Togo First
Togo to raise CFA50 billion via a simultaneous fungible treasury bonds issuance
Subsequent to a successful bond issuance last October 12, Togo once again attempts to raise CFA50 billion on the regional financial market, via a simultaneous issuance of fungible treasury bonds.
The operation will be divided into two categories; one with a three-year maturity period and the other with a five-year maturity period, at a unit value of CFA10,000. Proceeds of the issuance will be used to finance its national budget.
The tender notice issued by UMOA-Titres agency for the issuance indicates that interest rates for bonds that will mature over three years (September 20, 2020) is 6% while the rate for the second category (September 20, 2022) is 6.25%.
Bids will be examined on October 26, 2018, and value date for the securities has been set to October 29, 2018. Capital reimbursement (In Fine) will occur on the first working day following the maturity date, for all securities. As for related interests, they will be paid yearly, every September 20th, throughout maturity period.
“Interests on treasury bonds are tax-exempt for investors living in Togo. However, non-resident investors will pay taxes in accordance to the tax system in place in their country of residence”, the notice reads.
Séna Akoda
Leveraging digital banking, Oragroup aims to gain two million new customers by 2022
Binta Touré Ndoye, head of Oragroup which is set to “perform the largest IPO of the BRVM since its creation”, recently revealed the group’s statistics and perspectives.
With a total balance sheet of more than CFA2,000 billion, Oragroup currently has 43,000 customers. The group plans to add two million customers to this number by 2022.
According to Binta Touré Ndoye, to achieve this goal, the group will rely on digital banking.
Indeed, this strategy has proven less expensive than opening new branches. In addition, it is “innovative, better serves customers and most importantly, helps the group achieve greater financial inclusion”, according to the group’s managing director. “Digitalization helps make a substantial leap by providing access to financial services to the most remote and disadvantaged populations”, she declared.
As a result of its digitalization process, Oragroup’s customers can now perform various transactions, via their mobile or computers, and banking cards as well.
Séna Akoda
Togo: TVSAT ordered to pay more than one million euros to French TV service provider Mediawan
Last October 10, Togolese pay TV provider TVSAT was ordered by the Paris Commercial Court to pay more than a million euros to French TV service provider Mediawan. According to Ecofin Agency which reported the news, TVSAT failed to pay the royalties it owed Mediawan under a distribution agreement dating from August 2011.
Indeed, on 2 August 2011, AB THEMATIQUES, formerly AB SAT, owned by Mediawan, signed with Beninese pay TV provider TV COM an agreement to launch a satellite-based pay TV service. Under the deal, the Beninese firm was entitled to exclusively provide Mediawan’s channels in French-speaking Africa. However, on 2 November 2012, TV COM transferred its contract with AB SAT to Togolese TVSAT, all obligations included.
In September 2015, AB SAT negotiated with TVSAT to cancel exclusivity over its channels in French-Speaking Africa. Finally, the two parties reached an agreement under which AB SAT was to pay a monthly royalty for every subscriber receiving Mediawan’s channels through any other provider than the Togolese firm. Meanwhile, the latter would still keep paying AB SAT to broadcast its channels.
Yet, a few months after the deal was reached, TVSAT stopped paying what it owed AB SAT but kept broadcasting Mediawan’s channels. After many infructuous warnings issued to get the Togolese firm to pay, both parties tried to negotiate a new deal but failed. As a result, AB THEMATIQUES terminated its deal with the two parties on December 7, 2017, before suing TVSAT and its guarantor TV COM. Mediawan’s subsidiary then demanded payment of what the two operators owed, with interests.
In return, TVSAT and TV COM also sued Mediawan highlighting various grievances to the contract signed in August 2011. However, the two were ordered by the French legislation to pay the French firm, with provisional enforcement, meaning that the debt can be collected pending an eventual appeal.
Servan Ahougnon
Oragroup to make the largest IPO in BRVM's history
The Lomé-based pan-African banking group Oragroup announced it received approval from the Regional Council on Investments and Financial Markets (CREPMF), to launch its initial public offering on the Regional Securities Exchange (BRVM) in Abidjan.
“The subscription operated by the Management and Intermediation Companies (SGI) will take place from 29 October to 16 November, with the possibility of early closing in the event of oversubscription, for a share listing in February 2019, subject to validation by the BRVM,” said the company which operates in 12 Western and Central African countries.
Opening of 20% of the capital
In total, Oragroup plans to open 20% of its share capital, which it estimates at CFA56.92 billion (€86 million), in a public auction (OPV). The operation concerns 13,883,006 shares, including 6,097,561 new shares and 7,785,445 existing shares, which will be respectively sold on the primary and secondary markets of the regional stock exchange, at CFA4100 per share.
The remaining 80% of the capital will still be held by current shareholders. With this transaction, Oragroup will become the largest IPO on the Abidjan Stock Exchange since its inception in 1998.
Binta Touré Ndoye, the company’s Managing Director, said this capital increase will consolidate growth and support development. The company thus intends to invest in digital banking, strengthen its presence in Central African countries, increase its reputation among the financial community and the general public, and strengthen the equity capital of certain subsidiaries.
Positive performances
Since 2014, the group has been remarkably doing well, with a 45% increase in balance sheet total to CFA1794 billion (€2.72 billion) at the end of 2017.
Over this period, net banking income increased by 33% to CFA108 billion (€164 million). Motivated by this growth, net income has more than quadrupled in three years, reaching CFA21.97 billion (€33 million) last year.
Oragroup's latest performance is promising. Last year, a 45% increase in profit enabled the group to distribute dividends to shareholders.
Let’s note that following the transaction, Emerging Capital Partners (ECP) is expected to retain more than 50% of Oragroup's shares.
Fiacre E. Kakpo
BRVM should offer innovative products and services, Kossi Tofio says
On October 18, 2018, the BRVM investments days was launched as announced. The event that is to be concluded today October 19, 2018, falls within the framework of a promotion campaign initiated by the West African regional security market (Bourse Régionale des Valeurs Mobilières-BRVM), to boost the number of companies listed on that market.
According to Kossi Tofio (photo), representing Togo’s minister of finance and economy, the choice of the theme "Innovation and development in the financial markets" is perfectly justified.
He ensures that Togo is resolutely committed "to supporting every new initiative aimed at ensuring the long-term funding of economies and companies as well as the sustainability of the Union’s growth [WAEMU]".
Indeed, "although our union has shown resiliency towards the slow down in economic activities observed these past years on the continent, after the 2005-2015 period, the challenge of consolidation of the foundation of our economies and their diversification remains the same”, the official stated adding that "the BRVM should play its part by offering innovative products and services”.
In view of the increasingly high expectations of the state and private entities of the union towards the BRVM, the security market should play an important part in the mobilization of increased resources for the state and private companies, he said.
Séna Akoda
Togo: Lomé hosts two-day workshop to discuss private sector’s contribution to PND’s implementation
Lomé is currently hosting a top-level workshop for the appropriation of the national development plan (2018-2022 PND).
The meeting focuses on contribution of private sector to the plan’s implementation. This explains its theme, knowingly “Private investments for PND’s success”. In effect, authorities expect private sector to contribute 65% of financing required to implement the PND.
The workshop will end Saturday October 20 and covers main axes and actions that concerned actors are to take towards the plan’s realization.
Let’s recall the new development plan revolves around three axes, namely : developing a top-class logistics and business hub, creating transformation poles for agriculture, manufacturing and extractive industries. The last axis concerns social development and establishing inclusion mechanisms.
Séna Akoda
Togo, Burkina Faso, Benin and Niger coordinate efforts to tackle terrorism threat
At the beginning of this week, the respective ministers of foreign affairs of Togo, Burkina Faso, Benin and Niger met in Ouagadougou to discuss security issues at the borders of these countries which are connected.
On this occasion, it was decided that threats to the security of these nations would be coordinated from now on. The meeting mainly aimed to develop a common strategy to fight terrorist threats around borders.
A move that is quite understandable considering that since 2015, insecurity and repeated terrorist attacks in the national parks of W, in Niger, and Pendjari, in Benin, greatly impaired economic activities in other border areas of these countries.
From 2015 to October 2018, the attacks which killed 243 citizens and soldiers, represent a serious threat to efforts for integration and free movement of goods and people, said Alpha Barry, Burkina’s minister of foreign affairs. According to him, “a global and holistic approach paired with preventive and concerted measures” are required to properly fight terrorism.
Recommendations were issued at the end of the meeting and a declaration was adopted to better coordinate actions taken by each of the countries concerned.
Octave A. Bruce
Togo’s Extended Credit Facility under review from October 18 to 30
Since October 18, 2018, a team of the International Monetary Fund (IMF) has been in Lomé for the review under the 3 years Extended Credit Facility programme. This facility approved in May 2017 for Togo is estimated at $241.5 million.
The present mission that should be concluded on October 30 is the third under the Credit Facility.
This mission should concretely help the Washington based institution to asses the country’s progress in the implementation of public finances sanitation reforms.
Last June, satisfied with the economic and financial reforms implemented in the framework of the three years programme, IMF announced the third tranche of $35.5 million. That tranche included, the total amount disbursed to Togo in the framework of that extended facility program amounted to $106.5 million (the first tranche of $34.5 million was immediately disbursed after the programme was approved and a second tranche of $36 million disbursed in December 2017). If this review is successful, Togo can expect a fourth tranche.
Fiacre E. Kakpo
African Culture Fund launches tender to back culture projects
The African Culture Fund has launched its first tender for cultural projects and the winning bidder will get a $10,000 funding.
The Pan-African fund supports art education as well as cultural and creative industries in Africa, towards making these sectors more professional.
It exists to improve careers of promoters, artists, culture professionals. It also backs socioeconomic and cultural organisations, in addition to producers and providers of cultural goods and services.
For its first tender, the Fund will reward only the best projects falling under the sectors of visual arts, creation, production or broadcasting. Candidates working on traditional visual arts media, photography, video art, digital art or decorative art are eligible to submit their bids.
Projects selected must require a maximum of $10,000 and be able to be carried out over a maximum period of 18 months. Interested applicants have until next December 5 to submit their bids on the fund’s official website.
Séna Akoda
Togolese Edem Tengue and Paul-Harry Aithnard listed under 2018 Choiseul 100 Africa
Kokou Edem Tengue and Paul-Harry Aithnard are the two Togolese listed on the 2018 Choiseul 100 Africa released October 17.
Co-founder of Emergence Capital, a firm that gets businesses listed on WAEMU’s regional stock market, Tengue, 38-year old, currently heads Maersk’s subsidiary in Togo. He is a graduate from the University of Stellenbosch in South Africa, Sciences-Po Paris in France and the Imperial College Business School of London.
The second, Paul-Harry Aithnard, Director of Ecobank Group WAEMU and chief of Ecobank Côte d’Ivoire, was placed under the “Alumni” category of the rankings’ fifth successive edition. This category regroups African economic leaders who have been ranked once or more under the Choiseul 100 Africa rankings, and are more than 40 years old.
The rankings are released yearly by the Choiseul Institute, an independent think tank established in 1997 to assess strategic global issues and global economic governance.
The Choiseul 100 Africa is an original annual study carried out by the Institut Choiseul. It identifies and ranks the 200 young African leaders of 40 years old and below, who will play a major role in the development of Africa in the near future. Selection criteria include image and reputation, experience and skills, power and position, influence and networks, potential and leadership.
This year, the rankings named Algerian Sahbi Othmani as the first of the laureates picked from 41 African countries, out of 54. There were 67 women among the listed laureates.
Octave A. Bruce