Under the Threshold program of the Millennium Challenge Account, Togo should have started implementing various reforms in its land and ICT sectors. This, backed by a $35 million financing.  

However, newspapers L’Union pour la Patrie, revealed on May 15, 2018, that the prerequisite for the program’s effective launch, which is the adoption of a new land code, has not been met yet.  

This was actually said by Grace Morgan, head of a delegation that met last May 11 with Fiatuwo Kwadjo Sessenou, minister of urbanism and housing.

Morgan added that MCC and MCA-Togo are getting ready for the program but emphasized related works would begin only after relevant contract is signed, mid-June, and the parliament passes the new land code. To this, the minister answered that the condition would be met very soon.

Séna Akoda

Under its 2018-2022 national development plan which is being finalized, Togo’s government plans to establish a manufacturing hub and two industrial parks in the country. Each of the parks will have 15 intensive factories producing textile, shoes, among others, for export.

Indeed, the plan should help boost Togolese textile exports to many countries, such as the U.S (in line with AGOA).

The current project will focus on boosting local know-how, cotton production and improve the search for strategic foreign partners.

It is expected to capture up to CFA1,000 billion of foreign direct investments from 2018 to 2022. Efforts to improve business climate should contribute to that.

The project aims at creating 100,000 jobs over the considered period. In this framework, the government intends to develop value chains of major subsectors of Togo’s agroindustry. Based on this, it eyes an annual growth of 10% of industrial and manufacturing sectors.

Séna Akoda

Apparently, in Togo, commercial banks are the main financial contributors to firms’ investments in secondary and tertiary sectors.

Indeed, according to the 5th edition of the macroeconomic forecast investigation (a study based on a sample of 200 firms), local banks are about to become the leading funders (both internally and externally) of Togolese companies.

30% surge

Between 2015 and 2016, the study indicates that banks’ contribution to investment projects grew from 15% to 24.5%. The next year, this figure almost doubled to 44.7%. Let it be recalled that financing via own funds was in 2015 forecast at 79.3%. Meanwhile, equity financing stagnated, growing by 1% only to 3% in 2017.

A rise driven by banks’ appetite

Ministry of economy and finance attributed the greater contribution of banks in firm’s investments to a better performance of the lenders over the past years. Truly, data from BCEAO (West Africa’s Central Bank), loans contracted from banks increased by 22% as interest on these loans slumped (from 15.8% to 11.5%).

In fact, in the first quarter of 2018, this interest rate was below 10%, quite contrasting given the global challenges. Regardless, it attracted much investors, allowing lenders to collect more revenues for interests and related products (+9.2%).

...Still difficult to secure loans

Nevertheless, firms still have issues securing bank loans, according to the document which mentions a lack of guarantee requested by banks. Data shows that 47.1% of firms whose loan application was dismissed claim it is because of a lack of guarantee or one deemed non-credible. Regarding the latter, about 17.6% of firms applying saw their application rejected due to that factor.

Another reason for banks refusing to grant loans to firms is insufficiency of social capital, or investor’s share in a given investment.

However, regarding the lack of information on applicants, the creation of an information bureau for loan (BIC) helped make significant progress.

Fiacre E. Kakpo

In Togo, the agropole development project will significantly impact trade balance, decreasing trade deficit from -44% to -38%.

These agropoles will help the country boost its agricultural output and agricultural processing capacity. Locally processed products should be enough to meet local demand but they will mostly be exported.

Pilot stage for the agropoles development will be carried out in Kara, Northern Togo, and will cost CFA64 billion, out of which private sector is to provide 20 billion.

Séna Akoda

Togo’s head of husbandry, Dr. Komlan Batawui wishes for more entrepreneurial initiatives in this sub-sector. He said this in an interview with local TV channel TVT. 

According to the official, though entrepreneurship is taking over the agricultural industry overall, it should focus more on husbandry, to boost related output.

From 2002 to 2015, output in the sector grew relatively well. In 2002-2007, it rose by 6.52% average; 6.72% in 2010-2015 (against a forecast of 6.9%).

With the various actions undertaken by the government, such as PNIASA and PASA, the figures improved significantly. Actually, Dr. Batawui declared that the increase was maintained till 2017 as a result of the introduction of improved breeds in production areas. Hence, from 300,000 herds, number of cattle grew to 450,000 in 2017. Meanwhile, the population of small ruminants which was at 1.5 million herds in 2011 soared to 4.8 million last year.

Séna Akoda

NUTRI-TOGO, a successful enterprise, headed by Edem Bessanh, has a business model that draws more and more attention in Togo. The firm produces Champiso, a mushroom-based drink.

To let those it incubates know more about entrepreneurship, Innov’Up, an incubator of women-entrepreneurs, has invited M. Bessanh for a training session called Innov Up Coach. It will take place on May 23, 2018.

This is to get young people more interested in entrepreneurship, to motivate them. They will be able to learn from the mistakes and various challenges faced by the invited entrepreneur. Most importantly they will learn about sacrifices he made to achieve his goal.  

Those interested can register for the coaching session by sending their names and surnames to the following number (via WhatsApp): 99 82 43 76.

Séna Akoda

Asky Airlines has announced last May 9, that it got a new plane in its fleet : a Boeing 737 Next Generation. “We are happy to announce the arrival of the new ET-AVO B737 plane, which we baptized belle pluie”, a statement released on the firm’s Facebook page reads.  

The new aircraft effectively landed in Lomé on May 7, from Addis Ababa. Its first flight took place on the announcement’s day and headed to Douala, Cameroon. According to credible sources, Asky should get another plane by the end of this month. This would bring its fleet capacity to 9 planes.  

The fleet increase falls in line with the airline’s objective to guarantee its customers efficient air transport, and expand its network which already covers about 20 countries, while augmenting number of flights also. Truly, starting next June 15, the Togo-based company will be offering two weekly flights on the Abidjan-Accra-Lagos line.

In detail, flight n°KP014 will depart from Abidjan at 3:15 PM and land in Accra at 4:20 PM. After a 40 minutes halt, it will continue to Lagos, where it will arrive at 7 PM.

In the inverse order, flight n°KP015 will take off from Lagos at 7:30 AM to land in Accra at 8:10 AM, then move to Abidjan where it will arrive at 9:50 AM.

So far, Asky serves 20 destinations across 20 West and Central African nations.

Fiacre E. Kakpo

On May 15, President Faure Gnassingbé is to launch in Angoin, 62km from Lomé, a mobile banking solution, named ECO CCP.

Developed by Togo’s post company (SPT) and mobile operators, Moov and Togocel, ECO CCP is accessible everywhere across the country, via mobile.

It aims first to boost financial inclusion by improving access to digital finance, and secondly to capture non-productive and hoarded savings, especially in rural areas.

ECO CCP will be backed by Flooz and Tmoney, respectively mobile money services of the previously cited operators. No fees is needed for opening or maintaining the account. Also, no administrative formalities is required, unless when transactions exceed CFA200,000.

Once opened, the ECO account is directly linked to the customer’s e-wallet, thus allowing transfers between the two accounts or any other account.

Money saved on an ECO CCP account can generate an interest of up to 2% monthly.

Fiacre E. Kakpo