Togo First

Togo First

Earlier this week, the Sheyi Emmanuel Adebayor Foundation (SEA Foundation)  facilitated a partnership between the University of Lomé (UL) and Morgan State University in the USA.

A delegation from the American university visited UL as part of an international academic collaboration. Led by Endia De Cordova, Director of the university's foundation, the delegation was introduced by Boris Segbenou, Vice President of the SEA Foundation.

Chaired by Professor Adama Mawulé Kpodar, President of the University of Lomé, the discussions included a proposal to include the UL in a partnership formed on June 5, 2023, between the SEA Foundation and Morgan State University.

Morgan State University, founded in 1867 and located in Maryland, offers various programs in sciences, arts, engineering, and business.

Ayi Renaud Dossavi

By the end of 2023, Togo had 12,945 health workers in the public sector, according to data from the Minister of Health, Professor Tchin Darré.

The distribution shows that Greater Lomé, which includes 13 municipalities around Lomé, has 4,634 health workers, making up 36% of the total. The maritime region follows with 1,679 workers (13%), Plateaux with 2,145 (17%), Kara with 1,803 (13.9%), Centrale with 1,379 (11%), and Savanes with 1,305 (10%).

Nearly half of these health workers are contract workers. In detail, there are 7,086 civil servants, accounting for 54.74% of the workforce, while 5,859 are contract staff, or 45.26%.

Additionally, the Ordre National des Médecins (ONMT) registered over 2,000 doctors in Togo by the end of March 2024.

Ayi Renaud Dossavi

The Togolese government has suspended Yango, an online car-sharing service, for "illicit" activities.

On October 17, 2024, the Ministry of Transport stated that Yango, owned by Russian tech giant Yandex, began operations "in violation of all required administrative procedures and authorizations". The suspension follows serious concerns about user safety. 

Yango faced a similar suspension in Cameroon in 2023 for not complying with transport regulations but was later reauthorized. Since its launch in 2018, Yango has expanded to 13 African countries, including Côte d'Ivoire, and is also active in Europe, Asia, and the Middle East. 

Yango’s competitors in Togo’s local VTC market include Gozem and BKG Speed.

Ayi Renaud Dossavi

Last Saturday, October 12, several Togolese bankers and finance experts gathered in Lomé for a "Loft of the Weekend" workshop focused on banking risk management. Held in Baguida, the session was led by Khalid Yacoubou-Boukari, Commitments Manager at IB Bank Togo and a risk management consultant. 

Participants learned about risk management regulations, particularly Circular N°04-2017/CB/C, an important document in WAEMU's regulatory framework.

Risk management, a regulatory priority

This circular, issued by the WAEMU Banking Commission, sets strict standards for credit institutions and financial companies in the region. Its goal is to enhance the resilience of financial institutions against increasing risks in a volatile global economy.

Yacoubou-Boukari outlined key aspects of the circular, which requires each institution to implement a risk management system that addresses four main areas: credit, market, liquidity, and operational risk. “Governance bodies must play a leading role in defining a clear risk management strategy, supported by a risk appetite policy and strict operational limits,” the IB Bank executive added. 

The circular mandates that WAEMU financial institutions establish independent risk management systems with adequate human and technical resources. These systems should improve risks assessement. “This framework is based on a holistic approach, where risk management is a cross-cutting component, linked to all the bank's operations,” added Yacoubou-Boukari.

Risk Mapping and Tolerance for Risk

A major issue discussed at the workshop was risk mapping, which banks must update regularly. According to the circular, this mapping should help identify the main risks faced by the institutions; categorized by business sector and geographical area; and be approved by governing bodies once a year, at least. Regular updates would help identify emerging risks in real-time and incorporate them into the bank's risk management system.

Yacoubou-Boukari also emphasized the importance of a risk appetite policy that outlines the overall and operational risk limits an institution is willing to accept. This includes thresholds for credit tolerance and off-balance sheet transactions. “Any breach of these limits must be immediately escalated to the governing bodies for corrective action,” he reminded attendees.

Team building and crisis simulations

To address growing demands for effective risk management, the circular calls for strengthening specialized teams within financial institutions. Yacoubou-Boukari highlighted ongoing training initiatives from the Commission Bancaire, including programs like Basel II-III courses that are becoming essential for UEMOA bankers aiming for risk management roles. In this framework, a partnership was sealed with HEC Paris to offer regional bankers strategic, and subsidized, banking certifications. “A well-staffed risk department, with sufficient authority, is important if the institution is to cover all the risks it faces, efficiently,”  Yacoubou-Boukari explained.

The circular also mandates crisis simulations to test the strength of risk management systems during unexpected events. These simulations help institutions anticipate potential shocks and develop corrective action plans to better handle financial crises or operational disruptions. Additionally, institutions must establish a continuous monitoring system to identify potential deviations from set risk limits and alert governance bodies as needed.

The Role of Governance Bodies

Risk governance is central to the circular's recommendations. According to the expert, the risk committees of bank boards are responsible for ensuring that all risk management policies and procedures are properly implemented. These committees actively monitor risks and report regularly to the Banking Commission.

Khalid Yacoubou-Boukari emphasized the need for a clear separation of duties between operational departments, especially those focused on revenue generation, and risk departments. This independence is crucial to avoid conflicts of interest and ensure objective risk management.

Banks must submit a detailed risk management report to their governing bodies every six months. This report must cover the nature and level of risk exposure, capital and liquidity requirements, as well as the quality of the loan portfolio and related provisions. Regular reviews must also be conducted for concentration risks, particularly for significant exposures in specific sectors or regions.

A Modernization Dynamic

The workshop also highlighted that risk management in WAEMU should go beyond just meeting regulatory requirements; it should be part of a modernization effort. The circular encourages financial institutions to adopt technological tools for better data collection and analysis, especially regarding operational loss events.

Furthermore, any introduction of new financial products must be carefully assessed for inherent risks. “Each product, each process must be scrutinized from a risk perspective, with appropriate mitigation measures,” explained Yacoubou-Boukari. The goal is to ensure that financial innovations strengthen institutions rather than weaken them.

Fiacre E. Kakpo

Togo, Benin, and Guinea-Bissau will receive €25 million (over CFA16 billion) from Germany to fund projects to tackle violent extremism. This financial support comes from the Regional Stabilization and Development Fund (RSDF), which was recently launched in Cotonou by ECOWAS.

From 2024 to 2027, these countries will focus on three key areas: job creation, environmental protection, and strengthening social cohesion. The initiatives will offer vocational training to young people, develop basic infrastructure, and promote entrepreneurship. Environmental efforts will include reforestation, irrigation, and renewable energy projects. Social cohesion will be enhanced through sports and peace promotion via media.

ECOWAS, in collaboration with the beneficiary countries, strives to prevent regional crises by creating sustainable economic opportunities for vulnerable groups, particularly women, youth, and returning migrants.

"This project clearly shows that the fight against violent extremism is not just a military matter. In anticipation, it involves thinking about setting up basic socio-economic infrastructures, building the capacities of vulnerable populations to give them back hope, and implementing governance policies capable of preserving our fragile vivre-ensemble," said Amadou Diongue, ECOWAS Resident Representative in Benin.

In Togo, this funding will help protect the northern population from extremists whose attacks in the region have been on the rise. The first phase of this project was implemented in Gambia from 2019 to 2024.

Esaïe Edoh

In Togo, the investment rate has fluctuated significantly over the past decade due to various economic challenges. Data from the Central Bank of West African States (BCEAO) shows that the investment rate was 22.1% in 2013, peaked at 25.2% in 2015, and then dropped to 16.8% in 2017 amid economic uncertainties and socio-political tensions.

However, a turning point occurred around 2020 when the investment rate rebounded to 21.3%, supported by a more stable political environment and economic recovery. From 2021 to 2022, the rate remained around 19%, but forecasts for 2023 suggest it could rise to 23.0%.

Since 2020, the government has aimed to boost investment levels through initiatives like the National Development Plan (NDP) and the Government Roadmap. These efforts include reforms to improve the business climate and foster domestic and foreign investment.

Ayi Renaud Dossavi

Togo is launching a new wave of reforms to improve its business climate. On October 7, 2024, the country held a workshop to present the first B-Ready report from the World Bank’s Doing Business initiative. Togo ranked third in Africa, behind Rwanda and Mauritius, showcasing its progress in business reforms.

Sandra Johnson, Minister Secretary General of the Presidency, chaired the event alongside other key figures like Rose Kayi Mivedor, Minister of Trade, and Christopher Balliet Bleziri, IFC Country Representative in Togo. 

Eric Galley, Coordinator of the Business Climate Unit, presented the reforms already implemented and those currently in progress. Togo wants to keep its reform momentum, which started in 2018, especially in public services. The latter has been identified as the country’s weakest link in a recent World Bank report. Sandra Johnson stated, "We do reforms to improve the daily lives of Togolese. We don't do reforms for rankings or international institutions."

Togo has a clear aim: to sustain its reform efforts and significantly boost the performance of public institutions. In recent years, the country has prioritized economic reform, focusing on digitizing, modernizing, and simplifying administrative procedures. The B-Ready report showcases the results of these efforts. Eric Galley stated, "Togo has undergone a remarkable transformation," highlighting how digitization and transparency are central to the government's strategy.

Galley emphasized the government's commitment to simplifying administrative processes: "The regulatory framework has always improved, with the support of new provisions, particularly in business creation. Today, Togo is a country where everything can be done online or almost." The dematerialization of business registration through the Centre for Business Formalities (Centre de Formalités des Entreprises-CFE) has allowed thousands of entrepreneurs to set up their companies quickly without the previous bureaucratic hurdles.

The presidency's executive team emphasizes that reforms in Togo are ongoing. The government recognizes that improving the business climate requires digitalization. Consequently, Togo has launched several initiatives to simplify business operations. For instance, the Trade and Personal Property Credit Register (RCCM) has been digitized, and the process for obtaining building permits has also become fully digital. Now, most services are available online, significantly reducing processing times.

Additionally, the CFE has enhanced its collaboration with other agencies. Among other it reinforced partnership with the National Agency for Environmental Management to streamline access to environmental studies and necessary permits. A digital platform is being developed to fully dematerialize the delivery of environmental impact studies.

The land ownership sector is also undergoing a digital transformation. Togo has established a unique national identifier for each plot of land, making property searches and transactions easier. Water and electricity connection services were modernized; enabling users to request connection, track their applications in real-time, and pay their bills online. "We have set up a performance management system for public services, with indicators published online," Galley added.

Kayi Mivedor, Minister of Commerce and the Private Sector highlighted the importance of dialogue between public and private sectors to ensure sustainable reforms, stating: “The reforms we are putting in place, we are doing to meet the expectations of businesses, whether local or foreign.”

A digital platform was also set up for entrepreneurs who want to submit questions and concerns directly to the administration. "This platform enables total transparency and rapid processing of files. This communication channel seeks to increase the administration's responsiveness to the needs of the private sector," Galley said.

The tax sector is included in Togo's recent reforms. Companies, including small and medium-sized enterprises (SMEs), can now use a mobile app to declare and pay taxes online. This app, which was previously only available to large companies, aims to help more SMEs join the formal economy.

International trade is also benefiting from modernization. Licenses and other documents for exporters and importers have been digitized, making trade easier. The official launch of this platform took place on Thursday, aiming to improve cross-border trade as Sahelian countries increasingly use the Togolese corridor and the Port of Lomé.

Togo's Commercial Court is also being updated. Eric Galley explained that the court has implemented a digital case management system, allowing commercial disputes to be handled online and court fees to be paid electronically. He noted that this innovation “strengthens business confidence in judicial administration.”

Additionally, the court has opened a chamber for collective proceedings to help manage struggling companies. Sandra Johnson stated, “This is a signal of the authorities' determination to enhance the security and transparency of the business environment for investors and local companies” during her speech.

The government plans to enhance transparency by digitizing public procurement procedures. An electronic system has been created for managing tenders and bids, allowing companies to submit their proposals online and track public procurement projects.

While the reforms are welcomed, Togo's authorities recognize ongoing challenges. Christopher Balliet Bleziri, an IFC representative in Togo, stated, "The progress made is impressive, but we still need to work on the efficiency of public services to truly transform the business landscape." This aligns with recommendations from the B-Ready report, which calls for continuous improvements in administrative services and reduced processing times.

Fiacre E. Kakpo

The Chamber of Commerce and Industry of Togo (CCI-Togo) recently launched a project to bolster the rice industry and boost local consumption. The initiative–Projet d'Appui à la Valorisation du Riz Togolais (PAVRIT)-kicked off on October 10, in Kpalimé, coinciding with the start of local consumption month.

The PAVRIT focuses on two main areas: providing technical and financial support to local rice producers and strengthening connections among the value chain’s players. The project will emphasize raising awareness among stakeholders and advocate for measures to limit rice imports.

"The PAVRIT is not limited to simply supporting local consumption. It also aims to profoundly transform industrial practices through awareness campaigns and the introduction of more efficient technology to make Togo's rice competitive," said José Kwassi Symenouh, President of CCI-Togo. He added that the project aligns with a vision for sustainable agricultural development, aiming to produce high-quality rice that is appreciated locally and competitive internationally.

The CCI-Togo plans to sign a memorandum of understanding (MoU) with the sector’s Rice Interprofessional Council. The MoU aims to contribute to the project’s success. 

The PAVRIT should help Togo meet its goal of producing 115,087 tonnes of rice by 2030 to satisfy domestic needs.

Esaïe Edoh

The Togolese government wants to draw more investments supporting the Sustainable Development Goals (SDGs). To this end, Lomé released a Sustainable Financing Framework created by Essowè Georges Barcola,  Ministry of Economy and Finance. The framework was unveiled on October 9, 2024. The document aims to draw national and international partners interested in projects with strong social and environmental impact.

The framework is a "roadmap" for directing funds into key sectors, detailing fourteen categories of eligible spending. Out of the 14 categories, five focus on climate and environmental actions. The other nine are dedicated to priority social projects aimed at vulnerable populations. 

"Our priority is to attract investments that not only support inclusive economic growth in Togo but also respect the environment and improve the quality of life of our citizens," said Essowè Georges Barcola, Minister of Finance and Economy.

The goal is to promote inclusive economic growth while enhancing living conditions for citizens, in line with the government's Togo 2025 roadmap. 

The framework has been validated by S&P Global Ratings, ensuring it meets international standards set by organizations like the International Capital Market Association (ICMA) and the Loan Market Association (LMA).

Now, the government calls on private sector players, civil society organizations, and development partners to engage in this initiative to help build a sustainable future for Togo.

The Togolese government is tightening regulations for international non-governmental organizations (NGOs) operating in the country. From now on, any international NGO that wants to work with the Togolese government must first obtain official recognition before signing a partnership agreement. This requirement applies to both new NGOs and those already active in Togo.

This new rule was announced in a recent circular published by the Ministers of Development Planning and Territorial Administration. However, a decree related to the measure was issued two years ago.

NGOs that signed program agreements before January 2022 without this approval must regularize their status to avoid having their requests for renewal or partnerships denied. A one-year grace period is offered for organizations to meet the new requirements, with six months given to those who still lack authorization.

Ayi Renaud Dossavi

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