In 2019, exactly 11,482 new businesses were registered at Togo’s Centre for Business Formalities (CFE) - a figure that is very close to the peak recorded in 2015. According to the CFE, this is about 9% more than the number recorded the year before that.

In detail, more than 67% of the new businesses (7,844) were created by individuals; this reflects a low level of association between Togolese entrepreneurs. 

Over the year reviewed, 3,156 LLCs were created. Out of these, 86% were without resorting to a notary - a feat that is attributable to a reform approved by the World Bank in 2019.   

It appears that 80% of the newly registered firms are owned by Togolese citizens. Meanwhile, the rest (2,349) belong to foreigners. While local businesses dominate the entrepreneurial industry, it must be emphasized that the number of new businesses launched by foreigners is 22% more than that recorded in 2018.

The increase is driven by the new government-led reforms to improve Togo’s business climate. These reforms, in fact, enabled the country to stand at the 15th place in the 2020 Doing Business’ “Starting a business” index. This represents a 40 ranks rise compared to 2019.

The African Guarantee Fund (AGF) has secured $33 million from the German development bank, KfW. The facility will mostly be used to back small and medium enterprises (SMEs) across the continent. 

The fund indeed declares that the monies should “bolster its efforts - in line with its mission - to help African SMEs to keep playing an important part in the growth of African economies, by spurring financial inclusion especially.” 

Let’s indicate that the AGF, at the continental level, wants to provide financial guarantees to more than 10,000 SMEs, yearly. In West Africa particularly, the institution targets 2,000 SMEs, per year on average, per country. 

So far, guarantees provided by the fund for African SMEs amount to nearly $1.7 billion. About 20,000 SMEs benefited from this support - 60% of which are held by youths, while 30% are by women. 

In Togo, the AGF, whose West African division is based in Lomé, signed a deal with the Risk-based Agricultural Financing Incentive Mechanism (MIFA S.A), last July. Under the agreement, the AGF will guarantee 50% of funds needed for projects submitted by MIFA S.A to its partners. The two parties, MIFA and AGF, also work on financial tools more suited to Togo’s agricultural sector. 

Ayi Renaud Dossavi

Very soon, five modern gari production units will be set up in the Vo prefecture. The project, which is backed by the MIFA, was revealed last week during a visit by President Gnassingbé in Gnita, a village located in the Akoumapé district. 

The first of the five production units will be located in this village. It will cost XOF50 million. There, hundreds of women make gari, which comes from cassava. 

Yearly, Togo produces about 900,000 tons of cassava. And while this is one of the products the country transforms most, there is still nearly 400,000 of unprocessed cassava per year.

The 6th edition of the AGAU RÂ meetings will be held in Kara, on May 8-9, 2020. 

On the first day of the event, there will be workshops aimed at boosting entrepreneurial capacities. Participants will learn about the conception and profitability of a Youtube page, conception of off-ground agricultural kits, robotics programming, etc. 

On the second day, they will attend mini-conferences and 10 entrepreneurs will present their projects to partners and potential investors. The best projects will be backed by CUBE and partnering incubators, which will help them raise funds needed. 

Entrepreneurs interested in participating in the event can do so freely, excluding exhibitors who are to pay a specific fee. Deadline for registration is March 13, 2020. 

R.E.D

The Togolese Revenue Authority (OTR) recalls that the second and third fiscal stamps have been suppressed with the establishment of the single land desk. 

The reminder comes as some surveyors, who are the link between landowners and the land administration, keep receiving payments for the operations, due to the ignorance of their clients relative to the reform. 

A few Togolese know about the reform that led to the creation of a single land desk and the suppression of these procedures, in spite of the awareness campaign launched in this framework, the OTR indicates. 

Séna Akoda

Togo’s rural electrification and renewable energy agency (AT2ER) seeks investors to build two solar plants in Kara and the Central region. The two facilities will have a combined capacity of 60 and 80 MWac (Megawatt alternating current).

The AT2ER has in this framework issued a pre-qualification notice targeting private actors interested in the projects. Phases they will cover include the conception, financing, construction, installation, commissioning and exploitation of the plants. 

Regarding exploitation, it will take place under a private-public partnership and the related concession deal will expire after 25 years. 

Those interested should submit their proposals by March 30, 2020. 

For this tender, the AT2ER is advised by the International Finance Corporation (IFC). For cost-effectiveness, the agency leveraged the institution’s Scaling Solar initiative. 

Let’s also recall that under its national electrification strategy, the Togolese government plans to set up a solar plant in each region of the country. 

Ayi Renaud Dossavi

Over the first 11 months of 2019, Togo was Africa’s leading country, in terms of attracted foreign investments. This was reported by FDI Intelligence, which is a specialist division from the Financial Times providing industry-leading insight and analysis on crossborder expansion, greenfield inward investment and foreign direct investment trends.

From January to November last year, Togo secured 11 new investment projects, against only two (2) over the same period in 2018. This is the highest growth rate relative to the number of greenfield projects, in all of Africa. Before that, the continent’s peak was seven projects, secured in 2013. 

According to FDI Intelligence, Togo has attracted 6.7 times more investments than expected of an economy of its size. It is ahead of Rwanda and Senegal, respectively second and third. 

Lauding the achievement, President Faure Gnassingbé declared: “This news consolidates our conviction that we are on the right track regarding the many reforms we have put in place to ensure prosperity and inclusive growth in our country.”

Most of the projects secured by Togo were yielded by a double partnership reached with the Dangote Group at the beginning of November last year. Under the deal, a phosphate treatment plant (at a cost of $2 billion) and a cement factory ($60 million) will be built in the country. 

Another major investment is that of Amea Power which plans to build a $33.5 million solar power plant in Blitta. 

Togo, let’s recall, is among the top reformers of Africa and third worldwide, according to the 2020 Doing Business report. The country received last year, its first international finance rating, and secured its first loan on the international market. 

Octave A. Bruce

Nearly 200 young entrepreneurs gathered yesterday for the first session of the Jeudi J’ose meeting of the year. 

This is the 51st session of this monthly event organized by the FAIEJ. It focused on planning towards the good achievement of goals throughout the year. 

‘Jeudi J’ose’ was launched in 2015 and takes place every second Thursday of the month. Its purpose is to get public authorities and youths to kindle the entrepreneurial flame. Last year, many of these meetings focused on taxation, institutional support for businesses, various means and tools provided to young entrepreneurs for their growth.