Togo First
Togolese Phillippe Tchodie becomes President of African Tax Administration Forum (ATAF)
Philippe Kokou Tchodie, the general commissioner of Togo’s revenue office, was recently appointed as chairman of the African Tax Administration Forum (ATAF).
Appointed during the ATAF’s latest virtual general assembly, the Togolese will lead the organization for two years. He will head the representatives of the body’s offices in South Africa, Burundi, Kenya, Morocco, Mozambique, Rwanda, the Gambia, Uganda, and Zambia.
Established in 2008, ATAF is an intergovernmental organization that promotes cooperation between African tax authorities. It’s the first time that a Togolese is heading the organization.
Ayi Renaud Dossavi
Backed by PAIEJ-SP, a cassava processing plant is being set up in Atakpamé
In line with its ambition to optimize the cassava value chain, the Nouvelle Société de Commercialisation des Produits Agroalimentaires (NSCPA) is setting up in Atakpamé (161.5 km from Lomé) a cassava processing plant.
For this project, the NSCPA was backed by the Projet d’Appui à l’Employabilité et à l’Insertion des Jeunes dans les Secteurs Porteurs (PAEIJ-SP or Program Supporting Youth Employment and Insertion in Promising Sectors). According to PAIEJ-SP, equipment at the new plant is already being assembled.
Yearly, the plant should process 15,000 t of cassava or about 50 t per day.
According to the AfDB, which is its main financial sponsor, “a year into starting operations, the PAEIJ-SP facilitated the creation of 25,635 direct jobs, 27% of which were secured by women. The project backed 1,793 agricultural associations and trained 15 financial institutions on the financing of agricultural value chains. It also improved access to financing for 16 SMEs, trained 31 executives on managing data systems related to the job market, and created a single ID system to keep track of youth integrated to its entrepreneurship support program.”
Séna Akoda
Government takes new steps against corruption
Last Thursday, the Higher Authority for the Prevention and Fight against Corruption and Related Offenses (HAPLUCIA) set up a committee to steer an upcoming national strategy to fight these crimes. This committee has 40 members.
The move aligns with the government’s desire to restructure the HAPLUCIA and fight corruption more efficiently.
Indeed, against expectations, the institution’s establishment did not significantly curb corruption in the country. This is reflected in the recent Transparency International index.
Séna Akoda
Togolese revenue office offers a major discount on goods and vehicle clearance
From now till December 24, 2020, Togo’s revenue office (OTR) is offering a 40% discount on clearance fee for vehicles and goods not yet delivered.
The move, which aligns with the OTR’s tax relief strategy, will help boost the clearance of the goods mentioned. This is a Christmas gift that should very much please businesses, importers, exporters, tax commissioners, and consignees.
It should be noted that a similar campaign was initiated at the end of 2019, and many other times throughout that year. Those interested in the offer had to apply.
Séna Akoda
EU and Germany support the ECOWAS States in the fight against cybercrime
To help fight cybercrime, the European Union and Germany will provide €7 million to the ECOWAS States. The financing falls under a project backed by the German Cooperation Agency (GIZ) and Expertise France.
In effect, the funds will be used to reinforce information infrastructure, improve cybercrime laws - in line with regional, continental, and international standards, and train actors engaged in the fight against cybercrime in the region concerned.
On October 30, 2020, the ECOWAS, the EU, and Germany officially began their collaboration, under the cybercrime component of the West African Response Against Organised Crime (OCWAR). Besides cybercrime, the megaproject also tackles trafficking, money laundering, and terrorism financing. It is set to run through 2022-2023.
Nearly 10,000km of rural roads will be maintained every year
Togolese authorities plan to ensure the annual maintenance of over 9,800 km of rural roads in the country. In detail, every year 7,020 km will be maintained manually and 2,808km mechanically.
This was disclosed by the minister in charge of opening up rural areas, Issa-Tchédé Kanfitine, during a meeting with the various actors concerned by the project.
The latter, it should be noted, falls under the ministry’s roadmap for 2020-2025. It is similar to the rural road support project which under its third phase benefited from a CFA6.5 billion financing in September 2020.
Let’s recall that more than 2,500 rural roads have been rehabilitated in recent years. In 2016-2018 for example, the government injected substantial amounts in transport infrastructure, especially in rural areas, to enhance economic activity in these parts of Togo.
Séna Akoda
MPs approve Togo’s adhesion to AIIB and AFC
On November 5, the Togolese parliament approved the country’s adhesion to the Asian Infrastructure Investment Bank (AIIB) and the Africa Finance Corporation (AFC).
Togo will leverage the two institutions’ support to “conceive, finance, and undertake infrastructure projects that will help our country grow,” declared Sani Yaya, Minister of Finance and Economy.
Founded by China, the AIIB is a multilateral finance institution dedicated to rising needs for infrastructure. As for the AFC, Africa’s second multilateral finance institution, it has injected about $4.2 billion in various projects carried out across the continent. The AFC was established to tackle insufficient investment in infrastructure in Africa.
In the event Togo adheres to both institutions, it will have access to funds at lower rates, as well as to other partners to help it finance its 2020-2025 development roadmap.
Séna Akoda
For the second consecutive year, Togo recorded WAEMU’s best formal banking penetration rate
In 2019, Togo’s formal banking penetration rate stood at 25.1%, against 26.6% the year before. This means the country was, for the second consecutive year, WAEMU’s best performer in terms of adults with an account in banks, post offices, national saving funds, or the treasury.
Last year, right after Togo were Benin (24.8%), Burkina Faso (23.2%), and Guinea Bissau (20.3%). At the far end of the ranking was Niger with a strict bancarisation rate of 6.8%.
Regarding the enlarged bancarisation rate (which integrates the proportion of the population having an account in microfinance institutions with the formal banking penetration rate), Togo also had the highest in the WAEMU, knowingly 78.5% (far beyond the average in the region - 39.7%). It was therefore ahead of countries like Benin (72.2%), Senegal (52%), and Burkina Faso (43.4%).
Year-to-year, the regional average for this indicator grew by 1.4 percentage points (from 38.3% in 2018 to 39.7% in 2019).
Relative to financial inclusion, Togo with a rate of 72.3% was behind Ivory Coast and Benin (respectively first and second on this indicator with 77.9% and 77.8%). However, it did better than Burkina Faso (70.9%) and Senegal (70%).
Séna Akoda
Insurers generated CFA60 billion of revenues in 2019
In the past four years, the Togolese insurance market recorded a 25% increase in generated revenues. From CFA48 billion in 2015, they rose to CFA60 billion (after standing at CFA58 billion two years before).
Considering that very few people are insured in Togo (20%-30% of the population according to the national insurance office), there is still much room for improvement in the sector.
The Togolese insurance market is dominated by foreign companies. Indeed, out of 12 firms operating in the industry, only four are Togolese. The latter include GTA Assurance-Vie, GTA C2A - IARDT (recently acquired by Banque Centrale Populaire, a Moroccan conglomerate), Fidelia Assurance, and La Citoyenne Vie.
In the life insurance segment, GTA has the biggest turnover (CFA11.7 billion) and thus comes ahead of Senegalese Sunu Vie (CFA7.4 billion), and Ivorian NSIA Vie (CFA3.5 billion).
In the non-life segment, the Moroccan group Saham has the largest share of the market (with a turnover of CFA10.5 billion in 2019). It is followed by GTA IARDT (6.7 billion), and Sunu (6.3 billion).
Séna Akoda
Togolese authorities look to adopt a national policy to improve road safety
Due to the resurgence of road accidents in the country, Togolese authorities plan to draw a national policy for road safety.
This was disclosed on November 4 by the Minister of road, air and railway transport, Affoh Atcha-Dedji, in a ministers’ council.
“The road safety policy will mainly integrate an approach focused on the following: management, infrastructure, vehicles (vehicle quality), people and emergency support,” the minister said.
In the first half of 2020, 22,627 road accidents were recorded, including 241 deadly ones and 3,734 where people were injured.
Séna Akoda