UNLOCKING FINANCIAL OPPORTUNITIES IN FRAGILE AND CONFLICT AFFECTED STATES!FOCUS ON TOGO.

• Togo is a West African country on the gulf of Guinea. It is known for its palm lined beaches and hilltop villages. Koutamakko, inhabited by the Batammariba people is a traditional settlement of fortress like clay huts dating to 17th century.

• Capital:- Lomé• Currency:- CFA• Population:-6.817 million {2013, World Bank }• President:- Faure Gnassingbe• Official Language:- French• International reserve- $0.07 billion (2015)- IMF data• GDP - $4.9 billion (2017) estimate-IMF• GDP per Capita - $634.7 (2017) estimate IMF data• GDP Composition - Agric-27.5%,industry-21.3% Services-

51.2%• Inflation - 2.5% 2017 Estimate.

Togo with a GDP per capita of $1,525 is ranked 12 th among the 25 poorest countries in the world, according to analysis and report by the Global finance magazine & based on data from the World Bank and IMF.Subsistence agriculture is the main economic activity in Togo and majority of the population depend on it. The agricultural sector (food & cash crop) is the country’s major employer of labour and contributes about 39.5% of its GDP {World Bank}. 65% of its people are engaged in subsistence and Commercial agriculture.This means increase in private/ public sector financing in the agricultural sector will:-1. Shore up the agricultural sectors contribution to GDP2. Create more jobs through agro-processing3. Increase in revenue for government 4. Grow the economy and 5. make the sector attractive to FDI (foreign direct investment).

• TOGO ECONOMIC OUTLOOK• • The economy expanded 5.5% in 2015, but funding of Infrastructure has increased

government debt to 62.5% of GDP in 2015 up from 46.0% in 2012• • The time needed to legally set up a business fell from 38 days in 2012 to 19 days in 2013 and

10 days in 2014/2015.• • The land tenure system has not adjusted to the growth of urban areas and trade end at an

average of 288 days are needed for property transactions, making them the slowest in Africa.• • Erratic rainfall undermined buoyant agriculture making the economy to fall to 5.5% from 5.9%

in 2014• Agriculture being the main source of economic expansion in 2014 contributing 3.2% of GDP, fell

by 0.7% in 2015• Government revenue has grown significantly in the past 2 years due to better & improved

revenue collection by the new national tax office. Revenue increased 13.6% in 2014, 4.8% in 2015 representing 20.2% of GDP.

• Transparency International corruption perception index ranked Togo 19 places higher than 2014. 107 out of 168 due to increase fight on corruption through the creation of body set up to tackle corruption in 2015.

MULTILATERAL DEVELOPMENT BANKS INVOLVEMENTS IN THE COUNTRY THROUGH IDA AND IBRD (2012-2015)

•Between 2012-2015 under IDA assistance, 3,275 people benefited from the construction of 90 schools with 248 classrooms in Togo.

•13 health care centres, 44 boreholes, 4 community latrines, 2 rural roads & 2 market sheds were also constructed through IDA grants and assistance.

•A total of 14,016 people received financial assistance as part of a social safety net program to combat child malnutrition between 2013-2015.

Summary of Current IDA credits for Togo

Original principal Amount; 75; 47%

Undisbursed amount; 45; 28%

Disbursed amount; 20; 13%

borrowers obligation; 20; 13%

Togo

Summary of IDA Grants to Togo

Grant53%

Disbursed44%

Undisbursed3%

TogoGrant Disbursed Undisbursed

CHALLENGES FACING THE COUNTRYStudy shows that 35% of Togo’s workforce are under-employed, compared to less than 3% unemployed. This affect mostly the poorest and vulnerable youth living in rural areas who most times take ad hoc work to survive.•There is need to provide or create income generating jobs targeted at helping the poor & vulnerable youth in the country who constitute 75% of the workforce.•There is also need to further fund health, education and provide improved access to clean portable water to the people •Recent report shows that only 3 out of 10 household have access to portable drinking water. 70% of schools have dilapidated structures that require rehabilitation while healthcare facilities have been overstretched with an estimated number of 6,500 inhabitants per 1 health care centre (2013 study)

POSSIBLE SOLUTIONS:-

1. ACCESS TO ADDITIONAL FUNDING THROUGH IDA• With the introduction of the private sector window which seek

to address need of de-risking projects in low income countries like Togo, it means IDA can now access more funds through the capital markets to provide additional credits and grants to meet some the SDG goals for Togo.• Also IDA’s new financing approach which take into

consideration 1st private sector approach, PPP as the 2nd option or falling back to public sector solution as the last option if the 1st and 2nd didn’t work can be considered.• Although these can be achieved through a 3 pronged approach

by;• 1. helping government create an enabling environment for

business & private investment and lowering existing information barriers.

• 2. Exploring risk sharing approach with the private sector to align risk opportunities and appetite • 3. Support the development of domestic capital market

and instruments suitable to investors in order to mobilize domestic resources and foreign investment as well.• 2. FUNDING FROM AFDB• Tapping into the AFDB feed Africa 2016-2025 investment

project fund with a total of $24 billion USD to be spend over the next 10 years to support agricultural transformation in Africa (source: AFDB feed Africa)

CONCLUSION • For all these to be achieved the government should:-• Show dedication to improvement in governance &

investor confidence• It should have a sustainable development policy that will

focus on increasing productivity in agriculture .• Improve on the land tenure system presently believed to

be the slowest in Africa

THANK YOU

REFERENCES & VIDEOS• Https://www.afdb.org/file admin/upload/afdb

/documents/policy-documents/feed_Africa-strategy-en.pdf• Maps.worldbank.org/p2e/mcmap/map.html?org=ibrd&level=country&code=TG&little=Togo• https://www.afdb.org/en/countries/west_Africa/togo/togo-economic-outlook/• www.encyclopaedia.com/places/Africa/togo-political-geography/togo• Role of private finance in financing development. Mr Jay Collins. Vice Chairman, corporate &

investment banking, Citi.• Infrastructure finance:- Setting a plan, overcoming obstacles & attracting private finance.

Richard Abadie, partner & global leader of capital projects & infrastructures, PWC, London.• Mobilization & the MDBs. Jeff Chelsky, manager operations, policy & country services World

Bank• The Business models of MDBs. Susan Mc Adams. Senior Advisor development finance, World

Bank Group.• Unlocking investment opportunities: WBG approaches and initiatives. Joaquin Levy, MD CFO

WBG.