Togo First
Covid-19: the University of Lomé will commence human trials for a locally developed treatment next September
In Togo, the University of Lomé (U.L) will begin human trials for local drugs made to fight the covid-19 virus on September 1, 2020.
The news, which was relayed in a tweet by Le Temple du Savoir comes after the university proceeded to “in-vitro and in-vivo trials on animals.”
The move to human trials is a significant milestone in the university’s commitment to driving out the coronavirus.
Let’s recall that the UL has opted for a combination of African traditional medicine and western modern medicine to make drugs against the virus. On May 12, 2020, the Ad hoc commission put in place at the university to fight the pandemic presented its first results for plant-based molecules. Later, in vivo trials were conducted on animals.
Besides looking for local treatment, the UL is manufacturing and selling alcohol sanitizing gel and respiratory masks, all to contain the pandemic.
Séna Akoda
Covid-19: BSIC launches call for projects to financially support young entrepreneurs in countries where it operates
The BSIC bank launched a call for projects to support SME-SMIs and micro-enterprises in making equipment or tools to fight the coronavirus.
The call targets young entrepreneurs operating in any of the 14 countries - Togo included - where the bank is established. In each country, two selected projects will be financed with €35,000 (+XOF22,000,000) per project.
Thus, the Lomé-based lender will spend around XOF643 million on 28 projects in the process. The monies will be provided on flexible terms.
Entrepreneurs interested in submitting their projects must do so latest by July 24, 2020.
The call for projects, let’s emphasize, was launched by the banking group in line with its corporate social responsibility, as well as to help fight the Covid-19 pandemic.
Séna Akoda
Covid-19: IMF says Africa could experience a recession far worse than it previously expected
The coronavirus-induced recession that the International Monetary Fund (IMF) expects to hit the sub-Saharan Africa region could be far worse than it has foreseen.
Indeed, according to the body, the pandemic could cause the region’s earnings to fall back to the same levels they were a decade ago. From a 1.6% contraction forecast in April, the IMF now expects the SSA economy to shrink by 3.2% - a situation attributed to the closure of borders and businesses, total and partial lockdowns, resulting in lower tax revenues and higher public spending (to tackle the health emergency).
This is bad news for Togo which, it should be recalled, initially eyed a 5% economic growth rate this year, but had to scale down the figure to 3%, then 1%, as the pandemic persisted.
While it is true that Africa is presently less affected by the pandemic, looking at the number of cases confirmed, the continent could face very difficult economic repercussions in the coming months - especially if the virus’ spreading curve were to accelerate.
Sub-Saharan African countries are at the moment very cautious as they slowly reopen their economies and borders. Also, regardless of many gloomy expert predictions for Africa, the continent seems more resilient to the virus.
Ayi Renaud Dossavi
Togo: The MIFA is two years old
Launched in June 2018 by President Faure Gnassingbé, the Agriculture Incentive Financing Mechanism (MIFA) which is based on risk-sharing, celebrated last week its second anniversary.
Over the period, the MIFA, which is inspired by the NIRSAL in Nigeria, helped distribute more than XOF14 billion to 144,000 actors of the Togolese agricultural sector, of which 125,000 are farmers. This was done through 10 financial institutions, namely Ecobank, Orabank, Sunu Bank, UTB, BTCI, SOGEMEF, FUCEC, African Lease Togo, and Bank of Africa.
The mechanism also received support from many financial partners including the AfDB, IFAD, and the Khalifa Fund. It also structured viable markets worth XOF124 billion which are related to production and transformation across all agricultural sub-sectors.
In total, the MIFA created nearly 163,000 jobs in Togo (both direct and indirect) since it began operating.
More ambition for 2020
The ambitions of the mechanism this year are even greater, despite (or because) the major challenges spurred by the Covid-19 in the agricultural sector. Among others, the MIFA is boosting its actions to improve transportation of agricultural products, contribute to the government’s covid-19 response, and make it easier for farmers active in key sectors to get the inputs they need.
In effect, the mechanism plans to mobilize XOF50 billion for 400,000 agricultural actors, as well as generate 450,000 jobs in 2020.
UMOA securities: Togo seeks XOF30 billion for its first operation this semester
The Togolese public treasury seeks XOF30 billion on the regional financial market. This is the country’s first operation on this market this semester.
Lomé has, in this framework, launched simultaneously two bond issuances with respective maturity periods of 3 and 5 years. While the bonds for both operations have a nominal value of XOF10,000 per unit, interest rates for the issuances are respectively 6.15% and 6.4% per annum.
According to the Umoa-securities agency which manages the region's public securities market, the operation aims at “mobilizing funds from individuals and corporations to finance Togo’s state budget.”
Let’s recall that since the year started Togo, like all the other WAEMU members, has regularly and successfully sought financing on the WAEMU regional finance market.
Fiacre E. Kakpo
Togo: This is why the government wants to privatize the NSCT
In the past few days, many have been wondering about the privatization of the Nouvelle Société Cotonnière du Togo (NSCT). Talks between the Singaporean group Olam and the State are underway and if conclusive, the Asian firm could secure part or all of the latter’s stake in the public company. The privatization was approved on Monday by the parliament.
Concerns about the transaction are mainly related to the fact that usually in Togo when the State decides to privatize a business, it is due to low financial performances or internal issues. This time, however, sources close to the ministry of finance and economy indicated, it is not the case. The NSCT is doing well and posted a net result of XOF4.6 billion in 2019.
The decision to privatize the firm aligns with the authorities’ ambition to modernize the cotton sector, create a new chain of value, and take full control of the industry, from the production to the transformation stage, as well as direct, or intermediate consumption.
Great ambitions and great challenges
Togo thus relies on Olam which has recorded good results in countries such as Chad and Côte d’Ivoire, both in the cotton production and logistics sectors. The government, with the Asian group, plans to get its textile industry afloat and massively create jobs.
Concretely, the privatization of the NSCT should not negatively affect production at the Nioto oil factory which strongly depends on the former for its input.
During the previous cotton campaign, 2019-2020, Togo produced 116,000 tons of the crop. This is far from the 200,000 t yearly output which the country expects to reach in the next two years. To improve the situation, the government plans to motivate farmers who were discouraged by the drop in the price of a kilogram of cotton. Some sources suggest that authorities have entrusted Olam the task of significantly raising incomes of cotton farmers in the next three years, and ensuring a yield per hectare of 900-1000 kg in the short term.
Cotton is Togo’s first export and it contributes to 4% of the country’s gross domestic product (GDP).
Séna Akoda
France provides Togo XOF2 billion for the Novissi programme
Yesterday, France and Togo signed an agreement under which the former will provide the latter XOF2 billion (€3 million) for its Novissi scheme. The document was signed by the Togolese minister of economy and finance, Sani Yaya, France’s ambassador to Togo, Marc Vizy, and the head of the French Development Agency (AFD).
The Novissi scheme is an initiative launched by the State to help actors of the informal sector who struggle due to restrictive measures put in place to contain the pandemic. So far, 560,000 people -women mostly - received more than XOF11 billion (€16 million), via mobile money, in its framework.
The funds, which were promised by French President Emmanuel Macron, align with the Santé en Commun initiative which aims at supporting socio-economic actions set under Togo’s national response against covid-19.
“I am extremely happy and proud of this partnership which supports the response of the Togolese government to this global crisis that has major economic repercussions,” Vizy said.
Togo has mobilized half of the XOF400 billion it seeks to tackle economic repercussions of Covid-19
At the beginning of April this year, Togo announced it would mobilize XOF400 billion to deal with the economic repercussions of the covid-19.
Out of this sum, XOF200 billion has been secured so far. The figure was disclosed by Ekpao Adjabo, director-general of the public treasury and accountability. He did so on the sidelines of a meeting between Togolese officials and AfDB executives to sign a financing agreement in profit of the Novissi programme.
The amount mobilized so far - XOF200 billion - came from various sources including 2.5 billion voluntary donations.
African countries are making substantial progress in the fight against tax fraud and illicit financial flows (Report)
African countries are making a lot of progress regarding the fight against tax fraud and money laundering. This is revealed in findings from the latest Tax Transparency in Africa report released by the Africa Initiative. The document features 32 African member States of the Global Forum on Transparency and Exchange of Information for Tax Purposes and three non-members.
The document shows significant progress has been made relative to raising political awareness and commitment in Africa and developing capacities in African countries in tax transparency and exchange of information.
How did Togo benefit from the Africa Initiative and the Global Forum?
In Togo, which joined the Africa Initiative and the Global Forum some years ago, its membership has enabled it to improve tax transparency and fight illicit financial flows. According to the report, the country “identified unreported transactions carried out by taxpayers in Togo. This led to the identification of USD 1.3 million of additional taxes.”
Now, Togo plans to implement in the medium term a framework for Automatic Exchange of Financial Account Information, according to the Togolese Tax Office (Office Togolais de Recettes - OTR). To achieve this, “the assistance of the Global Forum will be essential,” authors of the report emphasized.
Click here to download the full report
Ayi Renaud Dossavi
Cotton: Deputies pass bill to privatize the Nouvelle Société Cotonnière du Togo (NSCT)
Yesterday, June 29, the Togolese parliament greenlit the bill approving the privatization of the Nouvelle Société Cotonnière du Togo (NSCT).
With this milestone reached, talks with Singapore-based Olam group which eyes the State’s shares should soon begin. The private company could secure up to 51%, if not all, of the State’s 60% stake in the NSCT - the remaining 40% being detained by the National Federation of Cotton Farmers (FNGPC).
However, the government promised farmers and workers employed at the NSCT will not be laid off as a result of the privatization. “Their interests will be preserved,” said minister of finance Sani Yaya who even added that their income should increase substantially over the next three years.
Séna Akoda