In Togo, nine carriers of innovative projects in the waste recovery sector, the use of local materials in housing and transport construction as well as in the issuance of civil status certificates will have the opportunity to obtain a total of US$240,000 (XOF120 million), put into play by the UNDP country office.
In detail, those who stand out from the crowd for their innovative solutions in building sustainable cities will each receive an envelope of US$20,000, while those who carry projects to improve the issuance of civil status documents will each receive US$30,000.
The initiative to launch this competition finds its justification in the perceived need to promote local know-hows and good practices, says Aliou Dia, UNDP Resident Representative in Togo. It shows a shift in the UN institution's development approach in Togo.
Through this competition, UNDP is supporting the Togolese authorities, who are engaged in a race against time to achieve the sustainable development goals in the sectors covered by the competition.
Séna Akoda
Togo has been piling up successes for the past two years. Among these is Lomé’s port becoming West Africa’s leading port, beating Lagos’; or the country’s amazing leap, up 59 places, in the Doing Business rankings. Investors from Europe, Asia, the US, have put their trust in this economy’s future. Its parliament has adopted, at unanimity, a new constitution. These are achievements lauded by the IMF, the World Bank, and the PNUD...Looking at the tremendous shifts, one may wonder what grace had touched President Faure Gnassingbé, enabling him to turn a nation that was highly criticized in the past into a model of governance and growth?
On August 19, 2017, the Pan-African National Party (PNP) called for protests against an arbitrary ruling of Faure Gnassingbé. However, conflicts arose after protesters in Lomé failed to respect initially agreed itineraries. Official data reported two dead and many wounded amid the tensions.
Ending “the Gnassingbé dynasty.” That was the objective of the protests which lasted weeks, with frequent conflicts. The International Community is stirred up and western media are making the headlines, adding without distinction the years of rule of the actual leader to his father’s.
As civil peace is threatened, Faure Gnassingbé agrees to mediation by the Presidents of Guinea and Ghana, Alpha Condé and Nana Akufo-Addo. The two leaders successfully restore a national dialogue, enabling the ECOWAS to draw a plan to end the crisis. This plan proved to be successful as two years later, the country seems to have fully recovered, with its economy being more dynamic than ever, in all its 60 years of independence. Still, Faure Gnassingbé had to overcome many obstacles to achieve such feats.
Faure Gnassingbé had to overcome many obstacles to achieve such feats.
Faure Gnassingbé was born on June 6, 1966. He was only seven months when his dad, at the time Lieutenant-colonel Eyadema Gnassingbé, came into power. The youth would then have a very strict upbringing, attending a protestant junior high school and later the French military senior high school. He is brilliant. After graduating with honors, he continues his studies in Finance Management at the University of Paris-Dauphine. He then gets an MBA at the George Washington University, U.S. At 33 years, he becomes deputy, and four years later a minister. So far, so good.
In February 2005, his father dies, leaving behind an exhausted economy. Lenders have been turning their backs on the country, for the previous 12 years. Truth is, throughout his 38 years of governance, the late Eyadema Gnassingbé ruled Togo with an iron hand. Opposing him would not have been the smartest move. However, the “Father of the Nation” as he was known did loosen his grip near the end of his rule, amending the press code and freeing nearly 500 political prisoners; a change of heart which failed to satisfy Brussels. The latter demanded an electoral code that would be accepted by the opposition.
Afterward, the army picked young Faure to take his father’s place. He, therefore, resigned as a minister and runs for the presidency, with the Rally of the Togolese People (RPT) party, the ruling party since 1969.
A dire challenge awaited him as the treasury was depleted, the country could no longer count on the support of the IMF or the World Bank, arrears were piled, social services and infrastructure were in a poor state, and the military was strongly established. All things considered, this was not the best of legacies…
Faure Gnassingbé was elected with 60% of the votes, an outcome vehemently opposed by the opposition. Many conflicts followed killing, according to the UN, 400 to 500 people and displacing around 40,000. Regardless, the international community validates the elections, while demanding democratic progress. Two years later, in 2007, the country organized legislative elections deemed pluralist and transparent by the European Union (EU). That year, which was described as “historical for Togo” by the French newspaper “Le Monde,” the UFC, the party of the opposition, had 21 deputies joining the parliament. Lenders then start returning, France first. The EU restarts financing the economy which, slightly and slowly, begins its recovery. The State even cleared its debts to cotton farmers who had lost all hope of getting back what was owed them.
The following year, the country got €212 million in debt relief from the World Bank. The Paris Club (Club de Paris) also cleared a ridiculous debt of €273 million the country had contracted. And though the young leader was making a good impression, the battle was far from won...
The young leader was making a good impression.
During the 38 years that Faure’s father ruled, a ruling class had been established and they were not willing to give up their privileges or prerogatives. Among them was Faure’s own brother, Kpatcha Gnassingbé. In 2009, tensions between the two siblings rise. On the evening of Easter that year, the President was informed that Kpatcha was preparing a Coup d’Etat. Exposed, the fomenter hides at the U.S embassy. Unfortunately for him, the Americans handed him over to the Togolese justice which condemned him to 20 years’ imprisonment. And while many questioned this turn of events, the message was clear: Everyone got in line.
This was just one of many roadblocks Faure Gnassingbé would have to overcome.
First, he focused on healing a country that had suffered decades of clashes. He then establishes the Truth, Justice and Reconciliation Commission (CVJR), an entity that listens to victims of political clashes, understands what happened, how it happened, and how to prevent them in the future, thus preserving peace. The CVJR also compensates these victims, cover related medical expenses, and promotes forgiveness and reconciliation. In 2018 alone, it was provided a budget of XOF5 billion to run its operations. The commission has 11 members, each coming from different religious, political, and social families across the country. While it was established by the government, it must be emphasized that it is autonomous.
The President grappled with a deep-rooted corruption while trying to lay the foundations for a strong economic development. In March 2011, he formed the Togo Presidential Investment Advisory Council, comprising key African and international figures. Among them are the Nigerian mogul Aliko Dangote, Alec Erwin (former South African minister and head of UNCTAD), French Anne Lauvergeon (former head of Areva), German Jürgen Schrempp (ex-chairman of Daimler-Chrysler), Ghanaian Samuel Jonah (ex-chairman of AngloGold Ashanti), and the Nigerian Arnold Ekpe who was Ecobank’s MD at the time the council was formed.
Tony Blair: "Now we have the opportunity to attract investors here. "
From there, things were getting clearer with the conception of a definite strategy. The latter focuses on improving the country’s business climate, modernizing administration, reforming agriculture (PNIASA and MIFA), boosting private investment, providing electricity to as many people as possible, aiding the least favored, and backing business projects of youths and women, in line with a social mandate started in 2015. After pledging to set aside 20% of procurement for young entrepreneurs, the government decides to increase this share to 25%. A move which, according to Lomé, falls under the social component of its national development plan, the PND.
March 2019. Faure Gnassingbé launches this new plan which was designed with major advising firms but also some competent local youths. The strategy expands over five years and aims to “structurally transform the Togolese economy,” by generating many jobs and wealth.
“This is not just another plan, nor a theoretical tool.”
The people of Lomé criticized the project since its precursor, the SCAPE, didn’t make a very good impression; it exploded public debt and subsequently pushed the IMF to set some recommendations for the economy to recover. Privatizations, strict reforms: Many fear that old demons will resurface. However, “Tchalevi simple” (simple man), as President Gnassingbé is nicknamed, reassures them: “This is not just another plan, nor a theoretical tool. This, the leader affirms, is an inclusive plan”.
In the months to follow, Faure Gnassingbé started a roadshow that took him and other officials all around the globe. This is the opportunity for the President to invite investors and businessmen worldwide to support Togo’s growth ambitions. To convince them, he implements a series of reforms, forms diplomatic alliances, well, he goes all out. As a result, the PND is lauded by great economists (Carlos Lopes, Dominique Strauss-Khan, Lionel Zinsou, Benedict Oramah, Ade Ayeyemi, Gilbert Houngbo, Akinwumi Adesina…). However, the private sector must still be convinced, as it is expected to provide 65% of funds needed for the development plan.
To achieve this, Faure wants to give his country the reputation of one where doing business is easiest. He wins this bet and Togo is listed, by Mo Ibrahim, as one of the continent’s top reformers. The country even gained 59 places in the World Bank’s Doing Business ranking. The next challenge is to improve Togo’s position in Transparency International’s corruption perception index.
Today, Togo’s move at the international level is paying off.
Today, Togo’s move at the international level is paying off. Investors from Japan, France, China, Germany, UK, and many others are flocking to the country. Africa’s richest, Aliko Dangote pledges more than $2 billion in industrial investments. Another mogul, Jack Ma, promised to support Togolese entrepreneurs. More and more businesses are being created. Young Togolese are getting more exposure through their initiatives and innovations. Gnassingbé’s development plan is launched. Now all eyes are turned toward the future.
Next year, the country will hold presidential elections. If the Togolese people are charmed by these positive changes, Faure Gnassingbé could very well secure another five-year term to advance Togo.
Dominique Flaux
This week, Germany granted Togo a subsidy of €33.7 million (about XOF22 billion).
In detail, around €10.7 million will be used to rehabilitate, enlarge and equip training institutions (in line with a professional training and youth employment project); €8 million will go into the rehabilitation, expansion and equipping of health facilities in Kara. The remaining sum, €15 million, will be invested in phase 2 of the Power Supply Project.
These various initiatives ultimately aim at generating more jobs for the youth in Togo, and also improving access to quality services.
The related financing agreement was signed by Demba Tignokpa, the minister of planning, and Matias Veltin, Germany’s ambassador in Togo.
On the occasion, the Togolese minister declared: “This facility translates once more the importance of cooperation between [the] two countries. It should help finance projects aligning with our national development plan.”
R.E.D
Togo expects to collect XOF678.4 billion of taxes in 2020, up 1.3% compared to the forecasts for this year (XOF669.5 billion). As for non-tax earnings, the country hopes to mobilize XOF75 billion next year (against XOF69.4 billion in 2019).
This was disclosed by the ministry of finance after the parliament passed the 2020 finance act. Forecasted revenues and expenditures under the latter total XOF1,466.2 billion (against 1,430.1 billion in 2019). It should be noted that 46.8% of the budget resources will be invested in social sectors such as education, health, agriculture, and rural electrification. According to the previsions, there should be a budget deficit balance of XOF 67.1 billion, representing 1.9% of the country's GDP (thus below the UEMOA 3% cap).
Let’s recall that over the first three quarters of 2019, Togo’s tax income rose by 22.4%, the second-highest increase behind Mali.
R.E.D
Nearly half of 2020’s budget (46.8%) will be poured in social sectors, knowingly health, education, agriculture, and rural electrification.
This was disclosed by the ministry of finance after the parliament adopted the initial 2020 finance act.
Health, according to the government’s plans, will get about one-tenth of budgetary resources, while education will get around one quarter.
Moreover, next year, the authorities will focus on “augmenting workers’ and retirees’ purchasing power, by revalorizing their wage index.” Other priorities include curbing the unemployment rate (by hiring in the public sector), rehabilitating and equipping health centers, especially the Sylvanus Olympio University Hospital, building retirement homes, significantly increasing resources of the local communities support Fund, for its effective operationalization.
Part of the remaining budgetary funds will be invested in the mines and energy (5.3%), as well as in infrastructure and transports (18.7%).
R.E.D
The board of the West African Development Bank (BOAD) held last Wednesday its 115th ordinary session, in Dakar. On this occasion, the bank approved partial financing of many projects submitted by the States and other economic actors of the West African Economic and Monetary Union (WAEMU).
Among these is the project for a 30 MWp solar plant in Blitta, Togo. The project thus secured XOF7 billion from the BOAD.
The infrastructure, which was to be initially built in Dapaong, mobilized the participation of the Abu Dhabi Fund and AMEA POWER.
Funds promised by the BOAD will partly be used for the construction, operation, and maintenance of the plant. The project will be developed under a public-private partnership, with a 25-year concession issued to the operating company. After this period, it will be ceded to the State, specifically power utility, CEET.
Let’s recall that the Blitta plant will be the first of four with the same capacity, planned under the 2018-2030 national electrification strategy.
Séna Akoda
Over the first three quarters of this year, Togo’s tax revenues rose by 22.4%, according to data from the Central Bank of West Africa (BCEAO).
In the WAEMU, this is the second-highest rise after Mali (+35.9%) and the same as Senegal (+22.4%). The central bank in this effect lauded “financial governance in the WAEMU, relative to tax collection, mentioning ongoing projects to modernize administration and reinforce public finance management.”
Let’s also indicate Togo’s non-tax earnings stood at XOF46.64 billion for the period reviewed, up 4.18% compared to the year before.
Overall, budget revenues across the community was 11,348.2 billion over the period under review. Last year, over the same period, these revenues grew by 1,757.7 billion (+18.3%).
R.E.D
Moustafa Mijiyawa, Togo’s minister of health, is the new board chairman of the Africa Centre for Disease Control and Prevention (Africa CDC). The Togolese official was elected earlier this month for a three-year term, in Addis Ababa, at the sixth meeting of the organization’s board.
Mijiyawa, professor of Rheumatology, has been active for more than 30 years in the health sector, both in Togo and outside. His new mission at CDC is to improve upon achievements of his predecessors.
Africa CDC is an organization of the African Union (AU). Created in January 2017, it collaborates with all 55 member-States of the Union, preventing the transmission of diseases, putting in place a system for medical surveillance and disease detection, especially epidemics and health threats.
The governing board of Africa CDC gives strategic instructions to the organization’s sécretariat, on all health issues, in line with the AU’s policies and procedures. It has 15 members, including 10 representatives of the African Union’s member-States.
R.E.D.
The UEMOA’s stock market, Bourse Régionale des Valeurs Mobilières (BRVM), will organize the first edition of the BRVM Awards next Feb. 8, in Abidjan.
“The event aims to foster the development and dynamism of this market,” says Corinne Ormom, BRVM’s chief of communication. Moreover, it should “boost the institution’s credibility, as well as embody excellence in the stock market sector, actors’ dynamism, and the BRVM’s attractiveness.”
Only BRVM-listed firms, bond issuers, investment, and brokerage firm (SGO), and UCITS managers (SGO) will be awarded.
Seven awards will be given: “Best listed firm, best bond issuer, best institutional investor, Best SMEs part of the Elite BRVM Lounge program, the Grand Prix du Jury, Best SGI (SGI), and Best SGO.”
Séna Akoda
Today, Lomé is hosting a regional meeting on special economic zones. The event’s theme is: Developing the Special Economic Zones in Africa: General Framework and Main Orientations.
According to the organizers, Togo Invest Corporation and Africa Free Zone, “the special economic zones are a major tool for African economies, relative to the augmentation of foreign direct investments (FDIs), job creation, skill, and technology transfer between national enterprises.”
During the meeting, three key topics will be discussed. These are: “Generalities, concept, and definition of economic zones ; Legal, fiscal and institutional framework: best practices ; Fiscal development strategy: how to attract FDIs.”
Top-level panels and debates are scheduled with various experts on the occasion.
Séna Akoda