After two successful issuances, Togo records a low performance for its third issuance on the regional debt market

After two successful issuances, Togo records a low performance for its recent issuance on the regional debt market, this year

Public finance

Monday, 05 March 2018 13:15

After two successful issuances, Togo records a low performance for its recent issuance on the regional debt market, this year

(Togo First) - Unexpectedly, the recent bond issuance of the Togolese government on the regional market did not go so well compared to those of January 26 and February 16, 2018.

Over a targeted CFA20 billion for this operation, Togo’s treasury was able to raise only CFA3.3 billion, thus a coverage rate of 16%. This is one of the market’s weakest performance since the beginning of this year.

Yet, last Friday’s issuance shared the same characteristics as those of Jan 26 which was oversubscribed at 107%. Indeed, nominal value was CFA10000 with interest rate set at 6.25% and maturity period at 3 years.

Now, with the issuance’s outcome, the hope born from the announcement of a political dialogue last January 26, to resolve the crisis that the country has been experiencing since last August, seem to be fading.

Truly, the dialogue has not yielded any tangible results, but there are now many rumors circulating about its outcome. For now, the date at which it will be reopened is unknown.

Additionally, with the meek performance on the regional market, the possibility of an investment from MCC (dependent on the pacific resolution of the crisis which could have reinforced investors’ confidence) has weakened. This situation could last a few weeks more.

Until then, the next issuance of Togolese treasury is planned for mid-March.

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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.