Togo: Microfinance Loans Slightly Down in Q1 2023, YoY

Finance

Thursday, 24 August 2023 02:31

Togo: Microfinance Loans Slightly Down in Q1 2023, YoY

(Togo First) - Deposits in Togo’s microfinance institutions or decentralized finance institutions (DFIs) grew by CFA21 billion, year-on-year, in Q1 2023. The Central Bank of West African States (BCEAO) disclosed the figure in a report on microfinance covering the first quarter of the year.

In absolute terms, this growth is the second-highest behind Côte d'Ivoire (+24.85 billion FCFA, +5.0%). Next come Benin (+18.38 billion FCFA, +11.2%), Senegal (+17.91 billion FCFA, +3.6%), Burkina (+9.92 billion FCFA, +2.7%), Mali (+5.67 billion FCFA, +3.9%) and Guinea-Bissau (+499.4 thousand FCFA, +0.6%). Only Niger recorded a decline (-285.8 million FCFA, or -0.9%) in microfinance deposits over the quarter concerned.

Across the West African Economic and Monetary Union (WAEMU), outstanding deposits collected by microfinance institutions reached CFA2,134 billion in Q1 2023. This is 4.8% or CFA97.47 billion more than in Q4 2022. Compared to Q1 2022 (CFA1,929 billion), the amount recorded in the first quarter of this year is up by 10.6%.

Regarding loans granted by microfinance institutions, Togo's players have, one after the other, cushioned the decline in business, typical of the seasonal drop in activity after the end-of-year festivities. This resulted in a quarterly decline of -0.2% (down 717.8 million FCFA), which is lower than in many of its neighbors. In Benin, for example, loans granted by DFIs fell by 10.7% (-25,059.4 million FCFA), in Côte d'Ivoire by 1.3% (-6.9 billion FCFA), and in Mali (-4,532.5 million FCFA, -2.3%) in particular.

Overall, the Central Bank notes a "positive dynamic in the evolution of DFI activity indicators," which continued "as in previous years" within these countries, in the first quarter of this year.

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.