Last Monday, Togo closed a simultaneous issuance of T-bonds on the UMOA-Titres market. The country was able to raise a total of CFA36.5 billion for the operation but withheld CFA27.5 billion. The funds will be used to finance Togo’s 2020 budget. 

In detail, the operation was broken down into two, and while both had a target of CFA 25 billion, they had different maturity periods - 36 months and 60 months respectively - and interest rates (6.15% and 6.4%). 

The issuance with a maturity period of 36 months was oversubscribed with investors submitting CFA 28 billion of which the country’s treasury retained 24.3 billion. For the second operation, the proposed amount was 8.5 billion out of which the country withheld only 3.2 billion. 

A majority of investors who subscribed to the T-bonds were from the West African Monetary Union, according to UMOA-Titres. 

The securities will be redeemed on the first business day following the maturity date (In fine refund).

Yesterday, the West African Economic and Monetary Union (WAEMU) Commission donated supplies and funds to the Togolese State, as part of support to its member States facing the Covid-19.

The supplies, worth nearly CFA 871 million, include masks for health care personnel, and multi-use masks for populations, while the funds came in the form of a symbolic check of CFA 500 million. The country will use the latter to acquire sampling and diagnostic kits.

Both the equipment and the check were received by Mustapha Mijiyawa, the Minister of Health. On the occasion, the official lauded the commission’s support saying “it will reinforce efforts made by the government, under the leadership of the Head of State, and undoubtedly help bolster results achieved by Togo since the pandemic began.” 

It is worth noting that the donation results from various decisions taken by the Conference of Heads of State and Government of the Union, during the extraordinary session held by video-conference on 27 April 2020.

A new incubator for industrial businesses will be established in Central Togo. This was announced by Germain Essouhouna Mèba, the president of the country’s chamber of trade and industry (CCIT), during a sensitization campaign targeting SMEs and SMIs active in the region. 

The campaign’s goal was to encourage economic operators to submit their business plan; a process at the end of which 100 SMEs and SMIs will be handpicked to receive support at the administrative, technical and organizational levels. 

According to its promoters, the incubator project aims to bolster local consumption, in addition to helping SMEs and SMIs access new markets more easily. 

Let’s recall that a few weeks ago, the CCIT revealed the upcoming creation of a business incubator in Agbélouvé, 62km from Lomé. The project should generate around 30,000 jobs. 

Séna Akoda

The African Development Bank (AfDB) will support Togo with CFA782 million to implement the Youth Agricultural Investment Support Project (PAIAJ).

The two-year initiative "ultimately aims at building the capacities of disadvantaged youths to facilitate their inclusion in the economic and social fabric of our country," the Togolese economy and finance minister, Sani Yaya, said.

Concretely, the PAIAJ aims to facilitate the integration of about 620 disadvantaged youths (a third of which are women); and provide access to financing for 530 businesses of disadvantaged young people. These businesses (30% of which are owned by women) will also benefit from financial support. 

The agreement for the new facility was signed on August 6 by M. Yaya and AfDB’s representative in Togo. The signature also covered the budgetary support of CFA16.5 billion - as part of the COVID-19 Multi-Country Response Support Program (PAR-COVID-19), recently announced by the Bank. 

In addition to these two initiatives, the Togolese Finance Minister recalled that the AfDB's support extends to several other structuring sectors, especially through the financing of flagship projects falling under the NDP and impacting sectors such as governance, public finance, social, agricultural and energy.

To date, the Bank's portfolio in Togo exceeds CFA300 billion.

Ayi Renaud Dossavi

Sectors that are most clobbered by Covid-19 will benefit from tax breaks. Adopted on July 30, these tax breaks are part of amendments to the 2020 finance law.

In effect, transport, hotels, restaurants, and all other accredited entities that operate in the tourism industry will benefit from a 25% reduction on the advance payment for a patent. Another measure concerns one-man businesses that pay the single business tax: that includes haulers, craftsmen, and others. They will benefit from a 50% reduction in the second installment of this tax.

It should be highlighted that the amended law was enacted by President Faure Gnassingbé per the rule enabling him to legislate by ordinance during a state of emergency.

Séna Akoda

To further tackle Covid-19, Togo will get from the African Development Bank (AfDB) €24.64 million. The provision of the facility, budget support, was recently approved by AfDB’s board after it was announced last June. 

The facility breaks down into a loan (€7.34 million), a grant (€6.17 million), and another loan (€11.12 million) provided under AfDB’s Transition Support Facility (first pillar). The latter was established to address fragility and building resilience in Africa.

The funds will help Togo to boost economic and sanitary resilience, and most importantly help it bridge the gap that resulted from the restrictive and support measures initiated by the government after the disease broke out in the country. 

Besides Togo, Benin and Guinea also received a total of €60 million from the AfDB in this same framework.

Hundred first-time entrepreneurs will benefit from an incubation program developed by Togo’s chamber of commerce and industry (CCIT). The beneficiaries will receive training at the Agbelouvé industrial site. 

Germain Mèba, chairman of the institution highlighted that this is a mentorship and support program. It will focus on industrial businesses that produce, process, and or sell agricultural or textile products. 

Incubated SMEs will have the opportunity to partner with existing processing firms. In addition to the partnerships which will foster the budding entrepreneurs’ growth, they will have better access to loans from institutions such as the MIFA, African Lease Togo, and commerce chambers. 

With the money they will get, the incubated entrepreneurs will be able to finance their projects and should create in over three years, around 30,000 indirect and direct jobs, according to the CCIT. Their respective business plans are presently being finalized. 

Séna Akoda

At last, planes which have been stuck for months on the tarmac of the Airport of Lomé due to anti-Covid 19 measures will be allowed to take off again, as of August 1.

Indeed, the Togolese government released on July 30 a press statement indicating that both domestic and international flights would resume. “Measures have been taken to guarantee, for the safety of air travelers and populations, that travel conditions comply with recommendations of the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA),” Lomé said.

According to the government’s press release, all passengers will be allowed to board or disembark only after filling a certain form, available on voyage.gouv.tg.

Regarding passengers traveling to Togo, excluding those in transit, they will have to take the Covid-19 PCR test (CFA40,000), payable at check-in on the above-mentioned website. They are also to set up the Togo Safe mobile app which will, among other things, enable them to define where they will self-confine. 

For more information, visit voyage.gouv.tg.

Séna Akoda