togo - 2016-2020 country strategy paper
TRANSCRIPT
AFRICAN DEVELOPMENT BANK GROUP
TOGO
2016-2020 COUNTRY STRATEGY PAPER
ORWA/ORTS/TGFO DEPARTMENTS
September 2016 Translated Document
TABLE OF CONTENTS
Acronyms and Abbreviations ............................................................................................................................................. ii
EXECUTIVE SUMMARY ................................................................................................................................................. iv
1 INTRODUCTION ........................................................................................................................................................ 1
2 COUNTRY CONTEXT TRENDS ........................................................................................................................... 1 2.1 Political Trends .............................................................................................................................1 2.2 Economic Trends ..........................................................................................................................2 2.3 Social Trends ................................................................................................................................3
3 STRATEGIC OPTIONS ........................................................................................................................................... 5 3.1 Country Strategic Framework ......................................................................................................5 3.2 Aid Coordination, Alignment and Harmonization .......................................................................6 3.3 Strengths and Opportunities/Challenges and Weaknesses ...........................................................6 3.4 Bank Portfolio Performance Review ............................................................................................7 3.5 Main Conclusions of the 2011-2015 CSP Completion Report .....................................................8 3.6 Lessons Learned ...........................................................................................................................9
4 BANK GROUP STRATEGY FOR 2016-2020................................................................................................... 10 4.1 Rationale and Strategic Selectiveness ....................................................................................... 10 4.2 CSP Objective and Strategic Pillars .......................................................................................... 12 4.3 Indicative Bank Assistance Programme .................................................................................... 16 4.4 Non-Lending Programme of Activities ..................................................................................... 16 4.5 Financing of the CSP ................................................................................................................. 17 4.6 Monitoring/Evaluation of Bank Group Operations ................................................................... 17 4.7 Country Dialogue ...................................................................................................................... 18 4.8 Risks and Mitigation Measures ................................................................................................. 18
5 CONCLUSIONS AND RECOMMENDATIONS .............................................................................................. 19
LIST OF TABLES
Table 1: “Doing Business” Rankings (2011-16) .................................................................................................... 3
Table 2: Key Portfolio Performance Indicators ...................................................................................................... 8
LIST OF GRAPHS
Graph 1: Real GDP Growth Rate and Infation Rate (2012-2020) .......................................................................... 2
Graph 2: Share of Sectors in GDP (1965 - 2015) ................................................................................................... 2
Graph 3: Public Debt/GDP Ratio ........................................................................................................................... 2
Graph 4: ODA Breakdown (%) in 2013 ................................................................................................................. 6
LIST OF TEXT BOXES
Box 1: Gender Inequalities ..................................................................................................................................... 4
Box 2: Agriculture and the National Strategy ......................................................................................................... 5
Box 3: Relevance of the Bank's Country Office ..................................................................................................... 9
Box 4: Evaluation Report (2004-2013) of Bank Strategies and Programmes in Togo ......................................... 10
Box 5: Gender Mainstreaming .............................................................................................................................. 10
Box 6: Agricultural Potential of Kara ................................................................................................................... 11
Box 7: Development of Kara Agropole ................................................................................................................ 13
Box 8. Regional Opportunities ............................................................................................................................. 14
LIST OF ANNEXES
Annex 1: Indicative Results Framework Matrix of the 2016 – 2020 CSP
Annex 2: Bank Portfolio Status in Congo as at 15 March 2016
Annex 3: Revised Portfolio Performance Improvement Plan (2015-2016 PPIP)
Annex 4. Breakdown of Official Development Assistance by Sector in 2013 (in USD million)
Annex 5. Togo: Indicative Lending Programme for the New 2016-2020 CSP (in UA million)
Annex 6. Togo: Key Macroeconomic Indicators
Annex 7. Togo: Comparative Socio-economic Indicators
Annex 8. Togo: Assessment of Eligibility for Future Cyles of Window I – Supplementary TSF Support -
under ADF 14
Annex 9. Togo: Fiduciary Risk Assessment Report under CSP 2016 - 2020
Annex 10. Togo: Bank Procurement Strategy (2016-2020)
Annex 11. Combating Climate Change in Togo
Annex 12. Main Analytical Studies Consulted
i
CURRENCY EQUIVALENTS (May 2016)
UA 1 = SDR 1 UA 1 = USD 1.42 UA 1 = EUR 1.24 UA 1 = CFAF 815.32 USD 1 = CFAF 575.25 EUR 1 = CFAF 655.96
FISCAL YEAR
1 January – 31 December
WEIGHTS AND MEASURES
1 metric tonne = 2,204 pounds 1 kilogramme (kg) = 2.204 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres
ii
Acronyms and Abbreviations
ADF African Development Fund
AfDB African Development Bank
ARMP Public Procurement Regulatory Authority
AWF African Water Facility
BADEA Arab Bank for Economic Development in Africa
CEN-SAD Community of Sahel-Saharan States
CFA.F Franc of the African Financial Community
CPI Corruption Perception Index
CPIA Country Policy and Institutional Assessment
CSP Country Strategy Paper
DGMAP General Directorate for Mobilization of External Aid and Partnership
DNCMP General Directorate for Public Procurement Control
DWS Drinking Water Supply
EBID ECOWAS Bank for Investment and Development
ECOWAS Economic Community of West African States
EIB European Investment Bank
EITI Extractive Industries Transparency Initiative
ESIA Environmental and Social Impact Assessment
EU European Union
FAO Food and Agricultural Organization
FAPA Fund for African Private Sector Assistance
FNFI National Inclusive Finance Fund
GAP Strategic Framework and Governance Action Plan
GDP Gross Domestic Product
GEF Global Environment Fund
HDI Human Development Index
HIPC Heavily Indebted Poor Countries
IDEV Independent Development Evaluation Department of the AfDB
IFAD International Fund for Agricultural Development
IMF International Monetary Fund
INAM National Health Insurance Institute
IsDB Islamic Development Bank
ISR Report on Implementation Status and Results
MCC Millennium Challenge Corporation
MDG Millennium Development Goal
MEF Ministry of the Economy, Finance and Development Planning
MNPCT National Torture Prevention Mechanism
MTEF Medium-Term Expenditure Framework
NTF Nigeria Trust Fund
ODA Official Development Assistance
OFID OPEC Fund for International Development
OTR Togo Revenue Authority
PAGFI Fiscal Governance Support Project
PAL Autonomous Port of Lomé
PAMOCI Resource Mobilization and Institutional Capacity Building Support Project (PAMOCI)
PARMCO Kara and Lomé Markets Reconstruction and Traders Support Project
PBA Performance-based allocation
PCG Partial credit guarantees
PEFA Public Expenditure and Financial Accountability Programme
PEMFAR Public Expenditure Management and Financial Accountability Review
PIU Project Implementation Unit
PNAD National Development Assistance Policy
PPF Project Preparation Fund
PPIP Country Portfolio Improvement Plan
PPP Public-Private Partnership
PPRR Country Portfolio Performance Review
PRG Partial Risk Guarantee
PROVONAT National Volunteer Programme in Togo
QUIBB Unified Questionnaire on Basic Wellbeing Indicators
RGCP General Public Accounting Regulations
iii
RWSSI Rural Water Supply and Sanitation Initiative
SAP New State Accounting Plan
SCAPE Accelerated Growth and Employment Promotion Strategy (SCAPE)
SDG Sustainable Development Goal
GFOT Government Financial Operations Table
SME Small and Medium-sized Enterprise
STA Single Treasury Account
TEU Twenty-foot Equivalent Unit
TFP Technical and Financial Partner
TGFO AfDB Field Office in Togo
TSF Transition Support Fund
UA Unit of Account
UNCLOS United Nations Convention on the Law of the Sea
UNDP United Nations Development Programme
UNIR Union for the Republic
USD United States Dollar
WADB West African Development Bank
WAEMU West African Economic and Monetary Union
iv
EXECUTIVE SUMMARY
1. This paper proposes the Bank Group’s intervention strategy in Togo for 2016-
2020 and the country’s eligibility for the resources of the Transition Support Facility
(TSF) under ADF 14. It is based on the Bank’s 2013-2022 Ten-Year Strategy, its High 5s
priorities and the Strategy for Addressing Fragility and Building Resilience in Africa. It will
also serve as a framework for reviewing the country’s eligibility for TSF Pillar I, as presented
in Annex 8. This paper is also consistent with the Government’s Accelerated Growth and Em-
ployment Promotion Strategy (SCAPE) 2013-2017, aimed at addressing the country's fragility
challenge and its vulnerability in terms of inequality, climatic shocks, limited decentralization
and exogenous shocks such as the volatility of import (food products) and export (cash crops)
prices.
2. Togo is a West African country with a surface area of 57,000 km2 and a popula-
tion of 7 million inhabitants. It has a low level of structural transformation, since its economy
is dominated by agriculture (47.6% of GDP in 2015), followed by services (36.2%) and indus-
try (16.2%), with manufacturing accounting for only 6.4%. Although agriculture generates a
significant proportion of the GDP, Togo still records extremely low yields of approximately
1.2 tonnes per hectare for both cotton and cereals, which are its two main sources of agricultural
revenue. Poverty still affects a significant proportion of the population (55.1%), and the ex-
treme poverty situation (28.7%) has not significantly improved over the past ten years. The
Gini index of 0.380 in 2015 is indicative of a society rife with persistent inequalities.
3. The average GDP growth rate in Togo for 2011-2015 was 5.3% as against 2.7%
over the 2006-2010 period. However, this growth, which is mainly driven by infrastructure
investments and agricultural sector performance, is neither inclusive nor green enough to sus-
tainably curb poverty and inequalities and protect the environment. From 2016 to 2020, the
growth rate is expected to range from 5.5% to 6.1% per year. To ensure that this growth is
shared and that it boosts resilience, the Bank’s new strategy in Togo should help the Govern-
ment meet challenges related to the country’s fragility, particularly: social (gender) and spatial
(between urban areas, rural areas and regions) inequalities, the lack of decentralization (local
elections and decentralized finance) and environmental degradation (deforestation and coastal
erosion).
4. The main recommendation from the long-term assessment of Bank strategies and
programmes in Togo was that greater emphasis be placed on inclusive and green growth
by intervening in a sector with high growth potential. Since the Togolese economy is driven
by an agricultural sector largely dominated by food crop production (about 95%), it holds di-
versification opportunities, particularly through revival of the production of cash crops like
cocoa, coffee and cotton.
5. To help Togo develop its strengths, while mitigating the effects of its fragility and
accelerating its transition to resilience, the Bank's strategy will focus on two pillars, namely:
(i) development of inclusive growth and agribusiness competitiveness poles; and (ii) sup-
port for financial, sectoral and local governance. The main objective is to improve the living
conditions of rural communities through the integrated development of agricultural centres and
access to energy. These pillars will facilitate achievement of the strategic “High 5s” targets and
the Sustainable Development Goals (SDG) in Togo.
1
1 INTRODUCTION
1.1. This paper proposes the Bank Group’s intervention strategy in Togo for 2016-2020
and the country’s eligibility for the resources of the Transition Support Facility (TSF) under
ADF 14. The new strategy will guide initiatives to address the country’s fragility challenges,
which include: social and spatial inequalities, lack of decentralization, and environmental deg-
radation. Cognizant of these challenges, the Government has embarked on a process of mobi-
lizing its partners to support national efforts towards strengthening Togo’s resilience.
1.2. The Bank’s new strategy in Togo seeks to broaden the inclusive and sustainable
growth base through agricultural development and transformation, as well as energy supply.
This selective approach is consistent with the Accelerated Growth and Employment Promotion
Strategy (SCAPE 2013-2017). SCAPE guidelines are consistent with the Bank’s Ten-year
Strategy 2013-2022, the Bank’s “High 5s” priorities, and the 2063 Agenda of the African Union
which all seek to transform the continent. Finalization of this CSP also coincides with com-
mencement of the process to mainstream the 17 Sustainable Development Goals (SDGs) of the
United Nations and the objectives of the COP21 agreement into national strategies.
1.3. After this introduction, the rest of the paper is structured as follows: Chapter 2 presents
the country context from the political, economic, social and environmental standpoints. Chapter
3 presents the strategic options, including aid coordination and the Bank’s positioning in the
country. Chapter 4 presents the Bank’s intervention strategy for Togo over the 2016-2020 pe-
riod. Chapter 5 is the conclusion of this paper, and presents the recommendation submitted to
the Board.
2 COUNTRY CONTEXT
2.1 Political Trends
2.1.1 Togo continues to experience situations of fragility. In 2008, the international com-
munity recognized Togo as a fragile State following a protracted political crisis that dogged the
country from 1990 to 2005. Unfortunately, despite the good economic performance and pro-
gress in social stability achieved over the past ten years, Togo’s average score from the Country
Policy and Institutional Assessment (CPIA) of the AfDB and the World Bank did not exceed
3.2 on 6. This score means that Togo was still a fragile State in 2015.
2.1.2 Although Togo continues to experience tension due to electoral issues, the country
has enjoyed a stable socio-political climate since 2006. The concerns that will be targeted
through policy dialogue during the new CSP period will focus on the organization of legislative
and local elections scheduled for 2018. UNIR, the ruling party created in 2012 after dissolution
of the former single party, has an absolute majority in parliament with 62 out of 91 seats won
in the parliamentary elections of July 2013. President Faure Gnassingbé was re-elected for a
third term in the presidential elections of 25 May 2015, which he won with 58.75% of the votes.
The various election observer missions felt that the election was free and fair, but the opposition
did not recognize the results. Togo has organized neither local elections nor the devolution of
powers to local authorities since 1987. Indeed, Togo's 2015 Mo Ibrahim Index of African Gov-
ernance, which stands at 48.4/100, falls short of the average for Africa (50.1) and the average
for West African countries (52.4). The score on accountability (28.3/100) remains particularly
low. Togo gained 19 places in the 2015 Transparency International report ranking, rising from
the 126th to the 107th position out of 168 countries, with a corruption perception index (CPI) of
2
32 on a scale of 0 (high corruption) to 100 (very low corruption).
2.2 Economic Trends
2.2.1 The average GDP growth for the 2011-
2016 period was 5.3% as against 2.7% for the
2006-2010 period. It is expected to range be-
tween 5.5% and 6.1% between 2016 and 2020.
The main drivers of this growth will be the re-
forms implemented to consolidate the rules of
competition in the hotel trade, electricity,
banking and telecommunications sectors, as
well as support for the modernization of agri-
culture and extractive industries. The inflation
rate, which was 0.2% in 2014, inched up to
1.9% in 2015. According to projections, it will
stay below 3%, which is the WAEMU conver-
gence threshold, until 2020.
2.2.2 The country is characterized by
low transformation of its economy,
which is dominated by agriculture
(47.6% of GDP), followed by services
(36.2%), industry (16.2%) and manu-
facturing which accounts for only 6.4%. The gradual decline of the GDP share of
industry and services over the past five
decades and the increase in the share of
agriculture are indications of the low
structural transformation of the Togolese
economy.
2.2.3 Public Debt: Investments fi-
nanced through borrowings negatively affected the debt ratios. In December 2010, Togo
reached the completion point of the Heavily In-
debted Poor Countries (HIPC) Initiative, thus
reducing its debt ratio from 83.3% of GDP in
2009 to 46.3% in 2012. Since then, major in-
vestments in transport infrastructure have in-
creased the public debt from 58.4% of GDP in
2014 to 62.5% in 2015. According to the IMF,
the total outstanding public debt stock rose
from CFAF 1,025 billion at end 2013 to CFA.F
1,525 billion at end 2015. According to the
debt sustainability analysis conducted by the
IMF and the World Bank in October 2015, the
country's debt distress risk is high.
2.2.4 Budget Management: Capital ex-
penditure and debt servicing have aggravated the budget deficit despite the steady growth
in tax revenue. The primary budget deficit deteriorated from 2.1% of GDP in 2014 to 4% in
0
10
20
30
40
50
60
70
80
90
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9
202
0
% o
f G
DP
Year
Total External Domestic
Graph 3. Public debt-to-GDP Ratio
Source: Online database - IMF
Source: ESTA/AfDB
Graph 1. Real GDP Growth Rate and Inflation Rate
(2012-2020)
Real Growth
Rate
Inflation Rate
0%
1%
2%
3%
4%
5%
6%
7%
Graph 2. Share of sectors in GDP (1965 - 2015)
Agriculture
ServiceIndustry
Manufacture0
10
20
30
40
50
60
1965 1975 1985 1995 2005 2015
Rat
e (
%)
Source: Online database - World Bank
3
2015. It is expected to reduce to 3.4% of GDP in 2016 and 3.2% in 2017, thanks to an invest-
ment policy that is slanted towards public-private partnerships. Tax revenue increased by 12.7%
to CFAF 516.28 billion in 2015, which corresponds to a tax burden of 20% of GDP. In 2015,
total expenditure and net lending of CFAF 781 billion were financed to the tune of 73% by tax
revenue, 12% by loans, 7% by grants, and 8% by non-tax revenue.
2.2.5 Business Environment: Although the business environment improved in 2014 and
2015, Togo remains the slowest country in Africa as regards registering property. Table 1
shows that Togo gained 10 places between five editions of the World Bank Doing Business
report, rising from the 160th (2010) to the 150th
position (2016). The number of days required
to legally start a business reduced from 38 days
in 2012 to 10 days in 2015, compared to an av-
erage of 27 days in sub-Saharan Africa. How-
ever, Togo is considered to be the slowest coun-
try in Africa with 288 days required to register
property, compared to the average of 58 days
for sub-Saharan African countries.
2.2.6 Regional Integration: Togo actively
participates in regional integration and
trade facilitation efforts within WAEMU, ECOWAS and CEN-SAD. The common exter-
nal tariff (CET) adopted by the WAEMU and ECOWAS in 2014 has been implemented
in the country since 1 January 2015. The CET comprises five tariff bands (0%, 5%, 10%,
20% and 35%). WAEMU standards on macroeconomic convergence are generally respected.
Lomé Port stands out as a tool for regional integration and trade development for Togo, its
neighbouring landlocked countries and coastal countries. Togo has the highest volume of trade
with WAEMU region (49% of its exports) according to the 2014 WAEMU Annual Report.
2.3 Social Trends
2.3.1 Togo has not achieved any tangible progress in human development, and features
in the bottom quintile in terms of quality of life. The 2015 Human Development Report
ranked Togo at the 162nd position out of 188 countries, with a human development index (HDI)
of 0.484. The incidence of poverty declined from 61.7% in 2006 to 58.7% in 2011 and 55.1%
in 2015, but the poverty level remains high. The extreme poverty rate grew only slightly from
28.6% in 2006 to 30.4% in 2011 and 28.7% in 2015. The rise in underemployment is a major
constraint on socio-economic inclusion. The underemployment rate increased from 22.1% in
2011 to 24.9% in 2015, according to QUIBB1 survey data for 2011 and 2015.
2.3.2 Gender: Gender discrimination remains a problem in Togo despite the significant
progress made over the past five years (Box 1). Togo has a national policy on gender equity
and equality dating from 2011, but has not yet developed a gender strategy. The 2014 review
of the Individual and Family Code will ultimately reduce gender-based discrimination in mar-
riage and succession. This mainly concerns Article 99, which in 2002 provided that “the man
shall be the head of the family”, and which was amended to “The family shall be managed by
both spouses”. These persistent disparities, which are also described in the national policy on
1 Unified Questionnaire on Basic Wellbeing Indicators
Table 1: “Doing Business” Rankings (2011-2016)
2011 2016 ▲▼
Ease of doing business 160 150 +10
Starting a business 169 133 +36
Dealing with construction per-
mits
152 179 -27
Registering property 158 182 -24
Getting credit 152 133 +19
Protecting investors 147 155 -8
Paying taxes 157 163 -6
Trading across borders 93 126 -33
Enforcing contracts 151 125 +26
Resolving insolvency 84 93 -9
4
gender equity and equality (2011), are fuelled by Togo’s patriarchal tradition based on unequal
social relationships and powers between men and women.
2.3.3 Education: Despite improvement in the
school enrolment ratio, efforts still have to be
made to develop skills for the socio-economic
transformation of the country. The elimination of
fees in government primary schools has raised the
gross primary enrolment ratio from 98% (2007-
2008) to 127.1% (2013-2014). In 2014, the second-
ary school access rate was 59.9% and the comple-
tion rate was 36.6%. The lowest education access
rates are observed in rural areas. The share of public
spending on education dipped slightly from 24.9%
in 2013 to 23.4% in between 2013 and 2014. Voca-
tional training received only 6% of the education
budget, compared to 73% for primary education.
2.3.4 Health: Despite significant progress made in the provision of care and use of ser-
vices, the access rate remains low, particularly in rural areas. The infant mortality rate im-
proved significantly from 78‰ in 2010 to 49‰ in 2015. However, this falls short of the 29‰
target for 2015. Similarly, although the maternal mortality rate declined substantially from 478
per 100,000 live births in 1998 to 401 in 2015, it remains far below the MDG target of 160 per
100,000 live births by 2015. The State budget allocation to health declined from 3.92% in 2012
to 3.62% in 2014 against a commitment of 15%, as greater preference was given to transport
infrastructure.
2.3.5 Energy: The energy sector in Togo is characterized by the dominance of biomass
(71% of final energy consumption) and heavy dependence on energy imports (100% of
petroleum product needs and 79% of electricity needs covered by imports). Moreover, the
country is not much involved in the development of renewable energy sources (solar, wind,
mini and micro hydropower). It also has a low electricity access rate (28%) and very low elec-
tricity consumption (118 kWh/inhab./yr) compared to the average for sub-Saharan Africa (535
kWh/inhab./yr). Currently, electricity is generated primarily from five thermal power plants
which jointly represent an installed capacity of 128 MW and the Nangbeto hydroelectricity
power plant with a capacity of 30 MW. Additional energy sources are expected with the ongo-
ing construction of the 147 MW Adjarala hydropower plant, jointly owned by Togo and Benin,
and a 24 MW wind farm along the Zio River.
2.3.6 Water and Sanitation: In 2015, the national access rate to drinking water and basic
sanitation were 62% and 42% respectively. The proportion of the rural population with ac-
cess to drinking water increased from 38% to 45% between 2010 and 2015, compared to 77%
to 80% over the same period for the urban population. The proportion of the rural population
with access to improved sanitation facilities inched up from 15% to 16% between 2011 and
2015, compared to a decline from 73% to 71% over the same period for the urban population.2
Environmental Trends. Climate change (see Annex 11) is a major concern in addition to
the coastline which is subjected to various harmful human actions: human and industrial
waste, sewage, garbage, massive extraction of marine aggregate and coastal erosion. Erosion
increased in the 1980s. The building of coastal structures (groynes and breakwaters) has helped
2 These data come from the findings of the QUIBB survey for 2011 and 2015.
The traditions and cultural beliefs in Togo im-
pact negatively on girls’ access to the educa-
tion system and level of women’s representa-
tion in the public service. Women are less lit-
erate (50%) than men (77%), and the net sec-
ondary enrolment ratio is lower for girls
(36.7%) than for boys (48.8%). Some 76.9% of
civil servants and 75.4% of the staff in State
corporations are men. Women hold only 15%
of the seats in the Parliament, 17% of ministe-
rial positions and none of the 35 prefectural
positions in Togo.
Box 1: Gender Inequalities
5
to slow down erosion in protected areas, but erosion has continued in the other unprotected
coastal areas. Togo is also vulnerable to climate hazards. The decline in the agricultural sector’s
contribution to growth from 67.8% in 2014 to 12.7% in 2015 was due to irregular rainfall.
3 STRATEGIC OPTIONS
3.1 Country Strategic Framework
3.1.1 National Priorities: Togo's reference
framework is SCAPE 2013-2017 and the Gov-
ernment’s general policy approved by Parlia-
ment in July 2015. SCAPE focuses on four
main pillars, namely: (i) development of sectors
with high growth potential; (ii) reinforcement
of economic infrastructure; (iii) development of
human capital, social protection and employ-
ment; (iv) strengthening of governance; and (v)
promotion of participatory, balanced and sus-
tainable development. The Government's 2015
general policy paper3 underscored aspects of
SCAPE by stressing the need to: (i) invest more
in major core road projects; (ii) focus on agri-
culture and its transformation (Box 2); (iii) in-
crease the electricity access rate; and (iv) spare
no effort to promote decentralization.4 All these Government objectives are fully consistent
with the Bank’s ten-year strategy 2013-2022 and its High 5s priorities.
3.1.2 Energy: Analysis of the electricity access rate primarily shows major disparities be-
tween urban (68%) and rural areas (5%), with a national average of 28%. To meet this chal-
lenge, the Government developed the national electrification programme to increase the popu-
lation’s electricity access rate from 28% in 2015 to 42% by 2020. For the rural areas, the access
rate over this period would increase from 5% to 18%, and from 16% to 43% in Kara region.
However, rural electrification is conducted within a framework that is not suited to rural reali-
ties and is not yet yielding the expected results. Rural electrification will be especially supported
through the adoption of an appropriate strategy, the creation of a national rural electrification
agency, the establishment of a rural electrification fund, and the development of renewable
energies.
3.1.3 Water management and Development of Accessibility: The development of irrigation
areas, lowlands and existing dams will enhance agricultural production through better water
management, while focusing on grassroots organization, farmer support, and integration of
value chains. The construction, rehabilitation and maintenance of highways and rural roads are
priority investments crucial to agricultural revival in Togo and greater private sector involve-
ment. One of the objectives is to build or rehabilitate at least 1,500 km of rural roads each year;
these roads will be connected to the major highways. Furthermore, national or inter-State roads
that are strategic to the development of growth centres, such as the Abidjan-Lagos Corridor,
will also be rehabilitated or paved.
3.1.4 Governance: The Government plans to lay special emphasis on actions which contrib-
ute, in particular, to: (i) the improvement of domestic resource mobilization and the business
3 This general policy statement covers the 2015-2020 presidential term of office. 4 According to AGEPS “emphasis will be placed on political governance to reflect the link between security and development in a fragile
country context”.
AGEPS indicates that “agriculture remains the
sector that holds the greatest potential for acceler-
ating growth, ensuring food security, creating
jobs, increasing the incomes of the poor and con-
tributing to the trade balance and agribusiness de-
velopment”. With regard to existing potential, the
Government intends to promote agricultural poles
based on diversified, efficient, modern and eco-
friendly farming, as well as engage in the pro-
cessing of local products, thanks to private sector
involvement. The 2016-2030 agricultural policy
paper identifies the establishment of agricultural
development poles, or agropoles, as a major strat-
egy.
Box 2: Agriculture and the National Strategy
6
climate; (ii) the acceleration of the decentralization process; and (iii) the improvement agricul-
tural and energy sector governance.
3.2 Aid Coordination, Alignment and Harmonization
3.2.1 Togo has a wide representation of both bilateral and multilateral technical and
financial partners on its territory who substantially fund its development (Annex 4). Emerg-
ing countries like China, South Africa, Brazil and India have strengthened their cooperation
with Togo in recent years. Arab countries and their cooperation institutions have become relia-
ble partners of Togo. The multiplicity of bilateral and multilateral partners requires better co-
ordination of actions to ensure greater coherence of the various modes of intervention.
3.2.2 The Bank’s cooperation with technical and financial partners (TFPs) is con-
ducted within sector committees and during special joint review and co-financing activi-
ties. In December 2010, the Government established a coordination and monitoring/evaluation
mechanism for development policies that has two coordinating bodies, namely: the State-Do-
nors Committee at the central level and the sector committees at the sector level. TFP consul-
tations are organized around bimonthly meetings since 2014. Transport infrastructure construc-
tion, a sector in which the Bank is leader, is executed in complementarity with other partners
and with Government participation. Regional integration infrastructure projects have been pre-
pared and funded jointly with other donors. The Bank is engaged in ongoing dialogue with the
Government to create favourable conditions for aligning its procedures on those of the country
and for aligning the country's procedures on international norms and standards.
3.2.3 Togo has acceded to the Paris Declaration
and the Busan commitments on development aid
effectiveness. This has led to the formulation of the
National Development Aid Policy (PNAD) and an Ac-
tion Plan, whose implementation has improved aid
management. Hence, since 2011, the Government has
each year produced an Official Development Assis-
tance Report, which summarizes all aid flows to Togo
granted in year n-1 by technical and financial partners.
As shown in Graph 4, the sector breakdown of official
development assistance (ODA) shows that transport
infrastructure received the highest funding or 34% of
ODA, followed by health (18%), agriculture (13%)
and governance (13%).
3.3 Strengths and Opportunities/Challenges
and Weaknesses
3.3.1 The strengths and opportunities, as well as the challenges and weaknesses, that need to be specially addressed in this strategy to reduce the country’s fragility are set out below.
0%
5%
10%
15%
20%
25%
30%
35%
34
%
18
%
13
%
13
%
4%
4%
14%
Graph 4. Distribution of ODA (%) in 2013
7
Strengths and Opportunities
(i) Revival of Food Crop and Cash Crop Production: The agricultural sector can still develop and diversify
itself considerably. A lot remains to be done to unlock the opportunities offered by the market economy and
boost Togo's competitiveness. The target should be traditional export crops like cotton, coffee and cocoa, other
crops such as maize, sorghum, millet, cowpea, groundnut, sesame and cashew, as well as fish and poultry farm-
ing. The abovementioned crops could benefit from the mining of significant phosphate carbonate reserves that
will be accompanied by local production of fertilizers.
(ii) Roads for Regional Integration and Goods Transport: The highway that runs through the entire length of
Togo (700 km) and the trunk road that skirts the coast (54 km) and Lomé Port form a transport chain that is
much used by West and Central Africa countries for their external trade. In 2014, the capacity of Lomé Port,
expanded from 0.5 to 2 million containers per year, offered new opportunities for transhipment and transit.
These major pillars will facilitate the transportation of agricultural products and provide access to new markets.
(iii) PPPs in the Energy Sector: The Government has much leeway to embark on in-depth institutional and
statutory reforms so as to attract private sector financing for electricity production and reduce the share of bio-
mass as a main source of energy.
Challenges and Weaknesses
(i) Election-related Challenges: The political context is marked by: (i) the Opposition’s challenge of the pres-
idential election results; (ii) dialogue on limitation of the number of presidential terms of office; (iii) unrest
during parliamentary elections; and (iv) the absence of decentralization and local elections.
(ii) High Poverty Level and Non-Inclusive Growth: According to the socio-economic surveys of 2015, the
poverty level is still high (55.1%), extreme poverty (28.7%) remains at the same level as in 2006, and the Gini
index of 0.380 is indicative of a society plagued by persistent inequalities.
(iii) Mismatch between training and employment: Some 23.1% of young people drop out of the primary edu-
cation system each year to join the labour force. The country produces 3,500 graduates annually with high
school or higher diplomas, whereas it creates only 1,050 skilled jobs annually. The unemployment rate among
higher education graduates is 29.9%. The underemployment rate was relatively high in 2015 (24.9%) in com-
parison to 2011 (22.1%).
(iv) Spatial Disparities: Various statistics cited in this CSP show major disparities between the different re-
gions of the country in terms of the distribution of poverty (section 4.1.5), wealth (paragraph 3.6.2), as well as
access to electricity (paragraph 3.1.2) and health care (paragraph 2.3.3). These disparities are factors of fragility
in the country and affect the implementation of development programmes.
(v) Gender Disparities: Gender disparities in access to education are more pronounced in the 2nd cycle of
secondary education. By and large, women remain a minority in the public service and State Corporations
workforce (less than 30%). Moreover, they suffer much discrimination in access to political and government
jobs (less than 15%).
(vi) Subsistence farming: For the most part, agricultural constraints stem from the small size of farms, lack of
infrastructure, technology, equipment and inputs, the low level of farmer organization, limited product devel-
opment, and poor value chain integration. Agriculture remains less commercial and poorly connected to mar-
kets. The private sector and agricultural entrepreneurship are not much attracted and mobilized to ensure the
development of farming areas.
(vii) Limited Access to Energy: Togo's final energy consumption is dominated 73% by biomass. Electricity is
expensive, its supply is highly dependent on the outside, and its access rate remains low (28%).
3.4 Bank Portfolio Performance Review5
3.4.1 Portfolio Composition and Size: The Bank’s active portfolio in Togo comprises nine
(9) operations for a net total commitment of UA 115.8 million. It comprises seven (7) national
operations worth UA 40.5 million (35%) and two (2) multinational operations worth UA 75.3
million (65%). It is funded 75% by grants. The portfolio sector breakdown shows the predom-
inance of transport infrastructure (approximately 65%), followed by economic and financial
governance (17%), the social sector (16%), water and sanitation (1%), and agriculture (1%).
The active portfolio has no private sector operations.
5 The full PPR is available in the “Combined CSP 2011 - 2015 completion report and the 2015 country portfolio performance review”,
approved by CODE on 2 December 2016.
8
3.4.2 Portfolio Performance: The Bank’s overall portfolio performance is deemed satis-
factory (table 2) with an average score6 of 3 out of 4. The portfolio has no project at risk or old
project. The annual disbursement rate (2015) for public sector projects is 20.6%. The cumula-
tive disbursement rate was 25.8% in March 2016 for an average age of 1.8 years. This relatively
low rate stems primarily from the fact that the portfolio is fairly young, comprising two (2)
projects approved in 2015 and two (2) others approved in 2016. Despite this generally satisfac-
tory performance, there is need to maintain continuous monitoring, in order to raise the dis-
bursement level for recently approved projects.
3.4.3 The main problems identi-
fied concern: (i) the limited capacity
of project implementation units; (ii)
bottlenecks in the procurement and
disbursement processes; and (iii) dif-
ficulties in raising national counter-
part funds. The portfolio is monitored
by Sector Ministries and the Ministry
of the Economy, Finance and Devel-
opment Planning, which guides pro-
ject preparation and appraisal mis-
sions. The capacity of Ministries
should be strengthened to ensure better coordination of project implementation. Specifically,
strengthening the Ministry in charge of Finance and Planning would enhance the planning and
management of national counterpart contributions and reduce disbursement delays. The crea-
tion of the General Directorate for Mobilization of External Assistance and Partnership
(DGMAP) in 2016 and its operationalization are a positive development that improves portfolio
monitoring. The conduct of periodic portfolio reviews in collaboration with DGMAP, as well
as specific working sessions with the Implementation Units will help to solve specific problems
encountered in project implementation. The portfolio performance improvement plan7 for 2015
laid emphasis on: (i) ownership of projects by supervisory structures; (ii) capacity building for
implementation units; (iii) scheduling and payment of national counterpart contributions; (iv)
monitoring to ensure the timely audit of projects; and (v) monitoring of the portfolio by the new
directorate (DGMAP). Implementation of these measures will accelerate the pace of project
implementation.
3.5 Main Conclusions of the 2011-2015 CSP Completion Report
3.5.1 The 2011-2015 CSP completion report considered by CODE on 12 February 2016
indicates that performance in the implementation of the Bank’s assistance strategy for
2011-2015 is broadly positive. The 2011-2015 CSP had two pillars, namely: (1) development
of economic infrastructure; and (2) promotion of good governance. Togo was expected to ben-
efit from funding, estimated at UA 130 million, up to 2015. The data as at end-2015 indicated
that the CSP was financed for UA 156 million.
3.5.2 The Bank played a leadership role (Box 3) in dialogue on important topics such as:
(i) resource mobilization and creation of the Togolese Revenue Office (OTR); (ii) inclusive
finance; (iii) sector strategies (transport and youth employment); (iv) public administration ef-
ficiency through organizational and institutional audits conducted in the education and infra-
structure sectors; and (v) higher education reform.
6 Rating of the most recent reports on implementation progress and results (IPR). 7 The revised PPIP is included in the combined CSP 2011-2015 completion report and 2015 country portfolio
performance review.
Table 2: Key Portfolio Performance Indicators
Key Performance Indicators Dec. 2013 March
2016
Performance of supervised projects Satisfactory Satisfac-
tory
Projects reported by Flashlight (%) - 8%
Total disbursement rate (%) 23.8% 25.8%
Annual disbursement rate (public sector
%) - 20.6%
Time limit between approval and satisfac-
tion of conditions precedent to 1st dis-
bursement (months)
7 4.5
Average age (year) 2.0 1.8
Number of old projects 0 0
Risky projects (%) 0% 0%
9
3.5.3 As regards infrastructure, the
"Lomé Container Terminal" project co-fi-
nanced by the Bank for UA 33 million
transformed Lomé Port into the main hub
for transit and transhipment of goods to
and from landlocked neighbouring coun-
tries and several coastal countries. Two
regional road projects helped to create
over 5,000 jobs on the site and 750 perma-
nent jobs, as well as facilitated traffic flow
by reducing travel time almost fivefold in
certain urban areas.
3.5.4 Bank support in the field of
governance has enabled the Togolese
Government to: (i) operationalize the
Court of Auditors; (ii) get the Public
Treasury to produce management ac-
counts; (iii) improve the public procure-
ment process; (iv) take trade and transport
facilitation measures; and (v) create the
Togolese Revenue Office. With regard to
local governance, the Bank did not inter-
vene directly but relied on other partners,
such as the EU, German Cooperation and
French Cooperation.
3.5.5 During the CSP implementa-
tion period, Bank portfolio perfor-
mance was consistently satisfactory. However, an in-depth analysis of the active portfolio
reveals the need for close monitoring of projects with a low disbursement rate.
3.6 Lessons Learned
3.6.1 Completion report for the 2011-2015 CSP and evaluation of Bank strategies and
programmes in Togo over the 2004-2013 period (Box 5) clarified certain analyses and pro-
vided insight into some aspects, such as the genesis and nature of Togo’s fragility. Paying at-
tention to the recommendations of these reports would enhance the Bank’s effectiveness in
achieving Togo's development goals during the CSP period (2016-2020).
3.6.2 Bank operations only sparingly targeted rural areas. Various assessments con-
ducted in the country reveal the need to reorient partner operations more equitably so as to
address the challenges of poverty and inequality. Some 98% of the tax revenue collected by the
OTR in 2014 came from the maritime region (97% from Lomé and less than 1% from the rest
of the region), compared to 2% for the other regions which represent 89% of the national terri-
tory and 57% of the population. Accordingly, to address Togo’s fragility and boost its resili-
ence, the new CSP will focus more intently on inclusive and green growth by targeting agricul-
ture, which is a sector with high growth potential and that constitutes the main livelihood for
the poor.
The presence of the Bank's office in Togo has turned out to
be an asset as it supports the Government to implement in-
novative reforms and improve portfolio performance. Some
activities in the country that gave greater visibility to the
Bank would not have been possible without the presence of
the country office. These include:
• The Bank’s leadership and support (2011-2015) in the
implementation of the Government's strategic reforms
(establishment of OTR and the National Inclusive Fi-
nance Fund).
• Close monitoring of the portfolio, along with the pro-
gramming of operations, project supervision, cancella-
tion of balances for completed projects (10 projects
amounting to UA 1.6 million from 2015 to 2016), mon-
itoring of project audits, etc.
• Support for the Government in the implementation of
the Bank’s Directive No. DP/02 (the two projects
PAEIJ and PAGFI approved in 2015 and 2016 respec-
tively have all resorted to advance procurement actions
and actually fulfilled their conditions precedent to first
disbursement within six months).
• Financial and organizational participation of the Bank
with World Bank and EU country offices in the conduct
of PEMFAR and PEFA 2015.
• Advisory support and conduct in 2014 of a feasibility
study for the establishment of savings and loans coop-
eratives for destitute State employees.
Box 3: Relevance of the Bank's Country Office
10
3.6.3 The Bank's strategy in Togo over the past five years has been geared towards
infrastructure and governance, but each operation was designed and implemented with-
out real synergy with other operations. Integrated
programmes/projects would be the most appropriate
way of assisting Togo to meet its sustainable devel-
opment goals. To that end, the Bank will give prefer-
ence to large-scale integrated operations focused on
key socioeconomic sectors to better contribute to the
country’s progress towards inclusive and green
growth.
4 BANK GROUP STRATEGY FOR 2016-
2020
4.1 Rationale and Strategic Selectivity
4.1.1 Dialogue between the Bank, the Govern-
ment and other partners led to consensual identi-
fication of six (6) selectivity criteria for new stra-
tegic and operational options of the CSP. These are: (i) analysis of the country's development
challenges and priorities; (ii) Bank strategies and their alignment on SCAPE; (iii) consultations
with the stakeholders; (iv) complementarity with the other partners; (v) comparative advantage
of the Bank; and (vi) lessons learned from implementation of the previous CSP and the IDEV
long-term evaluation report. Togo is currently eligible, but does not yet meet the conditions for
access to ADB window public sector resources. Careful selection of the Bank's new operations
will partially address this resource constraint and thus maximize development effectiveness.
4.1.2 The first method of selecting Bank operations is guided by the need to benefit
from the country’s advantages and opportunities, while addressing its challenges of fra-
gility and vulnerability to internal and external shocks. Internal vulnerability is mainly due
to inequality, climatic hazards and the absence of decentralization. Exogenous shocks stem
from Togo’s dependence on imports of electricity and food products and its export of cash crops
whose prices are highly volatile. The other major chal-
lenges are: (i) the high poverty level and non-inclusive
growth; (ii) gender disparities; (iii) subsistence farming;
and (iv) limited access to energy.
4.1.3 The second selectivity criterion is alignment
of the new CSP on SCAPE (2013-2017) and the
Bank’s Ten-Year Strategy 2013-2022, particularly
the five institutional priorities (High 5s). The new
CSP is aligned on the Bank’s Private Sector Develop-
ment Strategy 2013-2017, the Gender Strategy 2014-
2018 (Box 5), the Governance Strategic Framework and
Action Plan (GAP II) 2014-2018, the African Agricul-
ture Transformation Strategy 2016-2025 being adopted,
the Bank Group Industrialization Strategy for Africa,
and the Regional Integration Strategy Paper (RISP)
This IDEV report indicates that the combined
action of Bank operations affected a good
number of fragility factors including: support
for revitalization of relations with partners,
growth, and support for economic governance
and State credibility. However, the Bank in-
tervened only very indirectly in extreme pov-
erty and marginally on inequalities and the
environment. The lessons learned from imple-
mentation of the strategy (2011-2015) provide
an opportunity to invest in a new partnership
geared towards structural transformation, as
well as green and inclusive growth.
Box 4: Evaluation Report (2004-2013) of
Bank Strategies and Programmes in Togo
In a crosscutting manner, the Bank's new
operations will systematically include
gender analyses and gender-disaggre-
gated monitoring indicators. The Minis-
try in charge of Gender will be regularly
consulted and its capacity developed dur-
ing formulation of the national gender
strategy 2017-2021 whose process is
funded by the Bank. This strategy will
serve as reference document in the design
of new Bank operations so as to reduce
the weight of certain social practices that
undermine gender equality before the
law.
Box 5: Gender Mainstreaming
11
2011-2015 for West Africa extended until 2017. Lastly, the new DSP is fully aligned on the
achievement of Togo's sustainable development goals (SDGs).
4.1.4 An analysis of the country's challenges and classification of development priori-
ties outlined in SCAPE and aligned on Bank strategies has resulted in the selection of
agriculture as the anchor of the Bank’s new strategy in Togo. Indeed, the CSP and the sec-
ond of the High 5s priorities (Feed Africa) underscore the fact that farmers remain the poorest
socio-economic group. This situation calls for a more inclusive growth-oriented strategy as
farmers represent 72.6% of the population living below the poverty line. Agriculture, which is
a crucial sector of the national economy (47.6% of GDP in 2015), is not productive and mech-
anized. Togo has only 22 major agribusiness companies, which cover less than 5% of the local
agribusiness market, while the rest is covered by imports. The country’s trade balance for agri-
cultural and agro-industry products is still in deficit. In 2014, Togo imported food products for
approximately USD 160 million, as against exports of USD 50 million. There is much leeway
for transforming Togolese agriculture and boosting the various links of the value chains. All
analytical studies agree on the need to also focus on road infrastructure, which facilitates the
evacuation of agricultural and agro-industry products at national and sub-regional levels.
4.1.5 Consultations with the Government and stakeholders (3rd selectivity criterion)
led to the selection of rural areas as the focus of Bank operations since this strategy is
aimed at reducing inequalities between the regions of the country. Policy dialogue has also
recognized that rural development will be effective only when it is accompanied by decentral-
ization so as to promote participatory development. Reforms at central Government level will
be funded by other partners. In 2015, rural areas were still plagued by widespread poverty, with
an incidence of 68.9% compared to 37.8% in other urban areas and 34.3% in Lomé (See more
details in paragraph 3.6.2 on lessons learned). With regard to the development of agropoles in
Togo, three priority sites were identified for the entire national territory based on the following
criteria: (i) potential of the areas concerned; (ii) production levels; and (iii) public or private
investments underway or scheduled. These criteria guided the identification of the potential
areas, namely the basins of Oti, Kara and Mono, which are currently subject to a PPF study.
4.1.6 Since scarcity of resources would limit initial intervention to only one of the three
selected agropoles, the Kara agropole was selected for the Bank's future operation (See
Box 6). This choice was mainly dictated by the need to complement the other partners (4th
selectivity criterion). Indeed, BADEA, IsDB and
OFID are preparing a CFAF 38 billion programme
over the 2016-2020 period to develop Oti basins.
The level of current knowledge in Mono is not
enough to develop an agropole over the next five
years. The selection of Kara region is also based on
its comparative advantages in terms of the availa-
bility of studies conducted and the possibility of
rapid implementation of the agropole activities.
Despite their significant potential, the industrial
and agricultural sectors still play a limited role in
reducing poverty in the region. Only two agribusi-
ness units have been established there to process
local products: 20,000 tonnes of cotton per year
and 10,000 tonnes of rice per year. In this agropole
and in addition to the above sectors, several value
chains can be developed, including the processing
Agricultural performance in Kara region
was dominated by tubers (450,000 tonnes),
followed by cereals (200,000 tonnes) and le-
guminous crops (30,000 tonnes) in 2015.
Meanwhile, crops that were once abandoned
(sesame, cashew, and shea butter) are gain-
ing significantly in production as a result of
various irrigation schemes and the interven-
tion of private developers engaged in agri-
business and export trade. Kara region is a
crossroads and an essential hub with several
routes for the conveyance and sale of agri-
cultural products to Lomé Port, as well as
coastal and Sahel countries. Togo's strategy
is to establish agropoles gradually, such that
they do not compete with each other. Kara
region will host the pilot agropole.
Box 6. Agricultural Potential of Kara
12
of sesame, as well as fish and poultry farming. These value chains are also targeted by the
Bank's strategy for the transformation of agriculture in Africa (2016-2025), except for sesame
which is widely consumed in northern Togo and interests some investors on account of its ex-
port potential. In order to reduce inequalities, dialogue with stakeholders led to installation of
the agropole park in Agbassa (Kara) which hitherto had no energy infrastructure.
4.1.7 The selection of energy infrastructure is justified by the Bank’s comparative ad-
vantage (5th selectivity criterion) with respect to the first of the High 5s priorities: Light
up and power Africa. The other major infrastructure projects are supported by other donors.
Increased access to electricity has proven to be the catalyst for the planned agricultural trans-
formation. Access to electricity will be accelerated by focusing on the implementation of a
major capacity building programme on the generation, transmission and distribution of electric
power with private sector participation. The process will be piloted through the New Deal for
Energy in Africa, whose objective is to achieve universal access to energy by 2025 - with access
rates of 100% in urban areas and 95% in rural areas. To that end, the laws and regulations will
be revised to adapt them to the current context of the sector.
4.1.8 The lessons learned from implementation of the previous CSP and the IDEV
long-term evaluation report (6th selectivity criterion) led to the adoption of two innova-
tions which distinguish the new CSP from the previous ones. The innovations are intense
focus on inclusiveness and green growth, as well as the integrated organization of opera-
tions. As indicated above, the new strategy targets the poorest regions and communities, par-
ticularly women, while protecting their natural environment. Furthermore, an integrated ap-
proach will bring together the various operations as stipulated in the Bank’s Ten-Year Strategy
2013-2022. The strategy mainly recommends integrated infrastructure (energy, transport, wa-
ter) that supports value chains in agriculture and agro-industry, especially in fragile States.
Lastly, the CSP is based on analytical studies (see Annex 12), including two recent studies by
the Bank, namely: (1) complementary studies for preparation of the project for building climate
resilience of infrastructure in the coastal areas of Togo; and (2) problems concerning access to
electricity in Togo.
4.2 CSP Objective and Strategic Pillars
4.2.1 The major objective of the Bank’s CSP 2016-2020 for Togo is to help the country
improve the living conditions of local communities through the development of agropoles
and access to energy. This objective, which is aligned on the Bank's strategic High 5s priori-
ties, will help to address the challenges of youth unemployment (cf. the Bank Group's Strategy
on Youth Employment in Africa 2016-2025), gender inequality and resilience to climate
change, which are still the sources of fragility. Progress towards this objective requires highly
inclusive actions to ensure: (i) water management and irrigation development; (ii) electricity
generation; (iii) existence of roads for the evacuation of agricultural produce; (iv) skills devel-
opment; and (v) the improvement of financial, sector, and local governance. The entire Togo-
lese population will benefit from this strategy, which is geared towards socio-economic trans-
formation, and more specifically 179,205 farmers in Kara region, of whom 54% are women.
To take into account this new orientation, the CSP (2016-2020) focuses on two pillars: Pillar
1: Development of inclusive growth and agribusiness competitiveness poles; and Pillar 2:
Support for financial, sector and local governance
13
Pillar 1
Development of Inclusive Growth and Agribusiness Competitiveness Poles
4.2.2 The strategy comprises the preparation of three agropoles and the development of one
of them (Kara) over the 2016-2020 period. To that end, the Bank will contribute to the con-
struction of infrastructure, as well as to integrated capacity building to ensure inclusive socio-
economic transformation based on the emergence of Kara agropole. This will include the build-
ing of critical socio-economic infrastructure (construction of highways and rural roads, irriga-
tion schemes, electricity and drinking water supply, etc.). It will also entail capacity building in
the agricultural and agro-industry sectors.
4.2.3 The approach will be part of an overall local development process, involving all stake-
holders, especially grassroots communities and women, as well as the private sector which is
crucial to the development of Kara agropole. Through its private sector window, and using
financial mechanisms like the PPP, the Bank will also focus on developing agribusiness within
the agropole.
4.2.4 In addition to food and nutritional
security which need to be preserved and
strengthened, this will entail gradual
transformation of agriculture within the
agropole into a competitive and inclusive
agri-food sector that creates wealth, im-
proves living conditions, and protects the
environment as described in the Bank
Group strategies on: (i) the transfor-
mation of agriculture in Africa (2016-
2025); and (ii) the industrialization of
Africa, which is pending approval. The
approach will entail developing infra-
structure and as well as efficient and re-
silient production techniques, with farm-
ers better trained and equipped, within
dynamic and professionalized sectors
that involve the private sector. Opera-
tions will perforce include components
on environmental protection and sustain-
able natural resource management. The
activities implemented under this pillar
will increase: (i) agricultural productiv-
ity; (ii) the electricity and drinking water
access rates; (iii) the processing of agricultural raw materials; (iv) exports of agro-industrial
products; and (v) expertise in agriculture and agro-industry.
Outcome 1: Development of Infrastructure for the Agropole
4.2.5 The Bank will support the Government in financing irrigation infrastructure
(dams, irrigation areas, lowlands, etc.). This will entail tapping into the watersheds of the
region and exploiting underused structures. The ongoing PPF study on the development of ag-
ropoles will determine the establishment and technical characteristics of the various structures
(Box 8). In addition to the irrigation facilities, it will also entail providing Agbassa (Kara) and
The construction of Kara agropole has three main compo-
nents that will be specified by the PPF study, namely: (1)
support infrastructure; (2) the companies site; and (3) pro-
duction units. The Bank will support the Government in
constructing upstream back-up infrastructure: energy sup-
ply, irrigation schemes, and rehabilitation of rural
roads. The Government will develop the agropole site on
60 hectares, which will include facilities and leasable
equipment, in particular: flexible industrial surfaces, of-
fices, storage area, laboratory, technology platform,
etc. Furthermore, the Government will provide local farm-
ers and agro-industrialists with technical and financial ser-
vices. The agro-industrialists will ensure, at their own ex-
pense, the development of industrial plantations and the es-
tablishment of production units in the agropole. The PPF
study will determine the indicative cost of the Kara design,
propose appropriate public-private partnership models
and outline the prospects as regards use of the Bank’s pri-
vate window resources. With regard to these agro-indus-
trial projects, the Bank could help in their structuring, the
application of best environmental and social practices, and
the mobilization of other development partners to provide
funding.
Box7: Development of the Kara Agropole
14
the surrounding townships targeted by the agropole with infrastructure that can meet their drink-
ing water and sanitation needs. The strategy provides for the development of mini-DWS sys-
tems consisting of boreholes, elevated water tanks, water supply networks and standpipes. Bank
support to Kara region will enable the country to move towards achieving the targets of: (i)
SDG 2.3 on “doubling agricultural productivity”, SDG 6.1 on “universal, equitable and afford-
able access to drinking water” and SDG 12.2 on “rational use of natural resources”. The indica-
tors and targets in Kara agropole region from 2015 to 2020 are: (i) expansion of developed
lowlands and irrigation areas from 10,000 to 15,000 ha; (ii) improvement of sesame yields per
hectare from 250 to 800 kg; (iii) increase in the number of agro-industry companies from 0 to
3; and (iv) increase in the drinking water access rate from 25% to 55%.
4.2.6 The energy component is included in the Kara agropole development project. It
will include the construction of a transmission line of about 50 km from Sarakawa to
Agbassa to supply electricity for the agropole Park activities and electrification of the
chief towns of districts and localities situated within its vicinity. Electrification of the chief
towns of the districts is consistent with the Government’s programme targeting 150 chief towns
of the country's districts that are not yet electrified. For Kara region, this programme provides
for an increase in the village electricity access rate from the current 16% to 43% in 2020. Project
preparation studies under the PPF will indicate the expected Bank's contribution to the achieve-
ment of this target. The studies will also assess the demand for electricity at commencement of
agropole activities and for the surrounding localities, as well as the trend of such demand. On
the basis of such demand, the studies will determine the characteristics for the electricity supply
network. Furthermore, to increase electricity supply to Kara region, the abovementioned studies
will assess the need to build a hydroelectric power plant on the Baagan site whose potential is
estimated at 6 MW. The European Union
is currently funding a feasibility study at
the Baagan hydroelectric power plant, in
addition to the PPF study.
4.2.7 As regards opening up access to
the agropole, Bank support will focus
on: (i) the construction of rural roads to
evacuate agricultural and agribusiness
products; and (ii) the rehabilitation of
regional integration roads for trans-
porting products from the agropole to
the port and the Abidjan-Lagos corri-
dor. Feeder roads will facilitate the evacu-
ation of products from the agropole to
needy areas and markets nationwide, as
well as beyond the borders of the country
through Lomé Port and the Abidjan-Lagos
road corridor (Box 8). The current PPF
study will determine indicators and targets
for reducing transport costs and travel time. The available resources will be used to develop
about 400 km of rural roads and rehabilitate 28.2 km of road on the Avépozo-Aného section.
Rehabilitation of this road will include an environmental component to protect communities
against the advance of sea water. The goal will be to use this road on the Abidjan-Lagos corridor
to accelerate export of produce from Kara agropole. Some 200 tonnes of poultry products and
Over the past five years, the Bank has been very active
in the financing of infrastructure and regional financial
institutions. These include: (i) Lomé port, which became
the main regional transit and transshipment hub; (ii) the
Abidjan-Lagos and Lomé-Ouagadougou road corridors;
(iii) the WADB and Ecobank lines of credit, as well as
equity participation in the capital of an Investment Fund
(Cauris Croissance II) headquartered in Lomé. The ag-
ropole will be provided with technical and financial sup-
port to enable it benefit from regional financial re-
sources and make use of regional infrastructure to evac-
uate agro-industrial products. The Bank will mobilize its
partners (including the financial sector) to co-finance
the agropoles and strengthen the coordination and syn-
ergy of their actions required for facilitating the devel-
opment of support infrastructure for efficient develop-
ment of the agropoles.
Box 8. Regional Opportunities
15
350 tonnes of fishery products will be exported in the sub-region by road annually and 4,200
tonnes of oil and 3,800 tonnes of sesame cake exported to Asia through Lomé Port.
Outcome 2: Agricultural and Agro-industrial Capacity Building
4.2.8 The transformation of the agricultural sector and the emergence of agropoles will
involve the development of new technologies and the use of new skills. The new situation in
the agropole will also require higher levels of performance, as well as standardization and in-
troduction of international standards. It will therefore be essential to include education, voca-
tional training, apprenticeship, as well as research and development among the new activities
promoted within the agropole. Soil fertility, renewable energy, quality control and certification
should feature in the agropole programme of studies, experimentation and dissemination. Bank
support will focus particularly on determining courses, curricula and occupations to be devel-
oped, as well as capacity building for existing institutions in terms of equipment and premises.
The Bank will support the broad dissemination of best practices in: (i) water management and
irrigation development; (ii) improvement of productivity; (iii) the quest for product quality; and
(iv) conservation, processing and marketing of produce. On the basis of the current PPF, the
Sarakawa Animal Research Station will restructure the research-extension-training system to
meet the needs of the agropole. The University of Kara will also propose technical and com-
mercial courses as a contribution to professionalization of the skills required in the agropole.
The training courses will highlight the viability of investing in youths as specified in the Bank
Group Strategy for Youth Employment in Africa 2016-2025. At least 250 extension workers
will be trained up to 2020, including 60% women and 90% youths aged 15-35 years, following
a curriculum to be specified by the PPF study. Some 50 SMEs, including 50% managed by
youths (aged 15-35) and 30% by women, will be trained in the design of production methods
and development of new agro-industrial product lines. Bank support for the Institute of Statis-
tics in Togo will improve the country’s capacity to generate basic and rural impact data for the
Bank’s intervention sectors, in efforts to curb disparities between rural and urban areas.
Pillar 2
Support for Financial, Sector and Local Governance
4.2.9 The objective of this pillar will be to enhance financial governance and the business
climate, support the decentralization process, and improve governance of the agricultural and
energy sectors, while observing GAP II guidelines. To support reforms in these sectors, Bank
operations will cover all the institutional, legislative and regulatory measures that promote the
development of agropoles.
Outcome 3: Improvement Financial and Sector Governance for the Development of Ag-
ropoles
4.2.10 The Bank will support the Government of Togo in the review of its electricity sub-
sector regulatory framework so as to adapt it to the national and regional contexts, and
make it attractive to private investors. Accordingly, the Bank will finance the revision of the
law on the Electricity Code and the preparation of its implementing decrees. The Government
intends to revise this law so as to enable the private sector to participate in electric power gen-
eration. It will also create an agency and a national fund for rural electrification so as to accel-
erate the electrification of townships and villages in the country. The Bank will support the
drafting of the legal texts establishing these structures. The improvement of governance in the
16
electricity sub-sector will enable the country to progress towards achievement of SDG 7.1 tar-
gets on “universal access to affordable, reliable, and modern energy services”. For the rural
areas, the access rate would increase from 5% in 2015 to 18% in 2020.
4.2.11 Improvement of the institutional and regulatory framework of the agricultural
sector will make the business environment conducive to the development of agropoles. Support for the structural transformation of Togolese agriculture will be preceded by the adop-
tion of a new land code, which will reduce the time needed to register property from 288 days
in 2016 to 150 days in 2020. It will also entail supporting the Government to adopt the agricul-
tural policy and a framework law on agricultural programming.
4.2.12 The Bank will continue to support the Government in its efforts to raise domestic
resources to finance public infrastructure for the development of agropoles. As such, in-
stitutional capacity building for the OTR will be conducted concurrently with reforms to
broaden the tax base, optimization of the exemptions policy, and implementation of sound land
registration management.
4.2.13 The Bank will also support the establishment of an efficient system for the identifica-
tion, design, implementation and monitoring/evaluation of public investments so as to improve
the implementation rate of the national investment plan in decentralized regions, particularly in
Kara agropole region. Furthermore, the energy and agriculture sectors will be provided with
medium-term expenditure frameworks (MTEF) aligned on the strategy.
Outcome 4: Strengthening of decentralization and women’s participation in the decision-
making process.
4.2.14 The Bank will support the decentralization process to ensure the active participation
of women, youths and all regions of the country in the political, economic and social transfor-
mation of Togo. Since decentralization is being implemented progressively and gradually, Bank
assistance over the next five years will focus on the establishment of a legal, financial and
strategic framework for local administration and governance. The achievements expected by
2020 are: (i) adoption of the decentralization policy and its implementation strategy; (ii) the
legal and financial framework for decentralization; and (iii) the law on the status of employees
in local government bodies. Decentralized territories with their elected bodies should be oper-
ational by 2020. The Bank will initiate dialogue with the Government to ensure that the legal
framework mainstreams gender into the decentralized bodies in the same spirit as the law passed
in June 2013 on the presentation of lists with an equal representation of men and women in the
various elections. Consequently, women's participation in decision-making and economic ac-
tivities should increase with the institution of decentralization.
4.3 Indicative Bank Assistance Programme
4.3.1 The Bank's strategy in Togo (2016-2020) will comprise five operations, including the
flagship Kara region agropole development project. The table in Annex 5 presents the Bank’s
Indicative Assistance Programme for Togo during the five CSP years. The results-based frame-
work in Annex 1 presents the expected CSP outputs and outcomes in 2018 and at completion
in 2020.
4.4 Non-Lending Programme of Activities
4.4.1 Non-lending activities will comprise advisory services and dialogue based on analyti-
cal studies. All these activities will be aligned on the CSP pillars. To strengthen policy dialogue,
17
the Bank will join the Government in conducting economic, sector and analytical studies in a
number of sectors to fill the analytical knowledge gap.
4.4.2 Four new studies are requested by the Government, namely: (i) study on the adjustment
of cement prices; (ii) study on the adjustment oil prices; (iii) study on public debt control; and
(iv) study on decentralization and empowerment of local authorities. Various committees ap-
pointed by the Government will participate actively in the development of knowledge products
designed by the Bank. This will strengthen the Government’s analytical capacity and facilitate
ownership of the studies’ findings. Concrete activities on building the government's debt man-
agement capacity will be identified through the abovementioned study and implemented by the
Government with the support of TFPs, including the Bank.
4.5 Financing of the CSP
4.5.1 The financing of CSP 2016-2020 will benefit from the balance of ADF-13 cycle
resources (2016), the total ADF-14 cycle resources (2017-2019), and part of ADF-15 cycle
resources (2020). The amount of UA 28.33 million from ADF-13 resources (PBA and TSF)
will be committed in 2016. Additional amounts of UA 95 million should be available, making
an indicative budget of UA 123 million for the entire CSP 2016 - 2020 period. This amount
comprises UA 25 million from the ADF, UA 63 million from the TSF, UA 5 million from the
NTF, and UA 30 million from the AfDB private sector window. In addition to the ADF re-
sources, the Bank will seek to mobilize resources from other sources of financing (Transition
Support Facility, Rural Water Supply and Sanitation Initiative (RWSSI), African Water Facil-
ity, and the climate funds). Togo's financing could also be covered by instruments such as par-
tial risk guarantees (PRGs) and partial credit guarantees (PCGs).
4.5.2 The CSP could also be financed with AfDB window and Africa50 resources for
private sector investment. However, the ongoing collaboration between the Government
and the IMF does not yet indicate the country’s leeway for non-concessional loans to the
public sector. Under the Bank’s credit policy, Togo is eligible for the AfDB Window (public
sector) although the debt sustainability analysis on which such a decision is based does not
permit such eligibility. In these circumstances, the Bank will continue dialogue with the Gov-
ernment, the World Bank and the IMF with a view to estimating Togo’s leeway for non-con-
cessional loans.
4.5.3 There are several potential areas for collaboration with other development part-
ners. It will therefore be necessary to benefit from co-financing opportunities, especially in the
agricultural sector (World Bank, FAO, IFAD, UNDP, IsDB, Kuwaiti Fund, Egypt and Mo-
rocco), energy sector (EU, WADB and IsDB), and the transport sector (EU, EIB, WADB,
EBID, GEF and WAEMU). Furthermore, collaboration with local reflection groups such as the
EU, UNDP, IMF and the World Bank will highlight the Bank’s commitment to enhance the
conduct of analytical studies and production of knowledge on the country.
4.6 Monitoring/Evaluation of Bank Group Operations
4.6.1 Close monitoring of project implementation during the CSP period (2011-2015) by the
Bank's country office and sector ministries significantly contributed to the Bank's overall port-
folio performance. However, given the context of fragility and the Government's weak HR ca-
pacity, there are persistent project implementation problems which should serve as a lesson in
the establishment of mechanisms for monitoring/evaluation of CSP (2016-2020). In this regard,
in order to reduce project implementation delays, the Bank will ensure application of Directive
No. DP 02/2015 through recourse to advance procurement action, prior appointment of key
18
project management staff, and recourse to the project preparation facility (PPF). In this regard,
it should be noted that the technical studies of the agropole project planned for 2017 will be
conducted in 2016 under the PPF approved by the Bank in February 2016.
4.6.2 A results framework (Annex 1) is defined in coordination with the Togolese authorities
to ensure alignment on SCAPE indicators, programme budgets and Bank operations over the
2016-2020 period. This results framework takes into account the country’s development objec-
tives, the operational priorities identified under the two pillars, the problems hampering the
attainment of these objectives, and expected outputs at mid-term and by 2020. A mid-term re-
port will be prepared in 2018 and a completion report in 2020.
4.7 Country Dialogue
4.7.1 Dialogue will be maintained with the Government on the need to improve the quality
of the portfolio, and with partners on the need to align their various procedures on national
procedures and on international norms and standards.
4.7.2 The Bank will continue dialogue on the need for private sector investment in the agri-
cultural and electricity sectors. The 2015 data results from CPIA, PEFA and PEMFAR assess-
ments will lend greater precision to discussions with the Government on progress made and on
the impact of Bank funding on economic and financial governance. This dialogue will put par-
ticular emphasis on the challenges faced in: (i) the development of agropoles; (ii) improvement
of financial, sectoral and local governance; (iii) debt management; (iv) oil and cement price
adjustments; (v) dematerialization of fiscal procedures; and (vi) land reform.
4.7.3 The country’s political vulnerability partly stems from delays in establishing decen-
tralization structures. The Bank will participate in dialogue on the decentralization process and
on the overall aspects of the country’s administrative governance.
4.8 Risks and Mitigation Measures
Political Risk
High probability: Territorial decentraliza-
tion is not initiated during the CSP period or
starts fairly late.
High-impact mitigation measures: Decision-making at mid-
term review to redirect Bank support towards decentralized
bodies. There is also need to seek the involvement of other
key partners in the policy dialogue on decentralization.
Economic Risks
High probability: The private sector does
not, when appropriate, take advantage of the
benefits of Bank investments in the agropole
region.
High-impact Mitigation Measure: Speed up dialogue with
the country to reform the land tenure system, a measure that is
crucial to the emergence of growth poles and market aspira-
tions.
Public Sector Management Risks
Average probability risk: Togo could con-
tinue to borrow on the domestic market be-
cause the IMF and World Bank debt sustain-
ability assessment fails to grant the country
access to non-concessional resources. Pro-
ject and programme management capacity
problems could persist.
High-impact Mitigation Measure: Intensify dialogue with the
IMF, World Bank and the Government so that Togo and the
IMF conclude a programme as soon as possible. This should
be accompanied by capacity building in debt management,
and the State should maintain a prudent debt strategy on the
financial market and clear domestic debt arrears. The Bank
will continue its capacity building activities.
Average probability risk: The Togolese ag-
riculture, which is the anchor of this strat-
egy, remains particularly vulnerable to cli-
mate change (see Annex 11), including late
and irregular rains. Irrigation is not very de-
veloped in the country, apart from flow irri-
gation that is practised along watercourses.
High-impact mitigation measure: Since the problem of cli-
mate change is crosscutting, the Bank will, if need be, collab-
orate with a diversity of stakeholders (see Annex 11) that have
operations to curb the negative effects of climate change and
build the resilience of communities and regions of Togo. The
Bank will support the broad dissemination of water manage-
ment and irrigation development best practices.
19
5 CONCLUSIONS AND RECOMMENDATIONS
5.1.1 SCAPE (2013-2017) seek to meet the challenge of the country’s fragility and its vul-
nerability to internal and external shocks. Internal vulnerability stems mainly from inequalities,
climatic hazards and the absence of decentralization. Exogenous shocks stem from the coun-
try’s dependence on imports of electricity and food products, as well as exports of cash crops
whose prices are highly volatile.
5.1.2 The structural transformation of productive sectors that have high potential and are
more likely to create jobs for youths and women will significantly improve the living conditions
of the Togolese population. Togo's agricultural policy paper indicates that the country's main
strategy is to establish agricultural development poles. The Government intends to initiate in-
stitutional reforms that promote decentralization and create appropriate conditions for inclusive
growth, private sector development, and sustainable environmental management.
5.1.3 Consequently, AfDB’s intervention strategy in Togo for 2016-2020 focuses on two
pillars, namely: (i) Development of inclusive growth and agribusiness competitiveness poles;
and (ii) Support for financial, sector and local governance. To that end, the Government and
the Bank have agreed to join efforts in creating favourable conditions for the emergence of
agropoles, in terms of: (i) access to electricity; (ii) water management; (iii) transportation of
agricultural produce; and (iv) financial, sector, and local governance. The Bank’s 2016-2020
CSP for Togo also proposes the promotion of inclusive and green growth.
5.1.4 The Boards of Directors are invited to consider and approve the Bank’s 2016-2020
CSP for Togo, as well as Togo's eligibility for Pillar I resources of the Transition Support Fa-
cility (TSF).
I
Annex 1: Indicative Results Framework Matrix for the 2016-2020 CSP
Togo’s develop-
ment goals
(SCAPE)
Problems
undermining
achievement of
Togo's develop-
ment goals.
Expected outcomes at the end
of the CSP period (2020)
Expected outputs at the end of the
CSP period (2020)
Expected out-
comes at mid-
term (2018)
Expected outputs at
mid-term (2018)
Bank operations:
Ongoing and new
operations to be
implemented
during the CSP
period
Pillar 1 - Development of inclusive growth and agribusiness competitiveness poles
Structural trans-
formation and de-
velopment of
agro-industrial
centres
Poor water man-
agement, limited
access to elec-
tricity, low agri-
cultural produc-
tivity and short-
age of farm-to-
market roads.
Kara Agropole
- 2,500 jobs created: 30% for
women and 65% for youths.
- Access to electricity increases
from 16% to 43% in Kara and
from 5% to 18% in rural areas
at national level.
- Access to drinking water in-
creases from 25% to 55% in
Kara and from 45% to 58% in
rural areas at national level.
- Sesame productivity (increases
from 250 to 800 kg/ha).
- Coverage of poultry meat prod-
uct needs (increases from 16%
to 28%).
- Coverage of fishery product
needs (increases from 22% to
25%).
- 3 agro-industries created.
- Exports of: (i) 8,000 T of ses-
ame by-products, 250 T of
poultry products; and (iii) 350
T of fishery products.
- Reduction of coastal erosion.
Ongoing Operations
2200 jobs (2016)
Kara Agropole
- An agropark is built by the Govern-
ment
- Irrigation capacity increases from
10,000 ha to 15,000 ha
- 400 km of farm-to-market roads
constructed
- Transmission of electricity over 50
km.
- Supply of electricity to the agropole
- 10 boreholes and DWS systems
with elevated water tanks
- 28 km of road on the Avépozo -
Aného section
- Construction of groynes in the
ocean
- 250 extension workers trained, in-
cluding 50% women and 70%
youths.
- 50 entrepreneurs trained, including
50% youths and 30% women.
Ongoing Operations
102 km of road (2016).
Kara Agropole
- 500 jobs created:
30% for women
and 65% for
youths.
- Sesame produc-
tivity (500
kg/ha)
- 1 agro-industry
created.
Ongoing Opera-
tions
2,200 jobs (2016)
Kara Agropole
- 100 km of farm-to-
market roads con-
structed
- Transmission of
electricity over 10
km
- 4 boreholes and
DWS systems
Ongoing Operations
102 km of road
(2016)
Ongoing projects:
Atakpame - Kara
road
New project:
Agropole project
Avépozo-Aného
road project
Support for de-
centralization
Budget support
(sector govern-
ance)
II
Annex 1: Indicative Results Framework Matrix for the 2016-2020 CSP
Togo’s develop-
ment goals
(SCAPE)
Problems
undermining
achievement of
Togo's develop-
ment goals.
Expected outcomes at the end
of the CSP period (2020)
Expected outputs at the end of the
CSP period (2020)
Expected out-
comes at mid-
term (2018)
Expected outputs at
mid-term (2018)
Bank operations:
Ongoing and new
operations to be
implemented
during the CSP
period
Pillar 2: Support for financial, sector and local governance
Improvement of
governance
geared towards in-
clusive and sus-
tainable transfor-
mation
Delays in the
decentralization
process; public
utility services
generate high
costs
Financial and sector govern-
ance
- 50% private sector share in electricity generation.
- The time required to register
property reduces from 288 to 150 days.
- Tax base broadened
Decentralization
- Local government bodies are
elected and are operational.
- Elective bodies include 30%
elected women representatives
and at least one youth repre-sentative.
Ongoing Operations
- Tax revenue/GDP ratio in-
creases from 18.7% (2015) to 22% (2019)
- Doing Business (DB) index on
payment of taxes improves
from 50.81 (2015) to 60 (2020)
- 19,000 direct jobs created, in-
cluding 40% for women
Financial and sector governance
- Law and decrees to institute the
Electricity Code voted and adopted.
- Rural electrification authority es-tablished.
- National electrification fund estab-
lished.
- New land code voted.
- Law on exemptions revised.
Decentralization
- Decentralization strategy adopted.
- Decentralization law voted.
- Law on local authority employees
voted.
Ongoing Operations
- 500 OTR employees trained, in-cluding 30% women
- E-tax system operational
- 14,200 grassroots farmers, includ-
ing 40% women, trained
- Loans granted to 1,400 persons, in-
cluding 40% women
Financial and
sector govern-
ance
- The time re-
quired to regis-
ter property re-
duces from 288 to 200 days.
Ongoing Opera-
tions
- Tax reve-
nue/GDP ratio: 22%
- Tax reve-
nue/GDP ratio: 6.5%
- DB index on
paying taxes = 55
5,000 new di-
rect jobs, in-
cluding 40% for women.
Financial and sector
governance
- New land code voted
- Law on Electricity
Code voted
Decentralization
Law on decentraliza-tion voted
Ongoing Operations
- OTR strategy is available
- Training of 300
OTR employees: 30% women
- Publication of 4th, 5th EITI reports
- Loans granted to
1,400 persons, in-
cluding 40%
women
Ongoing projects:
PAMOCI project
PAGFI project
Youth employ-
ment promotion
project
PEFA Study
Market construc-
tion project
New operations:
Decentralization
Budget support
III
Annex 2: Bank Portfolio Status in Togo as at 15 March 2016
Sector Project Title Status Window Approval
Date
Disbursement
Deadline
Disbursed
Amount (UA)
Approved
Amount (UA)
Disb. rate
(%)
Wa
ter/
san
ita
tio
n
Toilets for All in Sokodé and Recycling of Faecal Sludge OnGo AWF 19/04/2013 31/12/2017 140,054 935,760 15.0
Sub-Total Water & Sanitation 140,054 935,760 15.0
Ag
ric
PPF - Project for the Development of Agropoles in Togo Apv ADF 29-Feb-16 30-Jun-17 0 995,000 0.0
Sub-total agriculture 0 995,000 0.0
Gov
’t
Resource Mobilization and Institutional Capacity Building Support Project
(PAMOCI) OnGo TSF 09-Oct-14 30-Jun-19 245,052 5,000,000 4.9
Fiscal Governance Support Project (PAGFI) Apv TSF 17-Feb-16 31-Dec-20 0 3,080,000 0.0
TSF 17-Feb-16 31-Dec-20 0 11,920,000 0.0
Sub-Total: Governance 245,052 20,000,000 1.2
So
cia
l
Kara and Lomé Markets Reconstruction and Traders Support Project OnGo
ADF 22/01/2014 31-Dec-18 0 1,930,000 0.0
ADF 22/01/2014 31/12/2018 325,826 1,650,000 19.7
FAPA - Kara and Lomé Markets Reconstruction and Traders Support Project OnGo FAPA 26-Jan-15 31/12/2018 0 588,061 0.0
Youth Training and Employment Project Apv
ADF 28-Oct-15 31-Dec-20 0 6,670,000 0.0
NTF 28-Oct-15 31-Dec-20 0 6,500,000 0.0
TSF 28-Oct-15 31-Dec-20 0 1,330,000 0.0
Sub-Total – Social Sector 325,826 18,668,061 1.7
National Total 710,933 40,598,821 1.8
Mu
ltin
ati
on
al
tra
nsp
ort
Benin/Togo: Lomé-Cotonou Road Rehabilitation and Abidjan-Lagos Corridor
Facilitation Project - Phase 1 OnGo ADF 05/10/2011 31/12/2016 992,576 4,810,000 20.6
Togo/Burkina: Community Road (CU9) Rehabilitation and Transport Facili-
tation along the Lomé-Ouaga Corridor OnGo
ADF 27-Jun-12 31/12/2017 12,276,319 17,800,000 69.0
ADF 27-Jun-12 31/12/2017 13,642,755 30,230,000 45.1
TSF 27-Jun-12 31/12/2017 1,859,120 21,500,000 8.6
EU-AITF 23-Feb-15 31/12/2017 467,267 923,915.19 50.6
Sub-total for Transport 29,238,037 75,263,915 38.8
Multinational Total 29,238,037 75,263,915 38.8
Total - Public Sector 29,948,970 115,862,736 25.8
GRAND TOTAL 29,948,970 115,862,736 25.8
IV
Annex 3: Revised Portfolio Performance Improvement Plan (PPIP 2015-2016)
Problems Identified Envisaged Measures Monitoring Indicators Responsible for implement-
ing measures
Deadlines/
Frequency
Strengthen ownership and project monitoring
Poor ownership of projects by
Government structures
Involve beneficiary structures or ministries right
from the project identification stage.
Project disbursement rate,
Improved overall portfolio score
Ministries/Bank Continuous
Raising of national counterpart funds
Difficulties in paying counter-
part funds to projects
The Ministry of Finance will establish a mecha-
nism for monitoring the disbursement of counter-
part funds by ensuring prioritization in planning.
Disbursement rates for infrastructure pro-
jects
MEF 2016
Procurement Monitoring
Long delays in approval of pro-
curement documents
Streamline timeframes for file processing in PIUs
and Ministerial Procurement Commissions
Number of days between initiation and ap-
proval of contracts (in 2012 the timeframe
was 139 days for open competition (OC)
and 167 days for limited competition
(LC)).
CEP, DNCP, ARMP and State
structures responsible for con-
tract approval.
2016
Long delays in transmission of
formal approval notices (FANs)
Reduce the time to get closer to the Bank standard
(approx. 7 days)
DAM effectively implemented.
Time frame for processing of procurements
Bank Continuous
Poor performance of some con-
sultant suppliers
Conduct systematic assessment of the performance
of all consultants and suppliers and enforce con-
tract terms
Reduce the number of bankrupt businesses PIU / Government 2016
Financial Management
Bottlenecks in the processing of
disbursements
Reduce the timeframe and steps in the national pro-
cess for the disbursement of Bank funds
Maximum time limit of 10 days
MEF/Sector Ministries 2016
Audit delays Reduce delays in submission of audit reports Number of projects with late submission of
audit reports.
Number of projects that comply with the
deadlines for recruitment of auditors
PIU 2016
Monitoring of Action Plan
Strengthen the monitoring of the
portfolio performance improve-
ment plan (PPIP)
Engage in periodic monitoring of action plan im-
plementation and report progress to the Bank on a
quarterly basis
Organize quarterly portfolio reviews
Progress made in PPIP implementation
PIU/MEF
Bank / TGFO
Quarter
Quarter
V
Annex 4: Breakdown of Official Development Assistance by Sector in 2013 (in USD million)
WA
DB
UN
WB
EU
Ch
ina
JA
PA
N
NG
Os
AfD
B
US
A
GE
RM
AN
Y
BA
DE
A
Fra
nce
Oth
ers
TOTAL %
Transport Infrastructure 70.31 10.71 1.92 29.94 8.63 1.24 1.11 13.25 137.10 33.51%
Health 1.37 52.39 0.11 9.11 6.23 2.10 0.13 71.45 17.46%
Agriculture 10.79 4.62 12.15 0.10 10.23 0.06 2.11 8.94 5.64 54.65 13.36%
Governance 7.59 2.87 24.17 0.62 5.16 4.44 3.99 3.00 0.06 51.91 12.69%
Education 1.79 11.39 3.64 1.25 4.16 0.12 22.37 5.47%
Environment 0.13 1.12 6.09 1.34 5.38 0.02 0.02 1.18 0.18 0.75 16.22 3.96%
Social Protection 3.02 5.27 0.80 3.84 2.45 0.50 0.23 16.11 3.94%
Industry and Handicraft 8.23 0.26 6.00 0.00 14.49 3.54%
Drinking water 0.34 6.35 0.32 4.30 1.39 0.85 0.59 0.00 14.15 3.46%
Energy infrastructure 5.06 0.02 1.77 6.85 1.67%
Youth and employment 0.42 0.40 2.11 0.00 2.93 0.72%
Gender 0.12 0.20 0.48 0.00 0.79 0.19%
Post and telecommunications 0.04 0.00 0.04 0.01%
Culture and Sports 0.03 0.00 0.03 0.01%
TOTAL 95.90 71.42 48.79 34.79 30.26 19.91 17.51 16.09 15.56 15.44 10.90 10.58 21.96 409.11 100%
% 23% 17% 12% 9% 7% 5% 4% 4% 4% 4% 3% 3% 5% 100%
VI
Annex 5: Indicative Lending Programme for the new CSP 2016-2020 (amount in UA million)
INDICATIVE PROGRAMMES Year
Sovereign funding Non-Sov-
ereign
AfDB
Total
Bank
Co-fi-
nancing
Grand
Total Preparation Status ADF
(PB
A)
TSF Others
(NTF, FB) S/Total
Pillar 1: Development of inclusive growth and agri-
business competitiveness poles 20 48 - 73 30 103 99 203
Lomé-Cotonou Road Rehabilitation and
Transport along the Abidjan-Lagos Corri-
dor, Phase II
2016 9 18 - 27 - 27 94 122
Preparation mission under-
taken in March 2013. Project
planned for the Board meet-
ings of October 2016.
Abidjan-Lagos Highway Study 2016 1 - - 1 - 1 - 1
The project is under review
and is scheduled for the Board
meetings of October 2016.
Rural development agropoles 8 2017
(2019) 10 30 5 45 30 75 5 80
PPF study underway since
February 2016.
Pillar 2: Support for financial, sector and local gov-
ernance 5 15 - 20 20 3 23
Budget support and greater dialogue on
debt management. 2018 - 15 - 15 - 15 - 15
Request received but progress
expected from the Government
on debt sustainability.
Territorial and tax decentralization 2019 5 - - 5 - 5 3 8
Decentralization roadmap in
the process of adoption and
one identification mission un-
dertaken.
TOTAL 25 63 0 93 30 123 102 226
Co-financing scheduled for the Project on Lomé-Cotonou Road Rehabilitation and Transport Facilitation along the Abidjan-Lagos Corridor, Phase II, which also provides for coastline protec-
tion for a total of UA 94 million, contributed by the EU (UA 16 million), the Government (UA 3 million), EIB (UA 40 million), GEF (UA 4 million), WADB and EBID (UA 31 million) and
WAEMU (UA 1 million).
8 The agropoles development project will receive additional support of UA 5 million in 2019 (NTF financing). This funding will be used to build other core facilities for agro-industrial enterprises.
VII
Annex 6. Togo: Key Macroeconomic Indicators
Indicators Unit 2000 2011 2012 2013 2014 2015 (e) 2016 (p)
National Accounts
GNI at Current Prices Million US $ 1 462 3 020 3 305 3 603 4 056 ... ...
GNI per Capita US$ 300 460 490 520 570 ... ...
GDP at Current Prices Million US $ 1 291 3 757 3 867 4 081 4 483 3 992 4 307
GDP at 2000 Constant prices Million US $ 1 291 1 674 1 754 1 824 1 932 2 039 2 158
Real GDP Growth Rate % -1,0 4,8 4,8 4,0 5,9 5,5 5,9
Real per Capita GDP Growth Rate % -3,5 2,0 2,0 1,2 3,2 2,8 3,1
Gross Domestic Investment % GDP 15,9 19,1 24,2 24,6 23,1 23,4 23,4
Public Investment % GDP 3,7 8,2 8,9 8,8 9,4 10,3 10,4
Private Investment % GDP 12,2 11,0 15,3 15,8 13,8 13,1 13,1
Gross National Savings % GDP 6,5 10,6 9,5 9,9 12,4 17,2 18,9
Prices and Money
Inflation (CPI) % 1,9 3,6 2,6 1,8 0,2 1,9 2,1
Exchange Rate (Annual Average) local currency/US$ 712,0 471,9 510,5 494,0 494,4 591,4 603,1
Monetary Growth (M2) % 47,2 14,5 10,5 13,0 12,4 12,9 ...
Money and Quasi Money as % of GDP % 34,2 65,6 65,1 72,0 73,6 78,0 ...
Government Finance
Total Revenue and Grants % GDP 13,1 22,6 20,3 25,3 26,7 24,7 24,7
Total Expenditure and Net Lending % GDP 17,8 23,7 26,9 29,8 30,3 30,0 29,3
Overall Deficit (-) / Surplus (+) % GDP -4,7 -1,1 -6,7 -4,6 -3,4 -5,3 -4,7
External Sector
Exports Volume Growth (Goods) % -9,9 -2,6 -9,7 40,0 2,9 5,6 9,6
Imports Volume Growth (Goods) % 9,1 25,2 -8,2 21,1 4,1 10,5 5,5
Terms of Trade Growth % 22,8 143,3 21,5 -17,1 -1,5 -13,9 0,5
Current Account Balance Million US $ -81 -467 -294 -568 -591 -474 -474
Current Account Balance % GDP -6,2 -12,4 -7,6 -13,9 -13,2 -11,9 -11,0
External Reserves months of imports 3,1 3,7 2,3 2,1 2,1 2,6 ...
Debt and Financial Flows
Debt Service % exports 2,8 2,5 3,2 3,5 4,1 3,6 3,6
External Debt % GDP 9,6 15,2 18,0 21,6 27,6 31,2 31,6
Net Total Financial Flows Million US $ 60 413 346 450 458 ... ...
Net Official Development Assistance Million US $ 70 542 241 224 208 ... ...
Net Foreign Direct Investment Million US $ 41 711 122 184 292 ... ...
Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2015 and International Financial Statistics, October 2015;
AfDB Statistics Department: Development Data Portal Database, March 2016. United Nations: OECD, Reporting System Division.
Notes: … Data Not Available ( e ) Estimations ( p ) Projections Last Update: April 2016
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
%
Real GDP Growth Rate, 2004-2016
0
2
4
6
8
10
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Inflation (CPI),
2004-2016
-25,0
-20,0
-15,0
-10,0
-5,0
0,0
2 004
2 005
2 006
2 007
2 008
2 009
2 010
2 011
2 012
2 013
2 014
2 015
2 016
Current Account Balance as % of GDP,
2004-2016
VIII
Annex 7. Togo: Comparative Socio-Economic Indicators
Year Togo Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2015 57 30 067 80 386 53 939Total Population (millions) 2015 7,3 1 184,5 5 945,0 1 401,5Urban Population (% of Total) 2015 39,2 39,7 47,0 80,7Population Density (per Km²) 2015 134,3 40,3 78,5 25,4GNI per Capita (US $) 2014 570 2 045 4 226 38 317Labor Force Participation - Total (%) 2015 81,0 66,3 67,7 72,0Labor Force Participation - Female (%) 2015 80,6 56,5 53,0 64,5Gender -Related Dev elopment Index Value 2007-2013 0,803 0,801 0,506 0,792Human Dev elop. Index (Rank among 188 countries) 2014 162 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population) 2008-2013 52,5 39,6 17,0 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2015 2,7 2,6 1,3 0,6Population Grow th Rate - Urban (%) 2015 3,8 3,6 2,6 0,8Population < 15 y ears (%) 2015 42,2 41,0 28,3 17,3Population >= 65 y ears (%) 2015 2,8 3,5 6,2 16,0Dependency Ratio (%) 2015 81,8 80,1 54,6 50,5Sex Ratio (per 100 female) 2015 97,7 100,1 102,8 97,4Female Population 15-49 y ears (% of total population) 2015 24,4 24,0 25,8 23,0Life Ex pectancy at Birth - Total (y ears) 2015 60,2 61,2 68,9 79,1Life Ex pectancy at Birth - Female (y ears) 2015 60,9 62,6 70,8 82,1Crude Birth Rate (per 1,000) 2015 35,1 34,8 21,0 11,6Crude Death Rate (per 1,000) 2015 8,7 9,3 7,7 8,8Infant Mortality Rate (per 1,000) 2015 52,3 52,2 35,2 5,8Child Mortality Rate (per 1,000) 2015 78,4 75,5 47,3 6,8Total Fertility Rate (per w oman) 2015 4,5 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2013 450,0 411,3 230,0 22,0Women Using Contraception (%) 2014 20,7 35,3 62,1 ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2012 5,3 46,9 118,1 308,0Nurses (per 100,000 people)* 2004-2012 27,4 133,4 202,9 857,4Births attended by Trained Health Personnel (%) 2009-2012 59,4 50,6 67,7 ...Access to Safe Water (% of Population) 2015 63,1 71,6 89,1 99,0Healthy life ex pectancy at birth (y ears) 2012 50,0 51,3 57 69Access to Sanitation (% of Population) 2015 11,6 39,4 60,8 96,3Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 2,3 3,8 1,2 ...Incidence of Tuberculosis (per 100,000) 2013 73,0 245,9 149,0 22,0Child Immunization Against Tuberculosis (%) 2013 97,0 84,1 90,0 ...Child Immunization Against Measles (%) 2013 72,0 76,0 82,7 93,9Underw eight Children (% of children under 5 y ears) 2005-2013 16,5 20,8 17,0 0,9Daily Calorie Supply per Capita 2011 2 366 2 621 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 4,5 2,7 3,1 7,3
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2011-2014 134,4 106,4 109,4 101,3 Primary School - Female 2011-2014 126,7 102,6 107,6 101,1 Secondary School - Total 2011-2014 54,9 54,6 69,0 100,2 Secondary School - Female 2011-2014 30,4 51,4 67,7 99,9Primary School Female Teaching Staff (% of Total) 2012-2014 14,7 45,1 58,1 81,6Adult literacy Rate - Total (%) 2006-2012 60,4 61,8 80,4 99,2Adult literacy Rate - Male (%) 2006-2012 74,1 70,7 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 48,0 53,4 75,2 99,0Percentage of GDP Spent on Education 2009-2012 4,0 5,3 4,3 5,5
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2013 48,7 8,6 11,9 9,4Agricultural Land (as % of land area) 2013 70,2 43,2 43,4 30,0Forest (As % of Land Area) 2013 4,2 23,3 28,0 34,5Per Capita CO2 Emissions (metric tons) 2012 0,2 1,1 3,0 11,6
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15-64)
** Labor force participation rate, female (% of female population ages 15-64)
november 2015
0
10
20
30
40
50
60
70
80
90
100
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Infant Mortality Rate( Per 1000 )
Togo Africa
0
500
1000
1500
2000
250020
00
20
05
20
08
20
09
20
10
20
11
20
12
20
13
20
14
GNI Per Capita US $
Togo Africa
0,0
0,5
1,0
1,5
2,0
2,5
3,0
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Population Growth Rate (%)
Togo Africa
01020304050607080
20
00
20
05
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Life Expectancy at Birth (years)
Togo Africa
IX
Annex 8. TOGO: Assessment of Eligibility for Future Window I Cycles – Supplementary
TSF Support - under ADF 14
Indicator Window I Supplementary Support – First-Level Criteria
Co
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con
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tio
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f p
eace
an
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ecu
rity
After 15 years (1990-2005) of socio-political turbulence, the country is gradually returning to a
peaceful political climate that creates favourable conditions for development programmes. The
major political parties of the country were created less than four years ago. Since 2012, domestic
policy has been marked by: (i) the dissolution, on 14 April 2012, of the ruling party, the RPT (Ras-
semblement du peuple togolais), which was replaced by the new presidential party, Union for the
Republic ( UNIR); (ii) the birth of a political coalition of the Opposition on 4 April 2012 named
"Collectif Sauvons le Togo," and (iii) the establishment, on 31 October 2014, of a new group of the
main opposition parties called "Combat pour l'Alternance Politique". UNIR, the new presidential
party, won an absolute majority of 62 out of 91 seats in the parliamentary elections of July 2013 and
won the presidential election of 25 May 2015 with 58.75% of the votes.
Togo has made significant progress in building democracy, peace and security. The presidential
elections of 2010 and 2015, as well as the legislative elections of 2013, did not generate social unrest
unlike the 2005 presidential elections which led to hundreds of deaths. The various election observer
missions considered the presidential elections of 2010 and 2015 to be free and fair although the op-
position did not recognize the results. However, the opposition's challenge of the results did not de-
generate into violence and is not likely to create any political and social crisis in Togo. The period
for local government elections, originally scheduled for 2014, is not yet known. Over the past five
years, the various political incidents and democracy protests have had no major impact on social,
political and economic activities. The Government has always adopted participatory and coercive
measures focused on dialogue, that have proven effective in deterring social protest and prosecuting
criminal cases. The ongoing political dialogue focuses on whether or not to initiate constitutional and
institutional reforms to limit the number of presidential terms of office and create favourable condi-
tions for the organization of local government elections.
Over the past few years, piracy has significantly decreased along the Togolese coasts. In March
2016, Togo adopted the law on exercise of the State’s police powers at sea. This law is consistent
with the provisions of the UN Convention on the Law of the Sea (UNCLOS). Thanks to support from
its partners, Togo has appropriate material and financial resources to combat drug trafficking and
organized transnational crime. The Togolese, American and European navies regularly share the ex-
perience of fighting piracy while building the enforcement capacity of coast guards. Seven countries
on the Atlantic Ocean have created a regional network for information-sharing and an inter-agency
cooperation framework. In October 2016, Togo will host the Extraordinary Summit of Heads of State
and Government of the African Union on maritime security and safety.
Dialogue on human rights to deal with the country’s fragile situation is beginning to bear fruit.
Togo has made progress in promoting human rights protection to enforce the rule of law and
strengthen the security of persons and property. A law passed by Parliament on 11 March 2016 gov-
erns the National Human Rights Commission and gives it greater powers of access to places of de-
tention (prisons as well as police and gendarmerie stations) and also covers the National Mechanism
for Prevention of Torture (MNPCT). On 1 January 2016, Togo became a member of the United Na-
tions Human Rights Council for a term of 3 years. Togo's election as a member of this body attests to
the international community's recognition of the country's human rights efforts in recent years. It is
also the expression of Togo's solemn commitment to the protection and promotion of the highest
human rights standards.
X
Annex 8. TOGO: Assessment of Eligibility for Future Window I Cycles – Supplementary
TSF Support - under ADF 14 U
nsa
tisf
ied
so
cio
-eco
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Despite slight improvement in Togo’s Human Development Index (HDI) from 0.473 in 2014 to
0.484 in 2015, this score remains low and ranks the country in the 162th position out of 188
countries; i.e. in the last quintile. Togo's index is below the average for sub-Saharan Africa, contrary
to the situation in the early 2000s. The poverty level is high in Togo, and affected about 55.1% of the
population in 2015. Unemployment and underemployment particularly affect the rural youths. Over
68% of the rural population live below the poverty line compared to 34% in Lomé and 38% for other
urban areas in 2015. Poverty is a multidimensional phenomenon, characterized by low consumption
of private property, malnutrition, poor living conditions and limited access to basic social services
such as education, health, water and sanitation. These various amenities, including electrification, are
particularly deficient in rural areas: less than 50% of the rural population have access to drinking
water; less than 10% have access to electricity; and less than 40% of women are literate. The Gini
index, which increased slightly from 0.361 in 2006 to 0.393 in 2011 before dropping back to 0.380
in 2015, reflects a society plagued by inequalities.
Agriculture, which has high economic growth potential, is fraught with constraints, particularly
the small size of farms, as well as lack of infrastructure, technical know-how, equipment and inputs,
poor organization of farmers, insufficient product promotion, and poor integration of value chains.
As a result, crop yields are generally low, often representing less than 50% of the potential. Moreover,
there is shortage of staple commodities, including rice (70% of needs covered by imports), meat and
fish (less than 50% of needs covered). The country’s heavy dependence on cotton, clinker and phos-
phate, as well as its virtual dependence on external energy supplies, make it extremely vulnerable to
external shocks.
The QUIBB survey (2015) found that nearly 35% of patients have no access to health services,
and health insurance coverage is available for only 6% of the population. Overall, about 95% of
the Togolese population have no social security. Some 90% of State employees have difficulties fi-
nancing their health care when their medical prescriptions exceed CFAF 20,000. On 5 September
2011, the Government of Togo instituted health insurance for workers and entrusted its operational
execution to the National Health Insurance Institute (INAM) as from March 2012. The percentage of
the population benefiting from health insurance increased from 5.3% in 2013 to 5.8% in 2014, com-
pared to a projection of 6.8%, and representing an increase of 0.5%. This slight performance improve-
ment probably stems from the installation of a health insurance scheme for certain categories of in-
formal sector workers such as motorcycle taxi operators. Since then, this institution, which covers
260,000 registered members, is finding it hard to ensure the quality of the insurance services sub-
scribed.
Furthermore, women suffer from illiteracy that limits their access to information on existing
opportunities. About 50% of women are illiterate compared to 23% of men, according to data from
the 2015 QUIBB survey. They also have limited access to means of production (water, land, commu-
nity infrastructure).
Despite steady improvement in GDP per capita (at constant prices USD/2005) since 2002, its
trend has been unstable and fluctuating over the past 30 years. These trends have been greatly
affected by political crises, rainfall, price volatility, as well as export (phosphates, cotton) and import
(energy and food products) volumes on the world market. GDP per capita, which was USD 534 (in
1980) fell to USD 320 (in 1993), and rallied back to USD 447 (in 1997) before falling back again to
USD 380 (in 2002). Since then, GDP per capita has risen steadily to USD 417 in 2013 and USD 430
in 2014, although it is still far below 1980 levels. The 9% contraction in GDP per capita between
1990 and 2010 is a significant indicator of the slowdown of the Togolese economy during the long
period of political crises.
XI
Annex 8. TOGO: Assessment of Eligibility for Future Window I Cycles – Supplementary
TSF Support - under ADF 14
Indicator Pillar I: Supplemental Support – Second-Level Criteria
Imp
rov
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cy After the period of socio-political crisis (1990-2005), Togo’s restored confidence was rewarded by
the return of the international community to the country in 2008 and attainment of the completion
point of the HIPC Initiative in 2010. These developments enabled Togo to return to the develop-
ment phase with great need for more enhanced partnership with international development partners.
Since 2014, the Government has embarked on a process of gradual reduction of fuel subsidies by
establishing mechanisms that ensure greater price flexibility based on market trends. This economic
policy reform seeks to generate resources for better management of social needs in general and those
of the poor and vulnerable, in particular. Tax revenue has increased significantly over the past two
years, thanks to the tax collection discipline displayed by the Togolese Revenue Office (OTR) estab-
lished for that purpose. Tax revenue increased by 13.6% in 2014 and 4.8% in 2015 to CFAF 480.4
billion, or 20.2% of GDP.
Recent privatizations of Togolese public banks brought the country's financial system into the fold
of large financial groups like the Orabank group, which successfully tendered for the privatization of
the Togolese Development Bank (BTD) in 2012 and Attijariwafa Bank group which bought the In-
ternational Bank for Africa in Togo (BIA) in 2013. Two public banks are still to be privatized. Finan-
cial restructuring of banks has improved the solvency of the Togolese banking sector. On account of
the progress made, the bank solvency ratio, which is the ratio of equity capital to distributed credits,
gradually improved from 4.1% in 2008 to 14.4% in 2014.
The country’s progress in public finance and external debt management has improved its classifica-
tion, reducing its debt distress risk from "high" to "moderate" according to the IMF/World Bank joint
analysis of debt sustainability in 2013 and 2015. However, in recent years, the financing of public
investments, while fuelling growth, has increased the public debt from 46% of GDP in 2012 to 62.5%
in 2015. According to projections, the public debt stock will stabilize and decrease to 55% of GDP
by 2020. Togo remains solvent in the short, medium and long terms as regards its external debt, but
must adopt a strict system for managing its domestic debt.
Wh
ole
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gem
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pra
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es
The fiscal framework remains consistent with the objectives of growth and fiscal sustainability.
The overall balance deficit improved from 6.7% in 2012 to 4.6% in 2013 before deteriorating to 5.3%
in 2015. It is expected to improve to 4.4% in 2017. Expenditure and net lending were estimated at
30.2% of GDP in 2015. Togo's trade balance is continuously negative, and showed a deficit of 17.4%
of GDP in 2015, but is expected to reduce to 16.4% of GDP in 2017. Faced with this situation, the
Government of Togo made efforts in 2015 to stabilize its imports, which represented 46.2% of GDP,
compared to 49.5% in 2014 and 58.6% in 2013. The current account deficit, which was 13.2% of
GDP in 2014, declined to 11.9% in 2015. The outlook for the coming years points to stabilization in
the volume of public spending, which should lower the current account deficit to 10.5% in 2017.
The tax burden, which was 16.6% of GDP in 2012, gradually improved to 20.2% in 2015, thus
exceeding the WAEMU community standard of 17%. This trend reflects the combined effect of
good governance reforms implemented with Bank support, including: (i) reduction of the income tax
rate; (ii) establishment of the Togolese Revenue Office to ensure greater transparency in domestic
revenue collection; (iii) transparency in extractive industries to boost State revenue; and (iv) opera-
tionalization of the Court of Auditors and the General Inspectorate of Finance. Tax revenues is ex-
pected to grow at an annual average rate of 8% until 2020.
XII
Annex 8. TOGO: Assessment of Eligibility for Future Window I Cycles – Supplementary
TSF Support - under ADF 14 T
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The public procurement sector in Togo has long been characterized by corruption, the award of con-
tracts by private agreement, the lack of traceability in contract award and the bidding process, and no
control of works and services. The legislative, statutory and institutional frameworks of the public
procurement system were improved from 2009 to 2015 with Bank support. The entry into force of
the new public procurement rules resulted in the operationalization of the two national bodies tasked
with public procurement regulation and control, namely the Public Procurement Regulatory Authority
(ARMP) and the National Directorate for the Control of Contracts (DNCMP). The year 2015 was
marked by the creation of the Supreme Authority for the Prevention of Corruption and Related Of-
fences. The Public Procurement Regulatory Authority has set up a hotline for reporting any acts of
corruption or malpractice noticed in the execution of public procurements. Public procurement pro-
cedures currently require that recruitment notices be published in the official press in order to ensure
competition and enable the most qualified candidates to occupy the top positions. Although efforts
still need to be made as regards corruption control, the measures taken by the country hitherto are
beginning to bear fruit. According to Transparency International rankings for 2015, Togo gained 19
places, rising to the 107th position out of 168 countries. For the first time in five years, Togo’s Cor-
ruption Perception Index (32) has exceeded 30, the threshold below which corruption is considered
to be endemic.
Togo has seized the opportunity presented by the Extractive Industries Transparency Initiative (EITI)
to support the successful implementation of reforms in the mining sector. It joined the EITI on 14
December 2009 to ensure transparency in mining sector management and guarantee fair sharing of
the benefits from natural resource exploitation. After becoming a candidate country on 19 October
2009, Togo acceded to the status of compliant country in May 2013 at the global EITI conference
held in Sydney. In this regard, the Government of Togo is committed to disclosing all taxes, levies
and fees collected from the mining sector. Since adhering to EITI principles and acquiring the status
of a candidate country, Togo published 4 (four) EITI reports successively on data from 2010 to 2014.
The country has an effective process for the publication and reconciliation of all Government reve-
nues from the mining sector.
From 2012, Togo embarked on a process to ensure its eligibility for the Millennium Challenge Cor-
poration (USA). In December 2015, Togo was declared eligible for the "Threshold" programme,
thanks to progress made in a number of indicators including corruption control, political rights, civil
liberties, freedom of information, economic freedoms and modernization of justice. The Threshold
Programme of the current MCC will enable the country to rapidly reach the “Compact” level, which
could bring in USD 400 million in aid to reduce poverty through sustainable economic growth.
XIII
Annex 8. TOGO: Assessment of Eligibility for Future Window I Cycles – Supplementary
TSF Support - under ADF 14
Other considerations
justifying access to Win-
dow I resources
The following factors/risks could disrupt Togo’s progress towards full develop-
ment and hamper its emergence from its post-conflict situation:
Persistence of the underemployment problem: The underemployment rate was relatively high in 2015 (24.9%)
compared to 2011 (22.1%). Workers within the 30-49 years age group are more affected. Indeed, 29.5% of them
are underemployed, compared to 22.2% of workers aged 15 to 29 years and 18.5% of those aged 50 to 64. Some
59.4% of the underemployed are persons working on their own account (self-employed), and 23.2% have permanent
jobs. To overcome this challenge, the Government has implemented several programmes aimed at getting young
people to acquire business experience or skills for self-employment. Since 2011, Togo has implemented several
initiatives to curb underemployment, especially among the youths. These include the National Volunteer Pro-
gramme in Togo (PROVONAT) to provide initial work experience to graduates and the youth employability project
funded by the Bank. The scale of these programmes does not match the magnitude of challenges posed by the high
level of underemployment in the country.
Great need for development partners’ support: The country has a relatively low savings rate, coupled with low
domestic revenue collection. Under these circumstances, the funding of social sectors requires support from key
technical and financial partners as they assist the Togolese Government in its efforts to implement institutional and
structural reforms that the country needs to further reassure partners. The various crises experienced by countries
in the sub-region significantly contribute to the country's fragile situation.
XIV
Annex 9. Togo: Fiduciary Risk Assessment Report under CSP
2016 – 2020
I. INTRODUCTION
The 2016-2020 Country Strategy Paper (CSP) seeks to provide the Bank with guidelines and
pillars for its actions during the CSP period. It is based on the Accelerated Growth and Em-
ployment Promotion Strategy (SCAPE 2013-2017) adopted in August 2013 by the Govern-
ment, which defines sector policies for the implementation period, as well as on policy guide-
lines, guides and manuals for the development of country strategies.
The fiduciary risk assessment report seeks to diagnose the public finance management system
by focusing on the policies, financial management guidelines and manuals for programmatic
support operations and reforms adopted by the Bank in 2014. After the executive summary, it
presents: (i) an assessment of the components and mitigation of risks identified within the pub-
lic finance management system; (ii) the governance status, especially corruption control; and
(iii) the Bank’s financial management strategy during the CSP.
II. EXECUTIVE SUMMARY
2.1. The assessment is based on the 2009 PEFA and PEMFAR studies and the resulting
implementation report of the public finance management reform support programme of 31 De-
cember 2014, as well as interviews with the General Directorate for the Budget, the General
Directorate for the Treasury and Public Accounting, financial control and the Court of Auditors.
The report also takes account of the key findings of Togo's 2015 draft PEFA report.
2.2. The 2016 budget was adopted by the National Assembly in accordance with the pro-
cess described in WAEMU guidelines. Although delegations of credit to sector ministries are
not yet effective, the ongoing reorganization of the Ministry in charge of Finance should de-
centralize budget centres in the various regions and delegate the powers of the central author-
izing officer to the heads of decentralized structures. The budget and its monitoring reports are
regularly produced and posted on the website of the Ministry in charge of the budget. The over-
all risk is substantial because the effects of internalizing the directives are still to be verified,
especially as external funds, including grants, are not tracked in the budget.
2.4. Financial control is also being decentralized, with an attendant increase in staff. How-
ever, control reforms within the new public finance management framework remain timid.
Since a new text on financial control in compliance with EU directives is to be adopted, the
overall baseline risk is substantial, although a revision of the texts should mitigate such risk.
2.5. The accounting system must finalize the accounting procedures manual (State account-
ing plan and production of TOFE and annual financial statements) in accrual accounting where
the scope of State assets remains to be determined. However, annual accounts are produced
within the statutory time limit and budget review bills have been sent on time to the Court of
Auditors since 2013. The overall risk is substantial because project accounts are not yet consol-
idated with public accounts.
2.6. Cash management reform is underway with finalization of the single account, the in-
clusion of external resources in cash management, and improved debt management. The initial
risk is generally substantial since external resources are not managed within the cash-flow sys-
tem.
XV
2.7. Finally, despite its limited means, the Court of Auditors reviewed and produced com-
pliance reports on the accounts right up to the year 2013, since the accounts for 2014 are still
under review. However, assessment of the management accounts of accountants has not yet
been initiated for lack of qualified staff. Finally, the organization of the Court is still to be
completed through the law on the status of judges of the Court of Auditors. The overall risk can
be considered substantial.
2.8. Summary Table on Fiduciary Risk Assessment and Capacity-building
ITEMS INITIAL
RISK MITIGATION MEASURES
RESID-
UAL
RISK
1. BUDGET
1.1. The budget subsystem has enough capacity for
budget planning (preparation).
1.2. The budget subsystem has enough capacity for
budget control.
Substantial 1. Adapt investment forecasts to
execution capability
2. Include external resources in
the budget
Moderate
2. CASH FLOW
2.1. The cash-flow subsystem has enough capacity to
manage resource flows and the disbursement of aid
funds.
2.2. The single treasury account is an appropriate and re-
liable way of administering aid funds.
Substantial 1. Operationalize the STA
2. Include external resources in
forecasts and the execution of
capital expenditure
3. Improve debt management
Moderate
3. ACCOUNTING AND REPORTS
3.1. The accounting subsystem has enough capacity to
record all transactions and provide the basis for
timely preparation of comprehensive financial re-
ports.
3.2. The integrated financial management systems are
flexible enough to meet the specific requirements for
reporting and are governed by procedures that guar-
antee the timeliness and quality of information pro-
duced.
3.3. The financial accounting subsystem includes an in-
tegrated module on capital assets for the registration
and appropriate control of acquired assets.
3.4. The accounting subsystem keeps updated records on
the country’s borrowings.
3.5. Accounting systems are protected against the delib-
erate manipulation and/or accidental loss or corrup-
tion of data.
Substantial 1. Apply the WAEMU account-
ing plan
2. Update the accounting proce-
dures manual with
3. Include project operations in
the accounting
Moderate
4. INTERNAL AUDIT
4.1. The internal audit subsystem has sufficient capacity.
4.2. The competition, optimal resource use and public
procurement control mechanisms are appropriate.
4.3. The internal audit function has sufficient capacity.
Substantial 1. Re-review the decree on fi-
nancial control for considera-
tion of WAEMU directives.
2. Increase the staff strength and
enhance the training of finan-
cial controllers
Moderate
5. EXTERNAL AUDIT
5.1. The ISC enjoys the level of "independence" required
to effectively perform its duties.
5.2. The ISC has the required capacity to fulfil its verifi-
cation mission.
Substantial 1. Review the statutes of the
Court of Auditors to clarify
the terms of appointment of
the President and the career
of judges.
2. Increase the staff strength and
resources of the Court of Au-
ditors to rule on management
accounts
Moderate
OVERALL ASSESSMENT Substantial Fully implement the harmonized
framework for the public financial
management of WAEMU
Moderate
Corruption Perception Index (CPI) 107th/168 in 2015 compared to 126th/174 in
2014
XVI
Overall, reform of the public finance management system in Togo is being scaled up to internationally
recognized best practices. Efforts commenced in the early 2010s are continuing with the three-year roll-
ing public finance management plan and are strengthened in the short term by the full implementation
of WAEMU guidelines for efficient and transparent public finance management.
III. ASSESSMENT OF THE PUBLIC FINANCE MANAGEMENT SYSTEM
3.1. BUDGET PREPARATION AND EXECUTION
WAEMU guidelines on budget transparency have been adopted, and their implementation began with
the 2016 budget. Thus, budgeting is based on national policies including SCAPE 2013 - 2017, and the
policy debate for the 2016 budget was held at the National Assembly in June 2015. However, the ex-
penditure budgets for investment projects are not included in the State budget because they are not col-
lected from the projects. This situation therefore undermines budget credibility. Budget execution con-
trol is centralized, but quarterly execution statements and budget amendment laws are published on the
website of the Ministry in charge of the Budget. Fiscal discipline is ongoing with an off-budget expendi-
ture rate of less than 10% between 2013 and 2014. Lastly, stakeholder capacity building in the expendi-
ture chain to better understand the application of WAEMU directives (LOLF, RGCP, NBE, PCE and
TOFE) remains a priority in Togo. The fiduciary risk of using country systems is substantial because
project budget data is not included in the overall budget, although there appears to be better control of
the development, implementation and control of resources and other expenditures.
3.2. CASH FLOW
The existing cash management system in place is well structured with a cash flow committee that meets
on a weekly basis under the chairmanship of the Office of the Prime Minister to plan resources and
future expenditure. Tax and customs revenue collection has improved with the establishment of the
Togolese Revenue Office (OTR) financed by the Bank. The cash management system needs to be im-
proved by posting forecasters to revenue services and the Department of Public Debt. Moreover, bank
reconciliations prepared on a monthly basis need to be improved through computerized automation.
Flows and disbursement of development assistance loans are recorded by the Department of Public Debt,
but grants are not. Lastly, the establishment of the single treasury account (STA) is about to be com-
pleted after an inventory of all Government accounts. Overall, cash flow management should be brought
under control if reforms are completed within the scheduled timeframe at the end of 2016. The risk of
using the cash system is substantial because project resources are not taken into account during the year,
although they are included after execution.
3.3. ACCOUNTING AND FINANCIAL INFORMATION
The financial management information system is commitment (or accrual) accounting based on
WAEMU directives relating to the General Regulations of Public Accounting (RGCP), the new State
accounting plan (PCE) and new configuration of the Table of Government Financial Operations (TOFE).
The exhaustiveness of financial operations accounting is guaranteed by these instruments, but store ac-
counting (inventory and management of fixed assets) is slow to develop. Annual financial statements
are produced within the statutory time limit, but remain incomplete due to non-inclusion of all State
assets, especially physical assets. The recording of financial liabilities is fully mastered with the ac-
counting of all commitments (domestic and external loans) provided by the Department of Public Debt.
Finally, the security of computer systems is managed by IT services through the provision of access
codes based on each officer's responsibilities within the revenue and expenditure chain. Overall, the risk
of using the accounting system is substantial because it does not have project information.
XVII
3.4. INTERNAL AUDIT
The internal control system is not fully efficient due to staff shortage and obsolescence of the texts
governing the organization and operation of financial control. Hence, the main decree organizing finan-
cial control and the control procedures manual need to be revised to adapt them to WAEMU directives
and to train the staff on the new procedures. Lastly, the financial control service produces an annual
report for the Minister of Finance and has no relationship with other State control bodies. The overall
risk is substantial as the organization and functioning of financial control need to be subjected to com-
prehensive review.
3.5. EXTERNAL AUDIT
The independence of the Court of Auditors (the Supreme Audit Institution) is enshrined in the instru-
ments creating the Court, and this guarantees its operational autonomy. In practice, however, the mobi-
lization of budget resources is hampered by administrative bottlenecks, which undermine the Court's
audit duties. Furthermore, apart from consideration of the State budget review law, the exhaustive audit
conducted does not cover all areas of public fund expenditure. Moreover, the staff regulations of the
Court should be reviewed to enable it recruit and train young experts and use the services of qualified
and competent consultants.
The Court of Auditors has produced compliance reports on budget review laws up to 2013, since the
2014 budget review law is still under review. The audit of management accounts has not yet been initi-
ated, but the Court's judges have made study trips to the courts of friendly countries, and received train-
ing on the auditing of such accounts. The overall risk of using the Court of Auditors is substantial be-
cause projects and other public subsidies are not audited.
3.6. GOVERNANCE
In the Corruption Perception Index published by Transparency International, Togo was ranked 107th
out of 168 countries, with a score of 32 out of 100, in 2015. This is a slight improvement in comparison
to 2014 when it was 126th out of 174 countries with a score of 29 out of 100. The Mo Ibrahim Index of
African Governance ranked Togo 34th out of 54 countries in 2015. Lastly, corruption control should be
intensified with the operationalization of the law creating the "Supreme Authority for the Prevention
and Control of Corruption and Related Offences", adopted in 2015.
IV. FIDUCIARY STRATEGY OF THE BANK DURING THE CSP PERIOD
The fiduciary strategy entails determining the degree of usage of country systems to implement pro-
gramme support, reform support and investment operations. Since, the country’s initial overall fiduciary
risk is substantial, the Bank may adopt a strategy for the progressive use of the public finance manage-
ment system on condition that all mitigation measures are fully implemented.
Depending on the nature of the operations to be financed, some areas of the system can be used to deliver
development assistance. Hence, the public finance management system will be fully used for overall or
sector budget support, provided the Court of Auditors undertakes to submit the compliance report for
the relevant budget to the Bank and the National Assembly simultaneously. However, for investment
operations, the use of a parallel financial management system based on the OHADA accounting system
will be preferred.
Implementation of this strategy will be monitored through regular meetings of the "Public Finance"
Group composed of donors, and supervision of programme support operations which are triggered by
measures that have an impact on the public finance management system.
XVIII
Annex 10. Togo: Bank Procurement Strategy (2016-2020)
Legislative and Regulatory Framework: The current legal and regulatory framework for procurement
in Togo is governed by Law No. 2009-013 of 30 June 2009 on public procurement and public service
delegations, as well as a number of enabling instruments implementing the law, including Decree No.
2009-277 / PR of 11 November 2009 on the public procurement code and public service delegations;
Decree No. 2009-297/PR of 30 December 2009 to define the responsibilities, organization and function-
ing of public procurement and control bodies; and Decree No. 2011-055/PR of 4 May 2011 to establish
and define the duties, organization and functioning of the special commission in charge of defence and
national security contracts. It transposes Directives No. 004/200525 and 005/200526 of the West African
Economic and Monetary Union (WAEMU) into Togolese national law. The legal provisions apply to
procurement, execution, settlement, control and regulation procedures of all public contracts for works,
supplies and services awarded by the Contracting Authority, and also apply to contracts awarded by: (i)
public sector corporations; and (ii) private sector corporations. The texts governing procurement can be
freely accessed on marchespublics-togo.com.
They cover the procurement of intellectual services, goods, works and services other than consultancy
services. The procedures are applicable at national and local government levels.
Institutional Framework: At the institutional level, two bodies were set up following the principle of
separation of the regulation and control functions. These are the Public Procurement Regulatory Au-
thority (ARMP) established by Decree No. 2009-296/PR of 20 December 2009, as amended by Decree
No. 2011-182 / PR of 28 December 2011 to define the missions, responsibilities, organization and func-
tioning of the ARMP; and the National Directorate for Public Procurement Control (DNCMP) estab-
lished by Decree No. 2009-295/PR of 30 December 2009 to define the missions, responsibilities, organ-
ization and functioning of the DNCMP. Regarding the regulatory levy charged by the ARMP which
lends it some financial autonomy to conduct its independent audits, the terms and conditions of its ap-
plication will be reviewed during the revision of regulatory instruments. Pending such revision, its ap-
plication to foreign-financed contracts was repealed by Togolese authorities in March 2015. The control
function was decentralized in all Ministries through the creation of public procurement oversight com-
mittees (CCMP). Nevertheless, the devolution process in the five regions is lagging behind due to staff
shortage. Deployment of the Public Procurement Management Information System (SIGMAP) started
in 2015 when it was used for input and approval of procurement plans. It will be extended to all stages
of the procurement process from 2016, according to DNCMP forecasts. Since 2010, ARMP implemen-
tation of a capacity building plan in procurement has trained over 4,000 employees from the Govern-
ment, private sector and civil society. These courses funded under PARCI 2 project and financed by the
AfDB led to the creation of a pool of trainers who promote continuous training, thus pre-empting the
inconveniences stemming from resignations and the high turnover of procurement experts. However,
the absence of a single Public Procurement Guide/Manual developed by ARMP is patent, and this could
undermine the efforts made in capacity building.
Procurement Activities and Market Practice: Each Contracting Authority appoints, for a period of
three years renewable once, a Public Procurement Officer (PPO) responsible for implementing procure-
ment procedures and monitoring the implementation of contracts and public service delegations. This
PPO is assisted in the bid opening and evaluation phases by a Public Procurement Commission (CPMP).
The control function within the contracting authority is exercised by a Public Procurement Control Com-
mission (CCMP) under the authority of the PPO. However, public procurement audits have revealed
that this mechanism is plagued by dysfunctions including: (i) mobility of the PPOs who also hold the
positions of chief of staff or technical director; (ii) non-compliance with the texts in the appointment of
CCMP chairmen; (iii) non-respect of the CCMP quorum; and (iv) no budgetary allocations to support
members of PPO commissions. Current review of the texts should provide an opportunity to correct
these problems and enhance the efficiency of the public procurement system. Pending the adoption of a
specific law to define the legal regime of public-private partnership (PPP) in Togo, the Togolese Gov-
ernment passed Law No. 2014/014 of 22 October 2014 which contains the legal framework for PPP
contracts.
XIX
Exhaustiveness and Transparency: Public procurement audit reports of 2010, 2011 and 2012 are pub-
lished on the ARMP website, that of 2013 is underway while that of 2014 has not yet been initiated. The
ARMP should continue with efforts to ensure the regular conduct of audits. The recurring issues raised
by these audits relate to: (i) non-archiving of procurement records; (ii) non-publication of contract
awards; (iii) non-compliance with contract approval deadlines; (iv) limited or non-qualification of suc-
cessful bidders; (v) non-compliance with the provisions governing private contracts or requests for quo-
tations; (vi) failure to prepare a register of suppliers; and (vii) non-compliance with the provisions of
regulatory instruments governing the allocation, organization and functioning of public procurement
management and monitoring bodies. Audit institutions (financial control, Court of Auditors, General
Inspectorate of Finance and General State Inspectorate) exist and produce regular reports, but these
reports are not systematically published. As regards fraud and corruption control, a "Supreme Authority
for Preventing and Combating Corruption and Related Offences" was created by Law No. 2015-006 of
07/28/2015, to replace the National Commission for Combating Corruption and Economic Sabotage.
The adoption of enabling instruments for this law and their strict enforcement should enable the Togo-
lese Government to step up the fight against this scourge. The hotline for reporting fraud and corruption
in public procurement has been operational since 2013. However, investigations conducted by the
ARMP Disputes Settlement Committee on the basis of reported and recorded irregularities have not
yielded results due to the late establishment of the investigation team. Having learned lessons from this
exercise, ARMP has provided for the establishment of a permanent unit to investigate reports of irregu-
larities or violations of the regulations. The list of companies penalized for fraud in connection with
procurement and contract execution is regularly published on the ARMP site. All these actions notwith-
standing, it should be noted that acts of fraud and corruption are rarely punished, and effective enforce-
ment action needs to be taken by the Government.
Fiduciary Risk: To date, the legal and institutional framework is generally operational. Consequently,
public procurement is conducted in accordance with the provisions of the Public Procurement Code.
The shortcomings identified are likely to pose a tolerable overall risk to the system if the identified
mitigation measures are actually taken.
Bank Strategy: In connection with Pillar 2 of Togo's 2016-2020 CSP on governance, the Bank will
continue its support in strengthening public procurement control in Togo, mainly through: (i) revision
of the regulatory and legislative framework to strengthen the existing mechanism and correct the weak-
nesses identified by the Togolese Government and the Bank; (ii) the operationalization of the Public
Procurement Management Information System (SIGMAP); (iii) strengthening of the DNCMP with lo-
gistical means; and (iv) the regular conduct of public procurement audits. The Bank will also continue
building the capacity of executing agencies through training programmes on the use of the national
procurement system in accordance with the Bank’s new procurement policy.
XX
Assessment of the Fiduciary Risk in Procurement
The table below summarizes the main risk factors as well as current and future reforms to address them.
Pil-
lars
Indicators Risk Factors Initial
Risk
Reform Measures Residual
Risk
Pro
cure
men
t
Legal and regu-
latory frame-
work
(i) Lack of a single public
procurement procedures
guide/manual developed
by ARMP
Moderate
(i) Adoption of a single public procure-
ment procedures guide/manual by the
ARMP.
Low
Institutional
Framework
(ii) For enforcement.
Regulatory levy collected
by the ARMP
Moderate
(ii) Clarification of the conditions and
terms for applying the regulatory levy.
Dialogue with TFPs to allow some finan-
cial autonomy that will enable the
ARMP to conduct its independent audits.
Low
Exhaustiveness
and transpar-
ency
(iii) No regular conduct of
public procurement audits
High
(iii) Conduct of periodic public pro-
curement audits by ARMP and monitor-
ing of the implementation of audit rec-
ommendations.
Moderate
(iv) No systematic publi-
cation of the reports pro-
duced regularly by audit
institutions (Court of Audi-
tors, IGF)
Moderate (iv) Publication of the reports of audit
institutions
Low
(v) No penalties for
fraud and corruption and
lack of effective action
High (v) Adopt regulations defining punish-
ment and enforcement terms.
Moderate
XXI
Annex 11: Combating Climate Change in Togo
1. LEGAL FRAMEWORK
Togo has the laws and regulations to strengthen the legal framework for environmental management.
The main instruments are Law No. 2008-005 of 30 May 2008: Framework Law on the Environment,
and Law No. 2008-009 of 19 June 2008 to institute the Forestry Code. It should also be noted that
environmental protection is a right enshrined in Article 41 of the Constitution, which states that:
“Everyone has the right to a healthy environment. The State shall ensure the protection of the
environment”.
2. POLICY AND LEGAL FRAMEWORK
Togo is committed to implementing a policy consistent with its desire to comply with international
agreements on the environment (Vienna Convention and the Montreal Protocol, the Rio Conventions
and their Protocols, Rotterdam Convention, Stockholm Convention) and on the control of climate
change impact and risks.
Togo adopted a National Environmental Policy on 29 December 1998. Furthermore, the Government of
Togo recently adopted its Accelerated Growth and Employment Promotion Strategy (SCAPE) 2013-
2017 that focuses on preservation of the natural capital, curbing the negative effects of climate change
and building the resilience of communities and high-risk areas (Pillar 5 of SCAPE). As regards the
action/implementation strategy, the Government's main reference document is the National Adaptation
Action Programme (NAPA) of 2008 which identifies vulnerable sectors such as the coastal areas, human
settlements, health, agriculture, water resources and wood fuel. A National Adaptation Plan (in
accordance with the Resolutions of the 16th Conference of Parties to the UNFCCC in Cancun (COP-
16) of 2010) is currently being developed. The 2nd Initial National Communication on Climate Change
was formulated in 2010. The 3rd is being prepared. On 30 September 2015, Togo finally adopted its
intended nationally determined contribution (INDC) under the United Nations Framework Convention
on Climate Change (UNFCCC) and COP21 of Paris in December 2015.9
3. DIAGNOSIS
Togo, like most countries in West Africa, is grappling with climatic impacts and risks, as well as envi-
ronmental problems, mainly in the following areas: (i) energy; (ii) water resources; (iii) agriculture,
forestry and land use; (iv) human settlements and health; and (v) the coastal area.
Energy: Wood and biomass, the main energy sources in Togo are becoming scarce throughout the ter-
ritory with some regions being particularly affected. The reduced supply of forest ecosystem services
and forest resources has led to land degradation, loss of biodiversity, wood shortages, drying up water
points, regression of wetlands, etc. The consequence has been land depletion, increased food and nutri-
tion insecurity, loss of income for farmers, and an upsurge in monetary and non-monetary poverty,
which could generate social tensions and even socio-political crises. Furthermore, the sector has signif-
icant potential to mitigate climate change: in 2015, Togo’s net aggregate emissions were estimated at
24 545.84 Gg CO2-e directly released into the atmosphere.10 The main contributors are LULUCF11
(64%), followed by agriculture (21%) and energy (15%). The "no measure" scenario raises total emis-
sions to 38 861.36 Gg CO2-e in 2030, 11.14% less if current mitigation projects are implemented. An
additional target of -20% was set if additional funds are raised and new projects implemented. As regards
9 http://www4.unfccc.int/submissions/indc/Submission%20Pages/submissions.aspx 10 Togo's Intended Nationally Determined Contribution (INDC), COP21 11 Land Use Cover and Forestry
XXII
the electricity sub-sector, access is estimated at about 30%, and the development of energy sources with
low GHG emission is a priority.
Water Resources: The growing unpredictability of rainfall is currently affecting crops, and droughts and
floods are increasingly more recurrent. Water supply is affected, with a decrease in stocks, pollution of
drinking water reserves, saltwater intrusion in coastal aquifers and even water shortage in hydroelectric-
ity dams.
Agriculture, Forestry and Land Use: In Togo, agriculture remains the backbone of the economy, em-
ploying over 50% of the labour force. However, Togolese agriculture has remained generally subsistent
and family-operated. It is not very modern and is particularly vulnerable to climate change. The disrup-
tion of rainfall patterns, as well as occasional flooding and drought weighs heavily on the predominantly
rain-fed agricultural production. The decline in agriculture’s contribution to growth from 67.8% in 2014
to 12.7% in 2015 was due to the adverse rainfall conditions, particularly late and erratic rains. Further-
more, despite the country's significant irrigation potential, irrigation is poorly developed, save for flow
irrigation practised primarily for food crop cultivation in the lowlands and vegetable farming along wa-
tercourses. The decrease in the supply of plant, meat and fish products, and consequently in supplies to
the cities could generate social tensions and even socio-political crises.
Human Settlements and Health: Some effects of climate change will be the necessary relocation of com-
munities (in coastal and rural areas). This will increase spending for the Government, local authorities
and households to build new homes and socio-economic infrastructure for victims or deal with the mas-
sive rural exodus. Climate change may generate or fuel the development of diseases like malaria, diar-
rhoea and cardiovascular disorders.
Coastal Areas: Coastal erosion probably stems essentially from the construction of structures like Lomé
Port or the hydroelectric dam at Akosombo in Ghana. However, this phenomenon which is already
aggravated by rising sea levels, is real and has worsened in recent years. It has led to occasional loss of
property and natural resources, and threatens the entire coastal area that holds more than 90% of the
country’s industrial units. Erosion, which has affected the Togolese coast over fifty kilometres for sev-
eral decades, assumed alarming proportions in 2015, leading to a significant retreat of coastline east of
Lomé Port by 15 to 20 metres and the sinking of roads, villages and farms.
4. ACTIONS
From the technical standpoint, initiatives that attest to the determination of the Togolese Government
are evident in scientific productions and reference materials, which include: (i) inventories of the
wildlife, flora and ecosystems; (ii) national biodiversity reports; (iii) monographs of biodiversity; (iv)
inventories of greenhouse gases (GHG); (v) Diagnosis of the Health and Sanitation Situation; (vi) initial
national inventory of polychlorobiphenyls and equipment containing such compounds in Togo; and (vii)
initial inventory of pesticides.
Other initiatives identified are: (i) the National Capacity Building Strategy on Environmental
Management (October 2008); (ii) the National Programme on Reducing Greenhouse Gas Emissions
from Deforestation and Forest Degradation (REDD+) 2010-2050; (iii) the national strategy for reducing
disaster risk, December 2009; (iv) the National Medium-Term Priorities Framework (CNPMT) for Togo
(2010-2015); (v) the national action plan for the management of marine and coastal environmental
resources; and (vi) the Capacity Building Programme for Environmental Management (PRCGE) which
already implements actions planned under PNGE I and represents a logical follow-up to the Self-
Assessment of National Capacity Building Requirements Project (ANCR) as regards environmental
management at the global and national levels. PRCGE led to the development of a national strategy to
combat bushfires, and the drafting of a National Information, Education and Communication Strategy
on Environment in 2010 for the 2011-2015 period.
XXIII
5. INSTITUTIONS
Since climate change is a crosscutting issue; it involves a range of stakeholders from three distinct but
interrelated levels. At Government level, the environment and climate change sector is covered by the
following technical Ministries: the Ministry of the Environment and Forest Resources, the Ministry of
Agriculture, Livestock and Water Resources (including water and sanitation), the Ministry of Town
Planning, Housing and Living Environment, the Ministry of Public Works and Transport, and the Min-
istry of Mines and Energy.
The Ministry of the Environment and Forest Resources (MERF) is tasked with climate and disaster-
related issues; the Ministry of Social Action and the Ministry of Health are involved in the operational-
ization of interventions. At the decentralized level, each department has directorates and/or technical
services in the regions and/or prefectures. Created on 30 May 2008 by the framework law on the envi-
ronment, the National Environmental Management Agency (ANGE) is tasked with the prevention of
environmental risks in public and private investments. It is also responsible for managing the environ-
mental information system, and monitoring/evaluation of the environmental status to support environ-
mental assessments and ensure better decision-making at local, prefectural and regional levels.
6. COMPLEMENTARITY, SYNERGY AND DONOR COORDINATION
Just like the Bank, the following partners have programmes, projects and even initiatives on climate
change: EU, German Cooperation (GIZ); World Bank, United Nations Development Programme,
French Cooperation, civil society organizations (CSOs), and end-beneficiaries. Donor coordination is
done through sector committees, including the "water, sanitation, environment and the living environ-
ment” committee. MERF coordinates environmental activities. Unfortunately, this sector committee
does not meet regularly. On the sidelines of this committee chaired by Togolese authorities, technical
and financial partners hold coordination meetings on a near-regular basis. Information-sharing in Togo
promotes joint actions to combat climate change.
XXIV
Annex 12: Main Analytical Studies Consulted
1. ARTELIA, “Actualisation de l’étude d’impact environnemental et social”, in Etudes complémen-taires pour la préparation du projet de renforcement de la résilience climatique des infrastructures en zone côtière au Togo, Published by the African Development Bank and the Ministry of the Envi-ronment and Forestry Resources, Lomé, Apr. 2015, 52 pages.
2. ARTELIA, “Vulnérabilité des populations riveraines”, in Etudes complémentaires pour la prépara-tion du projet de renforcement de la résilience climatique des infrastructures en zone côtière au Togo , Published by the African Development Bank and the Ministry of the Environment and Fo-restry Resources, Apr. 2015, 49 pages.
3. African Development Bank, Department of Agriculture and Agro-Industry (OSAN), Agropoles De-velopment Project in Togo (PRODAT – Agricultural Project), Project Preparation Financing Mecha-nism, (PPF), Abidjan, Feb. 2016, 36 pages.
4. Carpophore Ntagungira, “Underlying issue of Electricity Access in Togo”, West Africa Policy Notes, African Development Bank, Abidjan, Sept. 2015, 40 pages.
5. IMF, Togo – IMF Staff Report for the 2015 Article IV Consultation, Washington, October 2015, 81 pages, inc. Annexes.
6. National Institute of Statistics and Economic and Demographic Studies (INSEED), Enquête du ques-tionnaire des indicateurs de base du bien-être (QUIBB), Lomé, INSEED, 2015, 145 pages.
7. Republic of Togo, Ministry of Agriculture, Livestock and Water Resources, Projet de développe-ment des agropoles au Togo, état des lieux des zones potentielles, December 2015.
8. Republic of Togo, Ministry of Agriculture, Livestock and Water Resources, Elaboration de la poli-tique agricole et du plan stratégique pour la transformation de l'agriculture au Togo à l’horizon 2030 (PA-PSTAT 2030), Lomé, Nov. 2015, 67 pages.
9. Republic of Togo, Ministry of Agriculture, Livestock and Water Resources, Stratégie nationale de développement des agropoles (2016-2020), Lomé, Feb. 2016, 18 pages.
10. Republic of Togo, Ministry of Agriculture, Livestock and Water Resources, Projet de développe-ment des agropoles au Togo (PRODAT), Lomé, March 2013, 23 Pages.
11. Republic of Togo, Ministry for Advancement of Women, Politique nationale de l’équité et de l’éga-lité du genre du Togo, Lomé, Jan. 2011, 32 pages.
12. Republic of Togo, Ministry of the Economy, Finance and Development Planning, Tableau de bord de l’économie togolaise, Lomé, March 2016, 40 pages
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