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Kifema Capital, a Togo Invest financing tool to boost the National Development Plan (PND)

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The structural transformation of the Togolese economy, which the authorities have bet on, is supported by an ambitious five-year plan, covering the period 2018-2022 and called the National Development Plan (PND). It is a question for the Government, thanks to strategic investments in key sectors such as infrastructure, logistics, agriculture or even mines (…), to ensure the economic and social prosperity of all Togolese. At the heart of the system for attracting public and private investments, Togo Invest (TI). With institutional partners, this holding company, of which the State is the sole shareholder, has created an innovative investment vehicle called Kifema Capital, to bring together all the Togolese national investors and the diaspora wishing to intervene on PND projects.

For the implementation of the PND, Togo Invest has defined its areas of intervention by prioritizing projects with high economic and social value for the country, especially in the following sectors: agriculture, port and airport sectors, energy, finance and public infrastructure . Its criteria for entering into a partnership with the promoters of structuring projects are of several types: depending on the nature of the project, a minimum participation of Togo Invest allowing it to exercise an active shareholder role, the creation of jobs for Togolese, transparent governance in accordance with best business practices, the creation of direct and indirect income for the State or even compliance with the regulations in force.

It is an ambitious project to develop a modern transport infrastructure network (rail, road, logistics, pipeline, and telecommunications) from the Port Autonome de Lomé to the northern border with Burkina Faso.

In fact, several projects are designed by Togo Invest, notably the one called Togo Transport Corridor (CDT). It is an ambitious project to develop a modern transport infrastructure network (rail, road, logistics, pipeline, and telecommunications) from the Port Autonome de Lomé to the northern border with Burkina Faso. The objective of the CDT is to improve the efficiency and effectiveness of the Lomé-Cinkassé corridor, while freeing up the economic potential of all regions of Togo.

In this context, several projects identified as priorities in the PND are being studied and / or implemented by the institution, namely (1) a Port Sec project to be developed over an area of 100 hectares in the vicinity of Cinkassé, (2) a 670km railway, (3) a special economic zone and a Multiservice Logistics Platform.

The Multiservices Logistics Platform project consists of developing a logistics infrastructure 7km from the port of Lomé consisting of a dedicated road with access to the port, a parking space for trucks, basic infrastructure on the site and other appropriate facilities ( logistics and control center, offices, accommodation and restaurants). That of the Special Economic Zone is linked to axis 2 of the PND for industrial transformation.

1 plateforme logistiques multiservices 2020 05 28 13 55 07

In partnership with the Chamber of Commerce and Industry of Togo (CCIT), TI undertakes to develop a Multiservice logistics platform.

This strategic infrastructure project in line with PND guidelines would speed up containerized transport to the Sahel countries and would have a strong and positive impact on the logistics industry, with thousands of jobs.

Read : 10 questions à Ekué Samuel Mivedor, DG de Togo Invest

Financing solution for projects of national interest

To finance all of these projects within the framework of the PND, the overall cost of which is estimated at 4,622 billion CFA francs (7 billion euros) with 65% expected from the private sector, Togo Invest has set up Kifema Capital SAS in order to syndicate contributions from the public sector as well as from the national private sector. Regarding Kifema Capital, Marc Alberola, CEO of the Eranove Group says: “It is an innovative instrument for mobilizing resources in the sub-region which has a bright future ahead of it”.

The main shareholders of this investment vehicle are the National Social Security Fund (CNSS), the National Institute of Health Insurance (INAM), the Togo Chamber of Commerce and Industry (CCIT) and Togo Invest. Kifema Capital is intended to initially bring together all Togolese public and private investors.

The main shareholders of this investment vehicle created in October 2019, in the form of a simplified joint-stock company, are the National Social Security Fund (CNSS), the National Health Insurance Institute (INAM), the Chamber of Commerce and of Industry of Togo (CCIT) and Togo Invest.

Kifema Capital is intended to initially bring together all Togolese investors, whether from the public or private sector. The investment projects in its portfolio are essentially those of the PND, or any other project of national interest falling within the corporate purpose of Kifema Capital. To do this, the fund will take stakes in companies under Togolese law, manage, control and develop said stakes, etc.

2 Centrale électrique Kekeli Efficient Power

Kekeli Efficient Power combined cycle steam power plant, with a capacity of 65 MW

Kekeli Efficient Power, proof by action

A major project in the energy sector, the construction of the KEKELI thermal power plant, is the first project in which Kifema Capital is involved.

Read : L’Etat, co-actionnaire de la Centrale Kékéli Efficient Power à travers une prise de participation de Kifema Capital

The KEKELI project consists of the design, financing, construction and operation over a period of 25 years of a combined cycle thermal power plant with a capacity of 65 MW in the area of the Autonomous Port of Lomé. “The advantage of the combined cycle is the increase in production capacity without the additional use of fuel, thereby reducing pollution”, detail the initiators of the project.

The plant will operate mainly on natural gas, which may be replaced by propane 95 as a secondary fuel or still Distillate diesel oil (DDO) as the backup fuel.

In addition to the power plant, the project also includes the construction of a 161 KV energy evacuation station and a 161 KV energy evacuation line to the Lomé Port national grid interconnection station. .

To carry out the KEKELI project, a total investment of more than 82 billion FCFA could be raised by Kifema Capital and Eranove.

For its implementation, a company called Kékéli Efficient Power SA (KEP) was created, with Kifema Capital as main shareholders, which holds 25% of the share capital and the rest by Eranove, a benchmark group in sub-Saharan Africa, specialized in the electricity production and distribution sector as well as drinking water.

Kifema Capital represents the Togolese participation in the shareholding of KEP. It thus creates opportunities for Togolese investors wishing to contribute to the economic development of their country.

To carry out the KEKELI project, a total investment of more than 82 billion FCFA was raised by Kifema Capital and Eranove. The massive participation of local and sub-regional banks to the tune of 80% of the total investment, already confirms the level of confidence of financial players vis-à-vis this young vehicle. As Marc Alberola points out, “this project is a perfect illustration of the multilateral model bringing together pan-African and pan-European partners that we want to promote to meet the challenge of access to electricity and water in Africa”.

In order to maintain this good course in the collection of the resources necessary for the realization of the structuring projects of the PND, Ekué Mivédor, Managing Director of Togo Invest and also president of Kifema Capital, calls on the private sector to establish partnerships: “we hope to count on the participation of all Togolese including those of the diaspora for the realization of these projects which, undoubtedly, will be catalysts of the Togolese economy ”, he declares.

3 Ekué Mivédor DG de Togo Invest

Ekué Mivédor, CEO of Togo Invest: “We hope to count on the participation of all Togolese including those from the diaspora for the realization of these projects”

Create local champions

After the successful mobilization of investors around the KEKELI thermal power plant, the presidency of Kifema Capital ensures the imminence of other projects, such as the creation of an industrial zone, or that of the multi-service logistics platform.

However, the realization of certain infrastructure projects will require that Togo Invest be sufficiently capitalized, with income-producing assets. “We are working on it with our shareholder, in order to provide Togo Invest with the necessary means enabling it to truly play its role, and to achieve its own objectives,” said Ekué Mivédor.

A key asset of Togo Invest, Kifema Capital should therefore enable the state holding company, responsible for driving the development and implementation of strategic investments by and for the state, to develop and benefit from sustainable investments.

One of Kifema Capital’s greatest prospects is to strengthen local content in development projects by enabling Togolese economic operators to invest in large projects, benefit from technology transfer and thus, create local champions in even to initiate and develop projects in the various strategic sectors of the country.

“The long-term objective is to make our vehicle a holding company with the creation of subsidiaries that will invest in the promising sectors that will be identified,” explains Mivédor. According to him, Kifema Capital will identify and propose, through its shareholders, other projects of national scope in key sectors including transport, agriculture, energy, real estate and telecommunications, in accordance with its corporate purpose .

A key asset of Togo Invest, Kifema Capital should therefore enable the state holding company, responsible for driving the development and implementation of strategic investments by and for the state, to develop and benefit from sustainable investments.

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