Togo First
After two successful issuances, Togo records a low performance for its recent issuance on the regional debt market, this year
Unexpectedly, the recent bond issuance of the Togolese government on the regional market did not go so well compared to those of January 26 and February 16, 2018.
Over a targeted CFA20 billion for this operation, Togo’s treasury was able to raise only CFA3.3 billion, thus a coverage rate of 16%. This is one of the market’s weakest performance since the beginning of this year.
Yet, last Friday’s issuance shared the same characteristics as those of Jan 26 which was oversubscribed at 107%. Indeed, nominal value was CFA10000 with interest rate set at 6.25% and maturity period at 3 years.
Now, with the issuance’s outcome, the hope born from the announcement of a political dialogue last January 26, to resolve the crisis that the country has been experiencing since last August, seem to be fading.
Truly, the dialogue has not yielded any tangible results, but there are now many rumors circulating about its outcome. For now, the date at which it will be reopened is unknown.
Additionally, with the meek performance on the regional market, the possibility of an investment from MCC (dependent on the pacific resolution of the crisis which could have reinforced investors’ confidence) has weakened. This situation could last a few weeks more.
Until then, the next issuance of Togolese treasury is planned for mid-March.
Fiacre E. Kakpo
Togo: Société Générale d’Intermédiation (SGI-Togo) goes under restructuring
Société Générale d’Intermédiation (SGI-Togo) has started its restructuring, according to local weekly “La Nouvelle Tribune” in its release of March 1, 2018.
According to the newspapers, this operation will directly impact the firm’s management. In detail, the position for deputy managing director will be created. The initiative aims at making the firm’s management more transparent.
Also, the company’s board of administration is looking for a new managing director, to be better positioned in the intermediate finance industry.
This is as the current MD, Mensah K. Assigbi, resigns. However, pending arrival of his replacement, he still heads the firm.
According to the newspapers, the outgoing MD has failed to handle the operation to borrow CFA60 billion via public offering launched by Togo. The transaction was finally handed over to CGF Bourse which is based in Dakar.
Togo: Soon, a law to promote and develop renewable energy would be adopted
Soon, a bill to promote and develop renewable energies should be passed in Togo, we learnt last Thursday during a conference organized by the Business Climate Cell. The meeting was focused on the “electricity connection” indicator of the Doing Business.
In effect, writing of the draft bill and provisions for the law started in March 2017, with the support of the ECOWAS centre for renewable energy and energy efficiency (ECREEE) and the German cooperation GIZ.
In line with its strategy to provide all Togolese people with renewable energy of quality by 2030, the government is working on putting in place the adequate framework to enable the development of a sustainable and performant power supply system, based on public-private partnerships, both individual and collective, that are capable of fostering economic and social growth.
Though at first, not much interest was shown for renewables in Togo, things have started changing positively and very quickly, since 2017, with the first solar plants of the country launched. One of the major projects related to renewables is CIZO which aims to provide more than two million Togolese with electricity.
Fiacre E. Kakpo
CEET to raise CFA50 billion to engage reforms aimed at improving its services
To improve the quality of its power network, major reforms are being planned at the Togolese power utility, Compagnie Energie Electrique du Togo (CEET).
To effectively engage these reforms, the firm plans to raise $75 million (about CFA50 billion). Among the reforms which would affect customer management, there is restructuring of entities in charge of industrial customers while another concerns the introduction of smart meters.
Actually, to improve its relations with industrial clients, CEET plans to meet them every six months. This is to discuss ways to improve the quality of services it provides them.
In order to also disseminate information related to the reforms it plans, the power utility says it will meet regularly with the press.
Still under reforms, CEET intends to review its legal and institutional frameworks. In details, this would involve the revision of the Benin-Togo electricity code, ARSE’s reform, and putting in place a favorable legal framework to foster the development of renewable energies in Togo.
Togo: Electronic signature will boost various sectors of the economy
Togo’s economy will surely change after the entry into effect, the law on electronic signature, which was voted in June 2017. Indeed, the technology would revolutionize many sectors such as trade, telecommunication and most importantly the nation’s administration services.
Government’s decision to opt for the technology falls in line with its strategy to make the country more attractive and dynamic by digitalizing and improving public services.
The application of the bill, which is much anticipated should enable the Centre for Companies Formalities (CFE) to start digitalizing business creation, said Sandra Johnson, coordinator of the Business Climate Cell, while the Prime Minister was visiting this centre at the end of January.
This bill is also much anticipated by notaries as they plan to dematerialize most deeds and processes.
It will also help facilitate exchange of documents and information within public administrations, thus saving time and avoiding delays in processing. A move that would have a positive incidence on trade in the country.
However, many challenges are associated with digital signature and authorities are to determine how these can be tackled.
Fiacre E. Kakpo
Togo and Benin now control their airspace
On this day, March 1, 2018, Benin and Togo took full control of their airspace. Switch to radar coverage took place at the airport of Lomé which will be the centre of operations.
According to the Togolese minister of Transport, Ninsao Gnonfam, “from now on, Togo and Benin, through efforts of their men and women, are able to control their air space”.
The move to radar vectoring comes as the space was being monitored by the Agency for Air Safety in Africa and Madagascar (ASECNA), since 2015. This will thus allow the agency to boost air safety in this air space which has been a true puzzle for air traffic controllers for years.
From Lomé, air controllers will now be able to “provide specific courses and exact speeds to insure radar separation”, explained ASECNA’s head, cited by Newsaero.
Benin will control between 0 and 8° altitude while the upper portion will be monitored by Togo.
Royal Air Maroc was the first airline to fly under the new system.
Fiacre E. Kakpo
Banque de France lauds performances of Togo’s banking sector
Spurred by a 30.8% increase in operating income, Togo’s banking sector has recorded CFA63.4 billion of net positive results in 2016, after CFA46.7 billion of losses in 2015. This was revealed by Banque de France.
The positive performance was reflected on most of the sector’s indicators. For example, operating ratio, which compares operating expenses to net banking income, has improved from 74.8% to 72.6%.
The improvement also affected all assets of banks in the country.
Indeed, balance sheet total of all banks rose by 27.4%, against 14.6% in 2015. The consolidation of banking activity was sustained by a 16% surge in granted loans which stood at CFA1,176.5 billion.
Hence, net loans provided reached 36.8% of gross domestic product (GDP). This places Togo, in this regard, as number one across the West African Economic and Monetary Union (WAEMU), ahead of Senegal (33.1%) knowing that average in the region for this figure is 28%.
All these would not have been possible without the various measures implemented by banks over the past few years to spur financial inclusion.
In effect, the number of ATMs and bank agencies increased. Togo, in fact, has the best ATM density in the union, knowingly 21,000 people per ATM (against an average of 42,000 people per ATM still across the union).
Moreover, customers’ trust was consolidated as volume of long-term deposits soared by 15.6% over the period reviewed. These deposits make 59.5% of total deposits in Togo (against an average of 46.5% within the WAEMU).
France’s apex bank believes this is due to the appealing interests proposed by lenders on these deposits.
At the end of 2016, 17.6% of Togo’s adult population had a bank account, the highest rate in the WAEMU. This, according to Banque de France, is due to the dynamism of microfinance industry in the country. However, the Central Bank of France is concerned over the latter’s heterogeneity.
Fiacre E. Kakpo
Togo ranked 27th over 54 in African Emergence Index
In a recent report entitled African Emergence Index, Togo was ranked 27th out of the continent’s 54 countries. The rankings which was put in place by African experts was reported by Ecofin Agency.
Togo scored 45.76/100 and was listed under the “potential” category. The latter regroups economies with significant resources and capacities but which are not yet able to tap into those to achieve emergence.
The nation with its score comes ahead more stable economies such as Nigeria (a score of 39.5 and listed in the “potential” category) and Côte d’Ivoire (same category and a score of 42.56).
However, in West Africa, it is behind Cape Verde (57.73 points and 5th rank) and Ghana (55.45pt, 7th rank). These two are labelled emerging economies which means they are “engaged in a sustainable transformation process, this is in stable institutional, inclusive and socio-political context that can insure this sustainability”.
Next are Senegal with 51.49 points and Benin with 47.82 points which have been placed under the Threshold category. Under the latter are “countries which are at the frontier towards emergence”.
Surprisingly, a country like Angola is listed under the “Others” category which regroups nations whose “performances do not yet allow them to be, at least not for now, put in the emerging category”, the press agency states.
In the top 5 of this index are Mauritius (68.04pt), South Africa (62.74), Seychelles (61.31), Botswana (60.31) and Cape Verde.
The report ranks nations based on 23 criteria also falling under four main points (political and economic environments; human development and social environment).
Union Togolaise de Banque gives BBOXX $4 million to provide Togolese populations solar power
In Togo, government’s initiative to provide power to more than two million people by 2022 just reached a major milestone as Union Togolaise de Banque (UTB) signed a deal with BBOXX, UK-based firm specialized in renewable energies, to provide it $4 million (CFA2.15 billion).
In effect, local bank UTB will deliver capital in Togolese currency (CFA) to BBOXX which will provide access to energy to communities across Togo. Commenting on the deal, Zakari Darou-Salim, general manager UTB, said: “This operation demonstrates Union Togolaise de Banque’s commitment towards the most disadvantaged populations who currently do not have access to electricity in Togo”. For his part, Mansoor Hamayun, CEO of BBOXX, declared: “The deal with Union Togolaise de Banque will also make financial matters much more straightforward for us and will help drive our expansion across Togo”.
According to African Review, this deal is the first of its kind in sub-Saharan Africa as it involves delivering capital in local currency to carry out a government’s project that aims to improve living standards of local populace. However, one of the key factors making this deal a major one is the fact that Africa Guarantee Fund, which assists financial institutions in increasing their funding to African SMEs, provided a 50% pro rata credit enhancement.
BBOXX, it should be recalled, is a major place in the CIZO project. The firm won in 2017, a contract to work with Togolese government under which it will deploy 300,000 domestic solar kits across the country, over the next five years BBOXX plans to create more than 1000 direct jobs in Togo by 2022.
Fiacre E. Kakpo
Togo about to put in place a national agency for tourism development
During ministers’ council held on 27 February 2018, the government reasserted its intention to make tourism one of the drivers of the economy, thus making Togo a leading hub of this sector, in the region.
In this regard, two draft bills and three decrees were adopted during the council, among others. Also, the minister of industry and tourism, Ihou Attigbé spoke about a project concerning the creation of the national agency for tourism’s development (ANDT).
“The latter will be in charge of steering and implementing the various projects of the ministry, in order to better position the country in the region and worldwide, leveraging on its assets to make it one of the top touristic destinations in West Africa and boost its indicators on global tourism indexes”, the minister said.
With ANDT, the government hopes to attract more than 500,000 tourists before 2020, creating thousands of jobs and boosting hospitality revenues. Back in 2016, let’s note these revenues were at CFA36 billion.