Togo First
Court of Audit magistrates to get special status
Last Wednesday, the Council of Ministers adopted a draft law that gives magistrates of the Court of Audit a special status that takes into account their peers from regional courts.
The new law provides for annual assessment mechanisms that will enable the Court to comply with the best standards relative to the control of public finances and accounts. With it, the government wants to boost magistrates’ professionalism and efficiency.
Since the last constitutional reform and the bill adopted by the government last January, the Court of Audit has been empowered to issue opinions on annual performance reports, control the visas of financial controllers, and the management of program managers within the framework of the program budget.
Klétus Situ
Togo records higher economic growth rate than expected in 2020
Togo’s economic growth rate at the end of 2020 was 1.8%. While the figure is way below the 5.5% forecasted at the beginning of the year, it stands above subsequent projections, respectively 1.3% and 0.7%, that took into account the Covid-19’s impact on the economy.
The actual growth rate was disclosed by Sani Yaya, minister of finance, on April 15 while he was presenting the country’s global economic and financial situation during a meeting of the Conseil National de Crédit, CNC (National Council for Credit).
Comparing the figure to the forecast, Yaya attributed the positive difference to “tax incentives and various measures to foster demand adopted by the government.”
Most importantly, said the official, the performance was a result of the return of dynamism in the secondary (related to the processing of raw commodities produced in the primary sector) and the tertiary sectors (trade, administration, transport, financial and real estate activities, business and personal services, education, health, and action).
Incidentally, the country's debt ratio rose from 51.9% in 2019 to (after rebasing GDP), 59% at the end of 2020.
Séna Akoda
South African Novus Holdings looks to set up a packaging plant in Togo
South African group Novus Holdings, which specializes in industrial printing, plans to expand in Togo. In this framework, representatives from the firm met last Monday with the Togolese minister of trade and industry, Kodzo Adedze.
Present in 14 African countries, including Ghana and Nigeria, the Cape Town-based group wants to take advantage of the AfCFTA’s establishment to develop its activities in West Africa.
While industrial printing is the holding’s core business (it generates 77% of its turnover), it also makes stamps and plastic packaging.
In Togo, Novus intends to set up a packaging unit, a project that is “most welcomed” in the country, according to the Togolese minister of trade, Kodzo Adedze.
The South African delegation was led by Steve Thobela who said Novus Holdings “wishes to be an asset for Togolese producers.”
In 2020, Novus Holdings’ turnover was around R4.1 billion, over CFA156 billion; a good performance, given the global pandemic context.
Klétus Situ
A national strategy to promote local consumption to soon be submitted to the government for approval
Validated earlier this year by various actors of the public and private sectors, the national strategy for the promotion of local consumption will soon be submitted to the government for assessment and approval.
According to minutes from the latest council of ministers which contains the information, the strategy specifically aims to boost Togo’s goods and services supply, but also facilitate their access to both the local and international markets.
Produced in partnership with the private sector, the document should also add value to made in Togo products, and help cut imports, said Moumouni Ouro-Salim, a consultant involved in the elaboration of the national strategy. This should in the long run boost market shares of local producers and key growth investment sectors (like agriculture).
Séna Akoda
Togo to seek CFA165 billion on the regional market this quarter
In Q2 2021, Togo plans to raise CFA165 billion in the regional market, according to the provisional bond issue program published on April 14 by the UMOA-Securities agency.
The funds, which will be mobilized mainly by issuing fungible treasury bonds, will help meet the country’s national budget needs.
On April 16, three fungible Treasury bonds will be issued, simultaneously. With an overall target of CFA75 billion, which should serve to support economic recovery post-Covid, the issues will feature bonds with a maturity of 5 to 10 years.
After that operation, four more should follow before the quarter ends. Two of them target CFA20 billion each while the last is expected to garner CFA25 billion.
During the past quarter, Togo raised more than the CFA185 billion it initially targeted; a feat that is attributable to the confidence regional investors have in Lomé.
Klétus Situ
Some heavy-duty vehicles will be banned from transiting, starting from June 30
Starting from June 30, 2021, heavy-duty vehicles that have their bodyworks modified and also increased the number of axles they have, without the required permissions, will no longer be allowed to transit the Togolese territory.
Those who fail to comply with this measure will be sanctioned according to law. The warning was issued in a joint statement signed by Gal Damehane Yark, minister of security and civil protection, and Affoh Atcha-Dedji, minister of road, air, and rail transports.
According to the two officials, the practices mentioned "are against measures introduced by community regulations related to the axle load and bodywork of heavy-duty vehicles."
Furthermore, Yark and Atcha-Dedji recalled the regulatory dimensions for heavy-duty vehicles allowed to move in Togo, emphasizing that permissions to proceed to any significant change on such vehicles must first be obtained from the ministry of road transport.
Séna Akoda
PM Dogbé commissions Higher Council for Youth Employment
Last Tuesday in Lomé, Togo’s Prime Minister, Victoire Tomégah-Dogbé, commissioned the Higher Council for Youth Employment. The new entity should consolidate the government’s efforts to boost employment (for the youth especially) in the country. It is an initiative of the National Coalition for Youth Employment (CNEJ).
“The Higher Council for Youth Employment, which is under the authority of the Prime Minister, aims at sharing the government’s guidelines relative to youth employment but also at gathering actors and ministries that develop solution and initiatives to tackle the challenging issue of youth unemployment,” declared the minister of grassroots development, youth, and youth employment, Myriam Dossou-d’Almeida, at the commissioning.
Ecobank and Orabank hold 42% of Togo’s banking market share
Together, Orabank and Ecobank claim slightly over 42% of the Togolese banking assets. This is according to the latest data published by the Central Bank of West African States, BCEAO (2019).
This puts the two lenders among WAMU’s banks with systemic importance, which means that if any of them were to go bankrupt, Togo could plunge into a major financial crisis. Besides Orabank and Ecobank, 11 other banks operate in Togo.
In detail, Orabank’s assets are valued at nearly CFA630 billion or 25% of the total assets (CFA2,534 billion) detained by banks in the country. For its part, Ecobank Togo holds around CFA450 billion, which makes up a little more than 17% of the banking system’s overall weight.
Right behind the two giants are Banque Atlantique Togo (with CFA263 billion) and Union Togolaise de Banque (CFA262 billion).
Ecobank Togo, it should be recalled, won the Best bank award at the Banker’s Awards 2020, thus stripping the title away from Orabank Bank Togo which had it the previous year. This reflects the rude battle for market shares between the two lenders.
Klétus Situ
CRRH-UEMOA increases its capital by CFA200 million
The Regional Fund for Mortgage Refinancing of the WAEMU (CRRH-UEMOA) increased its capital to CFA9.888 billion, from CFA9.688 billion.
To this end, the Lomé-based institution-issued 20,000 new shares having a nominal value of CFA10,000 each.
By increasing its capital, the CRRH-UEMOA hopes to have more leeway to make new investments or develop its mortgage funding segment. Additionally, it should provide the Fund enough financial robustness to avoid borrowing.
The CRRH-UEMOA is the third-best ranked financial institution by Moody’s in the WAEMU. It comes after the AfDB and the BOAD.
Indeed, in 2020, Moody’s assigned CRRH-UEMOA the following first-time ratings: Ba2 long-term corporate family rating, Ba2/Not Prime long and short-term local currency issuer, and Ba3/Not Prime long and short-term foreign currency issuer.
At the time it issued these ratings, the US agency explained the CRRH-UEMOA ratings by “the strong asset quality underpinned by conservative structuring of its lending.”
Séna Akoda
Climate Finance: Aera Group to conquer West Africa, starting from Togo
Quite active in Africa, Aera Group, a French firm that delivers environmental certificates, is looking to reinforce its presence in West Africa, especially in the climate finance sector. In this framework, the president of the company, Fabrice Le Saché, met a few days ago with Togo’s leader, Faure Gnassingbe. He believes Togo is a great starting point in the region.
“Lomé is a major financial hub which has a major role to play in the development of climate finance in the sub-region,” said Le Saché who is also vice president and spokesman of MEDEF.
In the meantime, the Paris-based group informed that many contracts are being signed between the two parties, for the acquisition of environmental certificates for clean energy projects, among others.
As a reminder, Aera Group sold 35% of its shares to Arise IS ten days ago. Aris IS is the firm that operates the Adetikope Industrial Platform.
Octave Bruce