In Togo, a new labor code was unanimously adopted by the parliament on December 29, 2020. 

The document, which contains 378 articles, replaces a text in use since 2006. Among others, it aims to “make clearer major regulations in this area (labor), while fostering more investments.”

The adoption of the new regulation embodies a need to achieve balance between the protection of workers’ interests across existing socio-professional categories, and the interests of employers and investors. 

The new text, said Togo’s Minister of Civil Service, Gilbert Bawara, is aimed at ensuring a “judicious balance between the aspirations and expectations of workers and also the needs of companies and employers.”

In effect, the labor code will help establish better working conditions, improve social and environmental standards, better handle overtime, and boost mechanisms aimed at preventing and solving work-related conflicts. It is also expected that regulation related to temporary unemployment and layoffs (for economic reasons) will be improved. 

The adoption, it should be emphasized, concretizes the government’s ambition to have more business-friendly labor rights, as it told Togo First a few months ago, in line with reforms introduced to improve business climate. 

Ayi Renaud Dossavi

Transport startup Gozem  recently launched a package delivery and order management service called Gozem Shopping. 

In a recent statement, the firm said the new service allows its customers to order goods, from an online catalogue, and be delivered with taxis. 

The new service was launched a little after the Uber-like firm acquired in Delivroum, a meal delivery app operational in Togo. As a result, Gozem now delivers meals, in addition to groceries, gas bottles, and various electronic goods. 

Ayi Renaud Dossavi

Interest rates of banks operating in Togo are extremely high, in contrast with easing measures introduced this year to support consumers amid the pandemic.

This was revealed by the Minister of Economy and Finance, Sani Yaya, during the last session of the National Credit Council (CNC), which was held on December 24, 2020.

Yaya observed that “interest rates on loans are still at relatively high levels, despite the relaxations observed in 2020 compared to 2019,” and also because “the Central Bank (BCEAO) has lowered its key rate to 2%, effective since June 24, 2020.”

It should also be noted that, in order to reduce the pressure on financial institutions and mitigate the economic impact of Covid-19, the BCEAO proceeds to liquidity injections at a fixed rate of 2%. 

For all these reasons, said the minister of finance, “it is difficult to understand why the cost of credit is high.” He then instructed the association of banking actors to conduct a study probing into the matter, asking them to find out the reasons for using such rates.

The CNC, let’s recall, is in charge of assessing the operating conditions of Togo’s banking and financial system, in concert with the BCEAO.

Ayi Renaud Dossavi

The European Union (EU) will spend CFA2.2 billion to improve urban governance and social openness in the Haho prefecture in Togo. In detail, the related project covers the municipalities of Haho 1, Haho 2, Haho 3, and Haho 4. 

The EU’s financing represents 85% of the total amount required for the project (CFA2.6 billion). Through the move, the Union reinforces its actions in favor of local governance in Togo. 

In effect, the project, which should extend over four years and benefit 311,000 people, involves strengthening the foundations of an inclusive, participative, and urban governance based on gender equality and human rights. 

In the areas, it covers, the project will ease access to water, sanitation, and participative legal services. It will also foster the empowerment and employment of women, youths, and the poorest. Culture will, in this framework, be a major vector for social cohesion. 

The municipalities will benefit from a sharing of experiences in urban governance and the development of services leveraging international partnerships (notably with municipalities of Bapaume in France and Porto-Novo in Benin).

The initiative will promote exchanges of best practices with NGOs (CDD, Self Help Africa) and municipalities in Togo that have implemented projects for access to essential services financed by the EU. Thanks to the project, 10,000 women, young people, and poor people, will get birth certificates and another 2000 people will have access to literacy, among others.

Séna Akoda

To advance its decentralization process, Togo intends to build 40 new town halls. This was decided at the latest council of ministers. 

Besides building the new facilities, Lomé wants to train 1500 municipal counselors across the country, in addition to drawing a development plan for 10 municipalities. 

Togo will, in this framework, benefit from the support of Europe (Germany’s especially, through GiZ’s ProDeGol initiative). 

It should be noted that the following municipalities are already working on their development plan: Golfe 1, Haho 3, Kozah 2, and Dapaong

Next year, the European Union could provide Togo €48 million to fight Covid-19. 

The funding announced during the 21st session of the Togo-EU political dialogue should come as budgetary support. During the meeting, the two partners committed to improving their cooperation, especially concerning the pandemic. 

It must be noted that in 2020, the EU has been one of the West African nation’s major technical and financial partners, notably in tackling the pandemic.  

The sum announced is twice what the Union promised to disburse for Togo this year, to help it fight the virus. 

Talks at the recent meeting with the European delegation also focused on challenges related to vaccination against the virus. 

Ayi Renaud Dossavi

Through its subsidiary Arise, the Singaporean Olam expressed its intention to build the Lomé-Cinkassé highway in partnership with the Africa Finance Corporation (AFC). This was disclosed last Friday by Togo’s minister of finance, Sani Yaya, in a meeting with the parliament for the adoption of the 2021 budget. 

An MoU of cooperation to conduct related studies and build the highway has already been signed with the Togolese government, Yaya said. The estimated cost for the 700-km road exceeds $600 million (over CFA330 billion). One of the flagship projects of the National Development Plan (PND), it should ensure traffic fluidity, reduce cost and time of travel on the corridor, and subsequently improve the competitiveness of the Autonomous Port of Lomé. 

It should be noted that the AFC, together with Arise, recently started building the Adétikopé Industrial Platform (PIA) for an investment of nearly 140 billion CFA francs.  Two years ago, Togo became the 12th West African country to join the Corporation.