Togo First
Public investments to stand at CFA284 billion in 2019
Next year, the government intends to allocate CFA284.4 billion to public investments, down 9.5% compared to this year where it planned to set aside 314.7 billion for these investments.
Despite the decrease, capital expenditures which should cover the investments represent almost a third of budget expenses. The latter are expected to amount to CFA894 billion, down nearly 3% compared to the figure fixed in the initial law of finances for 2018. Meanwhile, operating expenses remained stable at CFA610 billion.
Let’s recall that the global budget for 2019 is fixed at CFA1,461 billion, as against CFA1,311 billion in 2018.
Fiacre E. Kakpo
NSCT to build cottonseed storage units for its plants in Dapaong and Blitta
In Togo, Nouvelle Société Cotonnière du Togo (NSCT) plans to rehabilitate and build infrastructures under its 2019 budget. For example, in the Savannas region, the company wishes to build cottonseed storage facilities for its Dapaong plant.
In the Central region, in Blitta more precisely, the NSCT also intends to build similar facilities.
These, the firm hopes, would help it manage its outputs more efficiently, and produce 200,000 tons of cottonseed by 2022. During the 2017-2018 campaign, the NSCT’s production stood at 116,000 tons, thus 8,000 tons more than the previous year.
The increase is mostly to be attributed to various programs initiated to boost the profitability of the agricultural sector. According to data from the ministry of agriculture, husbandry and fishery, the sector contributes nearly 40% of Togo’s GDP and cotton generates almost 40% of the country’s exports revenues.
Séna Akoda
Vlisco Fashion Fund 2018 : Togolese Anoumou Djidjolé Placca wins first place
Anoumou Djidjolé Placca, a Togolese, just won the Vlisco Fashion Fund 2018. This was revealed by Vlisco itself on its facebook account.
The youth thus gained a CFA3 million financing which he will use to finance his fashion project. He will also follow in Amsterdam, Holland, a two-weeks sewing course at the renowned fashion school “Meester Coupeur”.
According to Vlisco, the work and talent of the 29-year old Togolese designer, who created the Aristide Création brand, impressed both the national and international jury during the contest. To win the latter, the young man created an original collection that tells the story of a king seeking the perfect bride.
Other finalists were Akouvi Médarde Danyo and Djiédjom Hundeglah, respectively second and third.
Séna Akoda
Togo: Government to start granting tax reliefs to firms in difficulty, starting January 1
Starting January 1, 2019, Togo’s government will provide a set of exemptions to firms undergoing restructuring and facing some difficulties.
In effect, tax reliefs will be granted for a maximum of five years, with the approval of the ministry of finances. This measure will benefit firms that operate in strategic sectors which are promising, in terms of employment and growth, as well as those planning substantial investments. Last, there are firms in difficulty to sustain competition.
The new derogation system has several tax advantages for companies in difficulty. These include exemptions on profits, provision reversal, and capital gains from sales, among others. Also, wages, built and unbuilt properties, financial transactions and turnovers could be exempted.
The reliefs also concern registration fees and stamps purchased to increase capital in cash or by incorporating debts, profits, reserves or provisions of any sort. Are also exonerated mergers of firms and the transfer of shares and fixed assets.
It should be highlighted that the ministry’s approval can be limited to one or more, or all tax reliefs projected under the new derogation regime.
Fiacre E. Kakpo
Backed by the World Bank, Togo will spend CFA500 million to develop its beekeeping industry in 2019
Next month, a major beekeeping project will be launched in Togo, leveraging a fund of CFA500 million.
The project which is an initiative of the government, with the World Bank’s support, aims to boost employment in the beekeeping sector. Overall, 500 jobs are to be created in its framework, 100 in each region of Togo.
This project mainly focuses on youth who will receive adequate training and equipment to deliver quality honey and beeswax.
In the long term, the country hopes to export its honey to other markets like Nigeria whose annual demand for honey stands at 380,000 tons.
The creation of this new fund aligns with Togo’s desire to modernize the beekeeping sector, exploiting innovative techniques that are more environment-friendly and ecologic, while boosting productivity.
With the support of India, the Fazao-Malfakassa national park is about to be recognized by the UNESCO as a “biosphere reserve”
Recognized as a national park in 1975 and recommended, along seven other sites in Togo, to be listed on the UNESCO’s world’s cultural heritage in 2001, the Fazao-Malfakassa national park is about to be recognized as a biosphere reserve.
This title is given by the UNESCO to protected areas that contribute to reduction of biodiversity loss, improve local populations’ livelihood as well as easing social, economic and cultural conditions to make environments more sustainable.
According to the UN institution, the park’s efforts to improve livelihood, in a manner that respects biodiversity, and become a reference in terms of sustainable development were strengthened with a $1 million facility provided by the UN-India Fund in the framework of a development partnership.
Entitled : “Biodiversity actions in the Fazao-Malfakassa national park : a way to reduce poverty, preserve biodiversity and achieve sustainable development, this project which was submitted by the government and approved by the Fund, will be implemented by the UNESCO and Togo’s ministry of environment,” says Yao Ydo, regional director UNESCO. It will among others “foster small bee keeping activities, carbon sequestration in the biomass, protection of water basins, as well as bio-prospecting or ecotourism in Togo,” he added.
Spanning more than 192,000 ha, the Fazao-Malfakassa national park is located in Togo’s central region. It hosts beautiful gallery forests, fertile plains, large mammals, birds, reptiles and primates. It is towered by an eponymous chain of mountains.
The seven other sites on the tentative list submitted to the UNESCO in 2001 are: Lomé’s governor’s palace, Woold Home (Slavery site in Agbodrafo), the Kéran national park, the Oti and Alédjo fauna reserves, the Aného-Glidji agglomeration, the Nok and Mamproug cave dwellings and the traditional homes of the Batammariba in Tamberma.
Fiacre E. Kakpo
Togo: The 34th end-of-year's 2-week business fair is officially launched offering business opportunities at three different sites
In Lomé, the end of year’s 2-week business fair was launched on December 15, 2018. This year, it is simultaneously being held on three different sites: at the Agbadahonou site and at two other decentralized sites; Baguida and Adéticopé namely.
The aim of this event is to help economic operators take advantage of the latest opportunities and get closer to consumers.
This event and the Lomé international fair that ended on December 10, 2018, are the two most promising end of year business opportunities in Togo.
On the three sites, 400 stands are planned to be deployed over 3,440 m2. On the agenda of this fair, there are sales exhibition and advertisement, catering, recreational areas, competitions as well as entertainment. As usual, the event should officially be completed on December 31, 2018.
Séna Akoda
Togo : Remittances expected to exceed $400 million in 2018, according to the World Bank
This year, just like the previous one, the Togolese diaspora was one of the most dynamic in Africa, in terms of remittances. This was disclosed in a recent study of the World Bank on migration and development.
Aligning with a growth trend in other diasporas from the region, remittances from Togolese migrants to their home country should exceed $400 million (CFA232 billion) in 2018.
As a result Togo enters the Top 10 nations that get the most money from their diaspora, behind Nigeria ($25 billion), Ghana ($3.8 billion), Senegal ($2.7 billion), Kenya ($2.1 billion), Zimbabwe ($1.9 billion), Mali ($1 billion), South Africa ($900 million), Uganda ($800 million) and Ethiopia ($500 million).
According to estimates calculated based on Togo’s economic activity, Togolese remittances contributed 8.2% of GDP in 2018. In this regard, Togo is also in the top 10 sub-Saharan African nations. It shares this ranking with countries like Gambia (20.5% of the GDP), Comoros (19.3%), Lesotho (14.8%), Senegal (13.6%), Liberia (13.1%), Cabo Verde (12.8%), Zimbabwe (9.6%), Ghana (7.4%) and Nigeria (6.1%).
Last year, the Togolese diaspora sent home $483 million. Most (53%) of the monies was sent to friends and families at home, according to the 2017 official development assistance (ODA). Other statistics from the ministry of foreign affairs put Togolese remittances in 2017 at more than $500 million.
Meanwhile, it is expected that remittances to sub-Saharan Africa will increase from $41 billion in 2017 to $45 billion this year, and $47 billion next year.
However, in terms of transfer fees, the continent is far behind. In the third quarter of this year, they slumped to 8.9%, their lowest level ever. Regardless, this level remains below the global average of 6.9%. According to World Bank’s experts, the continent has many efforts to make to achieve the SDG3 which aims at 3% rate.
Fiacre E. Kakpo
What is Togo’s rank in the African e-commerce sector?
Earlier this week, the UNCTAD published the 2018 UNCTAD B2C E-commerce Index, which determines the place of e-commerce in 151 economies. Four key indicators are considered in this index.
For Togo, this edition portrays a nascent and lagging e-commerce sector, following the same trend as in Africa that is clearly poorly prepared for e-commerce and taking less advantage of the digital opportunities than the rest of the world.
Only 12% of Togolese use internet; a percentage far below the average in Africa. However, according to the UNCTAD, 45% of the population over 15 years old have an account with a financial institution or a mobile money account making the west African country one of the countries with higher financial inclusion.
According to the report, as far as security is concerned, Togo has 19 secure internet servers per million of residents while Mauritius, Nigeria and South Africa, the three leaders in that regard in Africa have respectively 56, 52 and 83 secure servers per 1 million residents.
For the fourth indicator of that index, development of postal services, Togo scored 41 over 100.
The UNCTAD’s index also measures the percentage of individuals who make online purchases. No figure has been mentioned in that criteria for Togo.
Overall, Togo lost ten places to become the 21st in Africa. Within the Ecowas region, the country is outrun by Nigeria, Ghana and Senegal, which is the leader of e-commerce within WAEMU.
Côte d’Ivoire is 24th , Mali 28th , Burkina Faso 30th and Benin 33rd. The lower rank of the index in Africa are obtained by Guinea (42nd), Chad (43rd) and Niger (44th).
In the World index, Togo is 121st. In October 2018, in a report published in Ouagadougou, the UNCTAD, estimated that Togo still had to make efforts in the e-commerce sector. The institution estimated that limited online payments and difficult deliveries out of Lomé are the main roadblocks to the development of e-commerce in the country.
Fiacre E. Kakpo
Togo represented at the Inter-African Trade Fair, in Egypt
Togolese economic operators are taking part in the 1st Inter-African Trade Fair -IATF- currently being held in Cairo, Egypt. The 7-day show, jointly organized by the African Union, Afreximbank and the Egyptian government, opened doors December 11.
It aims to boost intra-African trade and support the implementation of the African Continental Free Trade Area (ZLECA), the agreement of which was signed in March this year by 44 African Heads of State and Government at the AU Extraordinary Summit in Kigali, Rwanda.
IATF provides a platform for sharing information on trade, investment and the market. The idea is to bring buyers, sellers, investors, all together to discuss and conclude business deals.
During the event, Togolese representatives will promote their country's new national development plan and seek substantial private funding for its implementation.
This trade fair, let’s note, will be organized every two years. It will provide information on the market, trade and serve as a contact point between the different players of African trade.
Séna Akoda