Togo’s “GDP growth should reach 5% in 2019 and 5.3% in 2020, given that the ongoing political crisis is solved and public and private investments improve”, says the African Development Bank (AfDB) in its 2019 Africa economic outlook report, released January 17.

Regarding the crisis mentioned by the report, it began mid-2017 opposing the actual government by the main opposition coalition which announces new protests on Jan 26. The crisis was marked by multiple socio-political protests paired with a contraction of public investment, of more than 40%. However, the pan-African bank expects Togo’s economy to get as dynamic as in 2016.

In detail, inflation, which was negative in 2017 and relatively low (0.4%) in 2018, “should stand at 1.2% in 2019 and 2% in 2020”, AfDB forecasts. Similarly, budget deficit should improve to 1.6% of GDP in 2019, after being at 9.6%, 2.1%, and 6.7% in 2016, 2017 and 2018 respectively. 

As for current balance deficit, it also is expected to fall, from about 7.9% of GDP in 2018 to 6.8% in 2019, as a result of better clinker, cotton and phosphate exports.

Budget adjustment adopted in 2017 with the IMF should bring debt level below 70% of GDP this year, against 82% in 2016. This figure would align with standards set by the WAEMU commission.

Fiacre E. Kakpo

In Togo, companies that pay value added tax (VAT) must from now on pay a single 18% tax rate. This was disclosed by Ahmed Esso-Wavana Adoyi, Tax commissioner at the Tax Revenue Office (OTR).

The new measure was set under the new tax regime, in effect since Jan 1.

“We have been scolded by the WAEMU. Now, it is either the 18% or nothing,” claimed the commissioner.

As for VAT loans, an escrow account will be created to ensure their rapid reimbursement.

At the end of 2018, the OTR decreased VAT on basic commodities from 18% to 10%. Actually, the tax was suppressed for non-processed milk, rice (excluding first-class rice), mobile terminals and IT equipment, leasing transactions in transport and clean power production equipment.

Fiacre E. Kakpo

Two weeks after a mitigated first bond issuance on the UMOA securities market, Togo announces for January 25, 2019, a second issuance of fungible treasury bonds on this market.

For the upcoming operation, the country has a target of CFA20 billion.

According to the UMOA-securities regional agency, nominal value for each security that will be issued under the operation is CFA10,000, with a maturity period of three years. Interest rate is 6.25% and the bills are repayable yearly, starting from the first year of maturity. This rate is more appealing than the one set for the issuance of fungible treasury bonds by Benin on Jan 24, knowingly 6.10%.

The securities issued on Jan 25 will come into value Jan 28, 2019, and thus mature Jan 28, 2022.

The bonds will be repaid the first working day following the maturity date.

Séna Akoda

On Tuesday, January 15, 2019, Germain Essohouna Méba was re-elected as the head of the chamber of commerce and industry of Togo (CCIT).

His re-election happens at a time the private sector is expected to play a major role in the development of the national development plan (PND).

During his first mandate, the private sector’s activity grew with for example its participation in the Business Forum organized by Togo in Hangzhou, China, last September, the first international import fair of Shanghai, and also signing an agreement with the China Council for the Promotion of International Trade (CCPIT).

There were also various fairs organized in the country, including for example the Grande Quinzaine Commerciale de Lomé, which helped business owners get closer to their customers.

The CCIT's new office has seven members.

Octave A. Bruce

Since last Tuesday, various national clean power experts gathered for a four-day workshop on the elaboration and development of climate change resilient projects with low greenhouse gas emission. The workshop’s goal is to improve Togo’s eligibility for the Green Climate Fund.

It is the first of many that will be organized in all 15 ECOWAS States, to ease their access to the Green Climate Fund and the Adaptation Fund.

“Togo has been on the right path for some years now, since it was one of the first countries to seek and get funding from the Green Fund,” said Déthié Soumare Ndiaye, one of the workshop’s trainer. Looking at the efforts it keeps making, “the country should very soon, raise climate funding more efficiently,” he added.

Let’s recall that the Green Fund is a UN mechanism which aims to transfer from richer to poorer countries, funds for projects that will help counter climate change.

Ayi Renaud Dossavi

BBOXX just got a $31 million financing from Africa Infrastructure Investment Managers (AIIM).

These monies will allow the British group to set up two million solar units by 2022, thus providing electricity to more than 10 million people in Africa, including Togo through the CIZO project.

According to Mansoor Hamayun (photo), CEO and Co-founder of BBOXX, the financing agreement “shows the commitment of BBOXX to raise more funds and attract more investments into the off-grid sector, by partnering with major global firms”.

The AIIM funding adds to a series of operations that helped BBOXX build strategic partnerships with major firms such as EDF in Togo, to boost access to large-scale energy. The French giant, let’s note, has powered more than 10,000 households in 2018.  

Let’s recall that Africa Infrastructure Investment Managers is one of the most important private equity fund managers in Africa, focused on infrastructures. It is a member of Old Mutual Alternative Investment with a portfolio of more than $2.1 billion.

Ayi Renaud Dossavi