Togo First
UMOA-securities: Togo records another successful issue of fungible Treasury bonds
Last Friday, Togo raised CFA27.5 billion on the regional financial market, by issuing fungible treasury bonds.
This was disclosed by the Umoa-securities agency which noted that for the operation, the country was initially seeking CFA25 billion (to finance its 2029 management budget).
Overall, subscriptions to the issue exceeded CFA71 billion, thus representing a coverage rate of 284%.
Reimbursement will be made on the first working day after the maturity date which is August 24, 2025. Interests are set at 6.4% per annum and will be paid from the first to the final year of maturity.
Séna Akoda
What are the impacts of the change in the base year for the Togolese GDP?
Togo has changed the base year for its GDP, following the new accounting methods of major international institutions. The country, like many others in Africa, has migrated from the System of National Accounts 1993 (1993 SNA) to the System of National Accounts 2008 (2008 SNA).
The change steered by the national institute for statistics, economic and demographic studies (INSEED) has impacted not only the evaluation of the GDP but also key factors such as debt and fiscal pressure.
Improvements in GDP
Using the former SNA, Togo’s GDP in 2019 was estimated at CFA3,216.8 billion while it is now estimated at CFA4,230.6 billion with the 2008 SNA. Also, updated projections for 2020 - based on the new system - stand at CFA4,399.9 billion.
According to official notes, the increase is mainly due to “better data sources, with broader coverage of targets, especially informal activities which were not sufficiently taken into consideration in the old system (1993 SNA).”
All convergence criteria are still met
The revaluation of the nominal GDP has significantly affected the country’s results.
As a result, Togo, which already met all primary WAEMU convergence criteria, now records an improvement in the debt ratio and fiscal balance (grants included) relative to GDP.
In detail, the debt ratio (debt to GDP) changed from 68.3% to 51.9% in 2019. In 2020, this ratio is forecast at 51.8%, still far below the 70% standard.
Fiscal pressure
Contrary to GDP figures which have improved, the fiscal pressure rate (for 2019) has deteriorated - from 16.3%, in the former accounts system, to 20.8% in the new system. New forecasts for 2020 put the figure at 14.6% (against 21.1% in the 1993 SNA).
The change in the base year for the GDP was discussed on September 22, 2020, during a council of ministers.
Ayi Renaud Dossavi
Togo gets €10M from Germany to rehabilitate roads
Germany has provided Togo with €10 million to rehabilitate its rural roads. In effect, the funds will finance the third phase of the rural road support project (PAPR).
The agreement for the donation was signed last Thursday in Lomé, by the Togolese Minister of finance and the German ambassador. Other officials present at the ceremony included the Togolese ministers of transport and agriculture.
The facility will help extend the PAPR to production segments in the agricultural sector, by opening up some of the country's areas - especially areas where cotton, coffee, or cocoa are grown.
"Rural roads play a key role in reducing the minimum poverty threshold of rural populations, by opening up production areas and fostering the free movement of goods and people," Minister Yaya declared.
With more than 2500 rural roads rehabilitated between 2016 and 2018, Togo intends to set a new record to fast-track the emergence of regional growth poles.
The total cost for the PAPR is around €35 million. It is financed by KfW (€17 million), the French Development Agency or AFD (€10 million), and the Togolese State (€8.4 million).
Ayi Renaud Dossavi
The Prime Minister resigns
The Togolese Prime Minister, Komi Sélom Klassou, has resigned. His letter of resignation was accepted by Togo's Head of State, a statement from the Presidency informed.
The Togolese leader "congratulates the Prime Minister and the whole government for their efforts regarding the economic, political, and social contexts," as well as for their "encouraging performances amid the health crisis the world currently faces."
Klassou and the government were expected to resign months ago, after the election of President Faure Gnassingbé. However, this was delayed due to the pandemic (the country declared the state of a health emergency for the first time in April, and prolonged it on multiple occasions).
The next government will, among others, have to deal with the following challenges: handling the pandemic and its numerous economic and social impacts, salvaging and readapting the national development plan while factoring in the current global crisis.
Selom Klassou is one of the country's PMs to hold the position over a long period. He was appointed on June 5, 2015.
Before a new government is formed, he and his team have to expedite current affairs.
Ayi Renaud Dossavi
Jonas Daou becomes the new boss of Togo’s Association of Large Companies
Jonas Aklésso Daou is the new head of the Togolese Large Companies Association (Association des Grandes Entreprises du Togo - AGET). He was elected for a three-year mandate yesterday, by a mixed general assembly of the association.
The head of Kapi Consult, Sodigaz, and the car dealer of Diwa International will thus replace Clément Ahialey.
Additionally, Charles Gafan, chief of Bolloré group in Togo, Jean-Marie Tessi, managing director Gta-Insurances, and Souleymane Touré, MD Ecobank Togo, will also join the AGET.
The AGET is a professional association that represents big companies operating in the industry, services, trade, and construction sectors. In 2018, it recorded a total turnover of CFA850 billion.
It is one of the main business networks in Togo, in terms of tax contribution to the State budget (more than CFA135 billion in taxes and duties). The association has over 10,000 registered employees.
Séna Akoda
Togo: Kya Energy Group lands $450,000 deal to electrify 20 health centers in rural areas
Over the next 12 months, 20 rural health centers will be provided solar-powered generators by Kya Energy Group. This was disclosed by Yao Azoumah, CEO of the Lomé-based international group which specializes in clean energies (with a focus on solar).
As part of the project for which the firm landed a subsidy of $450,000, each of the health centers concerned will also be equipped with automatic soap dispensers and a fridge, among others.
Kya Energy secured the subsidy following a call for projects launched by Power Africa via USAID. Selected firms - all specialized in solar energy - will share $2.6 million (more than CFA1.4 billion) to supply off-grid power to 300 health centers across the sub-Saharan Africa region. This will enable the benefiting infrastructures to have continuous access to power and thus ensure they do not experience any disruption while providing healthcare.
Besides Kya Energy Group, other companies selected for the project are from Nigeria, Zambia, Madagascar, Rwanda, Lesotho, Mozambique, and Malawi.
Séna Akoda
Gozem raised over $3 million in two years of activity
Since it started activities in 2018, the Lomé-based transport startup Gozem has raised more than $3 million.
With a seed capital of $900,000, Nigerian entrepreneur, Emeka Ajene, and Raphaël Dana, a French-Swiss entrepreneur based in Singapore, launched the moto-taxi booking service in the Togolese capital while eying the West and Central African markets. “This was to introduce efficiencies into the personal transport sectors in these markets, and also to replicate the success of Gojek and Grab here in Africa,” Ajene confided in an interview with Techpoint Africa.
As the startup recorded great success in Lomé, it was able to secure three times the initial funding from investors to expand in Africa. This also allowed it to add tricycles (to carry people and goods) and taxis to its services.
Leveraging partnerships with supermarkets, oil companies, among others, Gozem has made it possible for its users to buy products online and profit from delivery services.
In Q1 2020, Gozem completed a record 500,000 rides, up from 350,000 in Q4 2019.
Still hungry for more, the startup wants to secure more funds to finance its expansion in markets such as the Democratic Republic of Congo, Mali, Burkina Faso, Senegal, and Ivory Coast.
Séna Akoda
Lomé’s airport authorities evaluate measures taken to contain Covid-19 spread
Anti-covid-19 safety measures implemented at the airport of Lomé are being evaluated, congruent with the infrastructure’s activity resumption plan. An audit was indeed launched in this regard on Sept. 24 to make sure the action plan adopted meets existing requirements.
Among steps taken by the airport is the creation of an App to track passengers and test them upon arrival and departure. Regarding the latter, a molecular biology lab financed by the World Bank was set up.
The modern facility was officially delivered to the airport’s authority on Sept. 24 as well. According to the officials in charge of the lab, since its operationalization, thousands of passengers have been tested. The tests show that more passengers leaving the country tested positive than those coming in - a conclusion that mitigates the risk of importing new cases.
Ayi Renaud Dossavi
Togo: Towards a new development cooperation policy
Togo is currently updating its development cooperation policy for better resource mobilization. Public and private experts, civil society, and international partners started reviewing the document in Lomé today September 24, 2020.
During the workshop organized in that regard, the participants will suggest amendments to the policy. With the workshop, Togo aims to evaluate its current development resources mobilization policy (external policies mainly) to improve the cooperation framework.
According to Dr. Akpoto Komlangan, Head of resources mobilization and partnership facilitation at the Ministry of Planning, Development, and Cooperation, the aim is to allow Togo to better meet the current challenges and align with the national and international environment.
Let’s note that this development cooperation policy is being updated thanks to the financial support of the German development agency GIZ.
West African Gas Pipeline Authority seeks new director-general
The Benin-based consulting firm Afrique Conseil has launched a call for candidates to recruit a new director-general to head the West African Gas Pipeline Authority (WAGPA).
Eligible candidates must be nationals from one of the four State parties of WAGPA - Togo, Ghana, Benin, and Nigeria. Those qualified will be selected based on their resume or professional experience in any of these countries.
The deadline for application is October 15, 2020, according to the recruitment notice published on the WAGPA’s website.
With headquarters in Abuja, Nigeria, WAGPA is an international body with legal personality and financial autonomy established by the WAGP Treaty signed on January 31, 2002.
Séna Akoda
ERRATUM
In the previous version of this story, there was a mistake resulting from an unfortunate confusion between the West African Gas Authority (WAGPA) which is concerned here, and WAPco (West African Gas Pipeline Company).
The WAGPA is the regulator of the West African Gas Pipeline (WAGP) built and operated by WAPco.