While growth forecast is estimated at 5.3% this year, real gross domestic product (GDP) of Togo should reach $5.3 billion, against $4.8 billion in 2017.

Comparing with data we obtained, this would mean that Togo’s economy has doubled over 10 years. Indeed, back in 2007 the economy weighed about $2.53 billion, according to data from African Development Bank (AfDB).

Also, GDP per capita has improved significantly over the years and should in 2018 reach $660 (against $615 in 2017) according to Ecobank’s experts.

The improvements are attributable to a rise in economic activities over the past five years, marked by greater public investments, in infrastructures notably, and diversification. There is also the fact that demographic growth is far less significant than economic growth.

Togo is actually implementing many reforms, let’s recall, to improve its business climate. Yet, there is still room for improvement according to Doing Business and Heritage Foundation.

Fiacre E. Kakpo

During the recent ministers’ council held on March 7, 2018, a bill for a new land and State property code was adopted. This is as previous laws were outdated causing a rise in the number of land-related conflicts.

The new bill should thus help “handle the consequences of strong land pressures caused by a rapid growth of population”. In addition, it will also allow to “satisfy requirements of sustainable growth in Togo, without tearing the country’s social fabric” and even “tackle shortcomings of land governance in order to promote social peace and make the economy more attractive”.

Knowing that land management is one of the major challenges to Togo’s emergence and the implementation of an efficient construction policy for social housing, the upcoming reform is quite opportune.

It will also facilitate the implementation of a national agricultural strategy that will foster the development of agriculture which is the economy’s main driving force.

In the long run, it will improve land management making it more efficient and sustainable, in line with objectives announced in 2009 by African Union’s Heads of States.

During a council of ministers held on March 7, a decree was signed to make ECOWAS insurance brown cards immediate and compulsory for every person with a motor liability insurance.

This is to better protect drivers within the community. Indeed, in case of accidents, Togolese nationals will be compensated rapidly and fairly for damages caused by non-resident drivers from other ECOWAS countries.

The recently adopted decree plans for the restructuring of the National Bureau for ECOWAS’ insurance brown card. The institution, let’s recall, has to “implement in Togo the use of the ECOWAS brown card for motor liability”.  

Placed under the authority of the ministry of economy and finances, the entity involves the State as a major actor as well as certified motor insurance firms, on a subsidiary basis.   

Let’s recall that the ECOWAS Brown Card was established by a protocol signed in 1982, in Cotonou, to ease settlement of claims arousing from accidents incurred by Brown card holders.

Fiacre E. Kakpo

For the fifth time this year, Togo will issue fungible treasury bonds on the regional debt market, on March 16 to be precise. This was disclosed in a notice from the regional agency in support of the issuance and management of public securities in the WAMU (UMOA-Titre). Just like it aimed to raise during its latest issuance (Feb 26), the country seeks CFA20 billion through the operation.

Characteristics of the upcoming issuance are the same as those of that of February 16, 2018 which had enabled the country to raise more than CFA19 billion. Nominal value is CFA1 million, interest rates are multiple and maturity period is 12 months.

The auction should be the last this quarter, according to Togo’s provisional timetable.

It should be noted that this operation, just like the one that preceded it, occurs in an unstable political environment, as dialogue to resolve disputes between the country’s various political actors is suspended.

Under its national electrification strategy, in rural areas particularly, Togo’s government benefited from US support through the US Power Africa Initiative.

US organization, Overseas Private Investment Corporation (OPIC), in fact informs that over the past 5 years, $2.4 billion were granted to nine African nations, namely South Africa, Togo, Ghana, Guinea, Nigeria, Kenya, Senegal, Tanzania and Zambia.

Launched in 2013 by US former President Barack Obama, US Power Initiative is a five-year program resulting from a multi-States agreement between US, benefiting countries and the African Development Bank (AfDB). The latter, in the framework of the project, provided involved countries investment loans, support for implementing reforms but also guarantees and advices.

This program should in the long run generate an additional 7,400 MW of electricity in Africa and benefit about fifty million people.

In Togo, besides the US support there is the Ci-Zo project initiated by the President himself. In its framework, mini solar plants will be installed all over the country and it will bring national electrification rate to “50%, by 2020, and 90% in 2030”.