In Togo, the posts and telecommunications regulatory authority, ARCEP, will soon open its own call center. 

This center, ARCEP said in a statement, will allow every citizen to get information on the telecommunications and posts sectors. They will also be able to submit complaints against some operators, as well as report issues regarding their networks, or even make recommendations to the regulator. 

This will improve relations between operators and their customers. 

According to ARCEP, opening the call center aligns with legal provisions on telecommunications and its mission to preserve customers’ interests. 

Let’s recall that on May 29, 2019, organizations in charge of protecting and defending customers’ rights and ARCEP signed a framework partnership agreement in this regard. 

Séna Akoda

This year, BOA Togo intends to raise its loans to the agricultural sector, bringing it to XOF7 billion. The move falls in line with the bank’s partnership with the Incentive Mechanism for Agricultural Financing (MIFA). It was announced last month, during the 12th national forum for Togolese farmers (FNPT), held in Kara.

“We have received the authorization to spend a total of XOF7 billion of loans on agricultural machinery this year,” representatives of the banking group had said at the time.  

The sum set is 46% more than what BOA Togo loaned to the sector last year - XOF4.8 billion- BOA Togo intends to raise its loans to the agricultural sector.

Agriculture is considered a high-risk industry and thus struggles to get loans from traditional lenders. Another reason explaining the low lending to this sector is that financial institutions lack the technical specialization to assess it. 

The MIFA’s role is thus to help BOA better understand and target sub-sectors in need of financing (fertilizers, production, processing, export, industrialization), in addition to providing technical support to agricultural actors. 

Ayi Renaud Dossavi

Through the fund of Autonomous Company for Road Maintenance Financing (SAFER), the government of Togo plans to proceed to the maintenance of more than 340km of roads. 

The works will be done on the National Road N°1 in Lomé, Togblekopé, Tsévié, Notsé, Atakpamé and Aouda, Sokodé, Kara and Kanté. They will include major and minor rehabilitation, as well as resurfacing.

In detail, 61km of roads in the maritime region, 86km in the Plateaux, 59km in the central region, and 136 km in the Kara region will be rehabilitated. 

An international tender is opened until March 5, 2020, in the framework of this project. The works will be divided into 12 lots. Any firm interested in executing the contract can apply for a maximum of four lots, however, they can only win one each. 

To rehabilitate and maintain roads this year, SAFER said it would raise XOF14 billion. This is about ⅓ of the total amount needed for these works in 2020 - XOF39 billion. 

Séna Akoda

The government of Togo plans to raise a total of CFA420 billion on the regional financial market to finance its 2020 budget, UMOA-Titres reports in its 2020 securities issue calendar. According to the document, Togo is set to raise CFA150 billion in the first quarter, split into CFA125 billion fungible treasury bonds (OATs) and CFA25 billion treasury bills (BATs).

In the 2nd quarter, the country wants CFA75 billion, with CFA40 billion in BATs and CFA35 billion in OATs. In Q3, CFA135 billion is sought only through the issue of fungible treasury bonds. The operation in the last quarter will consist of the issue of bills, seeking CFA20 billion, and fungible bonds, seeking CFA40 billion. This final fundraising will allow the country to test its rating on the market.

Togo is the second country after Guinea Bissau (CFA75 billion) to consider taking on less debt on the WAEMU market this year. Other countries moving in the same direction are Niger (CFA465 billion) and Senegal (CFA485 billion). Record mobilization are planned by Cote d'Ivoire (CFA1,075 billion) and Benin (CFA734 billion).

The aggregate amount expected to be raised at the regional level is CFA4,361 billion, including CFA1,562 billion BATs and CFA2,799 billion OATs.

This year, Togo has already made two operations on the regional market to mobilize a total of CFA50 billion. The two issues were oversubscribed to 276% and 296%, respectively, and the country collected CFA55 billion to supply the Public Treasury. Its third issue of the year, for CFA25 billion, will be closed on 14 February.

Séna Akoda

CimMetalgroup, owned by Burkinabe mogul Inoussa Kanazoé, could spend around XOF100 billion (€152.4 million) in Togo’s cement and iron sectors. According to Jeune Afrique, the group inked an agreement last month to build an industrial complex in the country. 

It was allowed to fund iron and cement factories in Togo. However, the two parties disclosed no detail on the matter. Still, if it is true, this would greatly contribute to the sectors concerned and the national development plan (PND). 

CimMetalgroup’s financing reinforced Togo’s foreign investment portfolio in the past few months. One of these major investments was made by Africa’s richest Aliko Dangote. The Nigerian billionaire has invested more than $2 billion in the cement and phosphate-to-fertilizer sector. 

Ayi Renaud Dossavi

SMEs and SMIs in Togo currently need XOF1,000 billion of investments. This was revealed by a recent survey carried out in the framework of the creation of an investment-guarantee fund for SMEs and SMIs. The latter was ordered by Togo’s Chamber of Trade and Industry and the European Union delegation. 

Overall, the funds are needed by around 4,000 companies which total a combined turnover of XOF500 billion per year. 

However, these businesses, which are mostly one-man businesses, employ only 2.7% of Togo’s active workforce. 

The fund planned aims at supporting SMEs and SMIs and subsequently boosting employment. 

Meeting with the private sector

The survey’s results were discussed last Monday, by public and private actors ; entrepreneurs, investors, bankers, investment fund executives, local elects, and other development actors. 

The study was led by Béatrice Clotilde Jauffrineau, a French expert in investment. Among strong points that facilitate the creation of the projected fund, she mentioned, are a high rate of business start-ups, the existence of a national loan council, the continuous improvement of the business climate, and other reforms such as the government’s decision to allocate 25% procurement to SMEs owned by youths and women. 

Soon, a financing mechanism for the industry and trade sectors?

During the meeting, Germain Méba, head of CCIT, talked about the “possible creation of an incentive mechanism to finance industry and trade,” inspired by the MIFA which backs the agricultural sector. 

Ayi Renaud Dossavi

Construction works for the 30MW photovoltaic power plant in Blitta (Central Togo), were officially launched on February 3, by President Faure Gnassingbé. 

The project, which costs $35 million, is partially financed by the Abu Dhabi Fund for Development and the BOAD. AMEA Togo Solar, the local subsidiary of Emirati company AMEA Power, will set up and run the plant, under a 25-year concession. After the latter expires, the plant will be handed over to the CEET, Togo’s public utility.

“We are happy to contribute to Togo’s national electrification strategy and its national development plan,” said Hussain Al Nowais, Chairman of AMEA Power. 

The plant is expected to come online by June this year, with an initial production capacity of 30MW, which will increase to 50MW by October. 

Besides Togo, AMEA Power, let’s emphasize, is discussing with others like Mali, Burkina Faso, and Niger, to develop similar projects.

Between 2005 and now, tax and customs earnings have almost quadrupled - a performance which was driven by the merging of both authorities managing these revenues. 

Indeed, in 2005, tax and customs income were at XOF162 billion. However, they grew steadily - by 10% average per year - to reach XOF624 billion last year. This made Togo the only WAEMU state to reach a tax to GDP ratio of more than 20%, according to the Central Bank of West African States (BCEAO).

The improvement in tax and customs earnings are attributed to multiple reforms introduced by the Togolese Revenue Office - OTR. The latter started operations in 2014 and before that, taxes and customs were struggling to take off. Regardless, in 2015, they passed XOF500 billion and reached their peak in 2019: XOF624 billion. This last performance represents an increase of more than XOF200 billion compared to figures recorded before 2015. 

Besides the OTR’s reforms, another factor that helped boost tax and customs revenues is a good economic environment, with the exception of H2 2017 and Q1 2018 where the country experienced some political tensions.

For its last operation on the UMOA-titres market, and the second this year, Togo recorded a subscription rate of 296%. For this transaction, Lomé issued fungible treasury bonds. 

This subscription rate corresponds to about XOF75 billion, which is almost thrice the amount sought. However, the Togolese treasury will retain only XOF27.5 billion which will serve to plug budget gaps in 2020. 

Bonds issued last Friday will mature in three years and their nominal value is XOF10,000. The value date was February 3 and their annual interest rate was fixed at 6.15%. 

Reimbursement will begin on the first workday after the date of maturity. As for interests, they will be paid yearly, after the first year.

Séna Akoda