Togo First
Togo: Government to provide broadband internet to 90% of population by 2022
By 2022, more than 90% of the population and above 95% of companies should, in Togo, have access to broadband internet. This was disclosed by the ministry of digital economy in its 2018-2022 development strategy for the sector.
Be it mobile 3G or 4G networks, landline broadband radio networks or optical fiber (in big towns), the Togolese government intends to put in place the necessary conditions to achieve its goal.
In this framework, the public Wi-Fi project, involving hotspots being installed in public spaces as well as 4G’s launch are planned during the period concerned.
“The various projects aim at allowing people with no access to broadband at home to have this access nearby at less than 5km from them in the worst case”, the strategy report indicates.
Togo, it should be recalled, currently has an internet penetration rate of only 21%.
Fiacre E. Kakpo
Togo : In 2014-2016, banking sector’s net profit grew ten-fold (BCEAO)
In 2016, Togo’s banking sector recorded a net profit of 47 billion CFA francs, a remarkable increase compared to CFA4 billion in 2014. This is shown in a data from the Central Bank of West African States (BCEAO).
In details, losses recorded by the sector in 2016 stood at CFA5.6 billion as against an astounding CFA50 billion the year before.
Also improving were the banks’ total assets value which soared by 43.7%, from 2014, to CFA2,368 billion in 2016. Meanwhile, outstanding loans over the period surged by 26% reaching CFA1,171 billion.
Among factors that contributed to net profit’s rise are securities whose value almost doubled over the period (2014-2016) reviewed, from CFA348 billion to CFA655 billion.
Fiacre E. Kakpo
World Bank to continue supporting disaster risk management in Togo and Ghana
The World Bank plans to renew its support to developing countries, for disaster risk management. A decision spurred by the good results recorded under flood forecasts for the Oti River’s Basin, in Ghana and Togo.
The news was disclosed by Koffi Hounkpé, main disaster risk management expert at the World Bank, during a meeting on flood forecasts in the Volta Basin. The Bretton Woods institution has in fact lauded progress made in this framework.
Truly, World Bank, through its financial support has helped develop and test a flood early warning system baptized “FEWS Oti”, during flooding period in 2017. “This system helped produce precise data on water levels at the Oti basin, Northern Togo-Ghana, one or two days ahead of flooding”, said a press statement released after the meeting held on Feb 9-10, 2018, in Lomé.
This enabled a better coordination while assisting and rescuing flooded communities.
By renewing its technical and financial support, the World Bank aims at reinforcing achievements it made so far, thereby mitigating tragic incidents caused by floods.
Business Climate Cell urges economic operators to submit their projects to EU’s External Investment Plan
To boost investment, employment and inclusive growth in its partnering nations, in Africa especially, the European Union has during the last AU-EU summit launched its External Investment Plan (EIP).
On February 12, 2018, the European institution in effect presented this plan to Togolese political and administrative authorities, as well as to economic operators.
On this occasion, Eric Galley, representing the Business Climate Cell urged Togolese economic operators to submit projects likely to benefit from EU’s plan. These projects should however respond to Togo’s needs.
Commenting on the newly launched plan, Mrs. Martins-Barreira, head of the EU’s delegation in Togo said: “EIP is tailored to specific needs of partnering States”. Meanwhile, Antonio Capone, in charge of infrastructures and environment at the same delegation said EIP should positively impact the Togolese economy, through job creation notably. In this regard, he invited all concerned parties to play their part.
EIP prioritizes socio-economic sectors and intends to support small businesses, providing them funding to create decent jobs.
Togo to issue another bond on WAEMU’s debt market, for CFA20 billion
After its successful bond issuance on WAEMU’ financial market (oversubscribed at 107%), last Jan. 26, Togo will re-attempt the operation to raise CFA20 billion.
Par value is CFA1 million which should be paid after 12 months. Togo’s treasury plan to issue the fungible bonds at many rates.
Looking at the similarity between the upcoming operation and the one carried out on January 12, 2018, that is the year’s first issuance, undersubscribed, the move seems risky. However, investors should respond well to it. A projection that is attributed to the many reforms initiated by government and positive short and mid-term outlooks from institutions such as the World Bank, IMF and AfDB.
Moreover, given that the country is the only one in West Africa, to have deep-water port, expects Afreximbank’s support to boost its trade. To this add Coface’s positive predictions. The insurer indeed projected that this year, Togo’s public debt would remain below 70%.
However, political tensions are threatening these expectations. In fact, a dialogue is to be held on February 15, 2018, to calm the tension. This meeting, which will occur a day before the issuance, may or may not favor the operation.
Fiacre E. Kakpo
Togo: Coffee sector records good performances, trend expected to be sustained
From 2011 to 2016, Togo’s coffee output grew from 10,000 tons to 17,010 tons. Over the same period, areas where the crop was grown expanded from 37,768 ha to 40,499 ha while yield grew from 0.26 t/ha to 0.42 t/ha.
According to data relayed by newspaper l’Oeil d’Afrique, the rise has boosted the impact of the cocoa-coffee sector in terms of added value. In effect, in 2016, the sector generated CFA8.6 billion in revenues whereas in 2014, this value was CFA5.9 billion.
Meanwhile, the sector created close to 800 permanent jobs and 22,000 seasonal ones.
These good indicators are attributable to a programme to revive the sector launched in 2008 and the National Programme for Agricultural Investment and Food Security.
In the framework of the latter, Togo projects an annual output of about 30,000 tons of coffee and 26,000 tons of cocoa. World Bank, European Union and IFAD are Togo’s main financial partners, in this project which aims to return the country’s coffee to its glorious years in the 60s.
Togo’s revenue office urges road haulers to pay their taxes via mobile
Togo’s Revenue Office (OTR) started today, February 12, a nationwide exercise to sensitize lorry drivers about payment of the tax on road haulers income (IRTR) via mobile (Tmoney).
OTR, in this framework, has teamed up main syndicates, namely the Union Syndicale des Conducteurs Routiers du Togo (UNATROT) and the Union des Routiers du Togo (URT). A round in major bus terminals was organized.
OTR officials, Soglohoun Kolégain, in charge of taxpayers’ education and Olanlo Eyê Idoh, technical agent at the IT directorate, will go around various parts of the country, reaching out to as many road haulers as possible.
Traffic at Lomé’s Port rose by 59.5% year-on-year, at Q3 2017
Traffic at the Autonomous Port of Lomé (PAL) rose by 59.5% year-on-year, at Q3 2017. This was revealed in a sectoral report for this quarter released last Thursday by the Ministry of Economy and Finance.
From July to September 2017, port traffic reached about 6 million tons (5,751,600 tons),which is a 9.9% increment compared to the previous quarter.
Over the first nine months of last year, total traffic at the port was 14,689,000 tons as against 10,542,100 tons the year before over the same period (+39.3%).
In detail, the volume of cargo unloaded at the port throughout the first three quarters of 2017 rose by 12.9% compared to the same period in 2016.
This reflects an increase in imports of oil products, food products, construction materials, and other goods transiting to other countries, such as Nigeria (+181%), Ghana (+44%), Mali (+37%) and Niger (+31%). However, Burkina Faso, with 10.714 million tons of discharged goods at PAL, was the country that captured most of the port’s traffic from January to September 2017.
In regards to loading over the first nine months of 2017, volumes of exported goods stood at 901,900 tons as against 752,800 tons in 2016’s first nine months. Thus, a 19.8% increment, a rise spurred by a 22% increase of goods coming from Burkina Faso. Over the same period, agricultural product exports stood at 246,400 tons representing a 4.8% rise.
It is however important to note that during the first nine months of 2017, 1,022 ships docked at PAL.
Fiacre E. Kakpo
Togo’s chamber of commerce works to develop regional policy for automobile industry
Last Friday, a meeting between the Commerce Chamber of Togo (CCIT), experts from the African Development Bank (AfDB) and actors of Togo’s automobile sector took place. At this occasion, the various participants debated the elaboration of a policy for the automobile industry within ECOWAS.
According to CCIT’s president, Germain Meba, the meeting was in line with the process aimed at harmonizing industrial policies in the region.
A key development indeed, as it appears that besides Nigeria none of the ECOWAS State has a national development plan for its automobile industry under its national industrial policy. Actually, other State parties of this community still import cars, and very few assemble trucks.
Johan de Jager, expert at AfDB, said “the automobile sector is a sector where things have to be organized so that it better contributes to the GDP”.
In each segment of the industry within the region, supply capacities must be determined and exploited, in order to put in place the necessary policies. For example, car import policies, tariff regimes, factory sets, common standards, measures affecting transit and clearance.
Besides harmonizing industrial policies within ECOWAS, the long-term goal is to achieve a “better regional integration” and develop a “common regional market” for cars.
START-UEMOA: Côte d’Ivoire-Togo corridor among the region’s most dynamic in 2016
At the end 2016, WAEMU’s automated processing and settlement system (STAR-UEMOA) had 118 participants, with four new comers, two from Togo. The latter are Coris Bank and Société Générale Togo. This was revealed in the latest annual report of the Central Bank of West African States, obtained by Togo First.
According to the document, intra-WAEMU transactions stood at CFA26,272 billion at the end of 2016, thus 5.74% of global bank transactions. This amount is up 14.53% compared to that recorded in 2015.
Within WAEMU, Togo is one of the active actors in terms of transactions recorded in the region. Actually, the Côte d’Ivoire-Togo corridor is one of the most dynamic in the union. Looking at location-based distribution of cross-border transactions reported in STAR-UEMOA, Togo comes fourth with a total amount of CFA3,463 billion, behind Côte d’Ivoire, Senegal and Burkina Faso follow. “In terms of value, most dynamic corridors are Côte d’Ivoire-Senegal, Côte d’Ivoire-Burkina, Côte d’Ivoire-Togo”, the report states.
“Along each of these axes, cross-transactions’ value ranged between CFA1,000 and CFA2,000 billion in 2016”, it continues.
Overall, payments made in 2016 via the STAR-UEMOA system was CFA457,831 billion, up 49.25% compared to 2015. Over the period reviewed, 758,995 transactions were conducted via the system, against 682,895 a year before (+11%).
STAR-UEMOA is the regional system for real-time settlement of transactions of systemic importance (big amounts). Its mission is to accelerate payments, reduce costs associated to bank transactions and foster the development and integration of regional capital markets.
Fiacre E. Kakpo