Togo President H E Faure Gnassingbé
Doha: Togo and the wider West Africa region are suffering from two major problems – insecurity and high cost of living, Togo President H E Faure Gnassingbé said yesterday during a conversation at the Qatar Economic Forum (QEF).
“The first issue we have is the consequences of the succession of crisis with the rising cost of living in Togo and West Africa, and the second is the issue of security that we are facing in our sub-region,” President Gnassingbé said.
The inflation rate in the West African Economic and Monetary Union (which consists of French-speaking West African countries) of which Togo is a member is up to 6%, a significant increase for developing economies like Togo.
Gnassingbé also disclosed that Togo is taking steps to substitute essential imports and reduce emergency spending to curb inflation. He said Togo spends around $20m a month to cap prices of basic foods and goods like wheat, corn and fuel, and the process is not sustainable for the tiny West African nation.
“This will not be sustainable for us in the future, so we are trying to set up a new strategy for the mid and long term,” he added.
The President disclosed that Togo is introducing cassava flour as an option for bread to reduce the reliance on wheat import. In the same vein, commuters are encouraged to use electric bikes, which are a significant form of transportation instead of a fuel-based mode.
Gnassingbé bemoaned the insecurity around Togo as a hindrance to attracting investment into the country because the perception of instability raises risk analysis and cost of investment. He, however, urged investors to take advantage of the disruption in the supply chain as Togo has the resources to meet demand.
“Given the current situation, I think it’s an opportunity for Togo and West African countries. We have the resources to transform commodities and export them to the final market. Before, we used to transfer only 2% of our cotton production to West Africa, and the rest was sent to China, where the factory is, and then to the US or Europe, where the consumers are.
“Today, we can extend the value chain in our country from the cotton seed to the final product – moreover, we are closer to Europe and America,” he added.
