Procurement Process:RFP – Request for proposalOffice:UNDP Togo Office – TOGODeadline:15-Oct-18Posted on:08-Oct-18Development Area:CONSULTANTS
Reference Number:50472Link to Atlas Project:
00050233 – Strategic Management, Planning & Develpment Tracking
Terms of Reference
Recruitment of a national consultant for the study of the ecosystem of TPPME financing in Togo
Lomé is the third financial center of UEMOA (13 banks established with headquarters of two pan-African banks: EcoBank and Orabank).
However, the financing of the Togolese economy, although at a favorable level compared to other WAEMU countries, remains far from the contribution made by this system in the emerging economies. The problem is not only in terms of access to financing but also to the exorbitant cost of credit. Available statistics indicate that exit rates are between 9% and 13% for bank loans and sometimes close to 18% or even 20% for microfinance. In an environment characterized by low inflation, real rates seem very high and constitute a real obstacle to entrepreneurship in general and in particular to the development of the agricultural, industrial and artisanal sectors. Statistics on the distribution of credit also indicate that sectors such as agriculture receive little funding. Less than 1% of bank loans go to the agricultural sector, which accounts for 60% of the active population and whose relative share in GDP is around 40%.
The Government in recent years has made efforts in inclusive finance. APSEF, AGRISEF and AJSEF products have reached more than 700,000 people without income or low income. Entrepreneurship promotion programs, like the FIAEJ, have provided funding to small and medium-sized enterprises. However, many economic operators are unable to provide the guarantees required by banks to access credit and usury rates applied by the financing institutions.
As funding is one of the bottlenecks of a strong private sector, UNDP proposes to conduct a study on the financing ecosystem in Togo.
This study aims to analyze:
- Financing and support systems for accessing existing financing for formal and informal businesses;
- The support needs of formal and informal enterprises;
- the brakes and levers of existing systems and make recommendations in terms of priority actions and areas of strategic interventions including for UNDP