Togo First

Togo First

According to the 2020 Greenfield FDI Performance Index released this month, Togo is the world’s top performer in terms of foreign direct investments, with a score of 10.83 and 11 FDI projects attracted last year. 

Togo “attracts more than 10 times the amount of greenfield FDI that might be expected given the size of its economy.” It thus exceeds the annual average of the performance index, despite being a newcomer in the rankings (only countries that attract 10 FDI projects or more are featured in the index). 

The largest share of FDIs Togo attracted in the period under review was a double partnership inked with Africa’s richest Aliko Dangote. Signed in November 2019, the partnership covers the establishment of a $2bn phosphate fertilizer processing facility and a $60m cement factory. Another major FDI project announced in the country is the construction of the Blitta solar plant ($33.5m) by Amea Power. 

This performance could be attributed to an improved business climate due to reforms introduced by the business climate cell which is headed by Sandra Ablamba Johnson,  Minister Delegate, Adviser to the President of Togo.

In the rankings, after Togo, Rwanda is next with a score of 10.6. Singapore is the 10th best performer in terms of attracting FDIs. 

On the other side of the coin - the 10 countries that attracted the least FDIs in 2019 given their economy’s size - Japan is first with 211 projects and Ecuador is the 10th.

Séna Akoda

Friday, 04 September 2020 14:35

Togolese deputies approve biometric ID project

Yesterday, the parliament greenlit the biometric ID project (e-ID Togo). According to the assembly’s president, Yawa Tsegan Djigbodi, the latter aims to “identify each Togolese citizen uniquely.”

For her part, Togolese minister of posts, digital economy, and technological innovation, Cina Lawson said “the adoption of this law is historic because it lays the legal foundations of the system in Togo.”

The project should be implemented at the beginning of 2021. It will lead to the creation of a unique social register that will help better take care of some social needs and offer administrative services. These include among others, universal health coverage, digitalizing the civil status, updating the electoral register, and targeting social aid. 

Séna Akoda

A new labor code, aimed at establishing a more business-friendly economy, was recently submitted to the assembly for validation. 

According to sources close to the case, the new pro-investment document aligns with the government’s reforms to improve the business climate. It was elaborated through a participatory and inclusive process, involving all concerned stakeholders - labor unions, professional and employers organizations (represented by the national employers’ association). 

Besides attracting investments and improving the business climate, Togolese authorities intend with the new legislation to improve the working conditions of employees as well.  This reminds of a statement made by the minister of public service, Gilbert Bawara, during a national council for social dialogue in 2019. “We must also provide more protection and give more consideration to employees,” he said at the time. 

Let’s recall that deputies started their second ordinary session on Monday. The new labor code should be part of the 23 draft bills pending consideration in the committee. 

Once approved, the regulation will be adopted by the interprofessional collective convention and sectoral conventions. 

Fiacre E. Kakpo

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Togo’s neighbor Ghana will get a €79 million loan from the UK to expand the 166km-road from Tema to Aflao which connects the two countries. 

Once the expansion works (carried out by the British company BHM Construction International) are completed, four lanes will be added to the existing two. Also, the Lower Volta bridge at Sogakope (located in former British Togo), which crosses the road, should be widened. 

It should be noted that the road concerned is part of the Abidjan-Lagos corridor. The latter which spans more than 1000 km connects five West African countries (Côte d'Ivoire, Ghana, Togo, Benin, and Nigeria). The ambitious sub-regional integration project is financed mainly by the ECOWAS and the African Development Bank (€22.4 million to date).

Ayi Renaud Dossavi

The impact of Covid-19 on the fertilizer market in Togo is “limited”, according to recent evaluations by African Fertilizer, a strategy firm specialized in the fertilizer and agribusiness sector (and partner of Development Gateway and AFRIQOM). 

The organization has developed an interactive map that assesses the overall impact of the pandemic on the fertilizer market in Africa. The tool categorizes the virus’ impacts on the following four levels: “Low or none”, “Limited”, “Moderate”, “Strong”, “No data.” 

Port still active with a continued supply

While the overall impact on the country’s fertilizer market is limited, the pandemic has a low impact on port activities with “operation still on without any restriction” according to African Fertilizer. 

Regarding domestic transport, it registered a limited impact with a resumption of free circulation and transit of goods (except via land borders which remain closed). For access to agro-input, Covid-19’s impact on the latter is low with “distribution and acquisition of agricultural inputs still ongoing”.  

Regional impact

At the regional level, the fertilizer market is little affected by the pandemic, except in a few countries, like Nigeria which records a “severe fertilizer shortage.” 

Concerning port activity in the region, most of the ports remain active whereas land borders are closed, except for goods. 

Let it be highlighted that African Fertilizer’s initiative is financially backed by the Bill & Melinda Gates Foundation and the USAID. 

Ayi Renaud Dossavi

Yesterday, Pré Simfétchéou, director of the cabinet of the Prime Minister’s office, led a field visit to assess progress made in implementing the automated tracking system (ATS) which was recently launched by the Togolese Revenue Authority (OTR).  

In the framework of the visit which was organized by the OTR, four companies were inspected : Société Nouvelle de Boissons (SNB), Voltic, Brasserie du Bénin (BB), and Cristal. 

Apart from BB where the tracking system is yet to be fully operational - due to the company’s large size, all other companies visited have marked their products. 

Commenting on the development, the tax commissioner, Adoyi Essowa-Vana, declared that “local operators understood the importance of the initiative and installed the system at the scheduled date.” 

The SAM, let’s recall, aims at combating smuggling and tackling unfair competition. This is in a context where Togo records nearly 14 billion CFA in tax losses, yearly. 

Séna Akoda

Togo’s minister of agriculture, Noël Koutera Bataka, wants to put an end to the illegal fertilizer trade in the country. “It was brought to my attention that some informal networks importing fertilizers of questionable quality feed illicit supply chains across the Togolese territory,” he declared. 

Further indicating that the fertilizers concerned can be “harmful to the soil, the environment, and people’s health,” Bataka warned those behind the illegal acts that they are “liable to legal sanctions.” 

Stressing that a professional license is needed to make, import, package, and supply fertilizers, the official also reminded in a statement that the importation and supply of mineral and organic fertilizers are subject to regulations in force in the ECOWAS region.  

A call was thus addressed to farmers warning them against the fraudulent practice and encouraging them to work with official services to efficiently tackle the expansion of illegal fertilizer trading networks.

In Togo, the government warned against the illegal occupation of coasts, reminding occupants in this situation that the areas are part of the State domain. 

The warning, issued in a statement signed by the ministers of environment, infrastructure, and urban planning, states: “Anarchic installations on the squares along the Togolese coasts have been noted for some time. These occupations of the maritime public domain are contrary to the legislative and regulatory provisions in force.”

No individual can protect or claim any land title or property right.”

The authorities thus urge anyone concerned by the warning to vacate the occupied spaces within the next six months. After this, offenders are liable to legal sanctions.

In Togo, the presidential program School Assur, a social protection scheme for schoolchildren and students in public schools, launched in 2017, has been prolonged for another year.

“Thanks to this extension, schoolchildren, and students in public institutions will continue to benefit from health care during the academic year and vacations.” 

In its three years of activity, the initiative has provided free healthcare to 1.76 million beneficiaries. Healthcare includes consultations, medical analyses, hospitalization, surgery, and pharmacy. More than 6,000 public schools were reached throughout the period.

In Togo, UNDP launched a call for investment projects with high potential for the economic empowerment of women and young entrepreneurs.

Targeting young and female entrepreneurs in the municipalities of Agou 1, Oti 2, Agoènyivé 5, Kozah 2, and Lacs 1, the program aims to eventually generate benefits for the local communities mentioned. The projects, the UNDP emphasized, must benefit the target populations financially and empower them by promoting access to the local market.

Projects submitted should focus on creating jobs and stable incomes for local people and institutions.

To this end, the UNDP and UNCDF intend to establish a partnership with one or more financial institutions (banks or microfinance institutions) with good national coverage. This partnership will in turn lead to the creation of a facility dedicated to the financing of productive projects, in line with the priorities of municipalities.

Interested candidates (young/women entrepreneurs or financial institutions) must submit their projects by September 13th.

Séna Akoda

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