Togo First
World Bank and EU were Togo’s main donors last year
In 2019, the World Bank and the European Union (EU) provided the most donations for the national budget, according to recent statistics.
Overall, donations for budget-related programs and projects amounted to CFA122 billion last year, up by 15% against the year before. In detail, CFA62 billion (against CFA20 billion expected) was allocated to programs while 60 billion was disbursed for projects (against CFA110 billion expected).
Out of the amount injected into programs, CFA51 billion came from the Bretton Woods institution and around 10 billion from the EU.
Ayi Renaud Dossavi
Togo: Government holds seminar to define its roadmap
The new government (formed about a week ago) started its first seminar today October 12, 2020, to study current issues and priorities.
During the seminar (Presided by the Head of State Faure Essozimna Gnassingbé), the government’s 2020-2025 roadmap will be thoroughly presented. This roadmap is elaborated around three axes: the reinforcement of social inclusion and harmony, peace consolidation, and the dynamization of the job creation process.
Most of the goals have already been set in Togo's National Development Plan 2018-2022, but some of them could change because of the coronavirus health crisis. In that regard, the guidelines laid down by the brief presented by Victoire Tomégah-Dogbé (Head of the new government) revolves around 10 goals and 42 projects and reforms.
Overall, the government’s action plan will be guided by three key points: the pursuit of outcomes favorable for the population, flexibility, and availability as well as patriotic values, we learn.
Séna Akoda
Rainmaker Worldwide, Carlaw Group partner for a clean water project in Togo
Canadian companies Rainmaker Worldwide -specialized in clean water technologies- and Carlaw Group, a private equity firm active in Africa, announced a joint venture to provide clean water in Togo and three other African countries.
Under the deal, Rainmaker will deploy its Air-to-Water technology, which runs with a combination of atmospheric humidity, heat, and airflow. The joint venture will produce bottled water and distribute it to the mining and construction sectors (through private agreements). It is also expected to collaborate with the private sector and global humanitarian organizations to identify areas with severe water crises and then define appropriate and innovative solutions to address the issue.
In addition to Togo, this technology will be implemented in Kenya, Senegal, and Sierra Leone. According to the companies, the partnership once fully deployed could reach $50 million annually.
Ayi Renaud Dossavi
Corruption prevention and fighting agency HAPLUCIA to be restructured
The High Authority for the Prevention and Fight against Corruption and Related Offenses (Haplucia) will be restructured in line with challenges facing the new Togolese government. This was disclosed by Christian Trimua (Minister of Human Rights, Citizenship Training and Relations with the Institutions of the Republic, and spokesman for the Government).
According to Trimua, this restructuration falls within the framework of the good governance axis of President Faure Gnassingbé’s 2020-2025 presidency (during which the government plans to implement 36 projects in six major axes, including good governance and financial resources mobilization).
The restructuration is one of the campaign promises made by the president who announced (in February 2020) that an institution would be created to tackle economic crimes and similar offenses. At the time, many people overlooked that promise because they were disappointed with the HAPLUCIA.
Indeed, launched in 2014, the HAPLUCIA failed to take concrete actions despite its numerous awareness campaigns. For Christian Trimua, this restructuration will provide the HAPLUCIA with all the necessary means to effectively fight corruption and economic crimes. "Capital flight is no more possible in Togo,” the Minister said.
In 2018, the country stagnated in the Transparency International report while in 2019, it lost one point.
Only 31 passengers tested positive for Covid-19 since the Lomé airport resumed operations
About 15,000 transit passengers have been registered at the airport of Lomé since it reopened two months ago.
The figure was released by the National Agency of Civil Aviation (ANAC Togo) which is taking stock of its activities after the resumption.
"We are satisfied," said Colonel Gnama Latta, head of the agency, noting that 90% of planned activities have been completed, per the recommendations of ICAO (International Civil Aviation Organization), WHO (World Health Organization), and WAHO (West African Health Organization).
Restrictive procedures put in place by the airport to contain a spread of Covid-19, seem to be effective. Indeed, "Out of more than 15,000 people in transit, only 31 had the disease," Latta said.
Moreover, according to the managers of the screening center, out of the thousands of tests already carried out, there are to date more positive cases at departure, than arrival.
Ayi Renaud Dossavi
Authorities project talks to raise interprofessional guaranteed minimum wage
Togolese authorities are planning talks to potentially reevaluate the interprofessional guaranteed minimum wage (SMIG).
The amount which currently ranges between CFA35,000 and CFA38,000 could increase after the talks.
This was reported by République Togolaise citing the minister in charge of relations with public institutions, Christian Trimua.
According to Trimua, the projected talks between the ministry of work and social dialogue, and social partners, should follow the adoption of a new code for work. The latter should be adopted in the coming weeks.
It should be indicated that though it has been effective since 2012, the SMIG is not paid to all unemployed people as most of them work in the informal sector.
Ayi Renaud Dossavi
WAEMU: Ecobank was the leading bank in 2019
With a market share of 12.8%, the Lomé-based pan-African group Ecobank Transnational Incorporated was the leading bank in the West African Economic and Monetary Union (WAEMU) in 2019.
According to Agence EcoFin which reported the news, the holding came ahead of French group Société Générale (10.1% of the market), and Moroccan Bank of Africa and Atlantic Business International (9.7% and 9.2% respectively).
Overall, banks from the region (Coris from Bukina Faso; Bridge Bank Group, NSIA Banque, SUNU, from Ivory Coast; Banque de développement du Mali ; Banque de Dakar in Sénégal and African Lease Group, Ecobank, Oragroup from Togo), total a market share of 33.8%.
This puts sub-regional banks in competition with external players, notably, banks from the Maghreb, especially Moroccan lenders which alone account for 26.1% of market share, and more than a quarter (25.9%) of credit deposits.
Ayi Renaud Dossavi
Over 3,000 new businesses registered in Q3 2020
Over the past quarter, 3,464 new businesses have been registered in Togo, according to statistics of the Centre de Formalités des Entreprises (CFE).
Respectively, 1,201 were created in July, 1,181 in August, and 1,082 in September. Overall, compared to the same quarter in 2019, 500 more businesses were registered this year.
Togolese citizens established 75% of businesses registered in Q3 (2,608) while the remaining 25% (856) was launched by foreigners.
These encouraging figures are attributable among others to recent reforms (focused on digitization) which have made it easier for young entrepreneurs to start a business. According to the CFE, more than 6,000 new businesses were registered in the first half of 2020, despite difficult economic conditions resulting mainly from Covid-19.
If the same trajectory is kept, Togo could set a new record in terms of created businesses (11,482 in 2019). As of Oct. 7, 2020, a total of 9,743 new businesses have been registered, since the start of the year.
Ayi Renaud Dossavi
The Top priorities of the new government include developing agriculture and logistics
Besides boosting social inclusion and human capital, the priorities of the new government are to develop logistics and agriculture. Victoria Dogbé, Togo’s PM, mentioned this last Friday while revealing her general policy to the parliament.
Agriculture
To tackle the challenges this sector faces, the new government should pursue the same path as the former and buttress key axes. Four major areas are concerned: improving financing and access to loans, opening up rural areas, the blue economy, and agro-industrial processing.
In this framework, the Dogbé administration has set up a blue economy ministry, headed by Edem Kokou Tengue who was the head of Maersk-Togo. Similarly, a ministry was established to oversee the opening of rural areas (which should facilitate the transportation of agricultural goods).
Regarding the latter, the PM announced that a project to build and rehabilitate “4,000 km of rural roads” would be launched soon.
Concerning access to loans, the government plans to increase its support to SME/SMIs and agricultural cooperatives. This is to enable them to scale up enough to position themselves in the regional market. It should be recalled that the agricultural financing incentive mechanism (MIFA), launched two years ago, is still in its take-off phase.
The new administration also focuses on processing natural and agricultural resources. It should be noted that agriculture is Togo’s first employer and the largest contributor to GDP.
Autonomous port of Lomé
Logistics
According to Dogbé, logistics is “the second pillar of our economy” and its reinforcement depends on the Autonomous port of Lomé (overseen by the blue economy ministry). Our goal is to sustain the dynamism of this growth lever, the PM said referring to the infrastructure.
She added that the development of the logistics sector will require “the modernization and improvement of our assets to keep our lead and catch up with other competitors.”
To this end, the new government will primarily focus on digitizing port operations.
Another major project in the logistics sector is the expansion of the n°1 national road, at an estimated cost of $620 million. It falls under the first axis of the national development plan which is to boost integration at the national and regional levels.
Ayi Renaud Dossavi
Togo gains 18 places in the 2020 economic freedom index
Togo gained 18 places in the 2020 economic freedom index published by the Heritage Foundation. The country is the 140th freest country (over 180 countries worldwide) and 29th out of 51 countries in Africa.
Despite still being considered as mostly unfree by the Foundation, the economic freedom score of Togo increased by 3.8 points to stand at 54.1 points.
The index covers 12 freedoms regrouped into four big categories: Rule of law (property rights, judicial effectiveness, government integrity); Government size (tax burden, government spending, fiscal health); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); Open markets (trade freedom, investment freedom, financial freedom).
Overall, Togo made progress in most of the areas covered, due to the recent reforms introduced to improve its business climate.
In Africa, Mauritius came first (29th freest country in the world) with a score of 74.9 points. In West Africa, Côte d’Ivoire and Ghana respectively ranked 101st and 104th worldwide with scores of 59.7 points and 59.4 points.
However, Togo is ahead of others like Egypt (142nd in the world), Brazil (144th), Cameroon (145th), Ethiopia (146th), and Malawi (152nd). It should be noted that most African countries are in the lower part of the index.
Singapore tops the rankings, followed by Hong Kong (2nd), New Zealand (3rd), Australia (4th), and Switzerland (5th). They are considered by the Heritage Foundation as truly free.
Ayi Renaud Dossavi