In Togo, users of the Directorate of Cadastre and Land Conservation (DCCF), including notary offices, must pay their fees and taxes by December 31, 2024. The Togolese Revenue Office (OTR) recently issued the deadline in a press release. The fees mentioned are linked to processes like first registration and land transfers and must be paid in cash.

After December 31, tax authorities may take action to recover any debts owed to the State. This approach aims to ensure effective tax management and smooth administrative services related to land transactions. By reminding users of this obligation, the OTR hopes to improve tax compliance and facilitate interactions between the administration and users.

The DCCF is a public service responsible for land administration, ensuring that property rights are protected. Its duties include registering buildings, creating land titles, recording real property rights, maintaining land title archives, and providing information.

Ayi Renaud Dossavi

In Togo, tax expenditures reached an estimated CFA143.2 billion in 2023, up 25% from 2022’s CFA114.1 billion. Tax expenditure refers to government cuts to ease the tax burden on taxpayers or specific sectors. These measures often serve as support or incentives, leading to lower taxes for taxpayers and a permanent loss of revenue for the State.

The Ministry of Economy and Finance reported in its 2023 tax expenditure evaluation that these measures represented 17.6% of liquid revenues and 2.6% of national GDP, indicating a rise in tax breaks for taxpayers.

Value-added tax (VAT) accounted for the largest share of these tax breaks, totaling CFA60.8 billion, or 42.4% of tax expenditures. Corporate income tax (CIT) followed with CFA31.8 billion, or 22.2%. Customs duties and statistical fees amounted to CFA24.4 billion (17%) and CFA19.7 billion (13.7%), respectively. Other taxes, including patents and personal income tax, also contributed to these expenditures.

VAT exemptions were the most impactful over the period reviewed. They were incentives related to personal income tax and corporate income tax.

Businesses benefited the most from tax expenditures. They captured 59.7% of the total. Associations and NGOs followed with 7.3%, and households received 9%.

While increasing tax expenditures, the Togolese also secured more tax revenues in 2023. Lomé collected nearly CFA1,000 billion (CFA990.1 billion) in tax revenues that year, exceeding initial forecasts of CFA912 billion.

Ayi Renaud Dossavi

The Haho 2 municipality, located in the Plateaux region of Togo, is drawing its Communal Development Plan (PDC). Local officials launched the planning phase last week in Asrama, the municipality's capital.

During this meeting, municipal leaders and experts outlined the main goals of the PDC, which will guide the commune's development. Planned actions will focus on key areas like health, education, and the environment, as well as building capacity for local organizations.

The authorities are also addressing funding, and identifying various sources to support the PDC's implementation. They have developed strategies to encourage community involvement in designing the plan.

Once completed, the PDC will serve as a roadmap for the municipality's growth, joining other Togolese municipalities that have similar plans. Mayor Ayidote Sossou said the initiative is a major milestone toward social cohesion and collective well-being.

Esaïe Edoh

Togo will present 35 projects at the 29th United Nations Climate Change Conference (COP29) starting November 11 in Baku, Azerbaijan. These projects include renewable energy, access to water, sustainable agriculture, reforestation, and electric mobility. The goal is to secure funding through meetings with potential contributors and financial partners.

Last week in Lomé, the Ministry of Environment and Forest Resources reviewed these projects with Togo's partners. Minister Foli-Bazi Katari stated that the selected projects align with Togo's international commitments to protect the environment and combat climate change.

At the COP29, Togo will have a pavilion supported by the United Nations Development Program (UNDP).

Esaïe Edoh

The technical committee that monitors Togo’s Waste Management Project or GEDEC Togo met on October 22, 2024, in Lomé, the capital. They reviewed and finalized waste management policies for five municipalities: Zio 1, Ogou 1, Tchaoudjo 1, Kozah 1, and Tône 1. Organized by the Ministry of Territorial Administration, the meeting aimed to improve the living conditions of over 750,000 residents.

According to Laure Koun Bruma, project manager for GEDEC Togo, the technical committee “reviewed the municipalities’ policies relative to solid and liquid waste management”. She added that they “will provide guidance to technically validate these policies”.

Before the year ends, each municipality is expected to formally adopt its local waste management policy. 

Launched in June 2023, the GEDEC Togo is funded by the European Union (€4.2 million). After assessing the project, an EU delegation expressed satisfaction with the progress made by the town halls.

Earlier this year, the project facilitated the establishment of a Municipal Treatment Center in the Tchaoudjo 1 Municipality.

Ayi Renaud Dossavi

The Togocom group, which is 51% owned by Madagascar's Axian, is separating its mobile money services into a new entity called Tmoney S.A. This company was established in April with a share capital of CFA1 billion and is registered as a financial company focusing on money transfers and e-money services. Catherine Savery has been appointed as the Managing Director of Tmoney S.A. Savery previously worked as an audit expert at Axian.

Current regulations from the Central Bank of West Africa, the BCEAO, require financial institutions wanting to issue or manage electronic money to obtain a license or partner with a licensed bank. Previously, Togo Cellulaire, the telecom operator, had to collaborate with a local bank (BTCI, now IB Bank) to financially transact with the BCEAO. 

In this regard, Tmoney S.A. will be directly supervised by the BCEAO and must adhere to regulatory requirements regarding capital, risk management, compliance, and transaction oversight.

This move aligns Togocom with trends seen in other countries in the region, such as Benin, where MTN has launched MTN Mobile Money for money transfer services alongside its telecom operations. The restructuring could also impact the existing partnership between BTCI and Togo Cellulaire regarding mobile money services. 

Togocom's decision indicates its increasing interest in the mobile money market; a market with significant growth potential in Togo. As of June 2024, the mobile money penetration rate stood at 45.4%, dominated by Tmoney and Flooz.

Regarding taxation, this change may clarify tax provisions in Togo, where mobile money activities have previously been in a gray area regarding VAT and the Tax on Financial Activities (TAF). Tmoney should align its operations solely with the TAF.

As of the first quarter of 2024, the mobile money sector had 3.55 million users, with 60% (2.16 million) using Tmoney through Togo Cellulaire and 40% (1.4 million) using Flooz from Moov Africa Togo. The sector is attracting more players, including non-telecom operators like Gozem, which recently launched Gozem Money for electronic money services.

Ayi Renaud Dossavi

Mandatory product marking controls will start in Togo on November 4, 2024. This announcement was made on October 22, 2024, during a meeting in Lomé between the Ministry of Trade and relevant importers. The initiative is part of the Automated Marking Solution (SAM), which aims to tackle smuggling and counterfeiting.

Marking has been required since September 2020 and is designed to secure tax revenues, enhance product traceability, and protect consumers from illegal imports. Under the initiative, all products sold in Togo, including alcoholic beverages, sweets, tobacco, and fruit juices, must be marked, or they will be deemed illegal.

Esso-Wavana Adoyi, chairman of the SAM committee, stated that this initiative will promote fair competition, improve tax collection, and fund development projects in the country. A 15-day grace period will be allowed before strict sanctions are enforced against non-compliant businesses. Among others, the illegal products will be seized.

As part of the project, businesses will be informed about the importance of secure marking and the penalties for non-compliance to ensure adherence to the law.

Esaïe Edoh

A Togolese delegation will visit Sochi, Russia, in November for the first ministerial conference of the Russia-Africa Partnership Forum. This was confirmed by Igor Evdokimov, the Russian ambassador to Togo, during an event on October 20, 2024, in Lomé.  Several diplomats attended the event, including ambassadors from China and India. There were also officials from Togo's Ministry of Foreign Affairs and members of the Russian community in Togo.

"I am convinced that this conference will further contribute to the deepening of the Russian-Togolese partnership, in the interest of the prosperity and well-being of our peoples," Evdokimov said, according to state media Togo Presse. He also emphasized the friendly relations between Togo and Russia.

The conference will take place on November 9 and 10. It will receive several African delegations. During the two days, Togo will have the opportunity to showcase its development projects and diversify its international partnerships.

It is worth noting that in July 2023, the last Africa-Russia summit was held. 

Ayi Renaud Dossavi