Last Tuesday, BBOXX-EDF and Canal + Togo launched together, a new TV offer for rural populations. 

The offer, payable over 36 months, includes a Canal + Home Premium package (160 international, African TV and radio stations) and a BBOXX solar kit. According to Patrick Emungu, managing director of BBOXX-EDF Togo, “as long as a customer’s power subscription is active, he will enjoy Canal + channels.”

Let’s recall that BBOXX and EDF are partners on the CIZO presidential initiative to electrify rural areas with pay-as-you-go individual solar kits.

Séna Akoda

Congruent with its modernization efforts, the University of Lomé (UL) received last Tuesday a new IT and audiovisual equipment from the UN Development Program (UNDP). The tools, worth more than CFA52 billion, were provided under a partnership between the UN body and public universities. 

For the UL which has been investing more in online training due to Covid-19 restrictions, the support is heavenly mana.

During the reception of the equipment, the UNDP’s representative Aliou Dia declared: Migration to e-learning is vital today, not only as an alternative to conventional classes but as an indispensable milestone that will enable African universities to remain competitive. 

The minister of higher education, Majesté Ihou Wateba, who was present on the occasion said for his part that the support would help the university better handle the 2020-2021 academic year, especially considering the health crisis spurred by the pandemic. Due to the pandemic, he added, “distance learning became a necessity to effectively meet current needs.”

Like many others, Oragroup’s finances took a hit from the pandemic. According to an activity report published by Abidjan’s stock exchange, the lender’s net result in Q3 2020 was almost halved (44%). 

Quarterly profits stood at CFA5.093 billion at the end of September 2020, against CFA9.094 billion last year around the same time. The decrease is among others due to a surge in the cost of risks, as uncertainty increased amidst covid-19. 

“A 35.3% increase in the net cost of risks compared to the same period in 2019 has led the net result to fall by 44%,” the Lomé-based group explained. 

On the other side, the net banking product increased by 3.5% (from CFA115 billion to CFA119 billion) as the net interest margin grew by 15%, despite dwindled earnings from transfers and currency exchange in the WAEMU and CEMAC. Similarly, deposits and loans rose by 24% and 9% respectively. 

The bad performance of the bank contrasts with last year’s when it reported on December 31 a profit of CFA18.327 billion, thus 46.7% more than in 2018. 

Ayi Renaud Dossavi

New decent housing units will soon be built in the Golfe 3 Bè municipality, situated in Lomé, Togo’s capital. The municipality entered a partnership with the Togolese real estate federation (FTI) in this regard. 

The partnership was sealed during a meeting between Mayor Kamal Adjayi and Dr. Alexandre de Souza, president of the FTI. The two discussed the details of the collaboration which aligns with the government’s plan to have 20,000 social housing units built within the next two years. 

Let’s recall that in 2018 a new land code was adopted to better tackle land issues and public authorities are planning to pair it with another for urbanism and construction. 

In parallel, the Togolese revenue authority (OTR) has introduced reforms to ease and accelerate processes necessary to secure land titles. 

Séna Akoda

From CFA87 billion at the end of 2019, the total amount of loans granted by the National Fund for Inclusive Finance jumped to nearly CFA97 billion as of October 23, 2020. This represents a surge of 11.5% over the period. 

The FNFI says it has met the financing needs of more than 1 million, 760 thousand people since it was launched, adding that beneficiaries, by meeting their commitments, sustain the viability of the mechanism. Indeed, recent data indicate an average loan repayment rate of 92.21%. 

The FNFI was established to support those excluded by the conventional financial system, by providing low-cost loans. It is overseen by the minister of financial inclusion and the informal sector, Mazamesso Assih. 

Séna Akoda

Togo will not issue any more covid-19 bonds on the regional financial market before December 2020. 

Indeed, the country will not take part in the third phase of the issues scheduled to take place between October 27 and November 1, unlike Ivory Coast (which will proceed to two issues), Senegal, Mali, Benin, and Niger. 

No reason was given to explain the decision of Lomé in a context where the country has confirmed 2,243 cases in all, including 1,608 recoveries, 543 active cases, and 53 deaths (as of Oct. 26). 

In the WAEMU, besides Togo, two other countries will be absent from the regional financial market until December, knowingly Burkina Faso and Guinea Bissau. 

Let’s recall that since it started, Togo has raised CFA178 billion on this market to finance its response to the pandemic. 

Séna Akoda

After being on standby since 2015, the phosphate fertilizer plant project should resume. According to Mila Mawunyo Aziable, minister delegate to the President in charge of energy and mines, it is one of the priorities of the country’s new five-year roadmap. 

It should be recalled that the Israeli group Elenilto had secured the permit to carry out this project and exploit carbonates and phosphates. 

Regarding carbonates and phosphates, it is worth noting that the Dangote group has also secured two permits to search for the resource in Togo, in the Zio (Kpomé Apéyémé area) and Vo (Akoumapé) prefectures to be exact. 

The authorities’ desire to search for carbonates and phosphates and make phosphate fertilizers is not the only top priority of the new government, relating to mining. Additionally, exploration and exploitation of other resources will experience a new dynamism. 

Let’s recall that recently, many steps have been taken to improve governance in the mining sector. For example, Togo Invest announced it will develop, with Ica Invest, the Ledjoblibo clay deposit in the Dankpen prefecture (about 90 km from Kara and 420 km north of Lomé). Also, a draft bill initiating the amendment of the mining code was adopted a few months ago; the move aims to improve revenues generated by mining in the country

Séna Akoda

Despite the major pressure the pandemic has put on the country’s economy and finances, Lomé’s provisional budget for 2021 slightly differs from this year’s. 

In detail, the country expects budget revenues to stand at CFA842.9 billion next year, down 2.7% compared to 2020. In 2022 and 2023, the authorities expect a better mobilization of internal and external revenues. 

To meet its forecasts, Lomé relies on internal revenues (tax and non-tax), external loans, and grants. 

Internal mobilization 

In terms of tax earnings, collection of duties and taxes which was bolstered by ongoing reforms (which still need to be consolidated) should generate CFA644.6 billion next year. Out of this sum, internal taxation should generate CFA331.6 billion and port taxation CFA313 billion. Together, they would thus record an annual growth of 9.5%. 

Regarding non-tax revenues, they should contribute CFA62.3 billion to the national budget in 2021, and dip in the following two years. 

External mobilization

According to initial forecasts, next year, Togo will consolidate is budget targets, via grants and budgetary supports totaling CFA131 billion. In detail, grant programs should amount to CFA16.5 billion and grant projects to CFA119.5 billion. 

Regarding treasury resources (bonds, especially), Lomé expects they will move from CFA657.2 billion this year to CFA674.5 billion in 2021. 

In all, the budget for next year, expenditures and earnings combined, amounts to CFA1,517.4 billion and it should increase by 2023. 

Ayi Renaud Dossavi