Adétikopé – An industrial and logistics platform to transform Togo’s industry
The past several months has seen the President of Togo inaugurating a number of new facilities and infrastructure in the areas of electricity production, ICTs, industrial transformation and vocational training. The coming into operation of these projects is a perfect demonstration of Togo’s ongoing transformation, as outlined in its National Development Plan.
The Adétikopé Industrial Platform (PIA) was officially opened on Sunday 6 June 2021 by President Faure Essozimna Gnassingbé. This integrated and multisectoral facility is one of the main projects implemented under the National Development Plan (NDP, 2018-2022). By enabling the local processing of natural resources that were previously exported in their raw state, it will serve as a catalyst for the transformation of the national industrial ecosystem.
The PIA benefits from an advantageous tax regime designed to ensure investors’ competitiveness and will soon include a Single Window to facilitate companies’ administrative procedures. With the enormous improvements made to the country’s business climate in recent years, it is set to generate some 35,000 direct and indirect jobs in the long term.
35,000 DIRECT AND INDIRECT JOBS
The goal of the Adétikopé Industrial Platform is to develophigh value-added industrial chains in several agribusiness sectors: cotton, soya, sesame, cocoa, coffee and poultry. There is also room for other sectors with high economic potential to set up in the complex, particularly the automotive, pharmaceutical, cosmetics, packaging and recycling industries. Currently, two companies are already up and running at the PIA: Togo Agro-Ressources SAU, an agribusiness company that processes soybeans into edible oil, and Togo Wood Industries SARL.
AN ADVANTAGE FOR TOGO’S PORT CORRIDOR
In a speech attended by, amongst others, Burkina Faso’s Minister of Trade, Industry and Handicrafts representing the President of Faso, the AfCFTA Secretary General and representatives of the International Fund for Agricultural Development (IFAD) and the International Finance Corporation (IFC), Prime Minister Victoire Tomégah-Dogbé stressed the significance of this hub as a tool for achieving the government’s objectives of inclusion, equitable distribution of the benefits of growth and better social protection.
The PIA’s location just 27 km from the Autonomous Port of Lomé and the fact that it has its own dry port with the capacity to accommodate up to 800 trucks, greatly improves “the logistical performance of our port corridor,” said the Prime Minister. “This is of paramount importance for Togo, a land of hospitality, traditional transit and a natural access route for neighbouring countries.”
AN ADDITIONAL $1 BILLION IN ANNUAL EXPORTS
Developed as a public-private partnership between the government of Togo and ARISE IIP, an ARISE Group subsidiary, the PIA required an investment of 130 billion CFA francs (200 million euros) in its first phase of construction, which covers 129 hectares. ARISE IIP group chairman Gagan Gupta said that, over the next four years, he expects “annual exports to increase by more than a billion dollars”.
A tool for achieving the government’s objectives of inclusion, equitable distribution of the benefits of growth and better social protection
A NEW VOCATIONAL TRAINING FACILITY FOR THE BUILDING AND PUBLIC WORKS SECTOR
On 28 April, the President launches a new institute for work-linked training for development (IFAD) focusing on the construction industry. Located in Adidogomé, Lomé, IFAD-Bâtiment offers graduate training (certificate, diploma and professional baccalaureate) and “certification” in four major areas: structural work ( planning and execution and general masonry), carpentry and metallurgy, energy and fluids, and finishingand secondary work. Future plans include a renewable energies work-studytraining centre.
The school complex features a digital workplace integrated into all its courses and modern infrastructure (equipped workshops, resource centres, etc.). In these sandwich courses, students alternate between the campus for general and technical courses, and the buildingand project sites of partner companies. Motivation is the most important selection criterion for applicants.
10 new development training institutes will be opened over the next five years
A THIRD IFAD FOR LIVESTOCK FARMING ON THE HORIZON
The President’s commitment to making young people active in the economic and social development of Togo is evident in the successful implementation of this project. He had announced the establishment of IFADs in January 2018. “The emphasis will be placed on the quality of vocational training, because this is where the tools and skills needed for real participation of young people indevelopment come from,”he explained. He went on to announce that “10 new development training institutes will be opened over the next five years in the fields of agriculture, logistics, construction, transport and digital technology”.
IFAD-Aquaculture in Elavagnon, in the eastern Mono region, was the first of these institutions to open and was followed by IFAD-Bâtiment. In a few months’ time, IFAD- Élevage will open its doors in Barkoissi, to support the introduction of a dairy, small ruminant, poultry and pig industry.
TOGO CONSOLIDATES ITS PROGRESS TOWARDS ENERGY SELF-SUFFICIENCY WITH TWO NEW POWER PLANTS
On 26 April, less than two years after construction began on the Kékéli Efficient Power plant, the first flame was lit when the 47-megawatt gas turbine was commissioned. By the end of the year, a steam turbine will be added to this facility. This combined cycle system will provide 65.5 megawatts of power without the need for additional gas consumption and with limited CO2 emissions into the atmosphere.
This will increase the country’s electricity production capacity by 50%. In conjunction with ongoing grid extension projects, Kékéli will provide 263,000 Togolese households, or nearly two million people, with access to electricity.
Requiring an investment of 85 billion CFA francs (130 million euros), this plant is proof of Togo’s capacity for innovation. It was financed under a 25-year concession agreement with Eranove for the design, construction, operation and maintenance of the plant, and a public-private partnership (PPP) involving the Togolese government and international industrial and financial players. Kiféma Capital is the investment vehicle that holds the State’s stake and brings together all Togolese national investors, including the sovereign wealth fund Togo Invest and national institutions.
The Kékéli Power plant will provide access to electricity for 263,000 Togolese households, or nearly two million people
RISE IN INWARD FOREIGN DIRECT INVESTMENT IN TOGO (CNUCED SOURCE)
This is the increase in Foreign Direct Investment (FDI) inflows to Togo recorded between 2019 and 2020. According to UNCTAD, FDI inflows rose from191 billion CFA francs ($346 million) to 352.5 billion CFA francs ($639 million). It was $89 million in 2017. The majority of these investments come from other West African countries and include the construction of two cement plants by companies from Burkina Faso ($100 million, CinMetal Group) and Nigeria ($60 million, Dangote).
BLITTA PROVIDES 50 MWP OF ADDITIONAL SOLAR ENERGY
Two months after Kékéli came into service, President Gnassingbé officially opened the Sheikh Mohamed Bin Zayed solar power plant in Blitta on 22 June. This 50 MWp photovoltaic power station was built by AMEA Togo Solar, a subsidiary of AMEA Power, and is set to provide energy to approximately 158,300 households, which represents 9% of the demand in the central region.
The project was financed to the tune of 21 billion CFA francs by the West African Development Bank (BOAD) and the Abu Dhabi Fund for Development (ADFD). Its completion “perfectly illustrates how successful public-private partnerships are in Africa, with AMEA Power benefitting from Togo’s progressive investment climate, which prompted it to pre-finance this project,” said Aziable Mila, Minister Delegate to the President of the Republic in charge of Energy and Mines.
AMEA Power, a subsidiary of Al Nowais Investments (ANI), based in the United Arab Emirates, will operate the plant for 25 years. Over this time it expects to avoid more than 1million tonnes of CO2 emissions.
Kékélé and Blitta, both major projects carried out within the framework of the National Electrification Strategy, enable Togo to take giant steps towards achieving its ambitions. The government plans to increase the national electricity access rate to 75% by 2025 and then to 100%by 2030, and to increase the share of renewable energy in the country’s energy mix to 50%. At the Council of Ministers meeting on 17 June, the government adopted two draft decrees concerning the installation of two solar power stations at Salimde and Awandjelo, with installed capacities of 60 and 80 MWp respectively.
AMEA Power benefits from Togo’s progressive investment climate
TOGO OPENS ITS FIRST DATA CENTRE
In June this year, President Faure Gnassingbé officially opened Togo’s first strategic data hosting facility. The Lomé Data Centre is the country’s first neutral colocation data centre and allows institutions and companies to host their data in a secure environment.
It offers a reliable alternative for accessing very high-speed Internet bandwidth at lower costs, thanks to the optimisation of available networks in a single site.
BECOMING A DIGITAL HUB OF AFRICA
Built on over a hectare in the capital’s new administrative complex, the facility is Tier III certified, which is one of the highest levels of reliability in the sector. It comprises an administrative wing and five 133m² server rooms, four of which are intended for private companies. It took two and a half years to build and was financed to the tune of 12.7 billion CFA francs by the World Bank, as part of the regional infrastructure development programme (WARCIP).
Built by the French company CFAO Technologies and Togo’s Centro, under the supervision of APL France, specialists in data centre design and construction, the Lomé Data Centre is part of the government’s strategy for growth through digital transformation.
“Around two thirds of the 42 priority projects in the government’s new roadmap have a digital component”, said Cina Lawson, Minister for the Digital Economy, at the ribbon cutting ceremony. This facility brings Togo a step closer to its ambition of becoming a technological and digital hub in Africa.