Togo First
Togo joins OECD’s development centre
On June 13, 2019, Togo’s minister of finance, Sani Yaya signed the letter of adhesion of Togo to the development centre of the Organization for Economic Cooperation and Development (OECD). This was in the presence of the centre’s director, Mario Pezzini.
The signing comes some weeks after a Togolese delegation led by the minister of grassroot development, Victoire Tomégah-Dogbé, attended in Paris the fifth meeting of the OECD development centre’s steering committee on May 21-23. On this occasion, the official had declared: “Our adhesion to the OECD’s development centre is a unique opportunity to share our experiences, learn from that of other member States and pool our resources.”
The OECD’s development centre is an independent forum for information-sharing and dialogue. Through it, the institution’s member States can collaborate easily.
European chamber of commerce of Togo officially launched
Yesterday, at the Togo-EU chamber of commerce, EUROCHAM-Togo, was officially launched.
This new entity will build and consolidate relations between Togo and Europe. It is chaired by Charles Kokouvi Gafan, CEO of Bolloré Transport & Logistics Togo.
The launch of the EUROCHAM results from the will of European investors established in Togo to have an institution that will defend their rights in the country. Besides, it should boost business ties between European and Togolese private actors.
In regards to this last objective, a memorandum of understanding was signed between EUROCHAM-Togo and the Togolese chamber of commerce and industry (CCIT).
123 European firms registered in Togo last year
In 2018, 123 European firms were registered at Togo’s Business Formality Centre (CFE).
This is merely 6% of all firms registered by foreigners in the country over the period (1920 firms). While very marginal, this figure contrasts highly with the weight of European or European-owned businesses in Togo.
Indeed, in 2016, Total-Togo, subsidiary of the French oil and gas behemoth, was Togo’s second biggest tax payer with XOF22 billion paid to the Togolese Revenue Office (OTR) that year. Also, the firm paid the most to customs services, XOF19 billion, the same year. In 2017, another French-owned firm, Brasserie du Bénin, joined Total, becoming one of the country’s largest tax payers.
It should be noted that a European Chamber of Commerce of Togo (EUROCHAM-Togo) was just launched on the sidelines of the first Togo-EU economic forum in Lomé. The institution aims to boost relations between European firms and Togo. It is thus very likely that in the coming years, more European businesses and investors will flood to Togo, contributing even more to its economic growth.
Séna Akoda
Faure Gnassingbé launches highly anticipated Togo-EU economic forum
Togo’s President, Faure Gnassingbé, officially launched today the first Togo-EU economic forum in Lomé.
The related ceremony was attended by Jyrki Katained, EU commissioner for Jobs, Investment and Competitiveness, Mario Pezzini, Director of OECD’s Development Centre, various government officials and business moguls such as Africa’s richest Aliko Dangoté.
More than 300 investors from the EU’s 28 countries will attend the two-day event. There will be panels, business meetings and sessions to showcase key projects of the PND.
“The present forum perfectly translates converging visions of the European Commission and the Togolese government for stronger ties to foster investment and job creation,” said President Gnassingbé.
The leader then evoked solidarity between Europe and Togo, “which will be at the heart of talks” during the forum.
“Progress is a long road of solidarity. We are more convinced of this than ever seeing your gathering at this event, which will inevitably make it a success,” he continued before concluding: “Today, through this forum, we take a major step in this new era of renewal between the European Union and Togo.”
More than 1,000 people were present at the event’s opening ceremony. The latter was followed by a panel hosted by Mario Pezzini, Carlos Lopes, former executive secretary of UNECA, Aliko Dangote and Etienne Giros, Chairman of the European Business Council for Africa (EBCAM). The panel focused on sustained, inclusive and balanced development in Togo.
Besides the panel, three other activities marked this ceremony: the signing of Togo’s letter of adhesion to the OECD’s development centre, the launch of the EU-Togo Chamber of Commerce (EUROCHAM Togo) and the signing of a memorandum of understanding between Togo’s chamber of commerce and European chambers of commerce.
Togo: New investment code adopted by the parliament
Announced during a council of ministers at end of May 2019, Togo’s new investment code was unanimously adopted by the parliament last June 11.
The document aligns with the ambitions of the country’s national development plan which aim to make it more attractive and draw foreign firms and investors.
According to minister of economy, Sani Yaya, “the code is a key legal tool for the government to secure more investments,” and “pursue its social and economic development strategy.”
The minister emphasized that the new code has three main objectives, knowingly: revitalized economic activities, boost investments, create wealth for a sustained and inclusive growth, in order to promote job creation.
Let’s recall that almost two-third of the PND’s financial needs (XOF4,622 billion) should be provided by the private sector. Actually, the ongoing Togo-EU forum should significantly contribute to this goal.
Ayi Renaud Dossavi
Togo : Coopec SIFA receives $340,000 to empower women in rural areas
Grameen Crédit Agricole (GCA) Foundation just granted $340 thousand to microfinance institution Coopérative d’épargne et de crédit SIFA Coopec SIFA).
This should help Coopec SIFA, which mainly helps women in rural areas in Togo, maintain and improve its savings and credit services aimed at poor women in rural areas in the north.
According to a document related to this operation, the targets can generate more revenues thanks to this help.
In the long run, GCA and Coopec SIFA plan to empower their clients thanks to the credit they provide.
In December 2018, Coopec SIFA already had 38,000 members, of which 86% were women. Its overall assets are estimated to be $6 million while its loan and deposits portfolios are $4.8 million and $600 thousand respectively.
GCA is a joint initiative of French retail bank Crédit Agricole and Muhammad Yunus, founder of Grameen Bank of Bangladesh.
Séna Akoda
A top-class business school to soon be created in Lomé
During the 5th Annual Debate held in London last June 5-7, the Togolese Head of State, Faure Gnassingbé (photo), pled for the creation in Lomé of a top-class business school.
The President emphasizes that Lomé is a financial hub since it houses “the headquarters of several pan-African, regional or sub-regional financial institutions,” including Ecobank Transnational Incorporated (ETI), West African Development Bank (BOAD), ECOWAS Bank for Investment and Development (EBID) etc. But there is no reference Business School in the city and Faure Gnassingbé is asking British investors to support the creation of such a training center as to create new professionals who could work in these institutions.
As a reminder such a project was evoked during the roadshow of the 2018-2022 Togolese Development Plan. The President believes the establishment of a business school of this standing could stimulate young people to start their own businesses.
Séna Akoda
Faure Gnassingbé says Togo will try to raise €500M in international capital markets
In the next three months, Togo plans to raise €500 million in international finance markets. This was confirmed by the country’s president himself, Faure Gnassingbé, during an interview in London.
The news comes a little after U.S ratings agency Standard & Poor’s published, for the first time ever, its short and long term credit rating for Togo’s debt in local and foreign currency. Giving the country a ‘B’ rating, the American firm commented :
“We expect economic activity will benefit from the recent upgrading of key infrastructures, such as the completion of extensive works at the port of Lomé, which is currently the only deep-water port in West Africa, and the opening of the new terminal at the Gnassingbé-Eyadema airport in 2016.”
A Eurobond guaranteed by the World Bank?
According to Togo’s leader, monies raised (with a longer maturity) will mostly be used to serve internal debt (which has a shorter maturity) as it tends to be more costly.
Lomé mentioned it may resort to a Eurobond, a syndicated loan or a multilateral institution. However, a Eurobond is more likely as the Togolese currency, the CFA is pegged at fixed parity to the Euro which is more stable.
On another side, there is the World Bank which is said to be working, under a new Country Partnership framework, to grant Togo IDA guarantees for the operation.
Reducing pressures to refinance internal debt, a major challenge
In 2016, Togo’s debt stood at 82% of its GDP, spurred by huge investments in infrastructures. However, in the past two years, the country, backed by a three-year IMF program started mid-2017, reduced its debt by more than 10%; A performance lauded by the Fund which now estimates the risk of external over-indebtedness to be “moderate.”
This performance also coincides with pressures to refinance internal debt over the next five years, as well as with the recent launch of the national development which will require more than $8 billion, 65% of which will come from private sector.
Togo could become Africa’s 22nd nation to issue a Eurobond
If Togo opts for a Eurobond, it would follow the lead of Côte d’Ivoire, Senegal and Benin. The latter raised €500 million leveraging the bond.
According to London-based Investment Bank Renaissance Capital, quoted by Financial Times, Togo would hence become the 22nd African nation to issue a Eurobond.
Logistics : Kuwaiti Agility plans to build logistics park in Lomé
Kuwaiti firm Agility Global Integrated Logistics (GIL) signed last Thursday in London a letter of intent to establish in Togo a logistics park. The document was inked by the firm’s managing director for Africa, Geoffrey White, and Togo’s minister of trade and private sector, Kodjo Adedze.
Under the deal, Agility is to build a logistics park in Lomé.
Though no further detail was given, the project should contribute to the first axis of Togo’s national development plan which is to make Togo a leading logistics hub and first-class business centre in the region.
A similar initiative is being carried out by State-owned Company Togo Invest and related feasibility studies are already completed.
“With its partner SOGEA SATOM, Togo Invest wants to build an area of at least 50 ha multi-purpose logistics platform as well as various other logistics installations at the exit of Lomé,” said Togo Invest on its website.
Agility is Middle East’s largest logistics firm with more than 40 brands around the world, some since the mid-1800s. It claims to be “one of the world’s largest integrated logistics providers and the largest private owner and developer of industrial real estate in the Middle East and Africa.”
Togo: Agricultural Sector Support Project (PASA) currently under review
Launched in 2011, the Agricultural Sector Support Project (PASA) is under assessment. The related mission was initiated June 3, 2019, in Lomé.
The current mission, the thirteenth since the project was launched, is undertaken by the Togolese government and the World Bank which backs it. The session focuses mainly on the level of execution of major components of PASA’s additional financing, and recommendations. Also, the mission’s participants look at progress made, results, performance indicators as well as execution level of the 2019 work plan and annual budget.
Moreover, field visits are planned in its framework, in order to interact with the various partners and beneficiaries of the project which is valued at more than XOF26 billion and financed by the Bretton Woods institution.
Let’s recall that between 2011 and 2017, PASA helped increase Togo’s animal production. In detail, in 2017 the country produced 475,000 cattle (against 300,000 in 2011), 4.2 million goats and sheep (1.5 million in 2011). As for poultry, 14.5 million chickens were produced, against 8 million in 2011.
Ayi Renaud Dossavi