Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
AfricaAugust 12 2020

Togo’s president puts faith in reform

With coronavirus risks upending much of the progress of recent years, Togo’s president tells Alex Irwin-Hunt about his drive to continue his reform agenda and attract investment.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Faure Gnassingbe

Faure Gnassingbé

Prior to the outbreak of coronavirus, Togo was on an upward trajectory. Its economy grew by 5.3% in 2019, having accelerated from a growth rate of 4.9% a year earlier, according to International Monetary Fund (IMF) estimates.

Since an extended credit facility (ECF) was approved by the IMF in May 2017, Togo managed major fiscal consolidation and debt reduction. This was despite political protests which lasted from August 2017 until mid-2018.

Led by president Faure Gnassingbé, Togo implemented a five-year National Development Plan (NDP) in 2018 to liberalise its economy. The NDP culminated in Togo becoming the highest climber in the World Bank’s 2020 Doing Business report, rising to 97th position from 137th the previous year, and experiencing a strong revival in foreign direct investment.

Reforms of the country’s financial sector have stalled, however, with the long-anticipated privatisation of state-owned lenders UTB and BTCI delayed following a change in government strategy.

“While the economic recovery was firming up, it has recently been hindered by the Covid-19 pandemic,” IMF deputy managing director Mitsuhiro Furusawa said in a statement in April, alongside the fund’s latest review of Togo’s ECF arrangement. “The fiscal deficit and the balance of payment financing gap are expected to widen substantially due to revenue loss, higher healthcare spending and weaker exports.”

The Banker spoke with Mr Gnassingbé about the government’s priorities following his re-election to a fourth term of office in February 2020, west African regional co-operation and his country’s response to the coronavirus pandemic.

Q: What are your priorities for your next term in office?

A: First, to ensure peace and security. As you know, our region is experiencing a particularly volatile and sensitive security situation. We have a responsibility to protect the population.

The emergence of the coronavirus health crisis is yet another reminder of our obligation to be constantly vigilant, and combine preventive and defensive measures.

Second, we are going to implement a more open and inclusive governance structure. It requires the setting up of mechanisms that facilitate greater involvement of everyone in decision-making. This, I am convinced, will strengthen accountability and empower the population to follow up on the decisions that are taken.

The third objective is to maintain wealth production by speeding up the development of high-potential sectors aligned with the NDP. These are sectors such as agriculture, manufacturing, mining and other industries. It also includes the continuation of major infrastructure projects such as modernising our port and building a trunk highway between the north and south of the country.

Over the past two years, we have successfully implemented bold reforms to facilitate various procedures and drastically reduce costs of production.

Several sectors have benefited from these reforms, including business creation, access to land, electricity connection, taxes and cross-border trade.

These reforms have allowed Togo to reach an economic growth rate of an average of 5% in recent years. However, we still face many challenges which can only be met through a structural transformation of our economy.

Q: How best can you address the challenges facing Togo and west Africa?

A: Togo is part of a larger geopolitical community and has long been prepared to face these challenges. At the community level, we have always been very involved.

Without regional integration, it is impossible to claim success in the fight against terrorism or the trafficking of fake medicines, which are scourges that spread beyond borders.

Collaboration is key to our success against Covid-19. My government is in frequent contact with neighbouring countries to share information on any detected cases that involve their citizens.

Q: How has Togo responded to the Covid-19 pandemic?

A: First, immediate measures were taken to provide healthcare to the infected. This was done to guarantee optimal care to contain the propagation of the pandemic from the beginning. We have taken steps to increase the availability of personal protective equipment and other critical equipment to support and protect frontline health workers.

We also rolled out a cash transfer scheme called Novissi [which means solidarity in the local dialect] to provide financial aid to informal workers whose daily revenues have been seriously disrupted or lost due to the emergency measures we have taken to stop the spread of the virus.

The 100%-digital scheme will allow eligible workers to apply for support by inputting a short code on their mobile phone. People who meet the needs-based criteria will then receive fortnightly cash transfers from the state directly to their mobile money accounts.

The Novissi scheme is designed to enable vulnerable, low-income workers to cover their basic needs during this difficult period.

Was this article helpful?

Thank you for your feedback!

Read more about:  Africa , Togo