Togo First
The BOAD plans to double its capital
On Wednesday, March 31, 2021, Serge Ekue, president of the West African Development Bank (BOAD), announced that the institution plans to double its capital.
“We plan to double the Bank's capital by structuring a capital increase operation in which member states and the BCEAO will be the reference shareholders, with the possible entry into the capital of strategic partners rated AA or higher,” said Ekue.
The project will be discussed at the next Council of Ministers of Finance of the WAMU to know the predisposition of member countries to follow through with the process. The latter should in effect allow the BOAD to increase its equity to about 1,626 billion CFA francs.
Initiating the Djoliba plan...
The capital raising as well as the structuring of the shareholding will be an essential component for the new Djoliba plan, a strategic program covering the 2021-2025 period. And while this plan revolves around certain priority sectors, others should not be left out, the Beninese financier said.
“The Bank is committed to providing about CFAF 3,300 billion (€5.03 billion) of which at least ¼ will be used to support the private sector; this is an increase of about 50% compared to the financing put in place under the previous plan,” said Ekué.
To achieve its ambitions, the BOAD aims to raise its current BBB rating, from Moody's and Fitch, by two notches. Doing so should enable it to keep mobilizing funds on the international markets.
Through this investment program, the Bank intends to help develop 12,170 hectares of land for the production of 170,300 tons of rice per year.
In the energy sector, the monies will serve to install an additional 380 MW, with a minimum share of 39% generated from renewable energies. While it just mobilized €750 million in bonds focused on sustainable development goals, the BOAD has committed to finance projects that will save 18 million tons of CO2 and increase average drinking water production by 87,700 m³/day.
Already much active in the road infrastructure sector, the Bank is expected to back the construction of 12,700 km of roads to improve transportation and facilitate the movement of people and goods across the region.
The institution headed by Serge Ekué since August 28, 2020, expects all these actions to generate 244,000 jobs; 16,700 of these are expected to be created by MSMEs, which, so far, have directly benefited from only 2% of BOAD's loan portfolio.
A looming overhaul
While the positions of vice-president and chief economist have just been created within the Bank, Serge Ekue announced that more profound reforms will follow in the coming months. The former Natixis executive said he will soon have a second vice-president, as part of the Oasis project, which he defines as “an internal change management project.” “The BOAD of tomorrow is under construction,” he added. This is as the Bank plans to “acquire the capacities required to be more efficient across the entire value chain: origination, preparation, structuring, financial structuring, monitoring of the physical and financial execution of projects, and ex-post evaluation.”
Fiacre E. Kakpo
Electricity: Two years after its announced restructuring, the CEB now moves towards its dissolution
“The High Inter-State Council proposes to the Heads of State the dissolution of the Communauté Électrique du Bénin (CEB). The chairmen of the High Inter-State Council of the CEB are responsible, each in his or her area of responsibility, for implementing this decision, which takes effect from the date of its signature.”
The decision was taken last week’s ending, during the 105th session of the CEB. The related agreement was signed by the Togolese and Beninese ministers of Energy and Mines, respectively Mila Aziable and Dona Jean-Claude Houssou.
Unpaid bills
For over half a century, the CEB marked the two neighbors' power industry. Finally, however, it appears to have suffered many months of troubles - economic notably - including accumulated debts to Nigeria, one of its suppliers. The situation led Nigerian President, Muhammadu Buhari, to threaten, repeatedly, to cut power supply to Togo, Benin, and Niger, if these countries did not pay the $16 million they owed his country. At the time, the Nigerian leader had said that power supply is not charity.
Out of the amount owed, Togo, until 2020, was the only country to have cleared part of its debt. Lomé indeed made a payment of N1.51 billion (CFA2.16 billion) to Nigeria, according to a report recently released by the Nigerian Electricity Regulatory Commission (NERC) and covering the second quarter of 2020.
Ultimately, it is up to the heads of state of Togo and Benin, Faure Gnassingbé and Patrice Talon, or his eventual successor, to endorse and seal the acts of their representatives in the Interstate Council, which heralds a scheduled dissolution of the joint institution responsible for producing and transporting energy in both countries. According to some experts, this denouement should not be shocking considering recent events the CEB recorded.
A predictable turn of events
Indeed, even before the dissolution was announced, the two nations had started, since January 1, 2019, independently importing the energy they need. Before that, it was the CEB that was tasked with ensuring the production and transport of electricity for Benin and Togo and the two States had committed not to sign any deal separately.
In the wake of these events, the corporate purpose of the CEB was amended, turning the joint entity into a “power transmission system operator with the charge of continuing to operate the Nangbeto dam and the two gas turbines installed in the two countries.”
It has been placed under provisional administration. “A transitional management will be put in place from January 1, 2019,” the two countries had announced.
Séna Akoda
The dialogue on the integration of environmental issues in development challenges has been rescheduled for April 1
Initially scheduled for March 11-12, the dialogue on the integration of environmental issues in development challenges will finally take place on April 1 and 2, 2021.
Organized by the National Agency for Environmental Management (ANGE), the event will be sponsored by Togo’s Prime Minister, Victoire Tomegah-Dogbe. It will be held in Lomé.
Placed under the tutelage of the ministry of environment and forest resources (MERH), the ANGE helps citizens protect the environment.
During the dialogue, the place of this entity will be discussed, concerning Togo’s efforts to secure funds for major projects.
Among expected participants are representatives of State institutions, UN bodies, and civil society actors. There should also be figures from Togo Invest, Kékéli Efficient Power, and the MERH.
Séna Akoda
PRISET: More than CFA20 billion to extend Lomé’s power network
Yesterday, March 30, the Project for Reforms and Investments in the Togolese Power Sector (PRISET) was launched.
Financed by the World Bank, the project will help “rehabilitate Lomé’s power network and reduce by one-third the ratio of malfunctioning, which is the main source of outages, by 2022,” said Mila Aziabléé, minister of mines and energy. Concretely, the project covers low and medium-voltage distribution networks.
In detail, the PRISET has two main axes: the first is dedicated to reforms in the sector and the other, to works aimed at improving people’s access to power. Regarding the second axis, it includes rehabilitating the installations of the power utility CEET, reinforcing medium and low voltage networks and building MV aerial networks, prefabricated networks, and acquiring connection kits.
Togo aims to provide electricity access to its whole population by 2030, under its power development strategy.
Séna Akoda
Parliament approves the automation of judicial record issuance
On March 30, 2021, the Togolese parliament passed a decree approving the digitalization of the process to secure a judicial record. The initiative which falls under the government’s E-Administration project also aligns with the modernization of Togo’s legal system.
Initially expected to be effective next month, the initiative has been postponed to May. “In the meantime, major reforms will be implemented to secure the procedures related to the issuance of this document,” observed the National Assembly’s president, Yawa Djigbodi Tsègan.
“Thanks to the new provisions, it will be possible for all Togolese to submit online, the application, payment, and processing of judicial records, simply by connecting via smartphone, tablet, or computer,” Tsègan declared.
This should help save time and drastically lower costs incurred in getting a judicial record. In effect, the initiative enables citizens to obtain the document without having to go to their place of birth. Instead, they just have to indicate where they would like the document delivered.
Séna Akoda
Germany to finance facility dedicated to treating infectious diseases in Northern Togo
By the coming year, a health complex dedicated to infectious diseases will be erected in Kara, Northern Togo. Construction works for the facility were officially launched last weekend by the minister of Health and the Ambassador of Germany, the project financer.
The first phase of the project will cost more than CFA2 billion which will partly come from the German cooperation in Togo. The program takes into account training, research, management, and monitoring of infectious diseases. The hospital will have 80 patient beds which could be increased if needed.
The site hosting the project is the former local base of the National Hygiene Institute (INH). The hospitality complex will also have a healthcare unit, a diagnostic center, a technical services unit, a staff ward, and a pharmacy.
Let it be recalled that Germany has been financing since 2015 a program that aims to boost the immune system and improve the reproductive health of Togolese, among others.
The High Council of the Togolese Diaspora announces a webinar to boost investment in Togo
On April 10, 2021, a webinar on investment in Togo will be held. The news was revealed by the High Council of the Togolese Diaspora (HCTE), which is behind the initiative, together with Togo Invest.
The webinar will focus on those who dare and entities backing investors, such as existing institutional and financial mechanisms. Moreover, participants will learn more about the structural tools adopted by Togo to boost investment and improve the business climate. Another presentation will showcase the role of the African diaspora in the development of the continent.
The initiative aligns with Lomé’s intent to raise funds for the 2020-2025 roadmap.
Séna Akoda
Ministers Midevor and Adedze urge French bosses to invest in Togo during a webinar with MEDEF
On Monday 29, 2021, Kayi Mivedor and Kodjo Adedze, respectively Togo’s ministers for investment promotion and trade, participated in the Mouvement des Entreprises de France (MEDEF), a virtual meeting where the two officials urged French bosses to invest in Togo. This is in a context where the African country is currently seeking funds to finance its five-year (2020-2025) development roadmap.
During the event, the ministers touched on Togo’s economic situation and prospects for development. They also talked about projected reforms and sectors that the Togolese government considers to be key for growth.
The webinar should pave the way for talks related to investment projects by Fench firms in Togo. Most of the session was dedicated to business issues.
Séna Akoda
The Construction works on Kante-Tandjouare are 80% complete
Rehabilitation works on the Sadori-Mango segment of the Kanté-Tandjouaré road which was visited four months ago by Prime Minister Victoire Sidemeho Tomegah-Dogbe are 80% complete now.
The information was disclosed by Television Togolaise (TVT) citing the minister of public works, Kassah-Traoré.
The road, which was extremely bad, dusty, and the cause of various road accidents, is now paved, according to the Togolese authorities. It has been completely rehabilitated and is, therefore, safer and time-saving.
Actors involved in the construction works, who were encouraged by the PM to accelerate the project, are committed to completing the works by June.
Séna Akoda
Half a billion CFA to rehabilitate school infrastructures in Togo
Over CFA500 million will be spent by the National Fund for Professional Training and Perfectionning (FNAFPP) to build and rehabilitate seven school infrastructures. The institution is backed by KfW, Germany’s financial arm.
According to the tender document related to the project, the schools are located in various regions, such as Kara, Dapaong, and Atakpamé.
The consortium ETTB/ICO BTP and the firm IS Construction won the bid to take over the project. The former will receive more than 300 million CFA while the latter will get around CFA200 million.
In Togo, it should be recalled, the budget allocated to the education sector is CFA195.5 billion. The main goals of the authorities in this sector are “the construction of classrooms for all, the supply of learning and pedagogic equipment as well as recruiting and training teachers.”
Séna Akoda