Kya Energy, local firm specialized in producing solar-powered generators, will build five solar academies across Togo. The firm recently secured the related contract.

This project falls under the CIZO, an electrification program funded by the African Development Bank (AfDB) and steered by the Togolese Agency for Rural Electrification and Renewable Energies (AT2ER).

Leveraging its substantial access to solar energy, Togo plans to train some technicians to deliver adequate services under its solar development strategy. In this framework, the solar academies will train and certify local technicians and installers.

Under its contract, Kya Energy will have to create and equip the five solar academies, which are spread across Togo’s five regions. In the long run, the academies will train 3,000 technicians (600 per academy) to off-grid solar energy. The project is expected to last six months.

Let’s recall that Kya Energy Group, led by Yao Azoumah, won last November BOAD’s first prize for best innovative renewable power project. The corresponding reward was CFA30 million, among others, granted by Danish firm ByteBlocs.

Ayi Renaud Dossavi

In Togo, 25.61% of newly registered firms at the center for business formalities (CFE) last year are owned by women. The number is 2,701 businesses out of 10,545 businesses registered overall.

According to studies from the World Bank on a sample population of 1,500 micro-enterprises in Lomé, it appears that more women who are getting more involved in the private sector are performing better.

The survey’s statistics indeed state that profits of trained entrepreneurs, men and women, soared by 30% average over the period under review. For women alone, profits grew more than 40%.

Fiacre E. Kakpo

Soon, the mushroom-based drinks made by Togolese entrepreneur Edem Bessanh will be sold in Canada.

We have signed a contract with businessmen and under the deal, our firm, Champiso, will soon be represented as a franchise in Canada, Bessanh told Togo First in an interview.

According to the entrepreneur, detox products are very much appreciated in developed countries, due to their medicinal nature. He then explained the decision to open a franchise by needs to find favorable outlets for his business.

Actually, this experience will be replicated in Egypt. “Soon, we will do the same in Egypt. With the government’s support, we took part at the end of December 2018 in a major business forum in Egypt and found there partners that are ready to acquire the firm’s franchise and produce our drinks”.

Séna Akoda

On Thursday January 17, 2019, the Higher Authority for the Prevention and Fight against Corruption and Related Offences (HAPLUCIA) organized an anti-corruption sensitization campaign targeting Togolese private sector actors.

The campaign whose theme was “Contribution of citizens in the fight against corruption and related offences”, aimed at reaffirming Togo’s zero tolerance policy in terms of corruption.

The HAPLUCIA plans, according to its president, to use the private sector as a vector to tackle this plague. Often, he says, “it is believed that if the corrupted individual is a public officer, the one corrupting is in the private sector”.

Ending corruption, he also emphasized, aims at “protecting the whole economy, including the private sector”.

According to the minister of trade and promotion of private sector, Togo’s anti-corruption strategy led the government “over the past decade, to create various institutions such as the general inspectorate general of finances, the inspectorate general of the treasury, the court of accounts and the Togolese revenue office”. The minister added that “multiple efforts are being made to enable the private sector to significantly contribute to job creation, economic growth, poverty reduction and national development”.

Created in July 2015, the HAPLUCIA’s purpose is to reduce corruption in Togo, facilitate related complaints, protect whistleblowers and ensure the respect of the presumption of innocence.

Ayi Renaud Dossavi

Togo’s government has under the new tax regime, effective since January 1, 2019, raised taxes on some products like alcoholic drinks and tobacco products.

In detail, the new general tax code stipulates that excise duty on alcoholic drinks is 50%. This is 15% more than the tax imposed the year before.

Similarly, tax on tobacco products has been increased to 40%, up 5% compared to 2018.

According to tax expert Coco de Souza, increasing these taxes aim at reducing the excessive consumption of these products as cigarette and alcoholic drinks producers keep prospering in the country. This, despite the multiple sensitization campaigns carried out by authorities and civil society organizations to inform populations about the negative impacts of abusing the products.

Séna Akoda

Togo’s “GDP growth should reach 5% in 2019 and 5.3% in 2020, given that the ongoing political crisis is solved and public and private investments improve”, says the African Development Bank (AfDB) in its 2019 Africa economic outlook report, released January 17.

Regarding the crisis mentioned by the report, it began mid-2017 opposing the actual government by the main opposition coalition which announces new protests on Jan 26. The crisis was marked by multiple socio-political protests paired with a contraction of public investment, of more than 40%. However, the pan-African bank expects Togo’s economy to get as dynamic as in 2016.

In detail, inflation, which was negative in 2017 and relatively low (0.4%) in 2018, “should stand at 1.2% in 2019 and 2% in 2020”, AfDB forecasts. Similarly, budget deficit should improve to 1.6% of GDP in 2019, after being at 9.6%, 2.1%, and 6.7% in 2016, 2017 and 2018 respectively. 

As for current balance deficit, it also is expected to fall, from about 7.9% of GDP in 2018 to 6.8% in 2019, as a result of better clinker, cotton and phosphate exports.

Budget adjustment adopted in 2017 with the IMF should bring debt level below 70% of GDP this year, against 82% in 2016. This figure would align with standards set by the WAEMU commission.

Fiacre E. Kakpo

In Togo, companies that pay value added tax (VAT) must from now on pay a single 18% tax rate. This was disclosed by Ahmed Esso-Wavana Adoyi, Tax commissioner at the Tax Revenue Office (OTR).

The new measure was set under the new tax regime, in effect since Jan 1.

“We have been scolded by the WAEMU. Now, it is either the 18% or nothing,” claimed the commissioner.

As for VAT loans, an escrow account will be created to ensure their rapid reimbursement.

At the end of 2018, the OTR decreased VAT on basic commodities from 18% to 10%. Actually, the tax was suppressed for non-processed milk, rice (excluding first-class rice), mobile terminals and IT equipment, leasing transactions in transport and clean power production equipment.

Fiacre E. Kakpo

Two weeks after a mitigated first bond issuance on the UMOA securities market, Togo announces for January 25, 2019, a second issuance of fungible treasury bonds on this market.

For the upcoming operation, the country has a target of CFA20 billion.

According to the UMOA-securities regional agency, nominal value for each security that will be issued under the operation is CFA10,000, with a maturity period of three years. Interest rate is 6.25% and the bills are repayable yearly, starting from the first year of maturity. This rate is more appealing than the one set for the issuance of fungible treasury bonds by Benin on Jan 24, knowingly 6.10%.

The securities issued on Jan 25 will come into value Jan 28, 2019, and thus mature Jan 28, 2022.

The bonds will be repaid the first working day following the maturity date.

Séna Akoda