WAEMU Market: Ivorian Investors Lead Togolese Domestic Debt Holdings

Investments

Saturday, 16 November 2024 07:23

WAEMU Market: Ivorian Investors Lead Togolese Domestic Debt Holdings

(Togo First) - From January to September 2024, Côte d'Ivoire financed the Togolese economy with CFA513 billion. According to the latest data from the WAEMU Securities market, this amount represented 24.8% of Togo’s domestic debt holdings. Ivorian investors were closely followed by Senegalese and Togolese investors, with 22.7% and 22.8% shares, respectively, amounting to CFA472 billion and CFA469 billion. The three countries represent nearly 70% of Togo's public securities issuance.

Benin and Burkina Faso are behind these leaders, with outstanding amounts of CFA269 billion and CFA240 billion, 13% and 11.6% of the total. In contrast, other WAEMU countries like Mali, Niger, and Guinea-Bissau accounted for less than 5% combined. As of the end of October 2024, Togo's total outstanding debt to regional investors reached CFA2,074 billion.

This concentration of creditors primarily from Côte d'Ivoire, Senegal, and Togo provides a stable source of financing for Lomé but also exposes the country to the economic conditions of these major economies and potential liquidity issues in their markets. The main holders of this debt include commercial banks, insurance companies, pension funds, and Sociétés de Gestion et d'Intermédiation (SGI).

In Côte d'Ivoire, significant players include Société Générale Côte d'Ivoire, Banque Atlantique, Banque Nationale d'Investissement (BNI), and Ecobank. In Senegal, key investors are Banque Internationale pour le Commerce et l'Industrie du Sénégal (BICIS) and Caisse des Dépôts et Consignations (CDC), while in Togo, Orabank Togo, Ecobank Togo, and Coris Bank are notable holders in the public securities portfolio.

Fiacre E. Kakpo

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.