Togo First
Loans from banks and microfinance institutions stood at CFA770 billion last year
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
Construction of CimCo cement plant is 70% done
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.
Authorities initiate automation of 10 new toll booths
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
Court of Audit magistrates to get special status
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
Togo records higher economic growth rate than expected in 2020
Togo’s economic growth rate at the end of 2020 was 1.8%. While the figure is way below the 5.5% forecasted at the beginning of the year, it stands above subsequent projections, respectively 1.3% and 0.7%, that took into account the Covid-19’s impact on the economy.
The actual growth rate was disclosed by Sani Yaya, minister of finance, on April 15 while he was presenting the country’s global economic and financial situation during a meeting of the Conseil National de Crédit, CNC (National Council for Credit).
Comparing the figure to the forecast, Yaya attributed the positive difference to “tax incentives and various measures to foster demand adopted by the government.”
Most importantly, said the official, the performance was a result of the return of dynamism in the secondary (related to the processing of raw commodities produced in the primary sector) and the tertiary sectors (trade, administration, transport, financial and real estate activities, business and personal services, education, health, and action).
Incidentally, the country's debt ratio rose from 51.9% in 2019 to (after rebasing GDP), 59% at the end of 2020.
Séna Akoda
South African Novus Holdings looks to set up a packaging plant in Togo
South African group Novus Holdings, which specializes in industrial printing, plans to expand in Togo. In this framework, representatives from the firm met last Monday with the Togolese minister of trade and industry, Kodzo Adedze.
Present in 14 African countries, including Ghana and Nigeria, the Cape Town-based group wants to take advantage of the AfCFTA’s establishment to develop its activities in West Africa.
While industrial printing is the holding’s core business (it generates 77% of its turnover), it also makes stamps and plastic packaging.
In Togo, Novus intends to set up a packaging unit, a project that is “most welcomed” in the country, according to the Togolese minister of trade, Kodzo Adedze.
The South African delegation was led by Steve Thobela who said Novus Holdings “wishes to be an asset for Togolese producers.”
In 2020, Novus Holdings’ turnover was around R4.1 billion, over CFA156 billion; a good performance, given the global pandemic context.
Klétus Situ
A national strategy to promote local consumption to soon be submitted to the government for approval
Validated earlier this year by various actors of the public and private sectors, the national strategy for the promotion of local consumption will soon be submitted to the government for assessment and approval.
According to minutes from the latest council of ministers which contains the information, the strategy specifically aims to boost Togo’s goods and services supply, but also facilitate their access to both the local and international markets.
Produced in partnership with the private sector, the document should also add value to made in Togo products, and help cut imports, said Moumouni Ouro-Salim, a consultant involved in the elaboration of the national strategy. This should in the long run boost market shares of local producers and key growth investment sectors (like agriculture).
Séna Akoda
Togo to seek CFA165 billion on the regional market this quarter
In Q2 2021, Togo plans to raise CFA165 billion in the regional market, according to the provisional bond issue program published on April 14 by the UMOA-Securities agency.
The funds, which will be mobilized mainly by issuing fungible treasury bonds, will help meet the country’s national budget needs.
On April 16, three fungible Treasury bonds will be issued, simultaneously. With an overall target of CFA75 billion, which should serve to support economic recovery post-Covid, the issues will feature bonds with a maturity of 5 to 10 years.
After that operation, four more should follow before the quarter ends. Two of them target CFA20 billion each while the last is expected to garner CFA25 billion.
During the past quarter, Togo raised more than the CFA185 billion it initially targeted; a feat that is attributable to the confidence regional investors have in Lomé.
Klétus Situ
Some heavy-duty vehicles will be banned from transiting, starting from June 30
Starting from June 30, 2021, heavy-duty vehicles that have their bodyworks modified and also increased the number of axles they have, without the required permissions, will no longer be allowed to transit the Togolese territory.
Those who fail to comply with this measure will be sanctioned according to law. The warning was issued in a joint statement signed by Gal Damehane Yark, minister of security and civil protection, and Affoh Atcha-Dedji, minister of road, air, and rail transports.
According to the two officials, the practices mentioned "are against measures introduced by community regulations related to the axle load and bodywork of heavy-duty vehicles."
Furthermore, Yark and Atcha-Dedji recalled the regulatory dimensions for heavy-duty vehicles allowed to move in Togo, emphasizing that permissions to proceed to any significant change on such vehicles must first be obtained from the ministry of road transport.
Séna Akoda
PM Dogbé commissions Higher Council for Youth Employment
Last Tuesday in Lomé, Togo’s Prime Minister, Victoire Tomégah-Dogbé, commissioned the Higher Council for Youth Employment. The new entity should consolidate the government’s efforts to boost employment (for the youth especially) in the country. It is an initiative of the National Coalition for Youth Employment (CNEJ).
“The Higher Council for Youth Employment, which is under the authority of the Prime Minister, aims at sharing the government’s guidelines relative to youth employment but also at gathering actors and ministries that develop solution and initiatives to tackle the challenging issue of youth unemployment,” declared the minister of grassroots development, youth, and youth employment, Myriam Dossou-d’Almeida, at the commissioning.