Togo First
Togo secures CFA20 billion from IFAD for its MIFA scheme
Last Tuesday, the International Fund for Agricultural Development (IFAD) approved the provision of a CFA20 billion financing to Togo, to support its agricultural financing incentive mechanism (MIFA).
The facility will span six years, starting this year and will in detail provide technical support for the development of agro-pastoral value chains and access to market (38% of the financing), support to develop financial products (45%), and institutional support (17%).
Talks for the facility started at the launch of MIFA and were closed in four months, A record, looking at the IFAD’s procedures.
Founded in 1977, on the sidelines of the international food conference, IFAD is headed since April 2017 by Gilbert Houngbo, former Prime Minister of Togo.
Ayi Renaud Dossavi
Togo : At end-September 2018, 177 land titles had been transferred within a delay of 9-10 days
At end-September 2018, 177 land deeds were fully transferred in Togo. This is according to data from the Office of Cadaster, Land Conservation and Registry (DCCFE).
Compared to the same period in 2017, this number almost doubled from 94 titles processed in about 21 days respectively. Compared to the whole 2017 year, where 127 titles were fully transferred, the figure recorded at the end of the third quarter of 2018 is ahead by around 50 deeds.
Demands for land title transfer are processed more rapidly as a result of multiple reforms implemented to satisfy both investors and populations.
Over the first nine months of the past year, the corresponding delay for the processing of these cases varied between 5, 9 and 10 days with a peak of 12 days. Based on these figures, global average delay for all transfers over the period was 9-10 days.
Let’s however recall that this delay recently improved further, from 9 days to 7, between December 13, 2018, and January 15, 2019.
Séna Akoda
Togo: Government sets up a department for “made in Togo” promotion
Togo’s government has set up a ministerial department that will be in charge of promoting local consumption through products “made in Togo”. The portfolio was assigned to Kodjo Adedze, the newly appointed minister of trade.
Mr. Kodjo who was the former inspector of the Togolese Revenue Office (OTR) will now be responsible for taking concrete actions towards ensuring better growth for “made in Togo” products. First actions are awaited in this sector which now covers a wide range of activities, from agro-forestry production and processing, to energy, education and services.
In this wake, during his handover ceremony, the official committed to producing a “collegial work” to boost trade in the country, and ensure that local consumption is effective.
Togo : Eco CCP eyes a million subscribers by 2020
Launched in May 2018 to boost financial inclusion in Togo and enable the post office to create new growth stations, ECO CPP recorded 100,000 subscriptions in 2018.
According to the ministry of economy, posts and technological innovations, Société des Postes du Togo which initiated the project wants to reach a million subscribers by 2020.
ECO CCP is a free mobile savings account with a 2% interest rate. It works like an e-wallet and can be used anywhere in Togo, with a USSD code, via mobile money services of Togo Cellulaire and Moov Togo.
ECO CCP enables withdrawals, deposits, money transfers, and wiring to both traditional accounts and ECO accounts.
Fiacre E. Kakpo
Togo : BOAD and MIFA to soon ink partnership agreements
The BOAD and MIFA’s coordination team will “in the coming days” sign partnership agreements, sources close to the MIFA indicate.
The deals fall in line with support provided by BOAD to the Togolese scheme. In effect, the regional bank should invest €100 million in this project.
In this framework, a guarantee line should be put in place to facilitate farmers’ access to financing.
Also, firms of the concerned value chain should be funded via a dedicated desk. Last, a MIFA project is to be financed under the guidance of MIFA’s coordination team.
The MIFA, let’s recall, is based on a risk-sharing principle. It aims to boost bank loans to the agricultural sector via related value chains.
Séna Akoda
Microfinance: Number of clients up 9.5% at the end of Q3 2018, year-on-year
At end-September 2018, the number of people that benefited from the services of microfinance structures in Togo stood at 2,483,190, according to data from the Central Bank of West African States (BCEAO). This is 9.5% more compared to the previous year.
Meanwhile, the number of structures operating in the sub-sector was 75 at the end of Q3 2018.
Over the same period, the number of service points grew from 462 to 515. Deposits at end-September 2018 amounted to 188 billion CFA against about 165 billion the year before.
Outstanding loans rose from around 140.5 billion to 161 billion over the period under review.
Concerning recovered loans, figures were less good. From 11.9 billion, they rose slightly to 13.709 billion. In this context, loan portfolio of decentralized financing structures contracted to 8.5%, against 8.43% a year earlier, for a generally admitted norm of 3%.
Séna Akoda
Togo: Government commits to reducing budget deficit to 1.5% in 2019
Lomé committed with the IMF to reduce its budget deficit, grants included, to 1.5%. This was revealed in a letter of intention dated November 20, 2018, from Minister Sani Yaya.
“The government has adopted the 2019 finance law which aligns with the global purpose of the ECF-backed program. The new law eyes a maximum budget deficit of 1.5% of GDP, far below the 3% set within the WAEMU,” Sani Yaya declared.
The government will thus streamline its budget.
“Our budget adjustment will focus on improving collection of revenues, through permanent measures relating to tax management and policy, rationalization of non-priority expenses, following expenditure review,” the official added lauding budget performances of the first half of 2018.
“Revenues exceeded forecast of 1.5% of GDP and expenditures were below 3.4% of GDP set under the budget, mainly because expenses for equipment which were financed by external resources were lower than projected”.
“This unprecedented budget streamlining will help reduce the public debt/GDP ratio in 2019 to 70%, as compared to 77.7% in 2016. Hence, this year, all convergence criteria of the WAEMU should be met,” Yaya further indicated.
While the IMF forecasts a debt ratio of 70% this year, the WAEMU for its part expects the figure to fall to 67.5% of the GDP, spurred by a new debt strategy.
Fiacre E. Kakpo
Togo recently raised CFA36 billion on the regional financial market
For its second issuance of securities on the UMOA-Titres regional financial market, Togo raised CFA36 billion, over an initial target of CFA20 billion.
Subscription rate for the operation was 180% and the country kept CFA22 billion.
In detail, investors living in Togo subscribed at a level of CFA18 billion (CFA14 billion retained), attesting that the country regained the trust of the local private sector, just like investors from other countries within the WAEMU.
In descending order, the best subscribers are Senegal (CFA6.5 billion retained), Côte d’Ivoire (CFA4.4 billion offered and 82 million CFA retained), Benin, among others.
The next issuance on the regional market is planned on February 8, 2019.
Séna Akoda
Yaovi Sedjro, best young entrepreneur of 2019, to represent Togo in Morocco
Yaovi Sedjro, the young Togolese agripreneur, won last Friday the award of the Best young entrepreneur of 2019 and will represent Togo at the coming CONFEJES’ (Conference of ministers of youth and sports from Francophonie countries) young entrepreneur international contest, next March in Morocco.
The award was given by the ministry of youth, to the best young entrepreneur backed by the Program to Promote Entrepreneurship for Youth (PPEJ). This program aims to select Togo’s three best young entrepreneurs.
The value of the prize won by Yaovi Sedjro is CFA200,000. This adds, as said earlier, to his participation in the CONFEJES contest which gathers best entrepreneurs from each of the five countries of the conference.
Togo’s port traffic grew by 25% in H1 2018, IMF says
Togo’s port traffic increased by 25% between January and June 2018, a note from the International Monetary Fund (IMF) revealed.
According to the Fund, the increase, paired with good results in the sectors of agriculture (cotton) and mining (phosphate), helped stabilize the country’s economic activity. The latter actually grew 4.7% in 2018.
The Bretton Woods organization expects the country’s economy to grow by 5%, taking into account the first PND projects underway to make Togo a major logistics hub as well as a dynamic financial place and a solid industrial base (with industrial parks).
According to Dynamar, Lomé became at the end of 2017 the main container port of the sub-region, stealing Lagos’ place.
Fiacre E. Kakpo