Oragroup published a net income of XOF9.1 billion for Q3 2019. This is up 247.7% compared with the same quarter last year. This is quite an improvement from the first half of the year where the group's net income stood at XOF2.8 billion (-60% in comparison with the same period in 2018).

The Lomé-based lender attributes its performance to an improvement in the net cost of risk, paired with a "controlled expansion" of its activities.

In detail, pre-tax income at end-September 2019 amounted to XOF14.82 billion, up by 115.8% compared to Q3 2018 (XOF6.87 billion). Net banking products grew by 14.6% year-on-year.

Regarding the gross lending to deposit ratio, it moved from 100% at the end of September 2018 to 91% at the end of September this year, with a total of XOF272 billion of additional deposits collected, to finance lending to the economy in the various regions where the group operates.

Beyond these, Oragroup's cost-income ratio improved, just like its gross operating income (+20%), over the period under review.

Leaning to these improvements, the group expects its activity to grow further in the future. Indeed, "the expansion of our range of digital products should allow us to sustain and develop our activity," reads an activity report released by the group which is held in majority (+50%) by Emerging Capital Partners (ECP).

Ayi Renaud Dossavi

To boost the private sector and business creation, the Togolese government has initiated many measures, including for example the reservation of 25% of public procurements to youth and women.

At the launch of the first Private sector Week yesterday, the Prime Minister recalled some of these legislative and/or regulatory measures. He thus mentioned the investment and tax codes, the establishment of a concertation framework between the State and the private sector which is aimed at "increasing trust between both parties and fostering a fruitful and sustainable dialogue." Regarding the latter, it is intended to support the growth of economic activities.

Another achievement cited by the official was the creation of a business climate cell which is headed by Sandra Johnson, Minister-advisor to the President.

There is also the creation of an investment promotion agency, the API-ZF free-trade zone, and the establishment of an accreditation committee for the investment code.

Séna Akoda

SCAN Togo (a subsidiary of Heidelberg Cement Group) signed yesterday in Lomé a public-private partnership agreement with the German Cooperation (GIZ).

Under the agreement, the two partners commit to provide professional training in craftsmanship and construction works (masonry, carpentry, and joinery) to artisans and youth of Tokpli and its surroundings, about a hundred kilometers northeast of Lomé.

The project aims at improving work quality in the building sector in this community, "by boosting the skills of Togolese artisans and workers as well as training professional craftsmen in the surroundings of SCAN Togo," says Eric Goulignac, MD of SCAN Togo

Around two hundred masons and carpenters will be trained in the project's framework. The latter will span three years and cost XOF134 million. It benefits from GIZ's technical and financial support.

"In 2019, the State recorded a revenue shortfall of XOF650 million in the energy sector after deciding to halve connection fees for the private sector," according to Sandra Johnson, minister-advisor to the President and head of the business climate cell.

This is one of the many sacrifices of the State to make it easier to start up a business in Togo.

The country also lost about XOF14 billion over a five-year period by suppressing some taxes and duties previously paid by businesses. This, the minister adds to exemptions set, but yet to be estimated, in the budget and investment code.

This is thus the price Togo had to pay to earn a better position in the 2020 Doing Business rankings (the country soared 40 places becoming Africa's top reformer this year). A worthy bargain it appears.

Séna Akoda

Nigeria has decided to keep its borders closed until the end of January 2020, Ecofin Agency reports citing a memo released at the end of the past week.

The document which was cited by Nigerian media The guardian indicates that "it is observed that despite the overwhelming success of the operation particularly the security and economic benefits to the nation, a few strategic objectives are yet to be achieved."

"Against this background, Mr. President has approved an extension of the exercise to January 31, 2020," it adds.

Let it be recalled that Nigeria had explained its decision to close its doors to its neighbors saying it aims to counter smuggling of food products, like rice (which is mainly imported through the border with its neighbor Benin).

Let's also stress that this is not the first time the closure date has been extended.

Ayi Renaud Dossavi

Last Friday, the Millenium Challenge Corporation (MCC) released its scorecard for 2020. On the latter, Togo has validated 14 out of the 20 indicators.

The assessment sums up in three categories, indicators validated by the 80 countries that adhere to the program. The categories are: Ruling justly, Economic freedom, and Investing in people.

Under the "Ruling justly" category, Togo validated four indicators which are control of corruption, freedom of information, rule of law, and civil liberties.

Under the "Investing in people" category, it validated the primary education expenditures, natural resource protection, and girls' primary education completion rate indicators.

Last is the Economic freedom category where Togo validated the fiscal policy, inflation, regulatory quality, gender in the economy, land rights and access, access to credit, and business start-up indicators.

Overall, Togo has for the fourth consecutive year met the Compact Programme's three eligibility criteria, knowingly control of corruption, validation of at least 50% of the scorecard (with at least one indicator validated under each category), and the validation of at least one democratic rights indicator.

Compared to 2014 where the country only validated five indicators, Togo's actual performance is a significant leap.

The scorecard is released as Togo prepares to launch the MCC Threshold Program with major investment focuses, ICT and land.

Séna Akoda

The French Development Agency (AFD) has granted Togo €15 million to support its education sector, in the framework of the Junior High School Reform Project -PAREC II.

The monies should help improve upon capacities and infrastructures in public junior high schools in the Maritime, Plateaux and Savanes regions. More than 160 schools should benefit from the scheme.

In effect, exactly 92 junior high schools will have new classrooms built while 75 will be modernized using the funds.

PAREC II is a project that will be deployed over a four-year period. It includes three main parts, knowingly the construction of 389 new classrooms with sanitary and administrative facilities, support for projects that foster an inclusive, safe and gender-sensitive schooling environment (for girls especially), as well as the reinforcement of capacities, across the whole nation, of nearly 4,000 school directors and teachers (volunteers and under contract).

The financing agreement was signed in Lomé on November 4, 2019. On Togo's side was Sani Yaya, minister of economy and finances, while the French party was represented by Marc Vizy, ambassador of France to Togo, and François Jacquier, AFD's country-director.

The first edition of the Private Sector Week was officially launched in Lomé on November 4, 2019. The theme of the event is Private sector, driver of socio-economic development and growth of Togo. Organized by the government and the private sector, it aims to review all concerns of private actors so as to enable them to fully play their part in the implementation of the national development plan (PND). The private sector, let's recall, is expected to contribute 65% of the funds needed for the plan.

In the framework of the gathering are planned top-level debates and panels hosted by eminent figures, from the government, resident-representatives of international organizations, heads of regional and national banks, heads of private sector organizations, and business leaders. Also scheduled are three open days for all private-public sectors.

Talks will revolve around promoting local consumption, formalizing informal businesses, access to financing for SMEs and SMIs, ZLECAF, disseminating entrepreneurs' success stories, training, employment and the role of digital technology in the promotion of the private sector.

Octave A. Bruce