Togo First
Togo: Housing and consumption loans increased in February 2018
In February, average interest rates on consumption and housing loans granted by lenders in Togo increased.
Regarding the first category, rates on these loans, after having slumped by 21 basis points to 8.42% in January, rose to 8.86% the following month. Actually, all WAEMU States, apart from Niger, recorded the same trend.
Average interest rate on housing loans in Togo is the highest within the union, after Benin’s. Indeed, data shows that banks in Togo charged 8.71% interest on these types of loans, in February, as against 9.95% in Benin.
Surprisingly, during the same month, bank loans to companies which were known to be the most expensive across the region, with the exception of Benin, the month before, were the cheapest. From 9.1% in January, their average rate fell to 5.76%.
Fiacre E. Kakpo
National Employers’ Board (CNP) gives 2017 best SME Entrepreneur, Edem Bessanh, CFA2M check
The National Employers’ Board (CNP-Togo) has provided on April 4, 2018, a CFA2 million check to Edem Bessanh, who distinguished himself as 2017’s best SME entrepreneur with his business S.E NUTRI-TOGO which sells mushroom-based drinks.
“We want to congratulate the winner and encourage him in his efforts to valorize Togolese skills and local processing. This is to laud Togolese firms’ presence, locally, but also in West Africa, in hope that these will expand their footprint farther away,” said Laurent Coami Tamegno, chairman CNP-Togo.
For the young entrepreneur who received the check, which adds to another provided by FAIEJ-PRADEB, the financing is quite significant and attests of the trust put in him. He thus thanked his customers, partners and Togo’s youth globally.
Government to adopt a new youth strategy
Togo’s ministry of grassroots development, craftsmanship and youth employment, wants to adopt a new strategy to tap out the potential of this social group.
According to a credible source, the entity selected to develop this strategy will review all aspects of the actual national youth strategy, using as reference the African Union’s roadmap for the exploitation of demographic dividend.
The new strategy is a tool that is designed to help identify areas that are not or are not taken care of, enough, by current actions. Particular attention will be given to youths’ needs in regards to training, decent job provision, autonomy and health.
The new strategy, let’s note, has to be submitted with a five-year plan and a performance monitoring and evaluation framework.
Still in order to valorize youth’s potential and better meet expectations related to socioeconomic growth, Togo’s president, Faure Gnassingbé, has announced a presidential forum on youth for this month.
MCC approves $35M threshold program for Togo
The administration board of the Millenium Challenge Corporation (MCC) just approved its threshold program for Togo, few months after postponing this decision due to the recent political crisis that the country experienced. “I am pleased to announce the MCC Board of Directors’ approval of the Togo Threshold Program,” said Jonathan Nash, MCC's Acting CEO.
To secure this approval, Togolese authorities had to, with the help of US authorities, implement some political and institutional reforms which the MCC said is ready to support even further.
The program which includes a $35 million (CFA18.7 billion) facility aims to boost economic growth and reduce poverty in the country. It focuses on two major aspects: improving land management and access to ICT.
In the ICT sector, the program will specifically help boost populations’ access to quality and affordable services, while fostering private investment for a more inclusive development. As for land, the Threshold program will accelerate formalization process to access lands by legitimizing customary rights and boosting inclusive access in this sector, among others. This will be done via the new land code which is presently at the parliament’s level.
Regardless of the approval, MCC is still keeping an eye on Togo in regards to the respect of human rights and freedom of association and expression. Less significant than MCC’s subsidy program, the Threshold was designed for countries that have shown commitment in improving their political performances, but still do not meet eligibility criteria for more important investments.
Fiacre E. Kakpo
Government expects CFA20bn from private investors for Kara’s agropole project
Togolese government expects private investors to provide CFA20 billion to develop Kara’s agropole. This was disclosed April 3, 2018 by the minister of agriculture on the sidelines of the open days for exchange and promotion of this project.
This amount is about a third of what the project is to cost, knowingly 60 billion CFA.
According to various sources, the government and African Development Bank (AfDB) will both provide the remaining sum. However, details were not given concerning the respective sizes of their investments.
The creation of this agropole which will be the first of many, mainly involves developing hydro-agricultural infrastructures, valorizing arable lands and establishing agro-processing facilities.
This will help boost agricultural output of benefiting areas. Among sectors to be impacted by this major project, there are rice, maize, soybeans, cashew, sesame, poultry and fishery.
How did Togolese banks finance the economy during the past quarter?
Cost of credits from the Central Bank of West African States (BCEAO) to Togo has risen by 54 basis points from 8.2% at the end of December 2017 to 8.74% at the end of January 2018. In January, apart from the private individuals segment where this figure slumped by 22 basis points, average rates for consumer credit increased. This was disclosed in the Central Bank’s monthly report for January.
A significant rise was recorded with loans granted to the State and related organizations. Indeed, from 6.44% in December, rates imposed by banks on these loans rose to 10% in January. This could explain why the banking sector decided to reduce its exposure which mainly results from the pre-financing mechanism used by Lomé to support the massive investment it made over the past few years in the infrastructure sector.
Besides banking loans, rates on bonds have also soared since the beginning of the year. Recently, Togo successfully issued a bond at a rate of 6.5% per coupon. Yet, data shows that State companies keep buying loans at relatively affordable rates (7.75%), even if these rates rose slightly over the period reviewed (+1%).
Besides the State, rates imposed to private companies also rose, nearing a two-digit figure, while traditional guarantees remain reasonable. Interest rates imposed by Togolese lenders to these structures currently stand at 10.07%, thus the highest rates in the whole country, up from 9.54% at the end of January 2018.
Fiacre E. Kakpo
SODIGAZ enters car concession market
Aklesso Daou, owner of Sodigaz, has decided to enter the car concession market and will deal with CHEVROLET and ISUZU brands.
The businessman trusted this new department to Diwa International which up till now was specialized in the distribution of lubricants used in the sectors of industry, transport, marine and mines, www.lfrii.com reported.
The new concessionaire opened a showroom in Lomé where potential customers desiring to purchase cars, small and heavy trucks of those two brands, will have satisfaction.
Besides, these customers will also have access to spare parts and engines suited to the terrain. By entering this sector, Sodigaz’s head continues his success story which began with gas production and distribution, consulting (Kapi Consult), and lubricant sales.
Let’s recall that Sodigaz is one of ten firms and economic structures selected by WAEMU under the Elite BRVM Lounge Programme. Via the latter, the firm should be able to list very soon.
Government to purchase 3.5 million Itanew vaccine doses to vaccinate poultry
As part of its poultry vaccination campaign,Togolese government, via the ministry of agriculture, husbandry and fishery, wants to purchase 35,000 vials of 100 inactivated vaccine doses with adjuvant, making a total of 3,500,000 doses.
According to a document obtained by Togo First, these vaccines fight the Newcastle disease. Financing for the project should be provided by the Agricultural Sector Support Programme (PASA).
Tender for the purchase has already been launched and the vials will be bought wholly. This process, according to the source will occur just like any other international tender: procurements are to be financed with IDA’s loans.
Vaccination campaign sponsored by PASA help boost poultry production in Togo. In fact, from 2011 to 2017, data shows that related output tripled from 8 million poultry units to 25 million.
Togo records highest performance on maritime connectivity index in Sub-Saharan Africa, after South Africa
Spurred by activities at the Port of Lomé, which is West Africa’s only deep water port, Togo’s maritime connectivity index improved significantly. In fact, the nation is in Sub-Saharan Africa, the second best, after South Africa, according to United Nations Conference on Trade and Development (UNCTAD).
In Africa, Togo is fourth on the index. It comes after Morocco, Egypt and South Africa.
According to UNCTAD, Togo’s performance has more than doubled in less than a decade. Indeed, the index which was at 14.2 in 2010 soared to 33.9 in 2017, against 37.4 for South Africa.
Though it presents nips at the heels of SA, Togo could very well beat the rainbow nation by 2020, looking at Africa’s second largest economy’s progression on the index. Truly, the country’s index slumped from 43 in 2013 to 37.4 last year.
Fiacre E. Kakpo
30 Togolese civil servants to go to China for a workshop on goods’ inspection prior to loading for import-export
From April 4 to 23, 2018, thirty Togolese civil servants will be in Changzhou, Jiangsu, China, 150km North-West of Shangai. This is to attend a seminar on cooperation to fight import-export of counterfeit items, Xinhua reports. The meeting is initiated by the Jiangsu Inspection and Quarantine Institute of Quality (JSIQ).
According to the source, the meeting should focus on pre-loading inspection, to tackle fake products’ import and export. The workshop will also look at cooperation for ways to fight this issue in China and developing countries.
Following this meeting, field visits will take place enabling participants to know more about stocking and distribution of products exported by China.
As for Togolese civil servants, for their departure today, the head of the economic and trade mission of China’s embassy to Togo, Hu Ping, organized a reception last Friday, in their honor.