Last Thursday, the Togolese minister of trade, Kodjo Adedze, met with a delegation of chocolate makers who belong to the Chocolatiers Engagés association. On this occasion, the parties present explored the creation in Togo of a robust, and prosperous, cocoa value chain. 

Daniel Mercier who chairs the association praised Togo saying he particularly appreciates the “construction of modern market places, the strategic positioning of the autonomous port of Lomé, and the solidarity demonstrated by the government to foster the production of quality cocoa in Togo.” He then confirmed that his association would contribute to “the development of a high-performance industry resulting in the full blossoming of its actors.”

On April 16, Togo will proceed to a triple issue of fungible treasury bonds, with a mobilization target of CFA75 billion. 

The respective maturity periods of the bonds that will be issued are five years (60 months), seven years (84 months), and 10 years (120 months). The proceeds, according to UMOA-securities, will be used to restart the economy post-Covid. 

“The present issue, which is labeled Obligations de Relance OdR, aims to enable the issuer (ed. Note: Togo) to raise funds from people and businesses for meeting the budgetary needs of the State of Togo, in line with its economic recovery strategy, and for containing the effects of the Covid-19 pandemic and returning to performances recorded before the health crisis,” the UMOA-securities said. 

Regarding the interest rates, they were respectively set at 5.9%, 6.15%, and 6.25% per year. Meanwhile, the securities to be issued have a nominal value of CFA10,000 each. 

Séna Akoda

In Togo, the Socété des Moulins Modernes du Togo (SMMT), a company that makes wheat flour and other wheat-based derivatives has recently set up in the industrial free-trade area. The firm thus becomes the direct rival of Société Générale des Moulins du Togo (SGMT), subsidiary of the SOMDIAA group. 

Operational since March 7, 2021, the complex has a production unit and a quality control laboratory. It spans over 20,000 m². At the moment, its production capacity is about 250 tons per day - a volume it intends to double in the medium term. On April 7, 2021, the SMMT was visited by the Togolese minister of trade, industry, and local consumption, Kodjo Adedze. On the occasion, the official declared: “the establishment of Société des Moulins Modernes du Togo, like other companies that enter the Togolese market, is clear proof of the continuous improvement and dynamism of the business climate.” 

Henceforth, the registration of Limited Liability Companies (LLCs) in Togo will be exclusively done online. Until the related announcement was made by the minister of Trade, Kodjo Adedze, this process was undertaken both virtually and physically. 

“The ministry of trade, industry, and local consumption informs economic operators that from now on they must complete formalities relative to the creation of Limited Liability Companies (LLCs) solely online, via the Center for Business Formalities (CFE) official website (www.cfetogo.tg),” Adedze wrote in a statement addressed to businesspeople. 

The move, according to the minister, directly aligns with the government’s efforts to improve the local business environment, alongside those aimed at digitizing the public administration. 

Under their 2020-2025 roadmap, Togolese authorities want to make the country a digital revolution hub. 

Togo, it should also be noted, owes the various reforms it introduced in recent years the position of best reformer of the ECOWAS and the sixth in Africa, according to the 2020 Barometer of the Council of French Investors in Africa (CIAN) released on March 18, 2021. 

Séna Akoda

In Q1 2021, 4,087 new businesses were registered, against a little more than 3,600 businesses over the same period last year. The 11% increase reflects an ongoing economic recovery amidst the Covid-19 pandemic. 

In detail, out of the newly registered businesses in the past quarter, 3,280 or 80% of the total were registered by Togolese and the rest (807 businesses) were registered by foreigners. On a gender basis, 27% of the figure reported in Q1 2021, or 1,104 businesses, were registered by women. This is a great performance considering it equals the number of businesses registered by businesswomen throughout 2020. 

Significant performances but a hardly measurable impact  

While there are improvements regarding the number of newly registered businesses in the country, the impact - in terms of job and wealth creation - that these businesses had on the economy in the past five years is hardly measurable. However, according to a recent study by the Centre de Formalités des Entreprises (CFE, Center for Business Formalities) the ratio of businesses that are effectively operational stands at 52.5%. 

Moreover, still comparing Q1 2021 and Q1 2020, the number of businesses registered as legal entities was up by 3%, compared to businesses registered by natural persons. Nevertheless, the latter make up 60% of all businesses registered in the quarter under review (Q1 2021). Regarding LLCs, 1,425 of them were registered between January and March this year. Out of these, 91% were registered under private seal. 

Klétus Situ

The Togolese Revenue Authority (OTR) launched a major project to interconnect with many institutions. In this framework, the institution launched a tender, that expires on May 7, 2021, to recruit firms that will supply, install and operationalize the connection equipment.

The institutions concerned are the National Social Security Fund (CNSS), the General Office for National Documentation (DGDN), the Directorate of Road and Railway Transports (DTRF), the National Directorate for Public Procurement Control (DNCMP), the Compagnie Energie Electrique du Togo (CEET), and the Registry of the Court of Lome. 

The project, in effect, aims at boosting tax and customs income. It will be financed by the African Development Fund (ADF) in line with the Transition Support Facility (FAT) that falls under the Tax Governance Support Program (PAGFI).   

Séna Akoda

As announced nine months ago, Turkey has officially opened its embassy in Lomé. Recep Tayyip Erdoğan appointed Esra Demir as his first ambassador in Togo. 

The news was confirmed by Robert Dussey, the Togolese minister of foreign affairs.  "I have received a copy of the credentials of Mrs. Esra Demir, the first Ambassador of Turkey to Togo,” Dussey reported. 

Turkey thus concretizes its ambition to make Togo its top partner in the subregion. This is in a context where Erdogan’s nation is strengthening cooperation with the West African country. 

Indeed, in July 2020, the two countries signed three cooperation agreements during a visit of the Turkish minister of affairs, Mevlüt Çavuşoğlu. These agreements were a memorandum of understanding to set up a mechanism for political consultations, a visa exemption deal for diplomatic passport holders, and another memorandum of understanding on cooperation between the Togolese ministry of foreign affairs and the diplomatic academy of Turkey. 

Turkey also announced it planned to increase its investments in Togo and seal new partnerships with Lomé, in the mining, textile industry, infrastructure, and energy, in line with the National Development Plan (PND 2018-2022). 

Séna Akoda