Next Thursday, May 14, Togo will issue its Covid-19 social bonds. The country announced this on the UEMOA stock market, indicating that it will seek a total of XOF108 billion. The bonds, which will be issued at multiple rates, have a nominal value of XOF1 million per unit. They will mature over three months. 

Approved by the Central Bank of West African States (BCEAO), the Covid-19 bonds should help countries affected by the pandemic in dealing with costs arising from their respective responses. 

It should be noted that despite the current crisis, Togo appears to still have the trust of investors on the UEMOA market. For its latest issuance on the platform last week, the country successfully raised XOF38.5 billion. 

Ayi Renaud Dossavi

Located in Natchibore, the facility cost about XOF65 billion, 77% of which was provided by the State.

Overall, more than 300,000 people, mainly small producers, will be able to expand their exploitation area as a result of the project. 

It should be noted that nine similar infrastructures should be built, for agricultural transformation centers (CTA) which are a component of the government’s agropole project. The latter mainly aims at growing agricultural value chains and boosting production in the sector. 

The Kara agropole is part of eight flagship projects falling under Togo’s national development plan (PND). This initiative is backed by various development institutions such as the African Development Bank (AfDB) and the West African Development Bank (BOAD).

On May 10, the curfew set in the Grand Lomé region was revised from 9 PM to 5 AM, while working hours were changed to 8 AM-4 PM (effective on May 11). 

The amendments, the government explained, were spurred by the “stabilization of the pandemic’s spread.”

The curfew, let’s recall, came into effect on April 2, 2020, on the day following the announcement of a 3-month health emergency state. 

To date, Togo has confirmed 174 Covid-19 cases, including 89 who recovered, 74 active, and 11 deaths. The country has proceeded so far to 10,094 tests.

In Togo, Orabank has just added contactless payment to its offers. 

Indeed, the bank’s customers can now proceed to payment, capped at XOF15,000 (about €23), with their bank card at any of the lender’s credit card terminals (EFTPOS). It is possible to deactivate the option if requested. 

While Orabank-Togo did not say the move was motivated by a desire to slow the spread of the Coronavirus, it is one of the flagship measures recommended by the French government to fight the pandemic.  

France has in effect increased the capped amount for contactless payments to €50, from €30, as it begins today, May 11, the lifting of its strict lockdown. French authorities explained the lifting saying it should “reinforce food security in retail trade,” and “ensure that activity in this sector restarts rapidly,” according to Lemonde.fr. 

Séna Akoda

The Central Bank of West African States (BCEAO) has prolonged by 30 days, starting 3 May 2020, its strategic measures to boost e-payment as the Covid-19 pandemic persists. 

The measures include the cancellation of fees for minor transactions, exemption of fees on water and power bills, incentives for digital commercial transactions, a 50% reduction of fees on withdrawals and transfers at ATMs, making it easier to create an e-wallet and perform related transactions. 

They are aimed at keeping physical contact at a minimum in all WAEMU States.

Togolese fashion designer Marius Latif Kérim-Dikeni who owns the Mario Exclusive men clothing brand will make customizable face masks to help fight the Coronavirus pandemic in Togo. 

The customizable masks will be washable and reusable, stressed the designer whose products are sold in Togo, Côte d’Ivoire (Abidjan), and Burkina Faso (Ouagadougou). 

It is worth mentioning that last week the INAM and FAIEJ teamed up to train seamstresses and tailors to also make reusable masks that meet international standards. 

Séna Akoda

A recent survey conducted by the Togolese Chamber of Commerce and Industry (CCIT) reveals that more than ⅔ of private businesses operating in the country have kept all their employees working, despite being hit by the Covid-19 pandemic. 

However, the study entitled “Effects of the Covid-19 on economic activities” also indicated that more than 92% of the 1,084 surveyed businesses had recorded a fall in their revenues between February and March, due to the crisis. In detail, 34% of the firms reported a fall exceeding 75%, while 62% of them said they lost nearly half of their earnings over the period considered. 

According to the document, job cuts, though minimal, were mostly reported by small businesses. 

Still, Germain Mèba who heads the CCIT, said things could get worse “if the pandemic were to persist for more than three months.” In such a case, the survey notes, “more than 92% of private businesses may not be able to clear their debts, and more than 84% of them will not be able to pay salaries.” 

Recommended solutions 

To better cope with the current crisis, and the government’s response, the private sector has recommended a few measures to public authorities. 

Among these measures, private businesses asked for the “postponing, at zero-cost, of debt payments to lenders, special loans, and tax reliefs in favor of large businesses to mitigate Covid-19-related risks.” Another request includes the exemption of personal income and corporate income taxes. 

Also, the State could provide SMEs a guarantee to secure financing, or concessional loans, to make these businesses more resilient to the Coronavirus’ impact. 

Regarding social measures, private companies mentioned the need for the government to subsidize “actions aimed at protecting employees and customers against the pandemic.” 

Let it be recalled that the government, to prevent the current health crisis from taking a heavy toll on the private sector, has already adopted a battery of economic, financial, fiscal, and social measures. 

Séna Akoda

The French Development Agency, AFD, will provide Togo XOF141 million (€215,000) to fight the Coronavirus pandemic. 

The funds will in effect be injected into a project that aligns with France’s Covid-19 Santé en Commun scheme which was launched at the beginning of April and is backed by another project aimed at boosting the quality of medical biology services in West Africa (RESAOLAB+). Besides Togo, other beneficiaries of the grant are Benin, Niger, and Guinea. 

In Togo, the project will be put in place at the CHU Campus, through a partnership between the Togolese laboratories directorate and the Mérieux Foundation which combats infectious diseases in developing countries. 

Most of the money provided, it should be emphasized, will partly be used to buy equipment, for diagnostics and treatment, as well as personal protective equipment to ensure the safety of medical staff. 

Another part of the funds will serve to create a platform for sharing documents and counseling decision-makers in the health sector. Lastly, they will help collect data toward assessing the role of laboratories amid the ongoing health crisis.

On May 5, 2020, the ministry of economy and finance met with actors of the Togolese banking industry (the professional association of banks and financial institutions - APBEF), and the Central Bank of West African States (BCEAO). 

The talks were centered on the impacts of the coronavirus on the Togolese economy, and especially on banking services, SMEs and agriculture. 

Also, Sani Yaya, the minister of finance, took the opportunity to recall the various steps initiated by Lomé to help businesses amid the Covid-19 crisis. These include “exempting taxes and duties on agricultural equipment, exempting custom duties and VAT on imported equipment and drugs in the framework of the fight against the Covid-19.” 

Among others, the official mentioned the “suspension of penalties imposed on firms that couldn’t submit their financial statements on time, depending on the activity sector.”  

Let’s recall that President Gnassibgé recently launched a solidarity fund to help SMEs and other businesses cope with the impact of the Covid-19 pandemic. In the same framework, Kossi Tenou, national director of the BCEAO, announced that his institution has taken specific measures that will enable businesses successfully overcome the crisis.