In Togo, the PAEIJ-SP, which fosters the creation of jobs for the youth and their professional insertion into promising sectors wants to turn 2,3000 farmers associations into cooperative societies. 

The farmers concerned by the related project work in the organic soybean and maize sectors. Through the initiative, the government wishes to turn the farmers into true entrepreneurs. Through this transition, they will be backed by technicians trained recently for this purpose.  

In effect, the technicians’ mission is to coach 34,000 first-time entrepreneurs towards establishing cooperative societies. The entrepreneurs will learn how to create and run cooperative societies, setting up offices, management committees, etc. 

Séna Akoda

In 2019, Togo produced nearly 800,000 tons of phosphate (799,775 t), according to data gathered by the Central Bank of West African States (BCEAO). The volume, the apex lender said, is 21.5% lower compared to the 1.02 million tons produced the year before.  

Though relatively stable over the past decade, the country’s phosphate output recorded some lows in the last five years; especially in 2016 and 2017 where the volumes stood at 843,000 t and 732,500 t, respectively, compared to 1.15 million t and 1.02 million t in 2015 and 2018. 

These performances, it must be noted, are far below those recorded in previous decades, with an average of about 2 million tons in the 90s (almost 3 million tons in 1991 alone), and 1 million tons in the 2000-2010 decade.

The government’s financial support to private teachers as schools remain closed (apart from examination classes) because of the Covid-19 pandemic has been extended to volunteer teachers. 

According to a statement released on the presidency’s official portal, the volunteers benefit, since June 27, from a State subsidy to help them cope as the pandemic persists. 

Overall, around 130,000 volunteers (10,753 teaching in primary schools and 1,860 in secondary schools) will receive cash transfers through the Novissi solidarity program. Women will get XOF24,500 each and men XOF21,000.  

Further steps are taken to enable all actors concerned to receive the money which was promised by the government a few weeks ago.

So far, Togo is relatively spared by the Covid-19 pandemic, with little impact on the country’s agricultural output and food security. This was disclosed in a country note recently released by the general directorate of the French treasury. 

The document highlights the steps taken by the Togolese government to rapidly contain the outbreak; the country's important grain reserves, as well as its status as a fruit exporter. All these, according to the French treasury, protect Togo from experiencing food insecurity induced by the pandemic.

Rapid measures

On June 11, 2020, Togo had 524 active Covid-19 cases (62 cases per million citizens), 13 deaths, 271 recoveries, and about 2,900 tests per million citizens. These were among the best rates across the region. There was also the Novissi program which aimed to support the poorest households by cash transfers every month throughout the emergency state. 

Indeed, the country has 70,000 tons of grains stocked (about 10 kg per citizen) that are managed by the national agency for food security (ANSAT); and an additional reserve of 5,000 tons of other food products. 

Meanwhile, the ministry of agriculture recently launched its very own response to the Covid-19. The latter integrates various actions aimed at supporting farmers towards boosting the country’s output for this year. 

Preserving the poorest people and the business climate

Lower imports, inflation in the prices of some products, and an overall reduction of households’ stocks are the main repercussions of the pandemic. However, beyond the economy slowing down and pressure on businesses and consumers, the lasting effects of the pandemic were mitigated by the government’s rapid action to protect the poorest populations and the business climate as a whole. 

Informal transport routes: Blessing or curse? 

From March to May, all Togolese borders were shut and some cities were placed under lockdown. Still, people and goods were coming in and going out of the country as new transportation routes were found. 

“Informal transportation networks across borders reorganized themselves. Major road axes and police roadblocks are bypassed via routes that connect various goods rallying points, using bikes, bicycles, pirogues, or by foot.” 

While this has sustained goods transportation in the country (outside of official circuits), it has nonetheless caused the number of Covid-19 cases recorded by Togo to rise (especially cases coming from Ghana and going to the northern part of the country). 

It is now time to reopen the economy and gradually return to normalcy. A return that is impaired by the recent peak in infections after a period of stability. Regardless, the numbers registered in Togo are far below that of its neighbors. 

Ayi Renaud Dossavi

Togo has extended its health emergency to August 16, 2020. President Faure Gnassingbé took a step in this framework, after receiving the green light of the Constitutional court to proceed. 

At the date the decision took effect - July 3 - Togo had 233 active covid-19 cases, 424 recovered patients, and 14 deaths. This is against 32,267 tests. Let’s recall that the health emergency was initially declared at the beginning of April, this year. 

Séna Akoda

On June 17, 2020, the government of Togo announced that it secured its second loan on the international market - €150 million. Given the coronavirus crisis, this was a true gamble that has paid off. 

For this operation guaranteed by the African Trade Insurance Agency (ATI-ACA), investors mitigated associated risk by setting a low-interest rate, 4.5%. The move reflects a shift from western assets, which are becoming more and more volatile, to developing economies that are somehow regarded as a “haven” for investments.

Togo, it should be recalled, had envisaged many options including a €500 million Eurobond. However, it had to readapt to market conditions and borrow from international private investors. In detail, Lomé first borrowed €103.6  million from these investors at an interest rate of 4.68%, a maturity and grace period of 10 and 2 years respectively. Using the loan, the country was able to pay in advance a cumulative debt - regional and internal - of XOF66.6 billion, with an average interest rate of 7% and maturity periods ranging between 3 to 8 years.  

€130 million saved 

Two months before the country recorded its fulgurant success on the international lending market, various rating agencies, including Moody’s, issued bad forecasts for its economy. However, Moody’s recently estimated that the debt reprofiling could enable Togo to save around €130 million (or 1.6% of GDP in 2020) on its debt servicing costs over the next three years. This should also reduce risks of low liquidity that may arise due to substantial refinancing needs. Due to the latter estimated at nearly 18% of GDP for 2020, near the end of 2016, the IMF had to step in and help the West African nation as it was then very indebted (82% of GDP). The IMF’s support helped the Togolese government rapidly take back its finances in hand. 

According to official data made available in early 2019, 18.3% of Togo’s domestic debt should be fully reimbursed this year. The same data states that this debt is to mature in 3.8 years. 

Togo ends 2019 on a good note

When Togolese authorities mentioned the recourse to the international finance market for the first time, the IMF had capped the amount to mobilize saying it should not exceed 8% of GDP while stressing that the net present value of the debt should be closely monitored. 

Meanwhile, the World Bank, which had repeatedly said it would guarantee the operation via its IDA window, retracted after the appointment of David Malpass as the head. The former Beer Stearns chief instead substituted the guarantee with a direct cash supply. 

As a result, Togo obtained a record budgetary support of $150 million but still borrowed on the international market. Thus, the end of 2019 was good for the country. It paid its debts and even had a budget surplus of 2.1%, donations included. Another reason for explaining this good performance is the privatisation of TogoCom which compensated the low results of the tax revenue office (OTR) the same year. 

Togo is the only ECOWAS state to meet the region’s convergence criteria to adopt the Eco which is proposed as a single currency for the region. This is quite unexpected considering how high its debt was two years earlier.

“The authorities have carried out the first tranche of a debt reprofiling operation, reducing slightly the net present value (NPV) of total public debt while preserving the external debt risk rating, in line with the Fund-supported program,” IMF experts said in March 2020 as economic forecasts were scaled down significantly due to the outbreak of the covid-19 pandemic.

Fiacre E. Kakpo

Lomé-based banking group Ecobank recently rolled out its “Zero Malaria Business Leadership” initiative. The program, launched with the collaboration of Speak Up Africa and the Partenariat RBM, aims, as its name suggests, at eradicating malaria. 

The program implemented in 30 African countries will push decision-makers to increase financing and take stronger and better-targeted actions to eradicate the disease. Its main objective is to first, ease the mobilization of funds at the national level to sustainably finance malaria control and eradication programs; secondly, get businesses and their owners more involved in the fight against malaria; and thirdly, to develop collaboration platforms by leveraging Ecobank’s networks and partnerships. 

“In the long run, eradicating malaria will help improve prosperity all over Africa, as well as foster healthier labor which will stimulate economic growth,”  said Paul-Harry Aithnard, regional executive director of Ecobank for the WAEMU. The group, he added, “is glad to work with Speak Up Africa and the RBM Partnership to get rid of malaria, and the African Union (...) and to act as a vector for a coordinated action against this disease which can be cured and avoided.”

Ayi Renaud Dossavi

In the past 10 days, 74 new Covid-19 cases were recorded. This is almost twice the number (39) recorded 10 days before, according to the head of the national team coordinating the response against the pandemic, the CNGR. 

The rapid increase is due to travelers’ movements and the existence of outbreak foci, such as a company located in the Lomé duty-free zone where about 20 cases were identified and quarantined (for 14 days). 

Also, every prefecture across the country is now affected; Haho being the one to have most recently reported its first case (on July 1, 2020). Other prefectures that reported their first cases were Moyen-Mono, Ogou, Bassar, and Kpendjal.  

Based on the actual data available, it seems that the virus has spread more in the southern region (with a greater density in Lomé and its surroundings). In this part of Togo, the major foci are Lomé-Commune (294 cases), Agoè-Nyivé (74), and Golfe (37). In the north, Plaine de Mô, Tchaoudjo, and Tandjoare have the highest number of cases, respectively 19 for the first two and 14 for the last.