Togo First
Togo Secures CFA36 Billion for Agricultural Development from Islamic Development Bank
The Islamic Development Bank (IsDB) recently approved $60.30 million (over CFA36 billion) for Togo. This funding aims to improve the quality of life for vulnerable populations. The announcement came during the IsDB's 357th Board of Directors meeting on October 14, 2024, in Jeddah, Saudi Arabia.
The funds will support income-generating activities and boost agricultural productivity, which are vital for Togo's economic growth. This approval is part of a larger program under which the IsDB allocated over $3 billion to 20 socio-economic development projects across 17 member countries. In Africa, countries like Côte d'Ivoire, Mozambique, and Senegal are among the beneficiaries.
In Togo, the IsDB is already involved in various initiatives, including coastal protection and rural electrification. Last year, it signed an agreement with the International Islamic Trade Finance Corporation (ITFC) for $250 million to develop the energy, agriculture, and private sectors.
Ayi Renaud Dossavi
Togo: Nearly 12,000 Businesses Registered in January-September 2024 (CFE)
Over the first nine months of 2024, 11,979 new businesses were registered in Togo. The data comes from the Centre for Business Formalities (CFE) where the businesses were registered. The figure is 2% more than that recorded over the same period the previous year–11,733.
Out of the almost 12,000 newly registered businesses from January to September, 9,940 were established by Togolese; foreigners established 2,039. Around 30% of the total, 3,566, were created by women.
Quarterly, 4,017 new businesses were registered in Q3 2024, against 3,450 in Q3 2024.
The improved figure is attributable to Lomé’s pro-entrepreneurship reforms. Indeed, the government has ramped up efforts to bolster the business climate, including reducing the time and cost of setting up a business and digitizing formalization procedures.
Esaïe Edoh
Togo: Second Edition of Renewable Energy Days Held last Week
Last week, Togo hosted the second edition of the Renewable Energy Days. The event, which took place on October 18 and 19, was themed “Renewable Energies at the Service of the Agro-Industry.” It was organized by the Synergie des acteurs du secteur (SAER) and the Centre Togolais des expositions et Foires (CETEF).
The fair gathered Togolese companies active in the renewable energy sector, and featured exhibitions, conferences, workshops, and demonstrations.
According to CETEF Director Alexandre de Souza, the event highlighted new trends in renewable energy and promoted Togolese innovations, as "they are a source of hope for the country."
Last year, the CETEF and the SAER sealed a deal to raise public awareness and increase access to clean energy sources.
Next Month, 10 Togolese Tech Startups Will Be in South Africa for an Immersion Program
Ten (10) Togolese tech startups will be in Cape Town, South Africa, from November 25 to December 4, 2024. The startups include Semoa, Anaxar, Silimi, Aviocole, Kondjigbale, Robaloto, Klumer, Edole, Trankyl, and Infinitus. They operate across various sectors, from Fintech to HealthTech and professional networking.
The Ministry of Digital Economy and Transformation, through Agence Togo Digital (ATD), is organizing the trip. It is backed by ProDigiT, a project implemented by GIZ Togo and co-funded by Germany and the European Union.
The startups were chosen by a jury to which they presented innovative ideas. The immersion program will give them access to an international network and expose them to innovative business models. This trip follows a previous program for winners of the Togo Digital Awards, showing the country's commitment to developing its digital ecosystem.
This coming immersion comes shortly after another trip to Nigeria for Togo Digital Awards winners.
Togo: Sheyi Emmanuel Adebayor Foundation Facilitates New Partnership between the Lomé University and an American University
Earlier this week, the Sheyi Emmanuel Adebayor Foundation (SEA Foundation) facilitated a partnership between the University of Lomé (UL) and Morgan State University in the USA.
A delegation from the American university visited UL as part of an international academic collaboration. Led by Endia De Cordova, Director of the university's foundation, the delegation was introduced by Boris Segbenou, Vice President of the SEA Foundation.
Chaired by Professor Adama Mawulé Kpodar, President of the University of Lomé, the discussions included a proposal to include the UL in a partnership formed on June 5, 2023, between the SEA Foundation and Morgan State University.
Morgan State University, founded in 1867 and located in Maryland, offers various programs in sciences, arts, engineering, and business.
Ayi Renaud Dossavi
Togo Has Nearly 13,000 Public Health Workers (2023 Census)
By the end of 2023, Togo had 12,945 health workers in the public sector, according to data from the Minister of Health, Professor Tchin Darré.
The distribution shows that Greater Lomé, which includes 13 municipalities around Lomé, has 4,634 health workers, making up 36% of the total. The maritime region follows with 1,679 workers (13%), Plateaux with 2,145 (17%), Kara with 1,803 (13.9%), Centrale with 1,379 (11%), and Savanes with 1,305 (10%).
Nearly half of these health workers are contract workers. In detail, there are 7,086 civil servants, accounting for 54.74% of the workforce, while 5,859 are contract staff, or 45.26%.
Additionally, the Ordre National des Médecins (ONMT) registered over 2,000 doctors in Togo by the end of March 2024.
Ayi Renaud Dossavi
Togo: Yango Suspended Over Illicit Operations
The Togolese government has suspended Yango, an online car-sharing service, for "illicit" activities.
On October 17, 2024, the Ministry of Transport stated that Yango, owned by Russian tech giant Yandex, began operations "in violation of all required administrative procedures and authorizations". The suspension follows serious concerns about user safety.
Yango faced a similar suspension in Cameroon in 2023 for not complying with transport regulations but was later reauthorized. Since its launch in 2018, Yango has expanded to 13 African countries, including Côte d'Ivoire, and is also active in Europe, Asia, and the Middle East.
Yango’s competitors in Togo’s local VTC market include Gozem and BKG Speed.
Ayi Renaud Dossavi
Lomé: Togolese Bankers Discuss Risk Management in WAEMU
Last Saturday, October 12, several Togolese bankers and finance experts gathered in Lomé for a "Loft of the Weekend" workshop focused on banking risk management. Held in Baguida, the session was led by Khalid Yacoubou-Boukari, Commitments Manager at IB Bank Togo and a risk management consultant.
Participants learned about risk management regulations, particularly Circular N°04-2017/CB/C, an important document in WAEMU's regulatory framework.
Risk management, a regulatory priority
This circular, issued by the WAEMU Banking Commission, sets strict standards for credit institutions and financial companies in the region. Its goal is to enhance the resilience of financial institutions against increasing risks in a volatile global economy.
Yacoubou-Boukari outlined key aspects of the circular, which requires each institution to implement a risk management system that addresses four main areas: credit, market, liquidity, and operational risk. “Governance bodies must play a leading role in defining a clear risk management strategy, supported by a risk appetite policy and strict operational limits,” the IB Bank executive added.
The circular mandates that WAEMU financial institutions establish independent risk management systems with adequate human and technical resources. These systems should improve risks assessement. “This framework is based on a holistic approach, where risk management is a cross-cutting component, linked to all the bank's operations,” added Yacoubou-Boukari.
Risk Mapping and Tolerance for Risk
A major issue discussed at the workshop was risk mapping, which banks must update regularly. According to the circular, this mapping should help identify the main risks faced by the institutions; categorized by business sector and geographical area; and be approved by governing bodies once a year, at least. Regular updates would help identify emerging risks in real-time and incorporate them into the bank's risk management system.
Yacoubou-Boukari also emphasized the importance of a risk appetite policy that outlines the overall and operational risk limits an institution is willing to accept. This includes thresholds for credit tolerance and off-balance sheet transactions. “Any breach of these limits must be immediately escalated to the governing bodies for corrective action,” he reminded attendees.
Team building and crisis simulations
To address growing demands for effective risk management, the circular calls for strengthening specialized teams within financial institutions. Yacoubou-Boukari highlighted ongoing training initiatives from the Commission Bancaire, including programs like Basel II-III courses that are becoming essential for UEMOA bankers aiming for risk management roles. In this framework, a partnership was sealed with HEC Paris to offer regional bankers strategic, and subsidized, banking certifications. “A well-staffed risk department, with sufficient authority, is important if the institution is to cover all the risks it faces, efficiently,” Yacoubou-Boukari explained.
The circular also mandates crisis simulations to test the strength of risk management systems during unexpected events. These simulations help institutions anticipate potential shocks and develop corrective action plans to better handle financial crises or operational disruptions. Additionally, institutions must establish a continuous monitoring system to identify potential deviations from set risk limits and alert governance bodies as needed.
The Role of Governance Bodies
Risk governance is central to the circular's recommendations. According to the expert, the risk committees of bank boards are responsible for ensuring that all risk management policies and procedures are properly implemented. These committees actively monitor risks and report regularly to the Banking Commission.
Khalid Yacoubou-Boukari emphasized the need for a clear separation of duties between operational departments, especially those focused on revenue generation, and risk departments. This independence is crucial to avoid conflicts of interest and ensure objective risk management.
Banks must submit a detailed risk management report to their governing bodies every six months. This report must cover the nature and level of risk exposure, capital and liquidity requirements, as well as the quality of the loan portfolio and related provisions. Regular reviews must also be conducted for concentration risks, particularly for significant exposures in specific sectors or regions.
A Modernization Dynamic
The workshop also highlighted that risk management in WAEMU should go beyond just meeting regulatory requirements; it should be part of a modernization effort. The circular encourages financial institutions to adopt technological tools for better data collection and analysis, especially regarding operational loss events.
Furthermore, any introduction of new financial products must be carefully assessed for inherent risks. “Each product, each process must be scrutinized from a risk perspective, with appropriate mitigation measures,” explained Yacoubou-Boukari. The goal is to ensure that financial innovations strengthen institutions rather than weaken them.
Fiacre E. Kakpo
Germany Allocates €25 Million to Togo, Benin and Guinea-Bissau for Extremism Prevention
Togo, Benin, and Guinea-Bissau will receive €25 million (over CFA16 billion) from Germany to fund projects to tackle violent extremism. This financial support comes from the Regional Stabilization and Development Fund (RSDF), which was recently launched in Cotonou by ECOWAS.
From 2024 to 2027, these countries will focus on three key areas: job creation, environmental protection, and strengthening social cohesion. The initiatives will offer vocational training to young people, develop basic infrastructure, and promote entrepreneurship. Environmental efforts will include reforestation, irrigation, and renewable energy projects. Social cohesion will be enhanced through sports and peace promotion via media.
ECOWAS, in collaboration with the beneficiary countries, strives to prevent regional crises by creating sustainable economic opportunities for vulnerable groups, particularly women, youth, and returning migrants.
"This project clearly shows that the fight against violent extremism is not just a military matter. In anticipation, it involves thinking about setting up basic socio-economic infrastructures, building the capacities of vulnerable populations to give them back hope, and implementing governance policies capable of preserving our fragile vivre-ensemble," said Amadou Diongue, ECOWAS Resident Representative in Benin.
In Togo, this funding will help protect the northern population from extremists whose attacks in the region have been on the rise. The first phase of this project was implemented in Gambia from 2019 to 2024.
Esaïe Edoh
Here is How Togo’s Investment Rate Fluctuated over Past 10 Years, (BCEAO)
In Togo, the investment rate has fluctuated significantly over the past decade due to various economic challenges. Data from the Central Bank of West African States (BCEAO) shows that the investment rate was 22.1% in 2013, peaked at 25.2% in 2015, and then dropped to 16.8% in 2017 amid economic uncertainties and socio-political tensions.
However, a turning point occurred around 2020 when the investment rate rebounded to 21.3%, supported by a more stable political environment and economic recovery. From 2021 to 2022, the rate remained around 19%, but forecasts for 2023 suggest it could rise to 23.0%.
Since 2020, the government has aimed to boost investment levels through initiatives like the National Development Plan (NDP) and the Government Roadmap. These efforts include reforms to improve the business climate and foster domestic and foreign investment.
Ayi Renaud Dossavi