Togo plans to install 240 km of high-voltage lines and 23 distribution substations in the coming years. The information was revealed during the 7th Tokyo International Conference on African Development (TICAD7) by Adjadi Shegun Bakary (pictured), Energy Advisor to the Togolese Head of State Faure Gnassingbé.

The project is expected to boost the electrification rate in the country, which according to the energy minister, Marc Ably-Bidamon, reached 45% in 2018. The government wants to achieve 75% of electricity coverage by 2025 and universal energy coverage by 2030.

In addition to the 240 km high-voltage lines, Togo is mainly focusing on the promotion of solar energy and hydroelectricity with the objective of achieving 50% share of renewable energy in its energy mix. The country also wants to become a pioneer in renewable energy in Africa by 2030.

Séna Akoda

Ecobank Transnational Incorporated (ETI), the Lomé-based pan-African banking group closes the first half this year with a net result of $164.75 million. Compared to the same period last year when the net result was $168.54 million, this makes a 2% decline.

However, with regard to the fluctuations of the US dollar to XOF rate, this makes a slight increase to XOF95.66 billion from XOF94.67 billion at the end of June 2018. Although Ecobank managed to cut risk costs (-57% YoY) and operating expenses (-9% YoY), this was not enough to make up the decline in its net banking income (which fell by 14.8%) and fee and commission income (-7%) compared to the end of June 2018.

According to the group’s CEO, Ade Ayeyemi, the poor performances are the result of a tough economic environment. The bank’s top management, which has chosen not to pay dividends in the last two years, stressed the “challenges to be met in terms of regulation, activity and the macroeconomic environment.”

Also, things are not getting better for this banking giant present in 36 African countries. The group suffered recent shocks on the regional markets, particularly in Accra and Lagos. And in this scenario, the International Finance Corporation transferred the share it held in the bank to investment and development company Arise BV.

Ayi Renaud Dossavi

Prosper Africa is the name of the new program developed by the Trump administration and which is set to substitute the African Growth and Opportunity Act (AGOA) by 2025. This new program aims to boost trade and investments between Africa and the US.

As a beneficiary of the AGOA, Togo will be part of the first nations to benefit from the new program. According to the Togolese communication cell, this was revealed by Phil Bryant, Governor of Mississippi, during a recent visit in Togo. 

The decision to integrate Togo at the early stages of the program aligns with the country’s vision for growth, through its national development plan to be specific. This plan, it should be noted, depends greatly (65% of funds needed which equals nearly XOF3,000 billion) on private investments.

Regarding Prosper Africa, Tibor Nagy, US deputy State secretary in charge of African Affairs, had said during a tour in Africa that “it will greatly benefit countries fostering private sector and innovation.” According to him, the program should enable African producers access the US consumption market of more than 300 million people having a combined purchasing power of $13,000 billion.

Séna Akoda

On August 9, 2019, Togo closed its third issuance, for the third quarter on the UMOA-Securities market. Subscriptions for the operation attained XOF29.5 billion, thus representing a coverage rate of 147%.

However, over the amount raised, the country captured XOF22 billion. “This operation aligns with the public securities issuance program of Togo, in line with its mid and long term debt management strategy,” said the regional debt planning agency.

The successful transaction, one of the many the country has been recording on this market since the year started, just reflects a regained trust in the Togolese economy from regional investors. However, the trend spread across the whole region where Benin, Burkina Faso, Senegal and Côte d’Ivoire also performed well on the UMOA securities market.

For the third quarter of the year, just like the previous, Togo has a target of XOF115 billion on this market. Last quarter, the country mobilized XOF319 billion and retained XOF121 billion, thus exceeding its expectations.

Séna Akoda

Togo intends to focus on cashew processing to boost the performances of this sector and related exports.

In this regard, last Wednesday, President Faure Gnassingbé discussed with top management of Japanese firm Export Trading Group to set up in Togo an industrial cashew processing plant.

According to credible sources, the Asian firm will help local authorities set up the infrastructure. “This plant’s installation should create jobs and wealth, and this will be a major milestone in the country’s strategy to process cashew nuts and develop the sector,” experts said.

Export Trading Group, it should be noted, has been operating in Togo for 10 years, knowingly in the sectors of coffee, cocoa and leguminous crops. The new move between the two parties follows a tax implemented in October 2018, whereby respectively XOF5 and XOF45 were levied on a kilogram of processed and raw cashew. Just like the plant’s project, this tax aimed at strengthening the industry.

This year, Togo eyes a cashew output of 24,000 Mt which it plans to raise to 30,000 Mt in the next four years. Over the period, 20,000 new jobs should be created in the sector.

Séna Akoda

On May 17, 2019, Togo successfully closed its eighth issuance on the regional financial market.

A total of XOF22 billion was raised by issuing fungible treasury bonds which have a maturity period of five years and an interest rate of 6.5%. The country, it should be noted, expected to retain XOF20 billion, however, overall subscriptions for the operation exceeded XOF60 billion.

Just like the two previous issuances for the second quarter, the third was subscribed twice by investors from seven out of the WAEMU’s eight member States. From April 5 to May 20, Togo’s treasury mobilized more than XOF216 billion (of which it retained XOF66 billion) while initially seeking XOF60 billion. This represents a coverage rate of 360% while retention percentage is 110%.

The good performances of Togo on the regional market reflects better capacities to secure funding. This is to be attributed to efforts made by authorities to improve public finances, related to budget especially, after the country’s public debt exploded at end-2016. Indeed, these efforts cut by 10% the debt level bringing it below the community standard of 70% at the end of March this year. The country says it is nearing budget balance, with deficit forecast at less than 2%, as the region works to keep this figure below 3%, by 2020.

For the rest of the year, Togo plans to secure 235 billion CFA. This breaks down into 70 billion as fungible treasury bills and 165 billion as fungible treasury bonds.  

African firms need to use credit and bond insurance more, according to the International Insurance Institute (IIA). This was during a seminar the institute held in Lomé last month.

Themed “Credit and Bond Insurance : Conditions and Terms, Terms of Pricing and Loss Management,” the seminar aimed at presenting the lease-credit-insurance product to experts from member-States of the Inter-Africa Insurance Markets Conference (CIMA), namely Mali, Niger, Senegal, Chad, Côte d’Ivoire, Gabon, Togo, Benin, Burkina Faso, Cameroon, Central African Republic, Comoros, Congo and Equatorial Guinea.

These insurance products, according to Kossi Tofio, Cabinet Chief at the Togolese ministry of economy and finance, protect businesses when their customers fail to pay for goods or services, and thus limit debts.

In effect, “the firm still gets paid for its service or goods and the debt risk is transferred to the insurer,” explained the official.

Séna Akoda

In Togo, the 161kV high tension line project is advancing well. Indeed, nine out 17 firms that applied to conduct the project were recently pre-qualified for its two components.

It must be noted that no local firm was among applicants to the project which covers the Dapaong-Mango area and should lead to the electrification of 43 rural communities. It also aims at sustaining power supply in Northern Togo and will connect Dapaong to the CEB’s grid in Benin.

Let’s also recall that the Islamic Development Bank (IDB) backs the project with $46 million.

Séna Akoda

The Ministry of Trade plans to implement measurement units of the International System (SI) in the framework of trade transactions in the country. A workshop was held last Thursday to validate the move.

At the moment, sales of agricultural, fishery and hunt products is done using unconventional measuring units such as bowls and heaps, which are not precise. As a result, both producers and consumers are affected.

According to the ministry of trade, “using measuring bowls, which is unconventional, should end and be replaced by more conventional tools,” such as SI units. Same goes for selling in heaps which should be replaced by weighing in order to avoid disputes as well as make transactions safer for both sellers and buyers.

The move initiated by the ministry also aligns with WAEMU standards.

Ayi Renaud Dossavi