Foufoumix SA, subsidiary of Logou Concept Togo (LCT) which holds operating licence for foufou-making machine Foufoumix, recently announced the opening of its capital to private investors.

Overall, 48,200 shares with a nominal value of CFA10,000 will be issued for CFA482 million, thus nearly 36% of the startup’s restructured capital which will now be raised to CFA1.4 billion.

Following the operation, LCT will remain major shareholder with a stake of about 64%, valued at 900 million CFA. LCT’s activity will be refocused on research and development.

The fundraising, according to Foufoumix, will help start a more industrial production of its product to better respond to a growing demand “both in Togo, other parts of West Africa, and the diaspora, Europe and USA notably ”.

Minimum subscription is set to 482 shares worth 4,820,000 CFA.

Through this operation, Foufoumix SA which now holds LCT’s technological innovation and invention licences, hopes to start making profits after years of operating at a loss. It eyes a distributable net income of 109 million in 2019, and 138 million by 2021.

From 2013 to 2017, Foufoumix’s turnover grew by 42.16%, its operating result by 9.14%, its pre-tax result by 52.25% and its result by 36%. However, over the past two years, the firm had to restructure its activities as its results slumped. However, total balance sheet kept growing. From CFA82 million in 2013, the latter soared to CFA293 million in 2017, as financial assets and receivables increased.

Fiacre E. Kakpo

Togolese government has just kicked off the Infrastructure and Urban Development Project (PIDU), we learnt. Financed up to CFA16 billion by the World Bank, the project is expected to improve access to basic urban infrastructure. It covers the towns of Lomé, Kara and Dapaong.

In detail, this project set to end in 2023 includes the construction/rehabilitation of road networks, deployment of water drainage systems, establishment of drinking water access points. As well, it plans socio-educational and economic infrastructures such as schools, health facilities and markets, notably.

In addition to the three cities above-mentioned, Tsévié, Atakpamé, Kpalimé and Sokodé will also benefit from programs aiming at strengthening institutional capacity in urban planning and management.

According to the Minister of Urban Planning, Housing and Living Environment, “the initiative will make it possible to eradicate extreme poverty and share prosperity”. It aligns with the World Bank’s new partnership framework, which aims to set Togo on the path to more inclusive and sustainable growth, driven by the private sector and more effective public investment.

The forum on clean energy organized by BOAD on the sidelines of its 45^th anniversary recently ended. Here, Christian Adovelande, the institution’s head, reviews its actions so far and projections.

Togo First : The BOAD is 45-years old. What is your review of its actions so far?

Christian Adovelande : Over the past 45 years, we have financed 1030 projects for CFA5,300 billion and raised more than 3,000 billion. Actually, almost CFA1,500 billion were mobilized during the past five years alone.

In terms of mobilization of resources, BOAD does very well. We have a strong cooperation with most institutions operating in the climate sector, especially the renewables industry. I recently talked about our accreditation with the green fund, the Global Environment Facility (GEF), and the Adaptation Fund. We are working with the European Union and the World Bank which are both really engaged in the sector. We have already started mobilizing funds as mentioned throughout this forum. It’s our duty and role to attract funds to our integration zone, and we will fulfill it. We have already put in place all mechanisms needed to achieve this role and we believe we will successfully carry out all projects.

TF : Following this anniversary, will BOAD continue actions in the same direction or will it set new goals ?

CA : Truth is, there will always be challenges as you very well know and while improving upon our current actions, we plan to explore new horizons. Recently, I spoke a lot about climate funding. Just seven years ago, this became one of our priorities and we had to establish many reforms in this framework. However, we remain strategically positioned on infrastructure funding, both in the private and public sectors. 

BOAD is also much engaged in the issue of food security. We will keep supporting private sector. So far, 74% of our financing is injected in the public sector and 26% is in the private sector. We thus have to increase our support to the private sector since our nations are gradually focusing on this sector, through the transformation of raw commodities.

Hence, while reinforcing actions undertaken during the past 45 years, we will tackle new challenges that are rising. These include rural electrification solar power and everything related to the environment. 

TF : The recent forum focuses on solar power, a sector where banks plan to invest in WAEMU States. What are the forecasts made in this regard?

CA : Before talking of forecasts, we must first talk about what has already been done. In the clean power sector, we have launched 18 projects at a total cost of CFA185 billion. This is far below what is needed.

Now, speaking of projections, our actions must respond to existing needs, as many as they may be. As long as we can mobilize resources, we will venture into projects that emerge, provided they are viable of course.

TF : What is the real potential of WAEMU states, for solar power development ?

CA : On November 15, all experts we met confirmed that we are the region that is most exposed to sunshine around the world. Therefore, there is no reason not to do everything to tap into this source of energy. Actually, Togo’s Prime minister referred to it as a “gift of God”.

I think that it is hence our responsibility to organize ourselves to use every modern mechanism possible to exploit this resource which is the future of, not only, our continent, but BOAD’s as well. This commitment, we took five years ago and are working on it. This explains the various accreditations we have secured from these various funds.

TF : Minister Wadagni of Benin recently recommended the use of innovative financial tools to increase fund mobilization at low rates. Has this helped you set your future course?   

CA : We must say that we have already secured a lot of funds, in various forms. Now, what must be done is to evaluate how we could allocate the funds to the various projects we are conducting. We have a lot of money so it is not really an issue. The issue resides in finding viable, bankable projects to support.

It’s our role to help our targets present such projects and for a very long time, we have been acting in the background due to our status of financial institution. We often waited for projects to come our way. Now however, we have to back project carriers, train them, help them boost skills and capacities that will enable them to develop better projects. I believe this will be a role that we will be playing more, even if it is not our primary role.

TF : BOAD plans to pour CFA50 billion every year into the climate challenge. Does this mean the bank’s actions will now be oriented only towards clean energy and climate issues?

As I said earlier, we will improve upon what we already do as these challenges still remain in the region. These include challenges related to transport, food security, and private sector support. We will still tackle these issues but climate issues have become a new concern that must be taken into account by our actions. This means that while standing by our former strategy, we will add new priorities.  

Interview by Fiacre E. Kakpo.

A hundred thousand direct jobs per year and a million (both direct and indirect) over the next five years. That is the goal aimed at by Togo’s actual government. A laudable objective but is it truly achievable or will this path lead to a white elephant? How do authorities plan to finance this goal? What types of jobs will be generated? Will they be sustainable? Decent? Temporary? These are some of many concerns revolving around this forecast, which could, if attained, resolve Togo’s unemployment issue.

Regardless of all these interrogations, the government actually shows a strong will to achieve its target. Now, this will must be converted into palpable actions. Does the country have the means to realize this ambition, in the present context? That is the main question.

In response to the various concerns mentioned earlier, the government declared: “Government’s proactive political agenda is based on realist projections for decent and sustainable jobs. It could lead to the creation, over the 2018-2022 period, at an average growth rate of 6.6%, of at least 500,000 direct jobs, thus at least 100,000 direct jobs per year”.  

Moreover, “adding various impacts that could create indirect jobs, we want to generate at least a million jobs (direct and indirect) in 2018-2022, at a pace of about 200,000 jobs a year,” the authorities added. 

Targeting sectors with a strong potential for job creation

Togo has last August 3, during a highly anticipated ministers’ council, launched its 2018-2022 national development (PND 2018-2022). The 200-page document reviews the country’s economy following the implementation of the Strategy for Accelerated Growth and Employment Promotion (SCAPE).

The latter helped modernize various logistics infrastructures. As a result, Togo was ranked 12^th in terms of transport infrastructures in Africa, under the latest Mo Ibrahim Index on Governance.

The PND which is an ambitious roadmap revolves around three strategic axes. It has already received a lot of support as it is being executed. Visible results include the beginning of a 65MW thermal plant. Siemens which was selected to ensure the maintenance of this infrastructure recently told Togo First it would hire local workers in this framework.

The document paves the way for a new paradigm under which the private sector will greatly contribute (65% of all investments) to the structural transformation of Togo.

The PND indeed positions the private sector, regrouping both local and foreign investors, as a major catalyzer of the process and targets sectors with high potential for job creation. In detail, sectors eyed are logistics, agropoles, manufacturing, tourism and digital; all sectors with great potential for job creation that should allow the government to achieve its goals for 2030.

However, the program will have to overcome old challenges such as authorities’ inefficiency which was highly criticized in the latest Mo Ibrahim and MCC reports.

On a more positive note, Togo’s business environment seems to be improving due to the various reforms implemented by the government in this regard. Across the ECOWAS, the country is the fourth most attractive economy, according to the latest Doing Business ranking where Togo gained 19 places compared to the previous edition.

Fiacre E. Kakpo

Last Wednesday, Togo’s National Civil Aviation Agency celebrated the Yamoussokro Decision.

Placed under the theme “Plead for Laws Regulating the Yamoussokro Decision, Tools Contributing to the Good Functioning of MUTAA”, this event according to Togo Presse, aims to inform various actors of the civil aviation, about advantages derived from implementing the Yamoussokro Decision and the Single African Air Transport Market (MUTAA).

According to Marc Sondou, Director of Cabinet, Ministry of Transport, the Decision is the most notable political measure ever implemented in terms of air transport reforms in Africa. It plans the liberalization of air transport services, both regular and non-regular, in Africa, knowingly by suppressing restrictions of traffic dues. This Decision is the legal platform that enabled heads of States and governments of the African Union to create the MUTAA last January.

“The Single African Air Transport Market falls under a holistic approach and reveals the Yamoussokro Decision’s true value and significance, in an extremely competitive environment. This single market is a real driver of development and growth of transport in Africa,” Marc Sondou declared.   

Séna Akoda

Developed by Schneider Electric and its partners, following an agreement with the WAEMU commission and the African Biofuel and Renewable Energy Company (ABREC), Microsol-UEMOA is a system that helps produce, simultaneously, power and heat for agricultural uses (irrigation, fish farming, drying, processing, pasteurization, etc.). 

At the end of a two-day regional meeting to review the project’s implementation level, Togo and Senegal were selected to host its pilot phase.

“We are already at final stage of development which is this workshop,” said ABREC’s head, Adji Oteth during the meeting. “Equipment are already in and now Togo and Senegal have been picked as pilot nations. After the workshop, we will get more equipment which will be dispatched in other countries,”  he added.  

Under the pilot phase, mini thermal and electric plants will soon be established on sites capable of capturing solar energy and exploit it for agricultural projects.

 Séna Akoda

The University of Lomé, in line with its objective to become a home of innovation and technology transfer, will soon have an incubator for entrepreneurs with innovative projects.

These entrepreneurs will receive at the facility a tailored technical training, benefit from support of experts as well as from funds needed to bring their ideas to fruition.

The incubator, according to the source announcing its creation, will host “the best startups, based on their idea, technology, team and their advancement”. It should help meet specific needs of the local and regional markets.

Through its new incubator, the university wishes to shift its paradigm regarding its training-employment approach and push students towards entrepreneurship. A goal that aligns with the government’s to foster self-employment and support entrepreneurs.

Séna Akoda