Togo First
EBID Wants to Maintain Partnership with Mali, Niger, and Burkina Faso Despite ECOWAS Issues
Despite political tensions within the Economic Community of West African States (ECOWAS), the ECOWAS Bank for Investment and Development (EBID) is committed to maintaining financial relations with Mali, Niger, and Burkina Faso. As the three members of the newly-formed Alliance of Sahel States (AES) take steps to exit ECOWAS, EBID wishes to continue its partnerships with them.
Dr. George Agyekum Donkor, President of EBID, shared this position during the 89th Ordinary Session of the Bank's Board of Directors on October 1, 2024, in Lomé. "Concerning Sahel Alliance member countries such as Mali, Niger, and Burkina Faso, the Bank maintains strong commercial relations with them, despite political tensions". "Burkina Faso, for example, is up to date with its loan repayment obligations, and Niger has also begun to repay its debts," Donkor said.
"Even if these countries decide to leave ECOWAS, this should not affect their repayment obligations, as the Bank remains a financial and not a political institution " he added. This stance aligns with Togo's efforts to strengthen exchanges with these three countries, especially in customs.
Established in 1999, EBID had an authorized capital of $3.5 billion at the end of 2023, with 70% held by regional shareholders from the 15 ECOWAS member states. The AES accounts for 6.29% of this capital, compared to Nigeria's 31.24%, Ghana's 15.71%, and Togo's 3.43%.
Ayi Renaud Dossavi
Togo: Exports to Gabon Drop 57.9% from Q1 to Q2 2024
Togo lost its crown as Gabon’s top supplier in Q2 2024. It fell to the fourth position, with exports plunging by 57.9% compared to Q1 2024. The news was reported by Le Nouveau Gabon, quoting data from Gabon's Directorate General of Customs.
Over the quarter reviewed, Gabon's imports from its top 10 suppliers decreased by 7.0% quarter-on-quarter.
With the drop, Togo’s market share shrunk to 10%, placing it behind France, China, and Belgium. However, Togo remains the only African country among Gabon’s top 10 suppliers.
Togo mostly exports petroleum products to Gabon, or re-export since it does not produce oil. In 2021, Togo sold CFA41.6 billion worth of goods to Gabon, primarily from the oil sector.
It is worth noting that exports from Togo to Gabon increased substantially (+195.8%) between Q4 2023 and Q1 2024. At the time, Togo was Gabon’s top supplier.
Ayi Renaud Dossavi
WAEMU Market: Togo Raises CFA10.5 Billion in Latest Operation
Togo raised CFA10.5 billion on the WAEMU Market last Monday, Sept. 30. Lomé was CFA4.5 billion short on its target for the operation–a simultaneous issue of fungible treasury bills (BATs) and fungible treasury bonds (OATs).
The operation report indicates that CFA8.2 billion was secured via the BATs. The securities mature over 182 and 364 days at a variable interest rate. The remaining CFA2.3 billion was secured via OATs, which have an annual interest rate of 6.15%.
While CFA10.5 billion was retained, investors mobilized CFA18 billion for the operation. This is CFA3 billion more than the amount initially targeted.
Including this latest operation, Togo has raised CFA631 billion on the regional money market this year. The funds will help finance the country's budget for the fiscal year 2024, which balances resources and expenses at CFA2,179 billion.
Esaïe Edoh
As of March 2024, Togo Had 7.3 Million Mobile Users, Including 3.55 Million Mobile Money Users
The number of mobile users in Togo was 7.3 million by the end of March 2024, up 9% year-on-year. The country’s telecom watchdog, ARCEP, disclosed the figure based on its latest customer satisfaction survey.
In detail, Togo Cellulaire had 4.37 million users (60% of the total), and Moov Africa Togo had 2.91 million users (40%).
Over the period reviewed, both operators totaled 3.55 million Mobile Money users. Togo Cellulaire had 2.16 million with its Tmoney service and Moov Africa Togo had 1.4 million via Flooz.
The ARCEP survey covered over 15,000 respondents. It revealed that most “MoMo” users (89%) used the service for credit top-ups, bill payments (86%), and financial transactions (81%).
While the growth is laudable, some challenges impede the increase in the number of MoMo users. According to the ARCEP report, these include the high cost of transaction (according to 81% of the surveyed) and the lack of interoperability between Tmoney and Flooz (75%). Half of the mobile users, across both operators, also have trust and security issues. They also complained about low monthly limits that can only be passed by requesting an account extension.
Ayi Renaud Dossavi
Togo: CFA4.8 Billion Maritime Non-Tax Revenues Earned between October 2023 and July 2024 (Report)
Between October 2023 and July 2024, Togo earned CFA4.8 billion in non-tax revenues from the maritime sector. The Single Desk for Maritime-Sector-related Royalties and Non-Tax Revenues (GRM) secured the monies. The Minister of Economy and Finance recently disclosed the figure in a report on reforms covering H1 2024.
It is worth noting that the GRM has been partially operational since its launch in October 2023. The desk was launched as part of reforms to make the logistics sector more competitive.
This desk operates like the foreign trade counter (SEGUCE) established in 2014. It has three main goals: serving as a single payment point, ensuring effective collection of fees and fines, and facilitating analysis of port performance.
The one-stop shop has streamlined various authorization requests, including those for secure vessel shelter, transshipment operations at sea, vessel exits after transshipment, armed guarding, and fishing licenses. Since it launched, the GRM also tracked all harbor operations, including the transshipment of over 505 million barrels of oil and gas in Togolese waters.
Esaïe Edoh
Togo Secures $1.5M from USAID to Empower People with Disabilities
Togo launched last week a new initiative to support and empower people with disabilities. The program, AVANCE-Togo, was kicked off on September 27, in Lomé, by the Togolese Federation for Disabled People (FETAPH). The United States Agency for International Development (USAID) backs AVANCE-Togo with $1.5 million (about CFA800 million).
AVANCE-Togo aims to improve the inclusion and resilience of people with disabilities, especially women and young people. It will focus on making public infrastructure accessible, promoting training and decent jobs, and enhancing the management of humanitarian emergencies, as well as improving access to water and sanitation. The program should benefit 1,775 disabled individuals, over half of whom are women, across all regions of Togo.
Akakpo-Numado Enyonam, Chairman of the FETAPH Board of Directors, stated that the project's success depends on strong collaboration among all stakeholders. For his part, Pr. Kossiwa Zinsou-Klassou, Minister of Social Action, said AVANCE-Togo aligns with sustainable development goals and aims to provide disabled people equal development opportunities.
The USAID previously backed a similar program to mitigate the economic impact of COVID-19 on young people with disabilities.
This new initiative runs from 2024 to 2027.
Ayi Renaud Dossavi
Togo Approves National Strategy for Greater Access to Educational Resources
Togo has approved a national strategy to improve access to educational resources, specifically textbooks and teaching aids for students and schools. The strategy was adopted on September 27 at the University of Lomé during a workshop with education experts, technical partners, and associations.
Supported by UNESCO, the strategy aims to address the shortage of quality educational materials in Togo. The strategy includes plans to integrate digital technology into teaching resources, as well as a financial framework for producing and distributing textbooks.
Kodjo Koba Dagbedji, representing the Minister of Primary and Secondary Education, stated that this validation marks the end of a long process that began in January 2023 as part of the "Appui à la production et à la diffusion des ressources éducatives" project. This project aims to support government reforms and improve access to educational resources in schools.
Officials believe that implementing this strategy will lead to more inclusive education and better education in Togo.
Lomé Trade Fair Offers Special Rates for Young and Female Entrepreneurs
The Centre des Expositions et Foires de Lomé (CETEF) is offering special rates for young and female entrepreneurs who want to exhibit at the 19th Foire Internationale de Lomé (FIL). This initiative, supported by the Ministry of Trade, Crafts, and Local Consumption, aims to encourage more young people and women to participate in the trade fair.
CETEF is providing 50 exhibition spaces, with 60% reserved for women and 40% for young entrepreneurs. According to a CETEF press release, this offer is available until October 15, 2024.
This initiative mirrors the reduced stand costs offered to local companies during the recent Made in Togo fair held from July 26 to August 4, 2024. The goal is to enable more Togolese entrepreneurs, especially young people and women, to showcase their products and services at an event expected to attract over 1,000 exhibitors and half a million visitors.
The Lomé Trade Fair is scheduled for November 22 to December 8, under the theme "Standards and Quality of Products and Services: Tools for Competitiveness and Access to Connected Markets." This year’s guest of honor will be Mali.
Esaïe Edoh
Moody's Upgrades Togo's Economic Outlook to Stable
Moody's Ratings has upgraded Togo's economic outlook from "negative" to "stable." In a rating published on September 27, 2024, Moody's maintained Togo's B3 rating for foreign and local currency borrowings. This upgrade follows a positive assessment from Standard and Poor's (S&P) about the Togolese economy.
Moody's cites improvements in Togo's budget management as a key reason for the upgrade, noting a reduction in the public deficit from 8.3% of GDP in 2022 to 6.7% this year. The agency also mentioned that concerns about fiscal issues have eased. "The Togolese government has been able to chart a clear course towards a gradual reduction in the deficit, in collaboration with the International Monetary Fund (IMF), to place public debt on a downward slope from 2025," Moody's stated.
The Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF), approved in March 2024, has also contributed positively. "We consider that the Extended Credit Facility (ECF) agreement with the IMF will provide an effective anchor to the effectiveness of the government's fiscal policy, reducing the risks of a sudden deterioration in the future," Moody’s indicated.
Moody's also highlighted Togo's strong debt structure, which consists mainly of domestic borrowings and concessional external debt. This structure helps limit budgetary and liquidity risks.
In line with its agreement with the IMF, Togo aims to reduce its budget deficit to 3% of GDP by 2025, in line with WAEMU convergence criteria. Moody's forecasts a gradual decline in the budget deficit to 5.2% of GDP in 2024 and 4.1% in 2025.
"Our forecasts incorporate some revenue gains, albeit at a slower pace than anticipated by the authorities, and a more gradual reduction in spending in a context of strong pressure on security spending due to the difficult security situation in the north of the country, on the border with Burkina Faso," the rating agency said.
Esaïe Edoh
Gozem Program Helps 1,000 Drivers Become Vehicle Owners in Togo
Launched four years ago, Gozem's V+ program has helped 1,000 drivers become vehicle owners, including motorcycles, cars, and tricycles. This announcement was made on September 25, 2024, during a ceremony in Lomé where drivers received the keys to their vehicles.
The drivers are the first group to complete the process and are now financially independent thanks to this initiative. "We set up this financing solution to enable drivers to work in optimal conditions," said Joël Ayaze, Head of Vehicle Financing Programs at Gozem.
The V+ program allows Gozem drivers, known as "champions," to own their vehicles after a set period. They repay the purchase cost over four years for cars and two years for motorcycles through daily payments.
With this program, Gozem "strengthens its position as the leading transport operator in Togo, while contributing to the country's economic development by offering financing and empowerment opportunities to its drivers".
Gozem has received $10 million (about CFA6 billion) in funding from the International Finance Corporation (IFC) to support this initiative. This funding will help 6,000 motorcycle cab drivers in Togo and Benin acquire new vehicles to increase their incomes.
Esaïe Edoh