top of page

Togo

Overview

Togo is a West African country with an estimated population of about 8 082 366 in 2019 and an annual growth rate of 2.42 percent. Its neighbouring countries are Ghana, Benin and Burkina Faso. The country is among the smallest African countries, and stretches inland from the coast as a long, thin strip of land covering 56 785km2. Togo is part of the Economic Community of West African States (ECOWAS), and the West African Economic and Monetary Union (WAEMU). The social housing sector has a large deficit, caused by the lack of public housing policies over a number of years. The need for housing is constantly increasing in direct correlation with population growth, estimated at 3.72 percent in urban areas with an urban population around 3 414 638 in 2019.1 According to official forecasts, 50 percent of Togolese population will live in urban areas by 2028.2 Togo’s economy is dominated by agriculture, which involves most of its population. Inflation in 2019 was 1.7 percent, up from 0.9 percent in 2018. According to official sources, the economic growth in 2019 was five percent after 4.9 percent in 2018.3 According to the Togolese government, the gross domestic product (GDP) growth rate in 2020 could contract to 1.5 percent against the initial forecast of 5.5 percent, based on the impacts of the COVID-19 pandemic.4 Since the outbreak of the COVID-19 pandemic in Africa, the Central Bank of African States (BCEAO) has published some measures to mitigate the impact of the pandemic on the banking system and the financing of economic activity in the Union. As a first step, BCEAO increased the amount granted each week to banks by CFA340 billion (US$581 892 863) (which now amounts to CFA4 750 billion or US$8 129 385 589) to help relieve the economy. In a second phase, CFA25 billion (US$42 786 239) will be allocated to the West African Development Bank (BOAD) bonus fund. The BOAD will in turn be able to grant more concessional loans at better rates to Member States. These funds will be used to finance urgent investment and capital expenditures in the fight against the pandemic.5 In Togo, the central bank cut its key interest rate by 50 basis points.6

KEY FIGURES

Main urban centres 

Lomé, Kpalimé, Attakpamey, Sokodè, Kara, Dapaong, Tsevié, Aneho

Exchange rate (1 July 2020): 1 USD = [a]

584.30 CFA Franc XOF 240.24 CFA Franc XOF

1 PPP$ = [b]

Total population [b] | Urban population [b]

Population growth rate [b] | Urbanisation rate [b]

GDP per capita (Current US$) [b]

8 082 366 | 3 414 638

2.42% | 3.72%

US$676

Percentage of population below national poverty line (2017) [b]

Unemployment rate (% of total labour force, national estimate) (2017) [b]

Proportion of adult population that borrowed formally (2017) [b]

Gini coefficient (2017) [b]

28.2%

1.8%

7.5%

43.10

HDI country ranking (2018) [c] | HDI country score (2018) [c]

167 | 0.51

GDP (Current US$) (2018) [b]

GDP growth rate (2018) [b]

Inflation rate (2019) [b]

Yield on 10-year government bonds Lending interest rate [b]

US$5 460 million

5.31%

0.67%

n/a

5.10%

Number of mortgages outstanding [e]

Value of residential mortgages (Current US$) [e]

Typical mortgage rate | Term | Deposit [f]

Ratio of mortgages to GDP

Number of mortgage providers [e]

Number of microfinance loans outstanding [e]

Value of microfinance loans in local currency units [e]

Number of microfinance providers(2019) [f]

n/a

n/a

7% | 15 years | n/a

n/a

6

n/a

177 218 000 000 XOF

76

Total number of formal residential dwellings in the country

Total number of residential properties with a title deed (2019) [g]

Number of formal housing units built in this year

Price of the cheapest, newly built house by a formal developer or contractor in an urban area in local currency units [h]

Size of cheapest, newly built house by a formal developer or contractor in an urban area [i]

Typical monthly rental for the cheapest, newly built house (2019) [j]

Cost of standard 50kg bag of cement in local currency units [k]

Type of deeds registry: digital, scanned or paper [l]

World Bank Ease of Doing Business index rank [l]

Number of procedures to register property [l]

Time to register property

Cost to register property as share of property price [l]

World Bank DBI Quality of Land Administration index score (0-30) [l]

n/a

47 326

1 800

7 000 000 XOF

150m2

50 000 XOF

3 900 XOF (US$6.67)

Computer - Scanner

97

3

35 days

1.6%

9.50

Percentage of women who own a house alone: Total | Urban (2017) [m]

Percentage of households with basic sanitation services:

Total | Urban (2017) [m]

Percentage of households with no electricity: Total | Urban (2017) [m]

Percentage of households with 3+ persons per sleeping room:

Total | Urban (2017) [m]

Percentage of urban population living in slums (2018) [n]

n/a | n/a

15.5% | 24.5%

48.4% | 12.8%

​

35.4% | 37.5%

54.3%

Member organisations of the African Union for Housing Finance (AUHF): Caisse Regional de Refinancement Hipothecaire de l’UEMOA (CRRH-UEMOA)

[a] Xe.com

[f] The Central Bank of West African States (BCEAO)

[b] World Bank World Development Indicators

[g] Land Registry Office [c] Human Development Reports, United Nations

[h] Ministry of Urban Planning and Housing Development Programme 

[i] Ets Helegbe

[d] Bancaire Sahélo Saharienne pour l`Investissement

[j] World Bank Ease of Doing Business Indicators et le Commerce (BSIC)

[k] Demographic and Health Surveys, USAID

[e] Togolese Real Estate Federation

[l] United Nations Human Settlements Programme (UN-HABITAT

With the objective of supporting its population, the Novissi social assistance project was launched in April 2020 to assist the most disadvantaged against the measures enacted and the health state of emergency decreed by the Head of State on 1 April 2020. This programme provides a direct cash transfer to households that have lost some or all their income due to the impact of COVID-19. Those eligible for this programme began to receive a monthly allowance of CFA12 250 for women and CFA10 500 for men.7

Access to finance

According to the results of FinScope 2016, Togo has moderately low financial inclusion compared to other countries in Sub-Saharan Africa. It ranks 14th in access to financial services among the 21 African countries in which FinScope surveys have been conducted. Between 2014 and 2019, the percentage of Togolese over the age of 15 with a bank account, microfinance or postal services, increased by 24 percentage points, from 50 percent to 74 percent. The financial services delivery landscape in Togo is dominated by banks and microfinance institutions, also called decentralised financial system (DFS). The DFSs are extremely important service providers in Togo and partly cover the gap caused by the concentration of banks on higher income urban customers. The largest DFS network remains the Togo Cooperative Savings and Credit Units (FUCEC) which in 2018 alone held more than 63 percent of the assets in the DFS sector nationally, representing a balance sheet of CFA125 billion (US$213 931 199).8 The DFSs contribute to the improvement of financial inclusion in Togo, particularly in accessing financing systems for rural and peripheral populations. They do not offer formal loans to finance housing, however, it seems clear that some of the funds provided are invested by beneficiaries in real estate projects. Togo has 14 conventional banks, 11 of which are subsidiaries of WAEMU’s largest banking groups. There are three branches and three banking financial institutions. The number of banks is expected to increase with the upcoming opening of the Development Bank of Mali, a subsidiary of the Moroccan Bank of Africa BMCE Group. Mortgages are difficult to obtain although some banks offer them to their customers under strict terms, such as reporting regular income or land securities. Generally, mortgage terms vary between 10 and 15 years and interest rates are between seven percent and 10 percent. However, these rates are negotiable by the customers. Microfinance institutions do not currently offer loans for housing construction or mortgages. However, during a seminar organised by the Regional Fund for Mortgage Refinancing (CRRH-UEMOA) in September-October 2019, several themes were developed including guidelines for refinancing housing loans. The evaluation of the financial guarantee solutions for housing loans made by DFSs was also discussed.9 The CRRH-UEMOA is a regional initiative for a better access to housing finance in WAEMU countries. Nearly 55 commercial banks within the union constitute its shareholding. It provides WAEMU’s credit institutions with access to resources for the refinancing of housing loans. Its role is expected to strengthen to boost the housing market in the sub-region and thus also in Togo. To meet this objective, the institution increased its share capital by CFA9 144 billion (US$15 657 534 246) to CFA9 589 billion (US$16 419 529 547) at its general meeting in 2019. This capital increase is meant to facilitate access to home loans. As of 31 December 2019, the CRRH-UEMOA had mobilised in eight years of activities a total of CFA 200.3 billion (US$342 465 753) in resources for the refinancing of housing loans made by 35 shareholder banks covering the eight countries of UEMOA.10

Affordability

Housing is a concern in the main urban areas of Lomé with its unplanned urbanisation. The city is developing in the outlying areas without essential services such as schools, health centres, water or electricity. The minimum area of land for the construction of a house is 150m2 and the cost of building a single ground floor house is between CFA7 million and CFA8 million (US$13 691).11 In recent years, the cost of cement, an essential material in the construction of a house, has decreased, thanks to the competition between players in the sector. The price of cement per ton (20 bags of 50kg per bag) is between CFA78 000 (US$133.49) and CFA80 000 (US$136.91) despite the official price set by the state of CFA81 000 (US$138.62). The price of cement is expected to fall further in 2021 with the arrival on the market of a new player, the West African Coast Cement Plant. This trend is expected to reduce the cost of building construction. The Nigerian Dangote Group also announced the construction of a factory in the

COVID-19 response

  • BCEAO increased the amount granted each week to banks by CFA340 billion (US$581 892 863) (which now amounts to CFA4 750 billion or US$8 129 385 589), to help relieve the economy. In a second phase, CFA25 billion (US$42 786 239) will be allocated to the BOAD bonus fund. The Togolese government put in place a series of measures from 16 March 2020. These included: n Suspension for two weeks from Friday 20 March 2020 of all air links from high-risk countries;

  • n Mandatory 14-day self-isolation for anyone arriving in Togo and staying in a high-risk country;

  • n Prohibition of any gathering of more than 100 people throughout the country for one month, starting Thursday 19 March 2020 at midnight;

  • n Launch of Novissi, a cash transfer programme for the most vulnerable population;

  • n Free water and electricity for social units for three months; n The central bank cutting its key interest rates by 50 basis points;

  • and n A curfew with the closure of some cities.

To make the information available, a government website was created to communicate information about the disease in the country

country. All these investments show the confidence of economic operators in the construction sector. In general, building your own home is imperative for every citizen in Togo and is a sign of self-fulfilment and accomplishment. This obsession with real estate partly explains land speculation, the number of unfinished houses, and the anarchic creation of neighbourhoods in flood-covered areas as seen in some parts of the capital. The guaranteed interprofessional minimum wage in Togo is CFA35 000 (US$59.90), which does not allow the average citizen to buy land, build their own housing, or even afford decent rental housing. Most banks offer mortgages, but the majority of the population does not have access to this type of housing financing because of the rigidity of the conditions of these loans, provision of a land title and building permits. At the level of the Togolese Bank Union, for example, guarantees include death insurance, a medical report if the amount is greater than or equal to CFA5 000 000 (US$8 561) and fire and water damage insurance. The repayment period is 10 years. Documents to be supplied are the quotation, the land title, the construction plan, the architect’s report or the building permit.12 The issue of housing during the pandemic period has been difficult, especially for the homeless in the capital. The government’s accompanying measures did not directly impact the housing sector. Some marginal initiatives of non-governmental organisations (NGOs) have relieved a tiny fraction of these people. Kpadomeviwo-Togo, an NGO working to protect street children, has sheltered some people in rented accommodation.13

Housing supply

In Togo, in the capital Lomé and most other cities, the majority of houses are informal. The number of rural and urban houses is not quantifiable. The average size of a household in rural areas is about eight people compared to four in the urban areas. The country has two housing delivery systems, including properties and rentals. For formal housing, the government has started a programme to build 1 000 social housing units mainly for state officials.14 This is the Mokpokpo city located in the southwestern suburb of Lomé. The project consists of 540 houses on an area of

ZAMBIA

Annual income profile for rural and urban households based on consumption (PPP$), 2019

PPP$40 001 – PPP$10 000 000

Screenshot_14.png

PPP$23 001 – PPP$40 000

PPP$12 001 – PPP$23 000

PPP$8 001 – PPP$12 000

PPP$5 001 – PPP$8 000

PPP$3 601 – PPP$5 000

PPP$2 401 – PPP$3 600

PPP$1 601 – PPP$2 400

PPP$801 – PPP$1 600

<PPP$800

No. of households (thousands)

Population:

8 082 366

Urbanisation rate:

3.72%

Cost of cheapest newly built house:

7 000 000 XOF

House price PPP$:

PPP$29 138

Urban households that could afford this house with finance:

27.15%

1 PPP$:

240.24 CFA franc

12.5 hectares including 420 low-rise villas and 120 apartments under construction around Greater Lomé, 15km from the city centre. The operationalising of the programme was entrusted to two international operators, the Société Ivoirienne de Promotion Immobilière and Moroccan Shelter 2000. Some banks such as Orabank and the International Bank for Africa are participating in the project by offering officials a financing plan through real estate loans over 15 to 20 years.

Property markets

In Togo, 75 percent of urban households live in collective housing. Access to the property remains reserved for a limited section of the population. The cities in Togo have 52 percent of residents living in rental accommodation. Through a ministerial decree, the Ministry of Economy and Finance reduced the cost of property transfer operations to CFA35 000 (US$59.93). Prior to this measure, the costs were 9.3 percent of the value of the land in 2017, and 6.3 percent in 2018.15 There are very few studies on the Togolese real estate sector and price fluctuations in the market. According to a market study by the National Association of Realtors of Togo, prices in 2018 ranged from CFA1 000m2 (US$1.72 m2) to CFA6 000m2 (US$10.34m2) for an apartment in Lomé. For a parcel with a land title, prices range from CFA36 000m2 (US$62.05m2) to CFA480 000m2 (US$827.37m2). Without land title, prices range from CFA30 000m2 (US$51.71m2) to CFA40 000m2 (US$68.94m2). These prices have had to increase due to the high demand and development of road infrastructure that made some urban areas more accessible

Policy and legislation

After the promulgation of Law No. 2018-005 on the Land and Domanial Code by parliament in June 2018, some measures have been taken to implement this law. Some initiatives are underway at the Togolese Revenue Office level. One example is the launch of the e-foncier platform16 in January 2020. The objective of the platform is to enable surveyors and notaries to safely conduct land formalities regardless of their geographical location and to accelerate the process of collecting information and taxes. This tax is applied on both build and unbuilt properties. Around 50 percent of the income from this property tax goes to local authorities to meet their needs. Local governance has been undergoing a revival in the country since 2019 with local elections, and this tax could increase the funds available to improve living conditions in large urban centres. In the first quarter of 2020, reforms were also implemented for building permits. A one-stop shop has been set up. To accelerate the land registration process and reduce the cost of issuing land title, this one-stop shop brings together all the services involved. The deadline to obtain a building permit has been reduced from 90 days to 10 days in one year. The cost of water connecting is now free with a reduction of delays by up to five days through the national company La Togolaise des Eaux. There have been no financial reforms specific to the housing sector. In addition, the role of the state is limited at present in providing housing. The only project currently involving the state is that of the city Mokpokpo.

Opportunities

The urban growth offers certain opportunities for real estate developers in Togo. However, they must present offers that address several variables including land security, limited household incomes, the cost and quality of materials, the geographical location of the housing, and access to water and electricity. At present, the offers on the market do not correspond to the financial possibilities of households. It seems essential that the state becomes increasingly involved in social housing projects for the benefit of people with limited incomes. Land security must also be strengthened with the effective application of the new texts. Local banks are called on to provide more flexible conditions for accessing housing finance to provide the necessary funds for large-scale projects to accelerate housing construction.

C

Websites

Directorate of Land Registry, Land Conservation and Registration http://www.dadc.gouv.tg/

Central Bank of West African States https://www.bceao.int/

Corona virus in TOGO https://covid19.gouv.tg/

Novissi – Universal Solidarity Income Program https://novissi.gouv.tg/

Togolese Office of Revenue https://www.otr.tg/index.php/fr/

Ministry of Economy and Finance https://finances.gouv.tg

Official website of the Republic of Togo https://www.republicoftogo.com/

Ministry of City, Planning and Housing and Public Health https://urbanisme.gouv.tg/

National Fund for Inclusive Finance

https://fnfi.tg/

National Institute of Statistics and Economic and Demographic Studies

https://inseed.tg/ 

Leaders in quality & fast track construction.

1201 Sixth Ave W Bradenton, FL 34205

Florida Headquarters

1201 Sixth Ave W Bradenton, FL 34205

  • Instagram
  • Facebook
  • Youtube
  • TikTok
Design. Build. Repeat

315.794.7732

© 2020 by FORMAX

bottom of page