Togo's State Financial Holdings Increased by 6% in 2022

Public finance

Thursday, 13 July 2023 16:39

Togo's State Financial Holdings Increased by 6% in 2022

(Togo First) - From CFA14.6 billion in 2021, Togo's State financial holdings grew by 6% in 2022, reaching CFA15.5 billion. The figure, which was disclosed in a report obtained by Togo First, ends the downward dynamic that started in 2018. That year, the country’s financial holdings were estimated at CFA27 billion.

Despite the recent increase, the State’s dividends still fall short of the government’s budgetary forecast in the 2022 revised finance law; the forecast was CFA19.75 billion.

The gap between the forecast and actual figures underscores efforts needed to fully capitalize on the State’s financial holdings. For 2023, Lomé expects to collect CFA21.8 billion in dividends.

Dividends, it is worth noting, contribute almost a quarter of Togo’s non-tax revenues; about 26% in 2022 compared to 25% in 2021.

In the report, the exact contribution of the different companies was not specified, but according to a recent publication from the Ministry of Economy and Finance, the Togolese state holds stakes in 55 companies. Among these companies, 18 are fully controlled by the State, including Lonato, the Autonomous Port of Lome (PAL), UTB, SNPT, Togo Invest, and several hotels such as Sarakawa, Kara, Roc Hotel, as well as CEET.

In addition, the Togolese state owns majority shares in companies such as SOTRAL, SALT, Nosophat, Adétikopé Pineapple Factory, and T-oil, often in partnership with private entities. It also holds minority stakes in companies such as Togocom, recently sold to the Axian group, as well as Sunu Bank, BIA, Orabank, Wacem, NSCT, Scan Togo, among others.

In recent years, Lomé sold some of its assets to private actors. The goal was to boost the assets’ value, by leveraging the efficiency of the private sector in terms of business management and operation. This is a bold bet and the government hopes that in years to come it will help raise its dividends and earnings. However, the success of this strategy requires careful supervision and rigorous implementation to ensure a positive impact on the national economy.

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.