In line with its goal to become one of West Africa’s leading airport hubs, Togo’s government plans to make the country’s second airport, the Niamtougou airport, “a reference platform for airport logistics, especially for cargo traffic to hinterland countries”.

According to authorities, this will be achieved through the rehabilitation and modernization of facilities as well as upgrading the infrastructure’s standards to meet international standards.

As said earlier, the country aims to boost its passenger and freight traffic. For example, with Lomé’s new terminal, passengers’ traffic is expected to double from 750,000 in 2016 to 1,500,000 per year by 2022. As for freight, it is expected to grow from 12,000 tons to 24,000 tons per year.

To achieve this, the government plans to increase the number of destinations served from Lomé and services provided by the nation’s two airports, respectively the Gnassingbé Eyadema International Airport in the South and the Niamtougou Airport, in the North, around 450km from Lomé and not far from Kara.

Leveraging on Africa’s new open sky policy, Lomé intends to “pursue and reinforce efforts to sign agreements with international airlines to connect them to Lomé’s airport”.

According to the government, private sector will be the main driver of this process, in line with its 2018-2022 national development plan.

Fiacre E. Kakpo

Yesterday, Togo’s minister of agriculture, Ouro-Koura Agadazi, officially launched in Lomé a project to improve the system for phytosanitary control and certification of fruits and vegetables in the country.

Valued at CFA478 million, this project boosts existing regulatory and institutional framework related to phytosanitary control and certification of fruits and vegetables in Togo, and aims also to encourage good practices in this area.

In detail, the project aims to improve the quality of fruits and vegetables produced locally by eliminating pests attacking these products, as well as boost access to markets.

According to Tchalla Kaziya who coordinates the project, “it will allow all actors of the sector to better understand standards in place for the products, and good practices to have in order to ensure their quality”.  

The project will also “allow the authority in charge (ed’s note: Vegetables Protection Office) to level up phytosanitary control so that the products it certifies, show no shortcomings in targeted markets,”  he added. The project will be carried out over three years.   

 Séna Akoda

In Togo, under phase 3 of its development, the Lomé Urban Environment Project will rehabilitate and valorize the old landfill site of Agoè-Nyivé, in the periphery of the capital. According to a document released by the project’s carrier, a special delegation of Lomé's township, projected works will cost €6.9 million.

Overall, these will focus on ensuring environmental preservation, rehabilitation and valorization of the polluted site. In detail, the site will be fenced, remodeled and covered with a semi-permeable cover.

Also, under the project, ditches will be dug to collect rain water; waste leachate trenches also as well as biogas vents.  

Beyond the environmental impact of this project, it also comprises an economic component involving production of biogas.

Séna Akoda

“In line with a tax relief measure,” Togo’s revenue office (OTR) will “offer special conditions at the end of this year”. This, the institution disclosed in a statement published last week.

In effect, OTR will allow reduction of up to 45% of customs value, in some cases, for used cars and clearance of goods.

This offer will be valid until December 31, 2018. Through this promotional offer, OTR wants to optimize conditions needed to achieve its goals for the end of the year. Most importantly, the institution wishes to encourage business operators to clear their goods and remove them from the port.

Let’s recall that a recent IMF mission in Togo revealed that while “collection of tax revenues improved over the first half of 2018, it slightly slowed in the third quarter”.

Séna Akoda

In Togo, the program which aims to boost youth employment and insertion in profitable sectors (PAEIJ-SP) plans to train 350 new entrepreneurs in business management and 250 others in agricultural entrepreneurship and business plan development.

The ministry in charge of the program plans through this training to spark in young people, the desire to take care of themselves via agricultural entrepreneurship, but also teach them to elaborate agricultural projects properly. Better even, it aims to insert them in the “value chains” format so that they can benefit from bank loans.

Consultants will be carrying out the training sessions. In this regard, the ministry of grassroot development, craftsmanship, youth and youth employment, through the PAEIJ-SP management unit, urges firms and cabinets to submit their offers. Once a consultant is selected, trainings should begin in June 2019.

The project will be financially supported via a grant from the African Development Fund (ADF) and African Development Bank (AfDB).

Séna Akoda

CRRH just issued a CFA30 billion bond to refinance housing loans provided by its shareholder banks in WAEMU countries.

Valid until November 20, 2018, the bond, the eighth issued by CRRH-UEMOA, is divided into two tranches : “CRRH-UEMOA 5.95% 2018-2030”, valued at CFA25 billion, with a yearly interest rate of 5.95% and 12-year maturity period ; and the second, “CRRH-UEMOA 6.05% 2018-2033”, valued at CFA5 billion, with a yearly interest rate of 6.05%, free of tax and duty in all WAEMU States, and having a maturity period of 15 years.

Since July 2012, the institution raised a total of CFA132 billion for 34 shareholder banks in WAEMU States. Adding the present bond, this amount will reach CFA162 billion.

CRRH-UEMOA, let’s recall, is headed by Christian Agossa and is a regional initiative that aims to improve financing dedicated to housing in WAEMU countries.

Séna Akoda

On November 19, 2018, Togo’s national statistics, economic and demographic institute (INSEED) will complete a survey, started last October 18, on living standards of households that benefit from the money transfer program launched by the ministry of grassroot development in 37 selected prefectures.

The survey falls under the Social Nets and Basic Services Project (FSB) launched by the National Agency for Support to Grassroot Development (ANADEB).

According to a statement released in relation to the study, its objective is to “collect data related to education, health, food consumption, housing, sustainable goods, activities and socio-demographic characteristics of targeted household members”.

The survey should also help gather general characteristics of the concerned localities, such as existence, functioning and accessibility of basic social services, and subsequently help proceed to community validation of households’ lists.

Initiated via ANADEB, the money transfer program is part of the social nets and community development project (PDC+). Backed by the World Bank, it aims to reduce poverty in the country’s most vulnerable areas.

Over the next three years, the number of people benefiting from this program should reach 120,000, according to President Faure Gnassingbé.

Séna Akoda

Last Friday, Togo’s parliament adopted a new general tax code. The new regulation replaces a 25-year old one which has been amended multiple times over the years, as new issues emerged, both in the country and worldwide.

Number of taxes imposed slightly reduced

The new code suppresses some taxes which used to make things harder for firms, harmonizes collection with neighboring countries, and encourages those operating in the informal sector to regularize. These aim to boost tax base which is still strongly dependent on consumption (consumption taxes contribute nearly 80% of tax earnings).

The new code not only draws “a distinct line separating tax base regulations and tax procedures, but also emphasizes on taxation guidelines,”  said Sani Yaya, Minister of finance.

Among the new guidelines, there is the “rationalization of the tax system’s structure with new rules to determine earnings per category, reducing corporate tax rate from 28% to 27%, and progressively eyeing 25%, as required by WAEMU”. Around VAT, there is also an indirect tax introduced through “the implementation of a VAT loan reimbursement mechanism, in line with the best practices, and the introduction of a more open synthetic tax for the benefit of SMEs”.

The new code indeed is quite favorable to companies, SMEs especially, as it cuts down many taxes. The latter include taxes on wages, on official vehicles, and taxes complementary to tax on income and wage, surcharge levied on poorly exploited land properties and special tax on drinks manufacturing and sales.

Boosting tax revenues

Through this reform, the government aims to significantly increase tax revenues while developing one of the region’s most attractive business environments.

While tax revenues are still too weak to cover its budget expenses, Togo, by creating a tax revenue office, has succeeded in slightly raising its tax collection level, compared to 2014. According to an OECD study assessing 16 African nations, Togo is the nation that improved the most in terms of tax collection.

Fiacre E. Kakpo