Togo First
Ministries to adapt to program budgeting system
Togo’s various ministries will adopt the new program budgeting system adopted by the country. In this framework, they will all have a financial affairs division.
The decision was announced following the council of ministers held on November 25, 2020.
For the Togolese authorities, the adoption of the program budgeting system “requires a reorganization of the financial division of every ministry,” an official statement from the government reads.
This change,“which will take place progressively, will enable the decentralization of the scheduling function” (which used to be solely held by the ministry of economy and finance), and expand ministries’ leeway so that they can better achieve their goals.
2020-2021 academic year to cost the government more than CFA3.5 billion
As part of measures to support the 2020-2021 academic year, the Togolese government will forego around CFA2 billion of registration fees for various exams. The news filtered from the council of ministers held on November 25, 2020. Overall, the education sector should benefit this year from over 3.5 billion worth of initiatives.
Another measure includes the mobilization of CFA1 million to supply face masks (at a subsidized cost) to multiple schools across the country. The masks will go for CFA50 only, against CFA260 before. Through the move, the authorities intend to contain the spread of the coronavirus.
Other projects launched this year for the education sector include School Assur which covers nearly two million pupils and the acquisition of tables and benches for CFA600 million.
Séna Akoda
Government to launch major healthcare programs for pregnant women in 2021
Next year, seven billion CFA will be devoted to a new government program of free care for pregnant women in Togo. The program aims at reducing maternal and neonatal mortality, in line with a commitment made by President Faure Essozimna Gnassingbé.
This was disclosed in a statement issued by Mamissilé Akla Agba Assih, Minister delegate in charge of universal health care, during the council of ministers held on November 25.
The initiative will be implemented mainly in peripheral health care units. Family planning, Prenatal consultation, delivery, and C-section are the four services that will be provided to its beneficiaries.
According to the council of ministers’ report, the program will start “within the shortest delays.” It will add to a measure subsidizing C-section cost by around 90% (the surgery cost CFA80,000 in 2011).
Séna Akoda
ARCEP opens a sanction procedure against Togocel
Few days after cautioning Togocel for practicing unfair call rates, Togo’s telecom regulator -ARCEP- has opened a sanction procedure against the operator. This time, the regulator accused the operator of “grave inconveniences and malfunctions on its T-Money services, and a lack of communication with customers.”
It is stated under the terms of Togocel’s agreement that “in the event of a disruption or interruption in the provision of services lasting more than two hours, the operator must inform its customers of the nature of the problem and the approximate time within which the service will be restored.”
On November 17, the regulatory body called out Togocel for failing to notify it and the network’s users about the disruption, as well for the poor service and measures which the operator intended to use to tackle the issue. However, the ARCEP was not convinced by Togo Cellulaire’s explanation and decided to open a sanction procedure.
The regulator’s recent warnings, and now the sanction procedure, aim to “establish conditions for healthy and fair competition in the electronic communications and postal market while allowing the greatest possible number of people to access quality services at affordable prices.”
Fiacre E. Kakpo
Olam acquires 51% of Togo's Cotton Company
Singapore-based agrofood group Olam acquired 51% of the Nouvelle Société Cotonnière du Togo (NSCT) for €15.3 million (around CFA10 billion).
The deal aligns with the authorities’ plan to privatize the cotton company - a process that should be completed next month. Following the privatization, the State and the federation of cotton farmers will respectively hold 24% and 25% of the firm.
The NSCT is in charge of all activities related to cotton in Togo, such as commitments to farmers, ginning, and sales. According to Olam, its finances are in good shape, with its working capital estimated at around €19.1 million. As the NSCT’s new majority shareholder, the Asian giant’s mission will consist of boosting Togo’s cotton output, processing it locally, and improving the yield and income of farmers.
Regarding the cotton output in Togo, while it has exploded in recent years (+400%), driven by the NSCT, it still is far from the country’s target of 200,000t in 2022. During the past campaign, production even dwindled by 15%, from 137,000t in 2018-2019 to 116,000t in 2019-2020.
Ayi Renaud Dossavi
Parliament reviews draft finance bill for 2021
The parliament is reviewing the draft finance bill for 2021. The latter projects expenditures and income at CFA 1,521.6 billion, thus 7.1% less than this year's final budget (CFA1,638 billion).
Next year's finance bill focuses on social sectors (with a 10.8% increase in social spending which is expected to reach 445.1 billion FCFA), despite the negative impact of the pandemic on the economy. Among others, the draft budget commitments fall under the government's roadmap (translated into the national policy declaration).
It is worth noting that this is the first time the parliament is examining a program-based budget. According to the Minister of finance, Sani Yaya, who was present at the opening of the proceedings, the decision to adopt this type of budget establishes a results-based management style, with clear goals assigned to each ministerial department, as well as the deconcentration of the authorization function.
"The draft bill for the 2021 budget is dedicated to major innovations. It is the first bill adopted by the new government following the approval of its action program, and it inaugurates a new era in governance," welcomed Chantal Yawa Djigbodi Tsègan, President of the National Assembly.
Ayi Renaud Dossavi
WAEMU commission launches a contest for startups in the region
Tremplin UEMOA Startup 2020 is the name of the contest recently launched by the WAEMU commission for young entrepreneurs active in Togo, Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, and Senegal.
The competition runs until November 30, with a prize of CFA193 million. It aims to bolster efforts to promote modern and innovative entrepreneurship and accelerate the development of startups across the WAEMU.
More specifically, the contest aims at identifying, rewarding, and supporting the best startups, startups that stand out through the pertinence of their activity and impact on the green economy, as well as stimulating institutions supporting entrepreneurship.
In detail, the five best startups will share CFA60 million among themselves, 24 young entrepreneurs - three per country - will get 120 million. Also, five (05) Excellence Awards of CFA2,000,000 each are planned for structures that applied for the award.
There will also be three incentive prizes of one million each.
ARCEP demands explanation for new call-tariffs of Togocel and Moov
There is a new twist in the dispute between the telecom and posts regulator (ARCEP) and the Togocel-Moov duopoly.
After being cautioned by the regulator for unfair pricing, both operators reduced their on-network call rates by 20 FCFA/minute while increasing their off-network rates by 10 FCFA/minute.
Displeased with the move, the ARCEP demands the two operators to explain within 24 hours. "ARCEP will exercise all the powers conferred by its prerogatives under the legal and regulatory framework so that the alignment of "on-net/off-net" rates does not serve as a pretext for an increase in off-network rates," it warned.
Séna Akoda
German-Togolese consultations are ongoing in Lomé
The 4th round of the German-Togolese Consultations opened in Lomé yesterday, November 23rd.
The two-day meeting brings together Togolese officials and German diplomats to discuss at length the current state and prospects of cooperation between the two countries.
For the Togolese government, the meeting should help "strengthen the impact of cooperation between the two countries" and "refocus it around key themes related to the government's roadmap."
In recent years, the long-standing and diversified bilateral relationship between Togo and Germany focused on several key areas such as local governance and decentralization.
Currently, in Togo, two major projects which are being implemented in the framework of the cooperation between the two countries are the Decentralization Support Program (PAD) led by KfW, and the Decentralization and Local Governance Program (ProDeGoL) steered by GIZ.
According to official data, since the cooperation between Lomé and Berlin resumed in 2012, Germany has injected nearly €265 million in the African country.
Last year, over 200,000 jobs were created in the agricultural sector
Agriculture, which contributes nearly 40% to Togo’s GDP, is the country’s largest employer. In 2019, 222,698 jobs were generated in the sector - 199,018 permanent and 23,680 temporary jobs.
Alone, the sector concentrates 60% of all jobs created last year, according to data released by the National Agency for Employment (ANPE) last Thursday, in the 2019 report on Labour Market Information System (SIMT). The performance is attributable to multiple initiatives.
A battery of reforms
Togo has established various mechanisms to foster youth employment in the agricultural sector. It did so notably through the Projet d’Appui à l’Insertion et à l’Employabilité des Jeunes dans les Secteurs Porteurs (PAEIJ-SP), the Projet National de Promotion de l’Entreprenariat Rural (PNPER), the Fonds d’Appui aux Initiatives Économiques des Jeunes (FAIEJ), the Mécanisme Incitatif de Financement Agricole fondé sur le partage de risque (MIFA), and AGRISEF.
The country is also setting up agricultural hubs to accelerate its agribusiness transformation, and developing projects for agricultural mechanization.
A sustained dynamic
Under the five-year development strategy it recently adopted, the government of Togo has given particular attention to youth employment.
According to PM Victoire Tomégah-Dogbé, creating jobs for the youth is a priority in the 2020-2025 roadmap of the government. Our country, Togo, enjoys peace and stability which allow it to adopt reforms, and accelerate their implementation to profit the youth. The goal is to create jobs for the youth and we think agricultural entrepreneurship is a promising niche.
Séna Akoda