Togo First
Togocom Launches New Subsidiary to Manage Mobile Money Segment
The Togocom group, which is 51% owned by Madagascar's Axian, is separating its mobile money services into a new entity called Tmoney S.A. This company was established in April with a share capital of CFA1 billion and is registered as a financial company focusing on money transfers and e-money services. Catherine Savery has been appointed as the Managing Director of Tmoney S.A. Savery previously worked as an audit expert at Axian.
Current regulations from the Central Bank of West Africa, the BCEAO, require financial institutions wanting to issue or manage electronic money to obtain a license or partner with a licensed bank. Previously, Togo Cellulaire, the telecom operator, had to collaborate with a local bank (BTCI, now IB Bank) to financially transact with the BCEAO.
In this regard, Tmoney S.A. will be directly supervised by the BCEAO and must adhere to regulatory requirements regarding capital, risk management, compliance, and transaction oversight.
This move aligns Togocom with trends seen in other countries in the region, such as Benin, where MTN has launched MTN Mobile Money for money transfer services alongside its telecom operations. The restructuring could also impact the existing partnership between BTCI and Togo Cellulaire regarding mobile money services.
Togocom's decision indicates its increasing interest in the mobile money market; a market with significant growth potential in Togo. As of June 2024, the mobile money penetration rate stood at 45.4%, dominated by Tmoney and Flooz.
Regarding taxation, this change may clarify tax provisions in Togo, where mobile money activities have previously been in a gray area regarding VAT and the Tax on Financial Activities (TAF). Tmoney should align its operations solely with the TAF.
As of the first quarter of 2024, the mobile money sector had 3.55 million users, with 60% (2.16 million) using Tmoney through Togo Cellulaire and 40% (1.4 million) using Flooz from Moov Africa Togo. The sector is attracting more players, including non-telecom operators like Gozem, which recently launched Gozem Money for electronic money services.
Ayi Renaud Dossavi
Togo to Begin Secure Product Marking Controls on November 4, 2024
Mandatory product marking controls will start in Togo on November 4, 2024. This announcement was made on October 22, 2024, during a meeting in Lomé between the Ministry of Trade and relevant importers. The initiative is part of the Automated Marking Solution (SAM), which aims to tackle smuggling and counterfeiting.
Marking has been required since September 2020 and is designed to secure tax revenues, enhance product traceability, and protect consumers from illegal imports. Under the initiative, all products sold in Togo, including alcoholic beverages, sweets, tobacco, and fruit juices, must be marked, or they will be deemed illegal.
Esso-Wavana Adoyi, chairman of the SAM committee, stated that this initiative will promote fair competition, improve tax collection, and fund development projects in the country. A 15-day grace period will be allowed before strict sanctions are enforced against non-compliant businesses. Among others, the illegal products will be seized.
As part of the project, businesses will be informed about the importance of secure marking and the penalties for non-compliance to ensure adherence to the law.
Esaïe Edoh
Togo to Attend First Russia-Africa Partnership Conference in November
A Togolese delegation will visit Sochi, Russia, in November for the first ministerial conference of the Russia-Africa Partnership Forum. This was confirmed by Igor Evdokimov, the Russian ambassador to Togo, during an event on October 20, 2024, in Lomé. Several diplomats attended the event, including ambassadors from China and India. There were also officials from Togo's Ministry of Foreign Affairs and members of the Russian community in Togo.
"I am convinced that this conference will further contribute to the deepening of the Russian-Togolese partnership, in the interest of the prosperity and well-being of our peoples," Evdokimov said, according to state media Togo Presse. He also emphasized the friendly relations between Togo and Russia.
The conference will take place on November 9 and 10. It will receive several African delegations. During the two days, Togo will have the opportunity to showcase its development projects and diversify its international partnerships.
It is worth noting that in July 2023, the last Africa-Russia summit was held.
Ayi Renaud Dossavi
WURI-Togo Project: New Phase for Mass Biometric Census Begins
A mass biometric census campaign is underway in Togo. Training for supervisors and biometric registration operators started today, October 28.
The training, organized by the National Institute of Statistics and Economic and Demographic Studies (INSEED), takes place across the country's five regions until November 18.
The campaign is part of the WURI-Togo project, which the World Bank backs with $72 million. The campaign aims to provide every resident with a unique identification number.
The National Identification Agency (ANID) and INSEED are leading this initiative. The ANID Agency conducted preliminary tests for the campaign earlier this year to ensure the registration platform's feasibility.
Originally, mass registrations were planned for the last quarter of 2023 but were delayed.
Ayi Renaud Dossavi
Togo’s Chamber of Commerce and Industry and the EU Prepare Partnership Agreement
The European Union (EU) delegation in Togo seeks to foster partnerships between Togolese businesses and Western companies. This initiative was discussed in a meeting earlier this week in Lomé between EU Ambassador Gwilym Jones and José Syménouh, President of the Togo Chamber of Commerce and Industry (CCI-Togo).
The cooperation will focus on attracting European investors to partner with Togolese operators, especially in agriculture and tourism, which are crucial for Togo's economic growth. The EU plans to help local authorities improve the business climate, by supporting its economic reforms. “The European Union wants to stand by the chamber to support businesses and foster European investment in Togo,” said Gwilym Jones.
The EU already supports Togo in various sectors and intends to enhance its contributions to the country's economic development.
Esaïe Edoh
Togo to Receive $58.7 Million in Next IMF Disbursement
Togo is set to receive $58.7 million (or SDR 44 million) in its next disbursement from the International Monetary Fund (IMF) under the Extended Credit Facility (ECF).
This announcement follows a successful visit by IMF teams to Togo for the ECF evaluation. During the visit, Togolese authorities presented their economic and political reforms to the IMF delegation.
On October 22, 2024, Togo's Minister of Economy and Finance, Georges Barcola, discussed this upcoming IMF disbursement with Kristalina Georgieva, the Managing Director of the IMF, during the Joint General Meetings of the IMF and World Bank Group in Washington. The 42-month ECF program totals $390 million and will be distributed in several installments.
Ayi Renaud Dossavi
Togo's OTR Seeks Closer Cooperation with Chinese Customs
The Togolese Revenue Office (OTR) aims to enhance its collaboration with Chinese customs, focusing on Authorized Economic Operators (AEO). Earlier this week, on October 21, 2024, the Togolese tax and customs authority welcomed a delegation from Chinese customs, led by the Deputy Director of Customs in GongBei.
The discussions centered on establishing bilateral cooperation based on AEOs. This will allow compliant companies to access simplified customs procedures, reducing processing time and making trade between Togo and China easier.
This visit follows an OTR delegation's trip to China last May, which helped set the groundwork for harmonizing customs standards. According to Dr. Philippe Kokou Tchodie, Commissioner General of the OTR, who led the delegation, greater cooperation with China will help accelerate Togo's economic development.
Tchodie added that the talks helped "lay the foundations for trade facilitation and the harmonization of customs standards between the two countries within the framework of enhanced bilateral cooperation."
Togocom Launches Intelligent Telecom Service Management Center
Togocom, a subsidiary of Madagascar's Axian group, opened an intelligent telecom service management center (ISOC) in Lomé on October 22, 2024. This center aims to monitor network performance in real-time, allowing for quick detection of issues to enhance service quality for users.
Jaber Hassan, Managing Director of Axian Telecom, stated that this center will be crucial for managing telecommunications services and will ensure stable, high-performance connectivity for all Togolese. This initiative may address recent criticisms from the Togolese regulator regarding mobile network service quality.
A recent satisfaction survey by the French regulatory authority for electronic communications and posts (ARCEP) indicated that while Togocom outperformed its competitor Moov Africa on several metrics, both operators still fell short of quality standards.
Rai Basgeet, Managing Director of Technology and Information at Togocom, emphasized the importance of data-driven services to meet ARCEP's requirements. This development follows Axian's acquisition of the remaining 20% of Agou Holding for $32 million, increasing its indirect stake in Togocom to 51%.
Cotton: Togo’s Production Could Drop Again This Year
Togo could produce 66,000 tonnes of cotton in the 2024-2025 campaign, again 67,000 tonnes in the previous campaign.
Industry stakeholders met in Sokodé (350 km north of Lomé) on October 23, 2024, to discuss the reasons behind the downward expectations. Among others, they cited climatic challenges, particularly a prolonged drought during the planting phase, which negatively affected crop development, noting: "This phenomenon hurt plantation development." Additionally, there are concerns about seed quality.
Farmers plan to cultivate 79,306 hectares with an average 840 kg per hectare yield to achieve the forecast. This anticipated drop comes as the Togolese cotton industry struggles to regain its former strength. Since Singaporean group Olam took control of Togo's cotton sector in 2020, production has remained below 60,000 tonnes until last year.
Cotton growers blame the new management for not revitalizing the industry. Moreover, climate change keeps affecting harvest. Many farmers are also shifting to more profitable crops like soybeans.
Esaïe Edoh
Togo Hosts 10th National Internet Governance Forum this Week
Togo is hosting its 10th National Internet Governance Forum (Togo IGF) this week. The event will take place on Thursday, October 24, at the Maison des Jeunes de Lomé (Amadahomé).
The forum will center on emerging technologies and how they could leverage Togo's digital development. Challenges related to these technologies’ regulation, at the national and international levels, will also be discussed.
Participants will include internet pioneers, experts, and representatives from local and international companies in the Information and Communication Technologies sector. The goal is to foster experience and knowledge sharing among digital stakeholders.
“The Internet Governance Forum remains a great opportunity for Internet users to meet,” said Folli Herbert Amouzougan, Vice-Chairman of the IGF’s Board of Directors.
This forum follows a National School on Internet Governance that recently convened industry players to discuss subjects like artificial intelligence and cybersecurity.
Ayi Renaud Dossavi