In 2016, Nov. 4, Togo’s government and Afreximbank signed an adhesion agreement enabling the nation to become the 40th member of the bank. However, the document had not been ratified since. Now, a council of ministers met, June 13, to examine the convention.

After Togo effectively joins Afreximbank, it will be able to benefit from its financial support. This will considerably help the nation boost its private sector, develop new transport and logistics infrastructures, as well as increase its power production capacity.

The convention, let’s recall, was inked a little after Faure Gnassingbé met with Afreximbank’s chairman, Benedict Oramah on October 31, 2016. On that occasion, the bank’s head said the institution had identified many opportunities in Togo, notably in regards to trade, logistics infrastructures and industrial parks development. The related projects had been valued between 500 million and $1 billion.

In fact, according to Coface, most of this funding could be released this year. Recently, a delegation from Afreximbank was in Lomé, where it met with the minister of industry, Yawovi Attigbé Ihou, to discuss Togo’s industrialization.

The African Import Export Bank –Afreximbank- was founded in 1993 to facilitate, finance and improve trade between African countries and also between the continent and the rest of the world.

Fiacre E. Kakpo

Togo’s Revenue Office (OTR) wishes to improve taxes it collects from the mining sector. In that order, it is studying with State officials and executives from the private extractive industries, a possibility to amend mining tax regime, at Notsé, in the Plateaux region.

It was established that fluctuations in prices of mining products paired with non-reliability of data provided by mining industries impede tax collection in the sector.

The Mining Development and Governance Project (PDGM) aims to boost accountability and transparency in the sector’s management. It also leverages on mining data to amend tax regime imposed on private companies operating in the mining sector.

The amendment should align with a model established by IMF which lets States compare tax regimes looking at tax base and tax rate, for information sharing between government and investors.

Séna Akoda

Togo’s Revenue Office (OTR) pursues reform implementation to improve fund mobilization.

After attaching the land conservation and cadaster to the tax office, OTR moved just another step forward. In a statement released June 7, 2018, the tax commissioner announced the delegation of his signature to Bali Komi, Head of the Land Conservation Department, regarding the issuance of any document related to post-registration operations.

This should accelerate processes and considerably shorten delays for property transfer, mortgaging, and any other transaction often undertaken by private investors.

It is part of various reforms implemented by the government, since the beginning of the year, to provide Togolese populations a more transparent service.

According to authorities, the delegation will also indirectly facilitate access to loans to the private sector which is a key component of Togo’s economy.

The delegation of signature concerns:

• Full transfer
• Mortgage registration
• Mortgage cancellation
• Provisional entry
• Cancellation of provisional entries
• Order for attachment for real property
• Cancellation of order for attachment for real property
• Duplicates
• Additions of names
• Amendment of names

Let it be recalled that to boost transparency, information on land titles and cadastral plans were made accessible, at no cost, to populations, on the DADC’s website.

Fiacre E. Kakpo

Tuesday, June 12, the Togolese parliament adopted a new customs code. The document aims to modernize custom administration, amid multiple changes in the global environment, economic and institutional realities that the country itself experiences.

“The newly passed law tackles needs set by the economic environment and share responsibilities between the minister of finance, the general commissioner of OTR, and the commissioner of customs and indirect taxation, for more efficiency and reactivity in processing of cases,” the minister of finance, Sani Yaya told deputies.

The new law particularly focuses on speed, transparency and fairness. It aims to “provide economic operators a transaction regulatory framework that fosters a service of quality”.

Furthermore, it includes measures that reinforce rights of individuals and partners of the customs administration.

Besides benefits for businesses, the new customs code should equip the customs administration with adequate tools to better mobilize local resources thus allowing government to finance its development strategy. The previous code was, let’s remind, enacted in 2014.

Fiacre E. Kakpo

Financed by the World Bank, a meeting was launched June 11, 2018 to assess risks and impacts related to money laundering and terrorism funding in Togo. The session which will close June 13, regroups officials of the National Cell for Financial Data Processing, others from the ministry of economy and finance as well as actors from other sectors.

CENTIF’s head, Tchaa Bignossi Aquiteme, on this occasion declared: “Nationwide, we are doing our best. However, at the international level, it is evident since we no more had to deal in terms of capability but efficiency rather”. The assessment looks at the implementation of laws to which Togo adhered. It aims to “spot weaknesses” of the country, the official added.  

Report of the assessment which was recommended by the Groupe d’Action Financière (GAFI) should pave the way for efficient strategies to fight and prevent laundering and terrorism funding.

Séna Akoda

The International Organization of the Francophonie (OIF) just launched the 2018 Young Francophone Entrepreneurs Award, which is the contest’s second edition. The goal of the event’s promoter and its partners, namely Nouveau-Brunswick (Canada) and CONFEJES is, to encourage, reward and valorize the Francophone youth’s dynamism, excellence and creativity in terms of entrepreneurship and sustainable wealth creation.

In effect, the contest will reward the two best entrepreneurs, a man and a woman who will each receive a €10,000 financial support, in addition to technical support.

The contest is also to help show how important private businesses are for the development of African economies, and it is also a way to valorize successful young entrepreneurs, the OIF said in the call for proposals it issued related to the event.

In the framework of selection, priority will be given to entrepreneurs operating in the following sectors: education (with a particular accent to the French language promotion), culture, circular economy which is supportive or help adapt to climate change.

There is also sustainable development and agriculture (under green economy), ICT, and the blue economy (fishery, aquaculture, marine resources). The award will be given in October 2018 during the 17^th Summit of the Francophonie in Erevan, Armenia.

Deadline for submission of proposals is July 30.

Séna Akoda

Adoption process for a new customs code has started. On June 11, 2018, deputies started a plenary session to study the document.

According to credible sources, the new bill should complete and amend that of April 24, 2014. Among new measures to be added include that regarding disposal of seized or abandoned goods. Others relate to tax evasion and other types of infringement, as well as to declaration control after clearance.

The adoption of the new code falls under a battery of reforms implemented by Togo’s Revenue Office (OTR) to boost tax and custom revenues for the benefit of State budget and local communities.

Séna Akoda

From 6.4% in Q4 2017, GDP of the West African Economic and Monetary Union (WAEMU) grew by 6.5% in Q1 2018, driven by local demand. This, in the context where prices of oil, cashew, cotton, cocoa, and gold went back up, and prices of palm oil, coffee and rubber slumped.

The figure was disclosed in a statement released at the end of the second ordinary session of the WAEMU’s monetary policy committee (CPM), held last June 6.

Commenting on the figure, the governor of the Central Bank of West African States (BCEAO), Tiémoko Meyliet, also chairman of CPM, declared: “this growth which began since 2012, continues at a pace that we deem satisfying as it exceeds 6%. It is one of the strongest growth rates in Africa at this time”.  

Moreover, average inflation rate in the union grew by 0.9% in Q1 2018, as compared to the previous quarter. The committee attributes the rise to an increase in food prices resulting from cereal prices soaring in some Sahel nations.

By the end of 2018, inflation rate is expected to rise by 1.5%, well in line with goals set by the community in terms of price stability.

In regards to budget deficit, the States forecast the figure at 3.8% of GDP in 2018, against 4.2% in 2017. However, CPM urged WAEMU States to keep making efforts to raise internal funds, in order to bring the gap down to 3% at end-2019.

Given the satisfying conditions, CPM has decided to maintain its benchmark rates. Hence, minimum interest rate for application to demand for liquidity supply, which is the BCEAO’s main benchmark rate, remains at 2.5%, the same since Sept. 16, 2013. Similarly, interest rate on marginal lending facility was kept at 4.5% and reserve ratio imposed to banks within the union was maintained at 3%.

Fiacre E. Kakpo