netherlands’ Queen, Her Majesty Maxima Zorreguieta who also happens to the UN’s Secretary-General for inclusive finance, held a virtual meeting.
During the webinar, the Togolese PM talked about Togo’s achievements in terms of financial inclusion. In detail, she presented actions and mechanisms initiated by Lomé in this regard.
According to a source at the PM’s office, some of the main points highlighted by Tomegah-Dogbe during the meeting included cash transfers to advance inclusion in the country and the creation of the National Fund for Inclusive Finance (FNFI). The latter, it should be indicated, distributed over CFA98 billion to more than 1.7 people since it was established.
Emphasis was also put on recent innovations launched amidst the Covid-19 health crisis. Amongst others, the Novissi cash transfer scheme was mentioned. This is a mobile money-based initiative to help those who were most affected by measures taken by Togolese authorities to curb the crisis.
As part of efforts to restart the economy post-Covid, a credit facility was launched for very small enterprises, medium enterprises, and revenue-generating activities. Its beneficiaries can receive up to CFA10 million to support their business, reported our source.
Looking at data from the BCEAO, in 2019, Togo was the third-best performer relating to financial inclusion in the WAEMU. It came ahead of Burkina Faso and Senegal, and behind Ivory Coast and Benin.
Séna Akoda
CEET runs campaign to boost access to electricity in the country
Togo’s public power utility, CEET, is running a promotion campaign to improve access to electricity in rural areas. Under the campaign, people of the Plateaux and Maritime, Savanes, and Kara regions can get connected to the grid at a cost of CFA20,000 only.
It should be noted, however, that the promotion ends on May 25th in the first two regions and on July 14th for the other two.
The cost mentioned covers access to a prepaid Lafia 2 fils 5 A meter.
In the Savanes region, prefectures covered by the promotion campaign are Cinkassé, Tône, Tandjouare, Kpendjal, Mango. In Kara, they are Dankpen, Binah, Bassar, Kozah, and Niamtougou.
This initiative aligns with the government’s efforts to achieve universal power coverage by 2030.
Séna Akoda
Myriam Adotevi, MD Sunu Bank Togo: Our outstanding balance by more than 50% since SUNU Group took over
Since it was taken over by Sunu Group in 2018, as it was in an impasse, the BPEC, now Sunu Bank, has been trying as much as possible to get back on its feet.
Indeed, the losses that the lender accumulated since 2008 - the year in which dividends were last paid to its shareholders - were cleared in the past two years. This small win, according to Myriam Adotevi, MD, Sunu Bank Togo, is the start in the comeback of the bank since it was taken over by Papa Pathé Dione’s Group. A small win, which contrasts a plunge in the value of small shareholders’ investments.
In this interview, Adotevi, former chief of BGFI Benin reviews Sunu Bank’s results in 2020, a good year for the bank and one that offers promising prospects for the resumption of dividend payment.
Togo First (TF) : Despite the ongoing health crisis, SUNU Bank recently announced a profit of CFA249 million, its first since BPEC was taken over by SUNU Group. What were the main levers that drove this performance?
Myriam Adotevi (M.A) : This profit was achieved as a result of the strategy deployed when the SUNU Group took over. Activity growth (financing of individuals, liberal professions, SMEs, and large companies) was accompanied by the control of expenses and cost of risk. In the last few years, we focused on investment and upgrading the bank, by, among others, launching digital projects (WhatsApp Banking) to boost efficiency and provide our clients with better services.
Togo First (TF): SUNU Bank, which inherited BPEC's liabilities and assets, has one of the smallest loan portfolios in the Togolese banking sector. What are your plans to contribute more to the economy?
Myriam Adotevi (M.A): Indeed, while our loan portfolio seems weak, we should not forget that, historically, SUNU Bank inherited a portfolio mostly composed of individual customers; amounts lent to this category of customers do not yield a substantial balance. However, since 2019, we have been financing more SMEs engaged in the agricultural sector, and have more offers tailored for large companies. Our outstanding balance grew more than 50% from 2018 to 2020.
Togo First (TF): In 2020, you carried out an accordion deal, by simultaneously reducing and increasing your capital. What was the point of this operation? How does it impact your new main shareholder, SUNU Participations Holding? What about minority shareholders?
Myriam Adotevi (M.A): The capital reduction/increase was necessary to comply with banking regulations and OHADA standards related to the level of equity and share capital. It allowed us to absorb a huge part of the loss carryforward accumulated in the past. It is the new shareholder who suffered the biggest loss with the capital reduction and it is also that same shareholder who contributed, solely, to the capital increase that SUNU needed to meet the minimal level of equity imposed. As for minority shareholders, like explained during the general assembly we held in 2020, the deal lowered the value of their shares, but enabled them to expect some dividend in the short term. Also, it should be emphasized that the share values were previously down due to significant losses carried forward.
Togo First (TF): From - CFA11 billion in 2019, your carried-over losses amounted to - 15 million in 2020, and in that same year you reported a profit of CFA249 million. What does this improvement mean for shareholders?
Myriam Adotevi (M.A) : The carryforward effectively reduced from -CFA11 billion in 2019 to -265 million in June 2020, due to the capital reduction/increase. And with our profit of CFA250 million in 2020, this carryforward was further reduced to -15 million.
This is good news for shareholders, in terms of the distribution of dividends. However, it should be noted that small shareholders lost the most because of this situation which lasted for years. Truly, since 2008, no dividend was paid. When the SUNU Group took over the bank’s management, we promised them we would do everything to return to profit and get them their dividends. This is what we, the bank and its whole staff, are now doing. We have recruited new personnel and are leveraging the technical support of SUNU Group.
Togo First (TF): What are the bank’s goals and prospects for 2021?
Myriam Adotevi (M.A) : We will keep offering products and services of better quality, innovating to meet the needs and expectations of our customers. And we will continue controlling expenses, training our staff, and financing the Togolese economy.
Interview by Fiacre E. KAKPO
Former minister of mines and energy appointed Presidential advisor for the digital economy and digital sector
Marc Ably-Bidamon, Togo’s former minister of mines and energy, has been appointed minister-advisor of the President of the Republic in charge of issues related to the digital sector and digital economy.
Ably-Bidamon has much experience in the telecom and telephony sector. Holder of a Master’s in Telecommunication from the University of Lille in France, a DEA in electronics, and a master’s in telecommunication networks engineering, the newly-appointed occupied the position of Managing Director of Togo Cellulaire in the past.
The Togolese government, under its 2020-2025 roadmap, aims to make the country a digital hub. In this regard, Sandra Ablamba-Johnson, minister and secretary-general of the Togolese Presidency declared: “our goal now is to digitize all public services, create a single social register, implement biometric identification, and make major investments in digital infrastructures.”
Séna Akoda
Dematerialization of procedures at the PAL to commence on May 3, 2021
Dematerialization of procedures at the Autonomous Port of Lomé (PAL) will begin on May 3, 2021. The process, let it be recalled, was announced last March, 4th.
The PAL’s top management hence urges businesses, tax commissioners, and others to connect to the digital platform developed to this end (https ://epaltogo.com), provided they have their access details (username and password).
Those who do not yet have these details must contact the PAL’s commercial management, reads the statement released by the port authorities.
For the various payments associated with the port activities, a website (https://osipaye.com) was created to enable operators to settle old and new invoices. In this regard, the port authorities stress that only the following accept these payments: Moov Africa and TogoCom, BTCI, Ecobank, Orabank, and UTB. Besides these, wire transfers are also accepted.
Séna Akoda
MIFA, ProMIFA, and FAO work on strategies to develop poultry, corn, rice, and tomato sectors in Togo
Teams from the Mécanisme Incitatif de Financement Agricole fondé sur le partage de risques (MIFA), the MIFA support project, and Food and Agriculture Organization (FAO) are currently carrying out a data collection campaign to finalize strategies to develop the poultry, corn, rice, and tomato sectors in Togo.
The strategies will, according to delegates from the three bodies, “not only help draw policies, programs, and projects for the development of the agricultural sector but also lead to the efficient and sustainable management of natural resources.”
The partnership between MIFA, ProMIFA, and the FAO, aligns with the five-year roadmap of the Togolese government which aims at boosting agricultural productivity and yields in the four sectors concerned. This roadmap also aims to improve processing industries and farmers’ access to financing and markets.
Daniel Agbenonwossi (intern)