WAEMU: Togo Records Highest Annual Growth in Bank Credit Supply in 2022

Banking

Tuesday, 18 July 2023 11:15

WAEMU: Togo Records Highest Annual Growth in Bank Credit Supply in 2022

(Togo First) - Of all WAEMU countries, Togo was the one that recorded the highest growth for bank credit supply–the amount of credit made available by the country’s banks–in 2022. According to the WAEMU’s Central Bank, the BCEAO, the figure stood at CFA1,265.9 billion, against CFA812.9 billion in 2021, or 55.7% more.

The upward trend was extended to the whole WAEMU region, where the volume of credit available rose by 9.9% to 19,539.1 billion. Right behind Togo (+55.7%), the best performers were Benin (+46.6%), Senegal (+10.2%), and Mali (+8.3%).

While the surge was more significant in Togo, in terms of amount, other countries did better than President Gnassingbé’s country. In Benin, for example, the figure stood at CFA1,491.3 billion in 2022. In Burkina Faso, bank credit supply grew by “only” 8.2% over the period reviewed, but the figure stood at CFA2,595.3 billion. The region’s economic powerhouse, Côte d’Ivoire, for its part, recorded a growth of 1.3%, with the figure standing at 6,463.8 billion–Over five times what Togo recorded.

Good winds didn’t blow on all of the Union’s nations. In Niger and Guinea Bissau, the figure decreased by 3.4% and 22.9%, respectively. In the former, bank loans supplied stood at 730.3 billion CFA and in the latter, they stood at CFA108 billion.

According to official data, Togo had, last year, 17 credit institutions, including 14 banks (with Orabank, Ecobank, and Coris Bank leading in terms of asset volumes) and 3 financial institutions.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.