The Economic Community of West African States (ECOWAS) just announced it would provide Guinea Bissau a $2 million financial support. This was at the end of the 53rd session of the Heads of States and Governments’ Conference held in Lomé this week.
The financing adds to others committed by the WAEMU which Togo is part of. The funds will be used to speed up preparations for legislative elections which are to take place next November 18.
Lauding various achievements recorded since the extraordinary summit held last April 14 in Lomé, the recent conference lifted sanctions issued against some political actors in order to ease tensions. Additionally, the conference invited the international community to help accelerative legislative elections in Guinea Bissau.
According to reliable sources, China should send a delegation to help with the elections’ preparations.
Fiacre E. Kakpo
On July 30, 2018, the ECOWAS-ECCAS joint summit for peace, and extremism eradication ended.
The event which was hosted in Lomé, Togo, gathered the two communities’ presidents as well as other major personalities. The summit assessed security issues in West and Central Africa; also, they identified the various risks related to security, namely terrorism, arms trafficking, money laundering, cybercrime etc.
Led by Togo and Gabon’s presidents, also heads of ECOWAS and ECCAS, Faure Gnassingbé and Ali Bongo Ondimba adopted a joint declaration during the summit.
The Lomé declaration for peace, stability, fight against terrorism and violent extremism will overcome barriers opposing a broader and more efficient cooperation regarding security. The declaration aligns with the two communities’ constitutional standards.
It acts as a guide for priority measures to take in order to establish an optimal partnership framework between the two regional communities. This would subsequently help these regions better fight terrorism. In this regard, emphasis will be put on collaboration, involving both the international community and member states of ECOWAS and ECCAS, by leveraging on legal, security and defense tools, as well as on the civil society, religious communities, youth, etc.
Boosting cooperation in security sector
As part of the decisions they took during the summit, the two regions’ leaders committed to cooperate to prevent conflicts and promote peace and stability. This, they will do by implementing and reinforcing, at the national and regional levels, the early crises warning and response mechanism that engages civil society, decision-makers, women and youth.
In that same vein, the president of ECOWAS commission and ECCAS’ secretary were instructed to start, as soon as possible, talks between member states of the regions. This, in order to conclude and implement procedures for mutual aid and legal cooperation. In this regard, an agreement involving criminal police should be reached before the year ends, sources indicate.
Member States will also have to submit proposals regarding mechanisms and procedures that might enable safe data sharing before the next summit in 2020, in N’Djamena. Besides, joint information sessions will take place ; these will respect Human rights and help improve skills related to security and defense.
Focus on Sahel and Chad Basin
The declaration of Lomé calls for a full support of all troops fighting terrorists who cause havoc in West and Central Africa. According to Alassane Ouattara, Ivorian President, the threat is to be taken seriously. For his part, Niger’s President, Mahamadou Issoufou, said the issue was a major challenge. It should be noted, a ministerial committee will be meeting once a year to monitor the declaration’s implementation.
Actually, both leaders’ nations were urged, in line with the document’s goal, to provide financial and material support to troops deployed to fight terrorists in Lake Chad Basin and across the Sahel. Still under the declaration, involved heads of States and governments demanded the United Nations Security Council to place the G5 Sahel force under chapter 17 of the UN charter. This would allow the task force to secure more sustainable and multilateral funds.
Issues of Migratory Flows back on the table
Besides the United Nations, the Lomé declaration which lauded efforts made by many countries, calls the African Union (AU) to adopt the UN ways to lift the weapon embargo in place in the Central African Republic. Also, though briefly, the peculiar issue of migratory flows was mentioned in the declaration.
“Heads of States and governments instruct competent ministers to assess all aspects of migratory flows and global warming in the common space and to submit a report at their next summit,” the document reads.
On another plane, ministers of agriculture and husbandry were told to organize regular meetings with farmers and breeders’ associations to find ways to solve, peacefully, conflicts between farmers and breeders which are growing considerably in number and becoming a true source of concern.
Last, the text read by Robert Dussey, Togo’s minister of foreign affairs, indicates that Ecowas and Eccas’ heads of States and governments are to meet every year, during the AU’s ordinary summit, to review the implementation of commitments taken under the declaration of Lomé.
Fiacre E. Kakpo
Residents from Togo and the Central African Republic no more need visas to visit each other’s nation. The related agreement was signed last Sunday, by the two countries’ respective ministers of foreign affairs, Robert Dussey and Charles Armel Doubane.
This was on the sidelines of the just ended Ecowas-Eccas joint summit in Lomé.
Visa suppression concern ordinary, diplomatic, and service passport holders.
According to the Togolese minister, Robert Dussey, this was possible as a result of the two countries’ leaders’ will. His counterpart added for his part that the decision marks a new start for relations between Togo and the Central African Republic.
The Central Bank of West African States (BCEAO) just reviewed microfinance activities in the WAEMU region last March 31. The document shows that the Togolese microcredit is doing well with an improvement in financial inclusion and a regional upturn. According to the report, deposits collected by decentralized financial systems (DFS) amounted to CFA1, 248.7 billion at the end of March, compared with CFA1, 166.6 billion a year earlier, thus an increase by 7%.
The good result was driven by a strong performance in all WAEMU countries except Benin. Resources mobilized by microfinance structures improved significantly in Guinea-Bissau (+45.4%), Côte d'Ivoire (+13.1%), Togo (+10.1%), Niger (+9.5%), Burkina (+7.2%), Mali (+5.6%) and Senegal (+5.2%). On the contrary, Benin recorded a decline by -5.6%. The average amount of deposits per member at the end of March 2018 was CFA83,858 against CFA88,686 at the end of March 2017. This decrease could be attributed to a 13.2% improvement in people's access to financial services offered by microfinance institutions.
The number of the service beneficiaries increased from 13,154,639 a year earlier to 14,890,244 at the end of March 2018. According to a BCEAO graph, outstanding deposits for Togo are around CFA200 billion, almost twice the volume of Benin (which falls to less than CFA100 billion) and more than three times Mali's. From this perspective, Togo which is the second worst country in terms of GDP, is ranked 4th behind Senegal (over CFA300 billion), Côte d'Ivoire (over CFA250 billion) and Burkina Faso (just under CFA250 billion).
With regards to outstanding loans granted by decentralized financial systems (DFS), the portfolio grew by 15.3% at the end of March 2017, to CFA1, 263.2 billion. This growth was driven by Guinea-Bissau (+64.9%), Côte d'Ivoire (+31.8%), Burkina Faso (+16.5%), Benin (+14.5%), Mali (+13.5%), Togo (+10.0%) and Senegal (+9.4%). However, a decrease was recorded in Niger (-2.4%). The average outstanding amount of financing per member increased to CFA84,835 at the end of March 2018 from CFA83,263 a year earlier.
According to the evolution of the outstanding loans per country, Togo would rank 4th in the face of Benin. However the volume of loans granted, the repayment of which is in progress, has slightly decreased to close to CFA150 billion compared to December 2017. Although “an analysis of DFS intermediation indicators in WAEMU reveals a relatively favorable evolution for financial inclusion”, it does not hide the portfolio’s deterioration, which rose to 8.1% against 5.6% at the end of March 2017, for a generally accepted standard of 3% in the sector. Let’s recall that in Togo, microfinance is a highly strategic part of the financial sector as a whole as it significantly contributes to financial inclusion.
Fiacre E. Kakpo
ECOWAS and Switzerland signed on July 25, 2018, a CFA 3 billion financial agreement. This was at the institution’s headquarters in Abuja.
The agreement was signed by Jean Claude Kassi Brou and Eric Mayoraz, respectively head of the ECOWAS commission and Switzerland’s ambassador to Nigeria, Chad and Niger. It aims to boost husbandry within the regional community. This materializes a “shared desire between the two parties to improve their cooperation”, according to a statement released by ECOWAS.
Interest in husbandry is explained by the fact that the sector contributes nearly 40% of the region’s agricultural GDP, according to the economic cooperation and development organization (OCDE).
In the long run, the new agreement should boost agricultural output and help improve food security across the region. It should also, the ECOWAS commission hopes, help boost existing economic development partnership between Switzerland and the community’s 15 nations, Togo included.
Last Friday, Togo’s ministry of Urbanism called a meeting to discuss ways to vulgarize the recently adopted law n°02018-005 on land code.
The meeting was themed “Implementing the land code law to make land-related transactions and investments safer”. On this occasion, the ministry told actors concerned, namely banks and investors, about the reform’s importance and interest.
Indeed, Fiatuwo Kwadjo Sessenou, minister of urbanism, said: “Land reform restores trust between customers and banks”. The new law plans for more modern legal and institutional framework to secure land.
Brief review of land reform
Under the reform, all land transactions are subjected to holding a title. This measure aims, as indicated earlier, to make the transactions safer. It also simplified procedures to secure land deed and put notaries in charge of land transactions.
Along the adoption of the new reform, the government established a single land desk and a national agency for land management. Decisions spurred by the fact that “land uncertainty is harmful to economic development”. Truly, investors are often hesitant when unsure of their ownership right regarding a specific project land.
However, now with the new reform, banks are prone to invest in the long-term, providing loans and mortgages, once the loan taker provides a land deed.
Let’s also recall that this reform is one of many initiated by the Business Climate Cell, to make Togo’s business environment more attractive. It opens the path for the MCC threshold program approved few months ago.
Séna Akoda
The Agency for the Safety of Air Navigation in Africa and Madagascar (Asecna), honored July 25 Togolese Civil Aviation, for the quality of services in the sub-region and Africa in general. It awarded the “Aerodrome Medal”, the highest honor, to the MD of the National Civil Aviation Agency, Colonel Gnama Latta.
The latter welcomed the recognition of Togo's performance in civil aviation and dedicated this medal to his country. According to Mohamed Moussa, ASECNA’s MD, “Togo's airport is the only one in Africa to have met 80% of international civil aviation standards”.
The Aerodrome Medal tops off the professionalism and commitment of national civil aviation actors, particularly in airport safety and security. “We are proud to not have major incidents here in Togo. We only encounter minor incidents and we follow them up through corrective actions,” said Medezi Tagba Damsou, Asecna’s resident-representative to underpin positive comments.
The Togolese Minister of Basic Development, Handicraft and Youth Employment launched a call for projects, as part of the celebration next August 12 of the International Youth Day. The aim is to select and award twelve (12) best youth-led micro-projects.
According to a ministry’s statement, the move has a double-target. First, empowering youth associations across the country and on the other hand, encouraging and promoting civic commitment of young people within associations.
Eligible projects include those centered on youth participation in community development, citizenship education and civic training, youth leadership development, and environmental protection. The call for proposals is valid until July 31. Terms of reference can be checked on www.devbase.gouv.tg
Séna Akoda
Hawa Cissé Wagué, World Bank resident representative in Togo, who has replaced Joëlle Dehasse at the office last June 30, confirmed July 24th the $40 million budget support announced by her predecessor, saying it should be effective “in a few months”. This was during a meeting with Prime Minister, Komi Sélom Klassou.
The facility, it may be recalled, was lauded by the Prime Minister two months ago when announced by World Bank’s Country Director for Togo, Pierre Laporte. “This $40 million financing would ensure good relations between the institution and our country,” Komi Sélom Klassou had said.
Let’s recall also that just a few days ago, the World Bank provided Togo a $30 million credit to improve urban infrastructures and management.
From $150 million in 2015, World Bank’s portfolio in Togo doubled to $350 million in 2018.
Séna Akoda
On July 24th, Togo’s parliament adopted a bill to promote power generation from clean sources. This is in line with the government’s 2018-2030 electrification strategy under which it plans to bring renewables’ share in the country’s energy mix to 50%.
The new bill will surely help boost investment in clean energies, but also efficiently tackle various challenges related to generation, commercialization and use of clean energy.
The present law sets a global legal framework to implement clean energy projects, be it for local consumption or export. “The government is quite satisfied of the parliament’s decision as this law will help it move from theory to action and implement strategic axes of the new national electrification plan,” said André Johnson, the minister of environment and forest resources.
Under Togo’s plan to provide access to reliable, modern energy for all by 2030, 300 mini solar plants are to be set via private-public partnerships, hydropower dams are to be built and 550,000 households are to be provided with solar kits. The new bill, authorities believe, will greatly contribute to the concretization of these various goals.
“Today’s vote will support the implementation of our energy strategy which is based, among others, on clean energy development, namely solar and hydropower, as well as on environmental protection, in line with the sustainable development goal 7 (SDG7). Indeed, this goal aims to ensure access to affordable, reliable, sustainable and modern energy for all,” Johnson said after the adoption.
Fiacre E. Kakpo