Togo First
IMF positively assesses Togo’s macroeconomic indicators, betting on national development plan
Togo’s national development plan (PND) will stimulate the country’s economic activity, the International Monetary Fund (IMF) said in its second review of the West African nation’s economic performance.
The performance was deemed “good” by the institution and as a result, it provided Togo a $35.5 million financing. “Finalization of the national development plan and Togo’s adhesion to the Compact with Africa are laudable. The rapid implementation of structural reforms included in the two policies as well as reforms that align with the ECF-backed scheme will help Togo achieve a stronger and more inclusive growth,” IMF said.
In sight of its projections for the economy, and reforms implemented under the PND, IMF put Togo’s economic and financial indicators for the 2018-2023 in the green. The institution estimates that Togo’s GDP will grow by 5.4% average till 2023, excluding 2018 during which various sociopolitical protests were recorded. Regarding public debt, IMF said it should slump below 50% of GDP over the period considered.
Also, the establishment of MIFA, formerly TIRSAL (which is a fund to finance agriculture) and the upcoming development of two industrial parks will very likely contribute to the growth of Togo’s economy in the next five years, according to its government.
Fiacre E. Kakpo
Togo purchases latest generation detection system to make traffic in Guinean Gulf safer
Togo’s government and Thales Alenia Space announced on Monday June 18, the signing of an agreement for the provision of a latest generation land-station, the Meolut Next (MEdium Orbit Local User Terminal).
This station can detect and instantly locate any distress signal issued at sea or onshore. It will act as an interface for local and neighboring detection systems (firefighters, army, coast guards…).
According to Thales Alenia Space, the Meolut Next will allow Togo to better detect signals from an emergency beacon in an area with a radius of more than 3,000 km, thus covering all the Guinean gulf and a great part of the African continent itself.
The station will thus help improve security and services provision.
Commenting on the purchase, the minister of infrastructures and transports, Ninsao Gnofam, said: “The MEOLUT Next station of Thales Alenia Space will help the Togolese government, as it desires, to secure maritime traffic in the Guinean Gulf and establish a flawless security which is vital for the country’s economic growth and the whole region actually”.
Fiacre E. Kakpo
Togo: Global consumption price level slumped by 1% in May 2018
Last month, global consumption prices in Togo slumped by 1% as compared to a 1.9% positive growth the month before, according to data from the National Institute of Statistics, Economic and Demographic Studies (INSEED).
The slump is mainly due to a drop in prices of food products and non-alcoholic drinks, even if other consumption indicators increased. These indicators are “housing, water, gas, power and other fuels” (+0.7%), “tobacco and drugs” (+2.7%) and “health products” (+0.3%).
Compared to February, that is on a quarterly basis, price levels surged by 1.5% spurred by a 5.7% increase in prices of food products and non-alcoholic drinks. On a year-to-year basis, this figure however slumped by 0.3%.
Fiacre E. Kakpo
Togo : Customs and Indirect Taxes office to be rehabilitated
Under its initiative to boost tax revenues, Togo’s Revenue Office (OTR) will rehabilitate the Customs and indirect taxes office. A call for proposals was actually launched to select eligible candidates for related works.
The works will be financed by the State, with funds specially allocated to them under the 2018 budget.
They are expected to last about five months according to the call for proposals.
Séna Akoda
Agriculture : TIRSAL Fund renamed MIFA
The TIRSAL fund which was put in place to cover risks and provide guarantees related to loans in the agricultural sector, in Togo, was re-baptized. The initiative which is inspired from the Nirsal in Nigeria, is now called MIFA which stands for Mécanisme Incitatif de Financement Agricole (Incentive Scheme for Agricultural Financing).
The name change occurs as the scheme is about to enter its pilot phase.
Launched last April 25, by the Togolese President, the TIRSAL is a tool which the government wishes to leverage in the framework of its 2018-2022 national development plan (PND 2018-2022) to boost agricultural loans. Actually, these loans represent about 0.3% of all loans granted by banks in Togo. The fund aims to bring this figure to 5%.
President Faure Gnassingbé said the MIFA will in the long term, benefit from a €100 million financing. A significant part of this monies will be provided by the State, private sector and development partners. Overall, more than one million actors, farmers mostly, are expected to benefit from the initiative.
Agriculture is a pillar of Togo’s economy. It contributed around 38% of its GDP in 2017. Meanwhile, loans in this sector are not much accessible. Between 2011 and 2016, only 0.3% of all bank loans provided were granted to the sector. Microfinance institutions which were supposed to help reverse that trend backed out.
Fiacre E. Kakpo
Togolese-led project Aimes Afrique wins awards in Bayern, Germany
Bayern in Germany awarded last Saturday in Nuremberg the award for the “best cooperation project for a better world” to NGO Aimes-Afrique founded by Togolese Serge Michel N. Kodom.
The Togolese won the award with the 10 Aimes Afriqe villages project it developed in partnership with Aktion Pit Togohilfe, a non-profit humanitarian German association installed in Togo.
10 Aimes Afrique villages is a 10-year pilot project to develop communities. It aims to make populations more resilient and transform rural economy by empowering grassroot communities. The project was launched in 2015 and covers five Togolese regions.
Marseille-based Incubator Start Aid to open co-working space in Lomé, in July
French-Togo startup Start-Aid, which is based in Marseille, France, will open a co-working space in Lomé next July 4, 2018.
Starting that day and during the six following weeks, the Startup whose goal is to “boost innovation”, will offer training programs and top-quality workshops as well as a 20Mbps internet connection.
Baptized ‘Start to go’, the event will help many young entrepreneurs launch their startup. It aligns with Start-Aid’s ambitions to start incubating in Lomé.
“Our purpose is to support entrepreneurship and innovation in Africa, starting with Togo,” a statement released on startup’s website reads.
For more information, visit the Start-Aid page.
Fiacre E. Kakpo
Togolese people feel safer than Ghanaians, according to the 2018 Gallup Global Law And Order
According to the 2018 Land and Order index of Gallup Institute which assesses the feeling of safety worldwide, in 2017, with a note of 69 over 100, Togo came ahead of its West African neighbours, Guinea, Mali and Ghana which had 68, 66 and 66 respectively.
Togo’s is on par with Senegal but lags behind Burkina Faso, Niger and Benin, which respectively have 73, 74 and 74. Yet, the nation remains slightly above average in Sub-Saharan Africa (68/100).
Gallup’s rankings was produced based on phone interviews and face-to-face meetings, carried out in 142 countries, with 148,000 people. The study involves a questionnaire that assesses people’s trust in police authorities and how safe they feel at night.
Worldwide, it is Singapore which is once more the top ranked country with a score of 97 out of 100. The Asian nation is followed by Norway, Iceland and Finland with each having 93 out of 100.
In Africa, the top five nations on the rankings is composed of Egypt (1st), Mauritania (2nd), Morocco (3rd), Algeria and Ethiopia.
In the lowest sphere, Venezuela remains the least safe nation around the world with a score of 44. It is followed by Afghanistan (45) and South Sudan.
The institute establishes tight links between data reported and economic outlooks of countries. Its data should actually impact their business environment.
Séna Akoda
Togo : Government examines bill to promote leasing as financing tool for SMEs
Diversifying financing tools for small and medium enterprises (SMEs) in order to help them fully contribute to economic growth is one of the main goals of the Togolese government. In this framework, it decided to rely on leasing which is the alternative to traditional loans taken within West African Economic and Monetary Union (WAEMU).
During a ministers’ council held June 13, 2018, a bill related to leasing in WAEMU’s state members was examined.
According to the government, “there is a need to diversify ways to finance small and medium enterprises (SMEs) given the WAEMU’s actual economic context”. The bill on the table thus aims at promoting leasing by driving local SMEs to adopt it, and leverage on its conditions which are more flexible than those of traditional loans.
The council indicated that using the financing method will positively impact other financial transactions (venture capital, factoring and bank loans) which guarantee SMEs funds.
A leasing contract involves a lessor and a lessee (or tenant). The first grants to the second the right to use a particular good for a period of time against rent payments over a fixed period. After that period the tenant can buy the asset leased at a price set in advance by both parties.
Togo : Legal interest rate set at 4.5%
Government set during the council of ministers held June 13, 2018, the legal interest rate for this year. From 3.5437% in 2017, this rate will thus stand at 4.5% as recommended by Central Bank of West African States (BCEAO).
Report of the ministers’ council states that “the legal interests represent indemnities owed to lenders, for damages or default interests, by a debtor who reimburses late. They stand in the stead of a preliminary rate set by involved parties when a debtor does not meet deadline for debt payment”.
For this year, “it equals average of maximum rates for refunding imposed on loans granted by BCEAO during the previous civil year, over corresponding periods”.
Fiacre E. Kakpo