A new territorial marketing strategy was launched last week in five Togolese cities: Kara, Blitta, Atakpamé, Kpalimé, and Aného. The strategy aims to attract investment in these cities, picked as part of the pilot stage of a larger project. The marketing strategy was validated on October 31 during a workshop organized by the Ministry of Investment Promotion.

Developed through a participatory approach, the strategy highlights the unique features and economic potential of each city while proposing tailored development projects. Supported by GIZ through the Private Sector Competitiveness Enhancement Program (ProComp), which is co-funded by Germany and the European Union, the goal is to position Togo as a preferred destination for investors.

“The importance of territorial marketing in the management and promotion of cities lies not only in attracting investment but also in strengthening their image among residents and visitors. We aim to create a framework that inspires confidence in investors and makes them want to get involved in the Togolese dynamic,” explained Yawo Sikpa, Managing Director of the Investment Promotion Agency and Free Zone (API-ZF).

The selected cities were chosen for their strategic positioning and advantages for attracting short-term investments. The focus will be on encouraging domestic and foreign investment in key sectors such as agriculture, tourism, industry, information and communication technologies, and financial services.

Togo attracted only CFA27.5 billion in private investment in 2023, with 80% coming from foreign direct investment (FDI), down compared to previous years. Lomé has been ramping up efforts to turn these tides. In Q1 2024, regional institutional platforms were launched to engage local communities and leverage competitive advantages. Additionally, an investor reception scheme was rolled out last August.

In five years, Togo's banks have cut their exposure to public debt by about 29% (28.88%). This information comes from a report by the International Monetary Fund (IMF) during Togo's recent economic assessment under the Extended Credit Facility (ECF). As of January 2024, the total receivables from the State and public enterprises made up 22.9% of the total assets in Togo's banking sector, down from 32.2% in 2019.

While this percentage remains higher than averages for the West African Economic and Monetary Union (WAEMU) and sub-Saharan Africa, it shows a trend of reducing obligations to the government, according to IMF experts.

“This decline is mainly due to a reduction in the share of government securities and loans to state-owned enterprises in total banking sector assets,” they noted. Additionally, there has been a decrease in the ratio of government claims in the private sector, which fell from 59.3% to 47.8% during the same period.

At the same time, Togolese banks have increased their financing from other WAEMU countries, stating: “Bank exposure would rise to 38% of total assets and the ratio of public and private sector receivables to 79.3% at the end of 2023 if exposure to other UEMOA countries is considered.” This shift suggests that Togolese banks are increasingly favoring sovereign bonds, considered less risky than private sector loans. However, this could potentially hinder credit growth in underfunded sectors like agriculture.

Ayi Renaud Dossavi

Togo will be hosting the second edition of the West African Leisure Festival on November 15 and 16, 2024, at the Kégué stadium in Lomé. This year's theme is "Leisure: vectors of social cohesion and community development."

Launched on October 28 in collaboration with the Confederation of Ministers of Youth and Sports of the Francophonie (CONFEJES), the event aims to showcase the often overlooked role of leisure in French-speaking West African societies. The first edition took place in September 2022.

According to Etse Kodjo Klou, National Director of Leisure, "The Festival aims to bolster cooperation between West African countries that are members of CONFEJES." He added that “game sessions from countries that are part of CONFEJES are on the agenda. We will also have exchanges between communities. This chapter will welcome officials from each country."

Overall, 10 French-speaking West African countries will participate in the event: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Guinea Conakry, Guinea-Bissau, Mali, Mauritania, Niger, and Senegal.

Ayi Renaud Dossavi

Kossivi Hounaké, Togo’s Trade, and Local Consumption Deputy Minister, recently outlined ways to address the issue of coffee and cocoa producers selling off their stocks. This announcement came at the launch of the 2024-2025 marketing season for these cash crops.

Selling off stocks poses a significant challenge for coffee and cocoa growers during marketing campaigns, affecting the sectors. 

Minister Hounaké emphasized that the first step is to identify and register all stakeholders in these sectors. This is already being done and should improve product traceability, and tackle fraudulent exports that reduce the resources of the Comité de Coordination des Filières Café et Cacao (CCFCC).

The Minister also stressed the need for foreign operators to adhere to Togo's regulations, particularly regarding guide prices published by the CCFCC every two weeks. He highlighted the importance of setting fair selling prices that reflect international market fluctuations while ensuring profitability for producers and economic sustainability for other stakeholders. “The ideal would be to set up a mechanism that favors coffee and cocoa growers while ensuring the viability of the other players,” he said.

Enselme Gouthon, President of the CCFCC, noted that these solutions could help end smuggling in the industry; a phenomenon which undermines efforts to improve producers' incomes. Gouthon pointed out that smuggling, often facilitated by some local operators, also distorts prices and weakens support measures for legitimate players in the sector.

Esaïe Edoh

In Togo, users of the Directorate of Cadastre and Land Conservation (DCCF), including notary offices, must pay their fees and taxes by December 31, 2024. The Togolese Revenue Office (OTR) recently issued the deadline in a press release. The fees mentioned are linked to processes like first registration and land transfers and must be paid in cash.

After December 31, tax authorities may take action to recover any debts owed to the State. This approach aims to ensure effective tax management and smooth administrative services related to land transactions. By reminding users of this obligation, the OTR hopes to improve tax compliance and facilitate interactions between the administration and users.

The DCCF is a public service responsible for land administration, ensuring that property rights are protected. Its duties include registering buildings, creating land titles, recording real property rights, maintaining land title archives, and providing information.

Ayi Renaud Dossavi

In Togo, tax expenditures reached an estimated CFA143.2 billion in 2023, up 25% from 2022’s CFA114.1 billion. Tax expenditure refers to government cuts to ease the tax burden on taxpayers or specific sectors. These measures often serve as support or incentives, leading to lower taxes for taxpayers and a permanent loss of revenue for the State.

The Ministry of Economy and Finance reported in its 2023 tax expenditure evaluation that these measures represented 17.6% of liquid revenues and 2.6% of national GDP, indicating a rise in tax breaks for taxpayers.

Value-added tax (VAT) accounted for the largest share of these tax breaks, totaling CFA60.8 billion, or 42.4% of tax expenditures. Corporate income tax (CIT) followed with CFA31.8 billion, or 22.2%. Customs duties and statistical fees amounted to CFA24.4 billion (17%) and CFA19.7 billion (13.7%), respectively. Other taxes, including patents and personal income tax, also contributed to these expenditures.

VAT exemptions were the most impactful over the period reviewed. They were incentives related to personal income tax and corporate income tax.

Businesses benefited the most from tax expenditures. They captured 59.7% of the total. Associations and NGOs followed with 7.3%, and households received 9%.

While increasing tax expenditures, the Togolese also secured more tax revenues in 2023. Lomé collected nearly CFA1,000 billion (CFA990.1 billion) in tax revenues that year, exceeding initial forecasts of CFA912 billion.

Ayi Renaud Dossavi

The Haho 2 municipality, located in the Plateaux region of Togo, is drawing its Communal Development Plan (PDC). Local officials launched the planning phase last week in Asrama, the municipality's capital.

During this meeting, municipal leaders and experts outlined the main goals of the PDC, which will guide the commune's development. Planned actions will focus on key areas like health, education, and the environment, as well as building capacity for local organizations.

The authorities are also addressing funding, and identifying various sources to support the PDC's implementation. They have developed strategies to encourage community involvement in designing the plan.

Once completed, the PDC will serve as a roadmap for the municipality's growth, joining other Togolese municipalities that have similar plans. Mayor Ayidote Sossou said the initiative is a major milestone toward social cohesion and collective well-being.

Esaïe Edoh

Togo will present 35 projects at the 29th United Nations Climate Change Conference (COP29) starting November 11 in Baku, Azerbaijan. These projects include renewable energy, access to water, sustainable agriculture, reforestation, and electric mobility. The goal is to secure funding through meetings with potential contributors and financial partners.

Last week in Lomé, the Ministry of Environment and Forest Resources reviewed these projects with Togo's partners. Minister Foli-Bazi Katari stated that the selected projects align with Togo's international commitments to protect the environment and combat climate change.

At the COP29, Togo will have a pavilion supported by the United Nations Development Program (UNDP).

Esaïe Edoh