Togo First

Togo First

Togo’s government will rehabilitate some mines and quarries under its mining governance and development project (PDGM).

Lomé plans on having a guide dedicated to the project and has actually just launched, through the ministry of mines and energy, a tender to hire a consultant for it.

In effect, the hired consultant will visit some active mines and quarries, meet with surrounding populations, economic operators and actors to know their opinion regarding the closure and rehabilitation techniques.

Following this, the firm will produce a guide that will be used to draw a plan for the management, closure and rehabilitation of all mines across the country. Using this guide as base, the authorities will rehabilitate some mines and close others, mostly sand quarries.

Séna Akoda 

Togo has been invited to attend the fifth Invest in Africa Forum that will take place on September 10-12, 2019, in Congo Brazzaville.

This was during a meeting between President Gnassingbé and Jean Jacques Bouya, president of the forum’s organization committee.

“For investments to grow across the continent, we must ensure that trade increases and I believe that is a matter which is dear to the Togolese President,” he declared speaking on behalf of President Denis Sassou Nguesso.

Let’s recall that the Togolese government is currently seeking massive investments for its 2018-2022 national development plan. In this framework, a delegation from the West African nation was recently in Japan for the Seventh Tokyo International Conference on African Development (TICAD 7).

The Invest in Africa forum is organized in partnership with the World Bank and China. It takes place in Africa and China, alternately.

Séna Akoda

On September 3, the Informal Sector Organization Delegation (DOSI), began a 10-day workshop for business consultants and trainers associated with the national project to promote entrepreneurship in rural areas (PNPER). The training session is taking place in Tsévié, 36km from Lomé.

The meeting which is backed by the International Labour Bureau (ILB) aims to boost capacities of participants relative to indispensable mechanisms for business management and creation, and also to increase business revenues. They will acquire the tools necessary to help young entrepreneurs grow and succeed in their business ventures. 

Launched in 2014, the PNPER’s main objectives is to reduce poverty and improve living standards in rural areas. This project focuses primarily on young entrepreneurs and women.

Ayi Renaud Dossavi

Recently, Nigeria closed its borders with Benin. One of the reasons advanced by the West African giant to explain the move is its desire to end massive smuggling of products like rice to its neighbor. According to President Buhari, this jeopardizes Nigeria’s hardly achieved food sufficiency.

The door between Nigeria and Benin (the Sèmè border) being on the Abidjan-Lagos axis which also passes through Lomé, is important to assess trade between Nigeria and Togo.

According to the Togolese Statistics Office (INSEED), Nigeria is Togo’s 7th import partner. Over the first quarter of this year, Lomé purchased more than XOF10 billion worth of goods (free-on-board, including transportation fees). This is 14.8% more than the previous year, over the same period.

Moreover, Lagos is Togo’s first supplier within ECOWAS (35.7% of regional imports in Q1 2019). Nigeria, in this regard, comes before Ghana (27%), Côte d’Ivoire (12.6%) and is far ahead of Senegal (7.8%).

According to UN’s Comtrade aggregator, in 2018, bilateral trade between Togo and Nigeria exceeded $1.1 billion. The lion’s share of these exchanges was for Nigeria which imported only $31 million of goods from Togo. From its eastern neighbor, Lomé bought mostly oil products and derivatives ($1.1 billion in 2018).

Ayi Renaud Dossavi

Over the past decade (from 2008 to 2018), Togo’s share of exports in the West African Economic and Monetary Union (WAEMU) slumped by 5% average per year. From 5.6% in 2008, the figure fell to 3.3% at end-2018, its lowest since the 2008 global financial crisis.

Despite the fall, compared to other WAEMU States, Togolese exports have actually risen slightly over the period reviewed.

It should also be noted that from 2008 to 2013, Togo’s share in the Union’s exports grew. However, they started dipping with the 2014 commodity prices crisis. Last year, the same trend was sustained but imports were less affected by the fall in prices of commodities.

The fall of exports was reflected on trade balance which degraded at end-2018, after improving the year before. Trade deficit kept widening in Q1 2019 as imports were more important than exports.

For the Carrier Hotel which is to be built in Lomé, the government of Togo has decided to trust the position of prime contractor to APL, a French firm with a 30-year experience in the establishment of data centers.

Under the contract, the company will be the prime contractor while the construction will be carried out by a local firm, BTP Centro. CFAO Technologies & Energy will handle the equipment, energy and environment components.  In effect, APL will lead, steer and coordinate the project and be in charge of its commissioning as well. It will also make sure it is certified by Uptime Institute and complies with environmental standards, among others.

Let’s note the French firm is also active on another project ongoing in Togo. This is the “Tier III évolutif Tier IV” datacenter (500 m2 of server rooms). For this project, APL provides expertise (through Neutreo, an engineering study office it has acquired) relating to supply of solar power on which the infrastructure will partially run on.

The Carrier Hotel, a co-sharing data hosting center, is financed by the World Bank (nearly XOF12 billion), under the West African Regional Communication and Infrastructure Development Project (WARCIP). This project should improve connectivity (making it safer and more reliable) in Togo, and reducing its cost hence benefiting both SMEs and the public administration. Construction works are expected to last 15 months.

Fiacre E. Kakpo.

To date, only 10 African countries have taken effective steps to accelerate the operationalization of the Open Sky Continental project. This is in a context where Africa’s aviation industry remains one of the least performant worldwide, mainly as a result of a protectionist trend recorded across the continent.

To boost African aviation, last year, Togo’s President, Faure Gnassingbé, took major steps to implement the agreement for a single African air transport market (SAATM). Yet, the procedure still delays with only ten countries, out of the 28, (75%-80% of Africa’s air traffic), signing the agreement. Among the signees are Togo, Ethiopia, Ghana and Nigeria. The delay is due mainly to concerns of some adhering countries.

Experts attribute the concerns to some airlines, even in countries that already signed the agreement, fearing more competition.

Big airlines benefit from substantial State subsidies and “they could end smaller local airlines which have no means to compete with them,” declared Sebastian Mikosz, CEO of Kenya Airways, at a recent press conference. In some countries also, taxes have been increased, thus affecting some airlines’ profits.

In the mid-term, Africa’s air traffic is expected to grow more rapidly (+5% yearly) than more mature markets. However, African airlines will barely profit from the boom and should actually, according to the International Air Transport Association (IATA), lose this year $100 million, while globally, the aviation industry is expected to record a profit of $28 billion.

Togo’s Revenue Office seeks a firm that will build it an App to assess the state of used vehicles arriving in the country. An international tender was launched in this regard.

In effect, the hired firm will conduct conceptual study for the App, its development and project, as well as skills transfer subsequently.

Interested companies can apply either individually or in groups. Closing date for submission of applications is September 23, 2019.

The project, let’s indicate, falls under the government’s tax governance support program (PAGFI), financed by the African Development Bank (AfDB).

Ayi Renaud Dossavi

On September 2, Togo’s public procurements regulatory organ started in Lomé workshops to equip young Togolese entrepreneurs regarding the government’s measure of setting aside 25% of public procurements for them.

This is measure aiming to allow more young men and women to have access to public procurements while also bolstering their entrepreneurial spirit. This is in a context where unemployment and underemployment highly hamper economic growth.

The measure enabled last year, by December 31st, young Togolese entrepreneurs to capture more than XOF12 billion worth of public contracts. At the time however it should be highlighted, the share of public contracts reserved for the concerned group of people was 20%.

While presently held in Lomé, the ongoing workshops, scheduled to end by September 20th, should also be organized in Atakpamé and Kara. The initiative is backed by the Fund for Support to Youth-led Economic Projects (FAEIJ) and the National Office for Public Contract Control (DNCMP).

Séna Akoda

Togo’s Revenue Office (OTR) recently informed decentralization actors and local elects about available fund mobilization instruments for their activities. This was last Saturday, at the Decentralization Night organized by NGO IJD in Lomé.

There are two main tax tools serving these parties. There are namely the housing tax and the TPU. While the first is fully repaid to local communities, 90% of the second is repaid to communities.

Besides these two taxes, there is also the land tax (for both built and unbuilt properties) and patent. For these, 50% of proceeds are returned to communities.

The OTR in addition allows local elects to initiate other taxes, such as a tax for road, tax for festivals and events, all in order to mobilize more funds.

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