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\u2013 The dynamism of banking activity\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
![\"Immeuble_de_la_BCEAO_Togo\"](\"https:\/\/togo.yearbook-media.com\/wp-content\/uploads\/elementor\/thumbs\/Immeuble_de_la_BCEAO_Togo-e1710772897427-r3clwks0xujh9ljt90rnqompcit3r2nba7nneq2u0o.jpg\" "\\"BCEAO")
\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\tThe dynamism of banking activity is the result of a healthy business climate\u00a0<\/span>and attractive. In the Doing Business 2020 report, the country rose to the top of reforming countries in Africa and holds third place worldwide.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t \t\t With the reforms initiated by the Head of State, notably through the establishment of a dedicated business climate unit, Togo offers a competitive business environment. National and foreign economic operators benefit from the advantages of a safe, stable, and economically flexible country. Another key measure of this proactive policy to improve the business climate is the operationalization of the Investment Promotion and Free Zone Agency (API-ZF). Hoarding is increasingly avoided, public procurement is exempt from complex procedures, entrepreneurs are encouraged, business creation has become easy, youth employment policies are multiplying, water and electricity are affordable, national industrialization is booming, and farmers are supported. In 2020, commercial banks provided just over 615 billion CFA francs in financing to economic players, bringing the sector's outstanding loans to over 1,428 billion CFA francs. However, new loans were down 71% from the 662 billion CFA francs granted in 2019.<\/p>\n As for loans granted by microfinance institutions to economic operators, they increased to reach 37 billion in the first quarter of 2021, compared to 36 billion a year earlier. Microfinance institutions in Togo grant loans to individuals and groups. These loans are often backed by guarantees and sureties. The clientele is roughly equally divided between men and women; just over half of the loans (50.2%) were therefore granted to women. Lending conditions are similar from one institution to another.<\/p>\n <\/p>\n <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t \t\t There are still some gray areas. For example, agricultural financing by Togolese banks remains low. In the first nine months of 2021, agriculture accounted for 1.41 trillion pounds of new bank loans. This is a real paradox, given that agriculture remains a pillar of economic growth but remains underfunded.<\/span><\/p>\n But agriculture isn't the only poor relation in bank financing. During the same period in 2021, crafts accounted for 2.81 trillion pounds of total bank financing.<\/p>\n For 2022, the Minister of Economy and Finance expressed the wish that efforts be made to improve financing for the agricultural and housing sectors in Togo. Other key economic projects for 2022 to improve the volume of financing: the reduction of lending interest rates charged by banks and a greater mobilization of resources by Small and Medium-Sized Enterprises through the SME Support Scheme. Over the first nine months of 2021, the total amount of credits granted by all banks through the SME system stood at 16 billion CFA francs, or 3% of new bank loans, compared to 43 billion CFA francs (7%) in 2020 and 36 billion CFA francs (5%) in 2019. It should be noted that despite the declines recorded at the end of September 2021, the gross deterioration rates of the credit portfolio of banks and decentralized financial systems remained at high levels of 15% and 8% as of September 30, 2021.<\/p>\n <\/p>\n <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
The State has launched the privatization process of public banks (BTCI and UTB) and to date the Union Togolaise des Banques (UTB) is still on the market for potential investors. The acceleration of the digitalization of banking products and services induced by the health crisis is an opportunity for all service providers in this area in view of the needs of local financial institutions on the one hand and the need to share costs for good control of banks' operating coefficients on the other.<\/div>\n