Togo First

Togo First

As of mid-2024, two years after its launch, the Tinga Fund had successfully connected 21,430 households to Togo’s power grid. The achievement is detailed in the "Reform Implementation Report" recently released by the Ministry of Economy and Finance. According to the document, the program has reached 54% of its goal of connecting 40,000 households.

However, it is important to note that from January to June 2024, only 459 new households were connected in the Kara, Plateaux, Centrale, and Maritime regions. Connecting more people to the grid is essential to achieving the government's ambition of reaching a national electricity coverage rate of 70% by the end of 2024.

Moreover, the Tinga Fund has made notable progress in electrifying targeted areas. For instance, in the Savanes region, the electrification rate increased from 22% in 2022 to 33% in 2023. Similarly, in the Kara region, electricity coverage rose from 35% to 44%, while in the Plateaux region, it improved from 29% to 39%. This growth indicates an increase of around 10% for each of these regions.

Furthermore, it is essential to highlight that the Tinga Fund primarily aims to assist disadvantaged households by enabling them to connect to electricity networks. In exchange for this service, households pay a monthly fee of CFA1,000 for 4 to 10 years.

Esaïe Edoh

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

The Chamber of Commerce and Industry (CCI-Togo) is set to support 150 small and medium-sized enterprises (SMEs) with their digital transformation. The goal is to enhance the competitiveness of Togolese businesses through digital technology. The CCI-Togo has launched a call for expressions of interest in partnership with the German Cooperation (GIZ).

The call, open to companies that provide non-digital services or products, targets 105 SMEs in Greater Lomé and 45 in other regions. Applicants must meet specific criteria, including being registered with a support or coaching structure, having at least 10 employees, and must have generated at least CFA30 million in revenues. Regular use of digital tools in business operations will be considered an advantage.

Selected SMEs will receive training and awareness programs focused on integrating digital tools into business management, online commerce, and social media use. This initiative builds on previous efforts by CCI-Togo, notably the Lon'Kelew project, which aimed to digitalize businesses and trained a dozen IT consultants last year to assist around 50 Togolese SMEs in their digital transition.

Applications must be submitted by November 07, 2024.

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

 

Thursday, 31 October 2024 09:12

Togo: Tax Expenditures Up 25% in 2023, YoY

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

On October 28 and 29, the city of Aneho, near the border with Benin, hosted a training workshop for 50 women and young traders from Togo’s maritime region. Participants learned about customs procedures and regulatory requirements for cross-border trade, particularly along the Abidjan-Lagos corridor.

The workshop was organized by the Ministry of Trade and Crafts, and backed by the World Bank's West African Food System Resilience Program (FSRP). The training aimed to improve understanding of the rules governing cross-border trade, making it easier to export goods.

Batchassi Katchali, Director of Foreign Trade, underscored women’s role women in regional trade and noted the challenges they face, such as a lack of information on trade opportunities. FSRP representative Nator Koffi Edoh emphasized that workshops like the recent one will help participants enhance their trading activities along the corridor. Also, they align with the government’s efforts to build trade capacity across Togo, covering topics like customs procedures and the African Continental Free Trade Area (ACFTA).

The technical committee that monitors Togo’s Waste Management Project or GEDEC Togo met on October 22, 2024, in Lomé, the capital. They reviewed and finalized waste management policies for five municipalities: Zio 1, Ogou 1, Tchaoudjo 1, Kozah 1, and Tône 1. Organized by the Ministry of Territorial Administration, the meeting aimed to improve the living conditions of over 750,000 residents.

According to Laure Koun Bruma, project manager for GEDEC Togo, the technical committee “reviewed the municipalities’ policies relative to solid and liquid waste management”. She added that they “will provide guidance to technically validate these policies”.

Before the year ends, each municipality is expected to formally adopt its local waste management policy. 

Launched in June 2023, the GEDEC Togo is funded by the European Union (€4.2 million). After assessing the project, an EU delegation expressed satisfaction with the progress made by the town halls.

Earlier this year, the project facilitated the establishment of a Municipal Treatment Center in the Tchaoudjo 1 Municipality.

Ayi Renaud Dossavi

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