Togo First
Togolese revenue office offers a major discount on goods and vehicle clearance
From now till December 24, 2020, Togo’s revenue office (OTR) is offering a 40% discount on clearance fee for vehicles and goods not yet delivered.
The move, which aligns with the OTR’s tax relief strategy, will help boost the clearance of the goods mentioned. This is a Christmas gift that should very much please businesses, importers, exporters, tax commissioners, and consignees.
It should be noted that a similar campaign was initiated at the end of 2019, and many other times throughout that year. Those interested in the offer had to apply.
Séna Akoda
EU and Germany support the ECOWAS States in the fight against cybercrime
To help fight cybercrime, the European Union and Germany will provide €7 million to the ECOWAS States. The financing falls under a project backed by the German Cooperation Agency (GIZ) and Expertise France.
In effect, the funds will be used to reinforce information infrastructure, improve cybercrime laws - in line with regional, continental, and international standards, and train actors engaged in the fight against cybercrime in the region concerned.
On October 30, 2020, the ECOWAS, the EU, and Germany officially began their collaboration, under the cybercrime component of the West African Response Against Organised Crime (OCWAR). Besides cybercrime, the megaproject also tackles trafficking, money laundering, and terrorism financing. It is set to run through 2022-2023.
Nearly 10,000km of rural roads will be maintained every year
Togolese authorities plan to ensure the annual maintenance of over 9,800 km of rural roads in the country. In detail, every year 7,020 km will be maintained manually and 2,808km mechanically.
This was disclosed by the minister in charge of opening up rural areas, Issa-Tchédé Kanfitine, during a meeting with the various actors concerned by the project.
The latter, it should be noted, falls under the ministry’s roadmap for 2020-2025. It is similar to the rural road support project which under its third phase benefited from a CFA6.5 billion financing in September 2020.
Let’s recall that more than 2,500 rural roads have been rehabilitated in recent years. In 2016-2018 for example, the government injected substantial amounts in transport infrastructure, especially in rural areas, to enhance economic activity in these parts of Togo.
Séna Akoda
MPs approve Togo’s adhesion to AIIB and AFC
On November 5, the Togolese parliament approved the country’s adhesion to the Asian Infrastructure Investment Bank (AIIB) and the Africa Finance Corporation (AFC).
Togo will leverage the two institutions’ support to “conceive, finance, and undertake infrastructure projects that will help our country grow,” declared Sani Yaya, Minister of Finance and Economy.
Founded by China, the AIIB is a multilateral finance institution dedicated to rising needs for infrastructure. As for the AFC, Africa’s second multilateral finance institution, it has injected about $4.2 billion in various projects carried out across the continent. The AFC was established to tackle insufficient investment in infrastructure in Africa.
In the event Togo adheres to both institutions, it will have access to funds at lower rates, as well as to other partners to help it finance its 2020-2025 development roadmap.
Séna Akoda
For the second consecutive year, Togo recorded WAEMU’s best formal banking penetration rate
In 2019, Togo’s formal banking penetration rate stood at 25.1%, against 26.6% the year before. This means the country was, for the second consecutive year, WAEMU’s best performer in terms of adults with an account in banks, post offices, national saving funds, or the treasury.
Last year, right after Togo were Benin (24.8%), Burkina Faso (23.2%), and Guinea Bissau (20.3%). At the far end of the ranking was Niger with a strict bancarisation rate of 6.8%.
Regarding the enlarged bancarisation rate (which integrates the proportion of the population having an account in microfinance institutions with the formal banking penetration rate), Togo also had the highest in the WAEMU, knowingly 78.5% (far beyond the average in the region - 39.7%). It was therefore ahead of countries like Benin (72.2%), Senegal (52%), and Burkina Faso (43.4%).
Year-to-year, the regional average for this indicator grew by 1.4 percentage points (from 38.3% in 2018 to 39.7% in 2019).
Relative to financial inclusion, Togo with a rate of 72.3% was behind Ivory Coast and Benin (respectively first and second on this indicator with 77.9% and 77.8%). However, it did better than Burkina Faso (70.9%) and Senegal (70%).
Séna Akoda
Insurers generated CFA60 billion of revenues in 2019
In the past four years, the Togolese insurance market recorded a 25% increase in generated revenues. From CFA48 billion in 2015, they rose to CFA60 billion (after standing at CFA58 billion two years before).
Considering that very few people are insured in Togo (20%-30% of the population according to the national insurance office), there is still much room for improvement in the sector.
The Togolese insurance market is dominated by foreign companies. Indeed, out of 12 firms operating in the industry, only four are Togolese. The latter include GTA Assurance-Vie, GTA C2A - IARDT (recently acquired by Banque Centrale Populaire, a Moroccan conglomerate), Fidelia Assurance, and La Citoyenne Vie.
In the life insurance segment, GTA has the biggest turnover (CFA11.7 billion) and thus comes ahead of Senegalese Sunu Vie (CFA7.4 billion), and Ivorian NSIA Vie (CFA3.5 billion).
In the non-life segment, the Moroccan group Saham has the largest share of the market (with a turnover of CFA10.5 billion in 2019). It is followed by GTA IARDT (6.7 billion), and Sunu (6.3 billion).
Séna Akoda
Togolese authorities look to adopt a national policy to improve road safety
Due to the resurgence of road accidents in the country, Togolese authorities plan to draw a national policy for road safety.
This was disclosed on November 4 by the Minister of road, air and railway transport, Affoh Atcha-Dedji, in a ministers’ council.
“The road safety policy will mainly integrate an approach focused on the following: management, infrastructure, vehicles (vehicle quality), people and emergency support,” the minister said.
In the first half of 2020, 22,627 road accidents were recorded, including 241 deadly ones and 3,734 where people were injured.
Séna Akoda
The covid-19 response will be more decentralized in Grand Lomé
In the Greater Lomé region, the main outbreak center of the pandemic in Togo, authorities will fight the virus in a more decentralized manner. According to the national coordination in charge of the Covid-19 response (CNGR), this will help deal with the pandemic swiftly and rapidly.
Starting from November 10, a deconcentration plan will be launched by deploying a rapid intervention team and another to keep track of domiciled asymptomatic cases in every health unit in municipal districts.
The new approach also includes the decentralization of testing. Four private health centers will be able to test individuals for a fee approved by the government.
Additionally, a unit in charge of travelers will be deployed in every public health center.
At present, the country has confirmed 2,381 cases, including 1,691 recoveries, 57 deaths, and 633 active cases. Most of the recent cases were identified in the Golfe and Agoè prefectures.
BOAD finances mostly infrastructures, energy, and rural development projects
More than 75% of the funds disbursed by the Banque Ouest Africaine de Développement (BOAD) go into road projects, access to energy, and rural development.
According to Serge Ekué, the new president of the bank dedicated to the member states of the West African Economic and Monetary Union (WAEMU), this is due to the “importance of these sectors on economic growth and social development.”
Energy, especially, is considered vital by the Bank for development in the WAEMU states. One of the recent initiatives of the BOAD in Togo’s power sector is a CFA25 billion investment to set up the Kékéli Efficient Power plant. The BOAD and Oragroup are financial co-arrangers of the project.
From 1976 to December 31, 2019, the BOAD disbursed CFA3,710 billion for the WAEMU states. Out of this amount, Togo secured CFA465 billion.
Séna Akoda
National Social Security Fund (CNSS) resumes a regular collection of social contributions
The national social security fund (CNSS) has resumed the normal collection of social contributions since last Monday. The CNSS released a statement to disclose the information.
The institution had enacted in August 2020, exceptional measures such as suspending the calculation of surcharges for late payments of social contribution from April to July 2020, or the remission of surcharges for the late payment of social contribution arrears. These measures were taken to reduce pressure on businesses affected by the coronavirus health crisis.
In detail, the informal sector benefited from a 100% remission of late payment surcharges. As for SME/SMIs, they had to pay only 25% of surcharges due. Large companies, for their part, received a 50% discount on late payment penalties for social security contributions.
Like actors of the informal sector, hotels, restaurants, bars, schools, hospitals, and pharmacies benefited from a full remission.
All the measures, according to projections, should create a shortfall of more than 3.3 billion FCFA to the institution headed by Ingrid Awadé.
Séna Akoda