Togo First
Land reform: Togo considers setting a national institute of geography
A National Institute of Geography could soon be set up in Togo. The project was discussed on April 9, 2024, by the Council of Ministers.
If effective, the project could help bolster the ongoing land reform. The initiative was presented by the Ministry of Urbanism.
The projected entity would result from the transformation of the current Directorate-General of Geographic Information and Cartography. The Institute would be "endowed with administrative and financial autonomy," aiming "to enhance its effectiveness and contribute to socio-economic development."
The new entity should integrate modern tools, enabling the geolocation of activities and phenomena, digitization, storage, and sharing of geospatial data across all domains.
The project should, overall, reinforce the government’s efforts to improve land tenure, and public services, and improve Togo’s business climate. These include digitizing cadastres, land deeds, and parcel plans.
Ayi Renaud Dossavi
WACA ResIP Togo: New milestone reached in anti-flooding project targeting Lac-Togo
Two key studies related to the project to curb flooding in the Lac-Togo area were validated last week. The studies, the Environmental and Social Impact Assessment (ESIA) report, and the Resettlement Action Plan (RAP) were validated in Aneho.
Financed by the World Bank, the project aims to address the recurrent flooding in Togo’s maritime region. It involves dredging works, construction works, basin and canal development, as well as the construction of drains and wire thresholds. The works should begin in October 2024, after compensations have been paid, and end in October 2025.
The project falls under the WACA ResIP-Togo coastal resilience program. It should significantly enhance the living conditions of the population by safeguarding the shores of Lake Togo and providing access to previously hard-to-reach areas during the rainy season.
The authorities also hope that it will improve fishing in the area, thus creating new permanent jobs and boosting productivity.
The World Bank invested CFA2.8 billion in this project.
Togo: Government upscales legal interest rate for 2024
The legal interest rate in Togo is set at 5.0336% this year. The government disclosed the figure on April 9, in a Cabinet meeting held in Lomé, the capital.
A decree was issued in this framework, per “the uniform law concerning the legal interest rate in the countries of the West African Monetary Union (UMOA)”. This law “requires the decree to establish the legal interest rate for all matters for the calendar year.”
This year’s legal interest rate is up by 81 basis points (0.8131 percentage points) compared to last year’s, 4.2205%.
The legal interest rate helps calculate late payment interest in various areas, including commercial transactions, alimony payments, overdue bill payments, and commercial or civil disputes. Defined on a per-calendar-year basis, this rate serves as a benchmark for determining the amount of interest owed in case of payment delays and can be automatically applied in the absence of a specific contractual agreement between the parties involved. Its adjustment, either upward or downward, can thus have financial implications on various disputes and settlements among economic actors.
While the legal interest rate is generally kept relatively low to encourage compliance with payment deadlines and deter unjustified delays, it may occasionally be upscaled, depending on economic conditions and prevailing monetary policies.
Ayi Renaud Dossavi
Togo: Government works on plan to digitise public services faster
The Togo Digital Agency (ATD) is working on a plan to speed up the digitalization of Togo’s public services. The plan was presented on April 9, 2024, during the Council of Ministers.
The document specifically aims to modernize the public administration, through innovative tech tools that will enable the administration to allow users - individuals and businesses - to fill online forms, submit documents, pay fees and schedule meetings for on-site formalities.”
Spearheaded by the Ministry of Digital Economy and Digital Transformation, the initiative will make access to public services easier for the general public.
It is worth noting that some public departments are already experimenting with the tools, such as the Ministry of Trade, which took steps to dematerialize its services with the technical and operational support of the ATD.
Ayi Renaud Dossa
Togo and Sierra Leone want to cooperate in the Maritime sector
Besides financial inclusion, digitalization, and employment, Sierra Leone seeks to cooperate with Togo on maritime and logistics fronts. On Monday, April 8, David Moinina Sengeh, Chief Minister of Sierra Leone, covered the topic with Togo’s Minister of Maritime Economy.
I am delighted to have welcomed the Chief Minister of Sierra Leone, @dsengeh, during his visit to Lomé. Our discussions focused on the need to strengthen ties between our nations, particularly in strategic sectors such as maritime transport and logistics.
— Kokou Edem TENGUE (@kokouedemTENGUE) April 8, 2024
I would like to once… pic.twitter.com/cNEF4gzJg2
Sengeh was in Lomé, Togo, to find ways to bolster the cooperation between both countries. During his meeting with Tengue, he praised Togo for being an example in terms of port management and logistics, an example that Sierra Leone wants to follow.
"We look forward to learning and applying similar strategies in Sierra Leone," Sengeh said.
In response, Minister Tengue declared: "We are delighted to explore new avenues of partnership with Sierra Leone. This is an opportunity to build on our respective strengths for the mutual benefit of our nations. "
While Togo has only one deep-water port in West Africa, Freetown is Africa's largest natural harbor.
Esaïe Edoh
Togo: Legislative and regional elections will be held on April 29
Togo will hold its next legislative and regional elections on April 29, 2024.
The polls which were scheduled for an earlier date were postponed to collect the public’s opinion about the recent constitutional revision.
However, according to a decree issued in a Council of Ministers, the electoral campaign will now begin on April 13 and close on April 27. Advance voting is scheduled for April 26, 2024, for the armed forces, paramilitary forces, and the operational reserve.
Esaïe Edoh
Togo: National Fund for Cultural Promotion secures CFA300 million for 647 projects
In response to a call for projects it launched last year, the Togolese Fund for Cultural Promotion (FNCPC) will soon obtain CFA300 million from the government. Local newspaper Togo Presse reported the news on April 9, quoting the Ministry of Culture.
The CFA300 million will be distributed as follows: CFA133.9 million for performing arts, for 323 projects; CFA51.9 million for film projects. CFA36.45 million for 86 visual arts projects; CFA23.15 million for 53 literature projects. Cultural Heritage and Cultural Space projects will be funded with CFA21.2 million (49 projects) and CFA14.4 million (11 projects), respectively.
It's worth noting that the average amount received by beneficiaries stands at 400,000 FCFA, under the "relaxed" grant framework, aimed at providing financial support to artists and creatives before the establishment of the new FNPC structures.
Ayi Renaud Dossavi
WAEMU: Togo performs well on fiscal transition front
Togo's performance in fiscal transition within the West African Economic and Monetary Union (UEMOA) is commendable, aligning well with the Union’s objectives. Despite facing a complex and uncertain macroeconomic environment, overall performance in the fourth quarter of 2023 remained positive. As per the monitoring report prepared by the National Committee for Monitoring the Fiscal Transition Program (CNPTF), adherence to both the primary and secondary criteria set by the Commission signifies the effectiveness of fiscal transition in the country.
The successful fiscal transition in Togo has been facilitated by implementing measures related to domestic and gateway taxation, along with the incorporation of community directives into domestic legislation. Upon closer examination, the analysis of tax revenues reveals a predominance of indirect tax revenues over direct taxes, signalling specific challenges that need to be addressed.
Despite notable progress, certain performance indicators still fall below the thresholds set by the UEMOA for the year 2023. For instance, the tax pressure rate, currently at 14.7%, remains below the community target of 20%.
It's important to note that the fiscal transition program was initiated in 2009 by the UEMOA Commission, aiming to harmonize the establishment of a free trade zone with the optimization of national resources. The program aims to gradually shift tax pressure from gateway taxation to domestic taxation while strengthening the common market.
Togo wants to lower domestic debt to 54.6% by 2026
Togo hopes to lower its domestic debt by 7 percentage points over the next three years, bringing it to 54.6% in 2026. The ambition was disclosed in the public administration's medium-term debt management strategy.
Last year, Togo’s outstanding public debt stood at CFA3.707 trillion–mostly denominated in CFA. External debt represented 61% (CFA2.276 trillion) and domestic debt 38.61% (CFA1.431 trillion). Over the same period, the country’s debt to multilateral partners stood at CFA864.02 billion (23.3% of the total debt or 15.53% of GDP).
Over the next three years, Lomé will focus on reducing its exposure to domestic lenders. According to the recently disclosed strategy, the country will focus on “increasing external debt to further lower refinancing risk and relying on debt raised in the regional market with maturities ranging from 1 to 10 years to meet financing needs”.
Among its fundraising tools abroad, the State plans to emphasize concessional and commercial external borrowings.
Low Foreign Exchange Risks
Regarding foreign exchange risks, it should be underscored that Togo's debt, primarily denominated in CFA and euros, remains less exposed to exchange rate fluctuations than in 2022.
“The outstanding debt consists of 71.30% in CFA and 14.95% in euros, representing 86.25% non-fluctuating debt and 13.75% debt exposed to exchange rate fluctuations.” However, “the country remains vulnerable to fluctuations in major currencies such as the US dollar and the Chinese yuan,” with exposures of 5.42% for the US dollar and 3.62% for the Chinese yuan (CNY), respectively.
From 2019 to 2023, Togo's debt has increased from CFA2.197 trillion to CFA3.707 trillion, at an average growth rate of 17% per annum.
Ayi Renaud Dossavi
Togo: MCC announces several procurement deals totaling $13 million
The Togolese government will, starting this month, launch a series of procurement activities over the next nine months. The procurement series falls under the Millennium Challenge Corporation’s (MCC) Compact program which Togo was declared eligible for in December 2022.
The estimated value of the projected procurements is $13.6 million. As part of the initiative, the MCC plans to recruit several consultants and human resources to support its actions. This includes consultants for program administration, such as interim procurement agents, financial agents, and architects. Additionally, acquisitions of goods, including computer equipment, will be carried out for the Millennium Challenge Account.
According to credible sources, specific tenders and proposal requests will be gradually published, through the Ministry of Economy and Finance.
The Togo Compact Program Implementation Unit forecasts that Lomé and the Millennium Challenge Corporation (MCC) will seal the Compact deal before this year ends. The deal will focus on developing solutions in the energy and digital sectors.
Ayi Renaud Dossavi