Togo First
Togo gets an agency to promote creation and development of agropoles
By decree, Togo’s government just created the agency for the promotion and development of agropoles (APRODAT in French) during a council of ministers yesterday. This falls in line with the government’s objectives to boost agricultural sector by focusing on processing.
According to the statement by the ministers’ council, the new entity will improve private investments in agricultural firms, agribusiness and family farming, while giving priority to processing before exportation.
The move should also align with the government’s plan to achieve inclusive growth in the coming years, by creating sustainable jobs in agro-hubs and agricultural parks.
Moreover, to insure an effective management, the decree defines general framework for creation, development and management of agropoles as well as administration modalities for companies desiring to establish themselves in the sector.
“For a decade, agricultural programmes developed by government have helped Togo progress significantly. For example, outputs rose with surpluses often recorded, prices of agricultural commodities are stable while malnutrition and poverty are being reduced in rural areas,” said the statement.
In sight of this advancements, a total of CFA1,250 billion ($2.2 billion) private-public investments is expected in the agricultural sector over the next 10 years. This is in the framework of the PNIASSAN which is a scheme that aims to boost agricultural output in the country.
Fiacre E. Kakpo
Togo: Special court dedicated to minor conflicts now operational
The launching ceremony for the new commercial chamber solely dedicated to solving conflicts involving small receivables (ranging from zero to 1 million CFA) took place on Feb. 27, 2018. This chamber was established at the end of 2017 by order of the chairman of Lomé’s tribunal.
The goal of this chamber is to speed up processing of affairs related to small receivables. “We wish for these cases (those involving sums ranging between 0 and CFA1,000,000) not to be delayed anymore due to more complex ones,” said the Tribunal’s chairman.
“We also thought it would be good to separate cases involving minor sums from those involving big sums. This would give more time to the three ordinary commercial chambers and their head judges to focus on more complex cases…”, he added.
The new chamber would in the long run reassure investors regarding legal security in business, and would subsequently attract them.
What is most interesting with this new institution is how easy it is to appeal to it. Indeed, with or without request, any complainant can reach out to the court.
The latter, let’s recall, is run by two judges and holds its audiences on the second and fourth Tuesdays of each month at the Lomé court.
Togo to issue bonds on WAEMU market, for the fourth time this year
Next Friday, Togo will go to the WAEMU’s financial market seeking CFA20 billion. In this framework, the country plans to issue fungible treasury bonds with a nominal value of CFA10,000 and a rate of 6.25%. The bonds will mature on Jan. 25, 2021.
This is the fourth time this year that the State goes to this market. Indeed after the first issuance which recorded a moderate subscription, the country proceeded to two bond-issuance operations which were highly subscribed (107% and 95% respectively).
The latter indicates a boost in investor trust, likely spurred by positive outlooks released by international institutions for the Togolese economy, this year. There was also the recent initiation of a political dialogue on Feb. 15, to tackle the crisis between major political parties in the country.
Togo records a rise in number of LLCs created on year-to-year basis, spurred by reforms
Data from the Centre for Companies formalities (CFE) shows that more than 361 LLCs were created in the first two months of this year. This is against 296 in Jan-Feb 2017.
In details, 224 LLCs were created in January 2018, against 198 the same month the year before. As for February, 137 were created in the first weeks of the month (against 98 during the whole month of February in 2017).
This rise is attributed to the many reforms implemented by the government to ease companies’ creation, a major one being the liberalization of minimum capital for LLCs. They also aim to make private sectors the economic growth driver, through the formalization of LLCs for example.
In regards to the latter, more than 1547 companies were formalized in the first two months of this year, against 1504 in January and February 2017. This a relatively weak increase (2%) which should improve before the month’s ending.
Fiacre E. Kakpo
Togo: Power utility CEET now allows medium-voltage customers to pay connection fees in instalments
It will be easier now for Togolese people to get connected to the national power grid. Indeed, Togo’s power utility, Compagnie Energie Electrique du Togo (CEET), has enabled payment in tranches (over six months) for connection fees while this amount was expected to be paid fully initially.
The move is part of a set of technical and commercial reforms engaged by CEET to improve populations’ access to power services as well business climate in the country. In this framework, the utility has also reduced connection delay for new medium-voltage customers, from 66 days to 28 days. However, this period can extend to 42 days if a transformer substation needs to be built.
Also, connection fees were slashed by 30% in order to provide quality services and satisfy medium-voltage customers.
Togo: State reinforces measures to fight corruption
One of the missions assigned to the Higher Authority for Prevention and Fighting against Corruption and Related Offenses (HAPLUCIA) by the government is reinforcement of measures aiming to fight corruption and foster good governance.
In its framework, a meeting was held last Thursday at HAPLUCIA’s headquarters in Lomé. The meeting’s objective was to study the field in order to coordinate monitoring entities and actors involved in the fight against corruption and good governance’s promotion, in Togo.
Administrations, public institutions, private companies and even NGos are targeted by this hunt for the corrupted and corruptors.
To carry out its mission, HAPLUCIA, under the Amended Finance Act adopted in Nov. 2017, was provided CFA300 million by the government.
Togo: Boost in external trade resulting from single desk establishment
Opened in 2015 to boost cross-border trade, the external trade single desk is meeting expectations.
Indeed, the desk whose purpose was to simplify clearance processes, ease goods transportation, reduce related costs and delays and improve transparency in the sector, has helped Togo improve its logistics performances.
According to the World Bank’s 2016 index on logistic performance, Togo has jumped 47 positions to the 92nd rank worldwide. On the Doing Business’ crossborder trade index, the country also won ten places, in 2017.
Besides these improvements, Togolese customs’ revenues soared by 19.45% in 2015, due to the single desk initiative which aims to boost trade between Togo and other countries.
In 2015-2017, delay for container handling was reduced from 13 to 7 days. All these are to be attributed to the digitalization of processes and payment at a single desk.
Yet, there is still room for more improvement. In fact, a major step ahead consists in the deployment of GUCE in oil and export-oriented air freight sectors but also at Ségbé-Noépé border posts.
GUCE, let’s recall is an online platform connecting all actors involved in external trade. It is managed by the Société d’Exploitation du Guichet unique du commerce extérieur (Seguce).
Fiacre E. Kakpo
Togo: Land officials say Doing Business’ data on ownership transfer delays are outdated
According to Abby, Toyi, head of State domains and cadaster affairs (DADC), delays for complete transfer of land titles under Doing Business (283 days namely) is far from realities.
“I shout high my disapproval as the first person in charge”, the official said during a workshop on business climate at the administrative centre for economic and financial services.
“In 2016, we were at about 21 days. In 2017, despite all moving and issues we’ve met, we lowered it to 20 days”, he said. Considering the proximity of OTR where finalization of transfer mostly takes place, this delay should fall to 15 days, with the creation of the ownership transfer office.
In order to tackle this issue, the official has urged journalists and other parties involved, notaries namely, to crosscheck their information and verify their sources. “Relevant data is released on our website and sent to all affiliated notaries, he said. Many reforms are implemented at DADC, many elsewhere but all are available on the website,” he added.
DADC’s authorities promised to pursue reforms, such as that for land title dematerialization. Regarding the latter, as at February 20, 2018, from 95% at the end of December 2017, 97.2% of land titles had been digitalized.
According to officials, the team of about 20 youths hired for the operation should help complete the dematerialization process in some months.
Fiacre E. Kakpo
Togo’s threshold program may soon be approved with a first disbursement of $35M from MCC
Togo’s Threshold Programme could be approved in the weeks to come now that political dialogue has been initiated. This was told Nana Akufo-Addo by acting chief executive of the Millenium Challenge Corporation (MCC), Jonathan Nash, as the Ghanaian president was in US for a work visit. The Ghanaian leader, let it be noted, was recently in Togo to act as chief mediator to find a solution to the political crisis that the country experiences.
The approval should allow for the disbursement of a $35 million facility. The first US investment under the Millenium Challenge Account, pending Togo’s adhesion to a larger scheme, the Compact. With the latter, the African country could receive up to $400 million.
“One of the things we were looking for was the launch of a dialogue. Because of your leadership, and what you have done on the ground, we are now prepared to take this investment to our Board of Directors in the coming weeks. Assuming that things continue to move in a positive direction, hopefully our board will approve it, and we can begin an investment to Togo”, Nash said.
Funds mobilized would help improve the Togolese people’s access to ICT services. In addition, they should foster formalization of land access by legitimizing customary rights and boosting inclusive land access, among others.
Back in December 2017, let’s recall, board of administration of MCC had said in a statement: “With regard to Togo, the Board is encouraged by the possibility of inclusive dialogue as a way to resolve the current political impasse, and will continue to monitor developments on the ground before making a decision about the proposed threshold program”.
CCA urges media to play their role in the implementation of reforms aiming to improve business environment
The training and information meeting between the Business Climate Cell (CCA) and media actors came to an end last Friday. It was themed “Business environment in Togo: Concepts, reforms and outlook”.
Talks at the meeting revolved around seven main topics namely transfer of ownership, business creation, access to power, access to loans, cross-border trade, construction permit and contracts execution.
Commenting on the event, CCA’s coordinator, Sandra Ablamba Johnson, said: “We are satisfied because a dynamic partnership was built between media actors and our departments in charge of reforms”. She added that media actors will produce news that will sensitize populations about the reforms, while making sure those are effectively implemented first. The goal is to establish task forces comprised of media actors focused on key topics, and in the long term, have expert journalists.
In response also, media actors have all approved CCA’s approach, saying they hope a more formal partnership will be put in place. Reassuring them, CCA’s coordinator said works are going on in this regard.
Subsequent to the workshop, CCA will organize a work session, by video conference, with World Bank, which is responsible for assessing the reforms. “We want to have an open discussion with the institution concerning some aspects that are important to us”, Johnson said, emphasizing that expert journalists will be invited to take part in the video conference.