iL ~~~~RESTRICTED FILE COPY RA5e AF65 Vol. 2 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION PRESENT ECONOMIC POSITION AND PROSPECTS OF TOGO (in three volumes) VOLUME II ANNEXES AND APPENDIX-TABLES March 29, 1968 Africa Department CURRENCY EQUIVALENTS US$ 1.00 = CFAF 246.85 French Franc 1. 00 = CFAF 50. 00 CFAF 1.00 = US$ 0.004 CFAF 1. 00 = French Franc 0.02 CFAF 1 million French Francs 20, 000 CFAF 1 million = US$ 4, 000 (approximately) VOLUME II TABLE OF CONTENTS PART I - ANNEXES ANNEX I - AGRICULTURE ANNEX II - INDUSTRY - TRANSPORT - SERVICES ANNEX III - FINANCING OF GROSS CAPITAL FORMATION ANNEX IV - THE MAIN FEATURES OF THE BUDGETARY SYSTEM ANNEX V - EXTERNAL AID ASNEX VI - P?ROJECTIONS PART II - APPENDIX-TABLES Tables 1 - Population 2 - Active Population 3 - Origin and Uses of GDP - 1964 4 - Origin of GDP 1962-1966 5 - Estimated GDP by Use 1962-1965 6 - Government Current Budget 1960-1967 7 - Government Current Budget: Breakdown for Selected Years 8 - External Public Debt: List of Loans 9 - Internal Public Debt: List of Loans 10 - Repayment Schedule of Amortization, Interest and Commission Payments, Government Debt Only 11 - Tre'sor Position at the End of Year 12 - Advances by the Tre'sor 13 - List of Public Enterprises 14 - Utilization of Credits Granted by Sector and Term 15 - Exports 16 - Imports by Principal Commodity Groups 17 - Imports of Selected Items: Quantities 18 - Imports of Selected Items: Value 19 - Estimates of the Balance of Payments - 1965 20 - Balance of Payments with Non-Franc Area Countries 21 - Geographical Distribution of Exports 22 - Geographical Distribution of Imports 23 - Road Transport - 1967 24 - Rates for Road Transport 25 - Chemins de Fer du Togo - Motive Power arLd Rolling Stock 26 - Railways System 27 - Chemins de Fer du Togo - Traffic Statistics 23 - Reseau des Chemins de Fer et du Wharf du Togo - Financial Statistics 29 - Selected Statistics - Port of Lome' (Wharf) 30 - Area, Population and Cultivated Area -2- APPENDIX-TABLES (Cont'd) Tables 31 - Agricultural Production 32 - Department of Agriculture - Number of Personnel - 1965 33 - Share of Co-operatives in Internal Marketing 34 - Marketing Charges 35 - EEC Contribution to Support Prices 36 - OPAT Balance Sheets 37 - OPAT Receipts and Expenditures 38 - Agricultural Exports Effected by OPAT 39 - C.I.F. Values of Agricultural Exports by OPAT 40 - C.I.F. Unit Values of OPAT Exports 41 - OPAT Cost Prices F.O.B. Lome' 1966-67 42 - Taxes per Ton on Export Shipments 1966-67 for Agricultural Commodities 43 - Agricultural Loans Made by Credit du Togo 1957-1966 44 - Agricultural Loans Outstanding on June 30, 1966 45 - Expected Demand for Agricultural Credit PART I ANNEXES ANNEX I AGRICULTURE A. Present Situation 1. Even though in some areas (Ane'cho in the South, Kara in the North- east) population pressure and unimproved cultivation techniques have led to soil deterioration, generally there is room for expanding the area under cultivation and increasing productivity per hectare. Only one-tenth of the total area is devoted to agriculture. Irrigation practices are virtually unknown. Relatively favorable soil and climatic conditions exist in certain areas, mainly in the South, and significant improvements in yields through application of improved techniques of cultivation and increased input pos- sible. But it is not possible to fully appreciate the country's agricultural potential, neither to appraise economically the existing production pattern for lack of basic studies. Regional (as in the Savanna region), product (as for oil palm in the South), or sectoral (as the groundwater survey) surveys have been fortunately undertaken recently. (i) Production 2. Food crops (yams, cassava, corn, millet, sorghum, rice) account for over 80 percent of agricultural output. Production has in recent years supposedly increased with population. However, there are no systematic surveys and available data are suspect (see Appendix - Table 30 and 31). In particular, the supply difficulties to the cassava starch mill (Anecho region) suggest increasing difficulties in the supply of this important staple food. Data on industrial crops are more reliable, except for groundnuts and palm oil, which are partly for subsistence consumption. 3. Coffee of the robusta variety (9,000 tons) and cocoa (7,000 tons), the major export crops, are produced by small local farmers in the Southwestern part of Togo, within the triangle Palime'-Atakpame-Badou (350,000 people). Yields are low, mainly because of poor care. In spite of efforts made by the government to reduce the area under coffee and to intensify production, farmers have increased the coffee area (from 23,000 ha in 1964 to 26,000 ha in 1965), but continued low prices may well begin to have a disincentive effect now. Purchases of cocoa by the marketing Board (OPAT) considerably exceed local production as shown in Table 1 because of 'unofficial" imports of GhanaianL cocoa. Flunctuations in production can partly be explained by fluctuations in prices. They are also related to the farmers' need for cash since labor force requirements are limited to harvesting. A srnall experi- mental station run by IFCC, (Institut Francais pour le Cafe et le Cacao) will be established in 1967 at Tove. ANNEX I Page 2 Table 1 Production and Purchases of Cocoa ('000 Metric Tons) 1964 1965 1966 Local production (estimate by Agri- culture Department) 6.6 8.1 6.4 Marketing Board purchases (OPAT) 16.5 15.6 17.1 4. An average of 55,000 ha are annually planted with the Mono variety of cotton which is normally intercropped with yams. Although average yields are low (150 kg per ha) the cultivation requires no current material inputs and little or no maintenance and is, therefore, of interest to the farmer. Total production is about 8,500 tons, almiost entirely exported as fiber and seed. The present production of the high yield Allen variety is rtill insignificant. 5. The bulk of the production ol' groundnuts (18,000 tons) is processed and sold locally. Orly one-fourth of the output is handled by OPAT and exported unshelled (about 3,000 tons). Wild palm groves produce about 13,000 tons of kernels for export. Palm oil production is about 10,000 tons of which over nine-tenths is consumed locally. The mill of Alokoegbe", established in 1954, sells the oil to SNAIDA (Societe Nationale des iHuileries du Dahomey). FED is financing a small plantation pro-ram (500 ha) to improve the supply of the mill. 6. There are about 6,000 ha of coconut palms along the seashore. The whole coconut area is infested with a virus (Kaincope disease) which has drastically reduced prodtuction (from 4,000 tons of copra in 1961 to 2,400 tons in 1966). The drop in the quantity marketed for export was even steeper (from 3,800 tons in 1961 to 443 tons in 1966) because the domestic price of coconut oil is increasing and the population increasingly likes that oil. 7. The area under rice covers about 27,000 ha. In 1965, the production reached 15,000 tons of paddy (1966 data are not reliable). The bulk of the output is produced in rainfed areas and rice is intercropped with maize, yams and cassava in the Central and Plateau regions. In the North, small irrigation is developing slow˘ly. Near Palime, Fonnosans have established a demonstration center where yields reach about 6 tons of paddy per hectare. 8. Togo has a livestock population of about 150,000 cattle, mostly in the North; 1,100,000 sheep and goats, and 300,000 pigs. According to the Development Plan, the rate of slaughtering of cattle is around 13 percent, ANNEX I Page 3 a comparatively high figure for Africa when compared to past years. Local production satisfies only two-thirds of domestic consumption. About 10,000 head cf cattle are imported annually. 9. Forests cover 10 percent of the country's area. They satisfy local firewood requirements of about 300,000 tons per year. Production of timber is limited (6,000 cu.m.). Imports reach 8,000 m of timber equivalent. Tthere are about 8,000 ha of teak plantations, the bulk of which are between five and twernty years old. They are poorly maintained due to lack of funds. 10. The antual fish production is about 6,300 tons, made up of coastal f'ishing (4,000 tons), lagoon fishing (1,500 tons) and river fishing (800 tons). Based on an average producer price of CFAF 50 per kilo, output value amounts to some CFAF 315 million. Fish imports, both fresh and preserved, amounted to about 6,000 tons in 1966. Training schemes (FAO and German aid) are under- wcly to improve lagoon and coastal fishing. (ii) Development Institutions Extension Service 1L. It has become commonplace to stress the weakness of the agricultural a(dministration in West Africa. In Togo, a reluctance to accept foreign technical assistance is worsening the picture. Except for a very limited project in the region of Anie, it is impossible to find a development program whiich has produced results under the leadership of the agricultural services. In 1965, the government decided to set up SORAD'slYfor each of the country's main five regions as agencies for equipment and development to carry out the objectives oE the Five-Year Plan. However, action at the moment has been limited to appointment of regional directors, assisted by a score of field overseers. There has been no integration with the existing organizations. In addition, each SORAD covers from one to four administrative Districts. Thirs raises difficult problems as there is no overall administrative authority whici is empowered to prepare and implement effective regional programs. Techni- cally, the SORAD's are seconded to the Ministry of Agriculture, 'but in fact t'hey work under the Plan Organization. 12. Uncoordinated and small extension schemes undertaken under the aegis of various foreign aid sources add to the confusion of the agricultural adminis- tration. Isolated examples of effective extension efforts nevertheless exist (USAID in the Kara region, BDPA in the Savannah and Maritime regions). 13. There are two services dealing with water supplies. Town water, hydro- power, groundwater, and port problems are within the competence of the 1/ Soci6t6 Regionale d'Amdnagement et de Developpement. ANNEX I Pa, 4 "Service de l'Hydrauligue." Rural water supplies, including water points, small hydraulic structures, but also rural roads and processing industries, are within the competence of the Service du Genie Ruiral within the Ministry of Rural Economy. Both services are understaffed. Better coordination of the water supply policy would require a unification of the two services, particularly, as hydropower is not likely to be important and most people live in the country. (iii) Marketing and Price Policies 14. All exports of agricultural produce have to go through the Office des Produits Agricoles du Togo (OPAT). OPAT buys only through "Approved Buyers" who, in turn, buy through Togolese intermediaries. There are now eleven competing approved buyers--8 foreign companies and 3 Togolese of which one is a cooperative and the other a "pilot village." Three of the approved buyers supply about 3/4 of OPAT's purchases. The export sales are made by OPAT through two overseas agents in Paris and London but actual selling decisions are made in Lome. Export sales appear to be well conducted. The present management has been particularly skillful--and perhaps fortunate-- in its forward sales, particularly of cocoa. 15. The prices for producers are fixed by the Government on the recommenda- tion of OPAT. Recent prices are shown in Table 2: Table 2 Producer Prices for Main Export Commodities (CFA Francs per Kg. Crop Years) 1958 1959 1960 1961 1962 1963 1964 1965 1966 -59 -60 _-61 -62 -63 -64 -65 -66 -67 Coffee, good quality 100 90 85 65 65 65 75 70 n.a. Cocoa, main crop 100 95 n.a. 60 65 70 40 50 Groundnuts, Maritime region 27 27 27 27 27 29 30 27 n.a. Source: Inventaire Economique, 1965, p. 179. A check on prices paid to the farmers is supposed to be effected by the Service du Conditionnement which is charged with checking the quality of the produce. ANNEX I Page 5 16. For each commodity the Government sets down a detailed schedule of marketing charges (Barer.ies). These are drafted by OPAT and discussed with various authorities and farmers' representatives, and the "Approved Buyers." Details of the main current marketing charges will be found in Appendix Table 34. In some cases, notably for cocoa and coffee, the export prices have been considerably higher than the F.O.B. cost to OPAT. For some other minor commodities they have been lower than the F.O.B. cost so that the prices paid to farmers had to be subsidized. For some commodities, notably for cotton and for groundnuts, part of the subsidies are to be reimbursed until 1969 by the European Economic Community, on the basis of an agreement between the Government of Togo and the EEC. (See details of sales in Appendix - Tables 38-41). 17. The profits of OPAT greatly outweighed the losses (see Appendix - Tables 36 and 37). The basic problem connected with the price policy is the utilization of OPAT's profits as well as of the considerable net assets (CFAF 518 million) which it took over from the former Caisses de Stabilisa- tion. According to OPAT's Charter, its tasks include: (a) to assure the maximum of price stabi'lity to farmers; (b) to take all measures for the devel- opment and improvement of production and of the processing of agricultural produce, including the financing of research and investment for these purposes; (c.) the development and main-tenance of feeder roads in rural regions; (d) the granting of marketing loans at reasonable rates to approved cooperatives. In theory, OPAT has ample funds for these purposes. But, OPAT's deposits at the Tresor, wohich exceed CFAF 1,700 million are for all practical purposes, il]liquid to OPAT. The managemnent of OPAT has tried to preserve its liquidity through deposits with commercial banks. On September 30, 1966, these deposits anmounted to about CFAF 1,000 oillion, as against a theoretical liability to stabilization reserves of CFAF 2,600 million. (On these points see Chapter III of the Main Report). (iv) Agricultural Credit 18. Thiough agricultural credit is imiportant to the development of Togo's agriculture, its working has so far been very poor. The deficiency has been less in the marketing of produce where big foreign firms which act as "Approved Buyers" have been able to finance their transactions and OPAT, with its ample resources, has been prompt in paying for the goods delivered to it. The grave difficulties arise with loans for agricultural production. Up to May 1967, the only institutional source for such credit was the Credit du Togo, which started its operati ons on May 27, 1957. This bank has lent both to individuals and to agricultural collectivities," i.e., cooperatives and special groups formed by borrowers. The "collectivities" have received over 90 percent of the loans which were made largely with the help of the former SPAR (Societes Publiques d'Action Rurale) now superseded by the SORAD's. The lending to agriculture by Credit du Togo was fairly active until 1961 ANNEX I Page 6 (see Appendix - Table 7.14). The reason for the subsequent decline must be sought in the poor recovery of loans. On September 30, 1966, the Bank had CFAF 137 million of agricultural loans outstanding, of which 80 percent were classed as doubtful (see Appendix - Table 44). 19. The reorganization of agricultural credit has formed the subject of an almost acrimonious discussion in Togo. The Government has decided to channel loans to farmers through the newly formed SORAD's which would make their more effective organization critically important. In May 1967 the Head of State announced that a new Caisse Nationale de Credit Agricole was to be set up on the lines proposed by an ILO expert. (v) Conclusions and Problems 20. Production of food crops over the past years has certainly not increaseJ more rapidly than population, leaving unsolved the food problems of the poorest regions in the country (in the North) and in those where population pressure is strong (Kara region and parts of the coastal region). Production of export crops shows no definite upward trend. 21. These unsatisfactory developments result from three sets of factors: (i) the insufficiency of past investments in agriculture as well as in infra- structure suited to the needs of the agricultural sector; (ii) the inefficienc-> of the extension services; (iii) the marketing and price policies which have been successful to the extent that they have helped improve the export per- formance and provided financial resources to the budget but have had no inceui A ive effect on agricultural production itself. 22. The Government is becoming increasingly aware of these problems. For nore investment funds to be channelled into agriculture it is clear that the capacity to generate or expand projects which can be financed and put into place must be increased, which involves the active participation of the pro- vinces and localities. For this, the improvement in the organization of the SORAD's is a precondition. The organization should be so conceived as to be able to absorb foreign assistance, including foreign management agencies and other technical assistance when necessary. Certain policy decisions concern- ing producer prices and the uses of OPAT funds must be taken. Finally, the extension services must be strengthened and their action integrated into or coordinated with those of the SORAD's. Yet, the proposed budget for 1967 still allows only about CFAF 300 million, or less than 6 percent of the total govelnm ment current expenditure, to agricultural services (excluding the SORAD's which are mostly financed outside the budget). B. Some Specific Problems of the Agricultural Sector (i) Marketing and Price Policy 23. The following major problems of marketing and price polic:ies are being 1iAcussed: ANNEX I Page 7 (a) The "Approved Buyers"; (b) The marketing charges (Bar'emes); (c) The export monopoly; and (d) The use of OPAT's profits. 24. (a) The present "Approved Buyers" are almost all foreign firms. Togo has, however, a considerable number of active traders among its own popula- tion and, in the interest of long-term development, thase traders should be brought into the system by which produce from the farmers is exported. The management of OPAT agrees that this would be desirable, but states that the local traders do not have sufficient funds to undertake such operations, nor do they possess their own warehouses. OPAT suggests that when the new Port of Lome' is completed and provided with adequate warehouses, OPAT would be prepared to buy from others than the present approved buyers, goods delivered at the Lome Port warehouses. Such a development would, however, still require financing and the provision of marketing finance should be one of the main tasks of any reorganized system of agricultural credit. At present, however, the proposals aim mainly at providing credit for producer or trading coopera- tives and not to the individual traders, themselves. 25. (b) The present level of marketing charges has been criticized in various quarters as being too high. The approved buyers, on the other hand, point out that the total volume of trade is small--far smaller than in Ghana or Nigeria with which Togo tends to be compared--and that the unit cost of overhead expenses is thus necessarily high. If the marketing charges are reduced appreciably, a number of the approved buyers may withdraw from this part of marketing, with the result that there would be almost no competition left in internal marketing. This issue will be discussed in the near future when marketing charges are to be revised. Lowering of these charges should be welcomed as long as it does not lead to internal monopoly. 26. (c) The concentration of exports in OPAT has been working well under the present management. This gives no assurance, however, that it will work equally well under any successors. The export monopoly furthermore may give scope to undue political interference in trade operations. As a first step, the authorities might consider whether the exports of cotton, which are likely to expand considerably in future, might not be left to private trade or to a special cotton organization, possibly jointly with Dahomey. 27. (d) The main issue concerns the use of OPAT's profits. As discussed, they were intended to be used to support prices to farmers and to assist agricultural development. The second task has been neglected so far and the funds have been used for non-agricultural purposes. The great danger is that the consequent neglect of production may lead to a considerable diminution of exportable supplies, particularly cocoa and coffee which at present yield the greatest part of OPAT's profits, as already mentioned in Chapter V. ANNEX I Page $ 28. The funds can be used in two ways to assist production: (i) by raising the prices to producers, or (ii) by paying for assistance to farr,rs through subsidized inputs and through a greatly increased exten- sion service. The choice between these two methods depends largely on the views concerning the farmers' response to price rnovenients. Opinions on this vary greatly in Togo, but no conclusive studies exist. 29. To the extent to which OPAT funds should be used more extensively to aid agriculture than has been the case to-date, the Government will have to decide on the best met'Lod. Aaong the methods mighlt be to allocate OPAT funds to the investment budget; and/or give OPAT credits directly to farmers; and/or give grants or loans to the SORAD's; and/or act through the Development Bank; and/or act through the Caisse de Credit Agricole. As already stress7d in Chapter III of the Main Report, policy decisions alre urgently required-/ (ii) Agricultural Credit 30. The provision of agricultural credit is being reorganized in Togo. Discussion has centered largely on part of the institutional setup, i.e., whether credit should be granted by a specialized organization, or by a multi-purpose Development Bank. Advocates of a separate institution for agricultural credit claim that the needs of agriculture would be neglected in a cDmprehensive development bank, which would find easier and more remun- erative alternative outlets for its funds. Most of the financial authorities feel, however, that the volume of business is likely to be so small in the next few years, while the new SORAD's are gradually starting to work, that a separate institution would not pay its way, while a D)evelopnent Bank could pa, for its overhead expenses out of earnings on non-agricultural loans. However, as indicated in the Main Report the creation of a separate Caisse de Credit Agricole has been announced in May 1967. 31. In the meantime, Credit du Togo has already started to consider loan applications from SORAD's and has posted its own employees to each SORAD headquarters. Thus, by May 1967, the Credit du Togo had made the following loans to SORAD: 1/ OPAT says it has made a start in 1967 by transferring to the SORAD CFAF 35 million, to be used to improve cultivation practices. ANNEX I Page 9 Table 3 Loans by Cre"dit du Togo to SORAD's (In Million CFA Francs) To: SORAD des PLATEUX 60 million (for marketing) " SORAD of LAMA-KARA 2 " ( 71 " of sorghum) " SORAD des SAVANES 12.5 " ( " " and pro- duction) SORAD Maritime 8.2 (for marketing and the cultivation of manioc to be delivered to a local starch factory) 32. Vital unanswered problems remain, however. They are: (i) the purposes for which credit is to be granted; (ii) the link between credit and planning for development, and (iii) how credit is to reach borrowers. 33. The two main uses of agricultural credit should be: (i) to enable inputs to be increased, and (ii) to facilitate marketing of the produce. These two uses may require different treatment as regards the channels to borrowers and the link with planning. 34. As the development of agricultural production is being entrusted to the SORAD's, credits for sucti production should be channelled through them. A close collaboration would be needed between each SORAD and the bank or other institution in charge of agricultural credit. Emphasis should be laid on granting loans for items closely connected to development projects and the provision of credit should be integrated in the working out of such projects. Coordination among the otherwise autonomous SORAD's will depend first upon tlhe effectiveness of the supervision by the Departnment of Agriculture and, second, upon effective cooperation between the Department of Agriculture and the Plan. 35. The financing of agricultural marketing involves decisions on who should handle marketing. To the extent to which this is to be done by coop- eratives, the Government has decided that credit to t1hem should be channelled through the SORAD's. If, however, use is to be made of the considerable talent and experience available among Togolese tradlers, who deal at present with sales to the rural population, the SORAD's maay not be the most appropriate link. For credit to traders, OPAT miaht finance the internal -movement of export crops. A stricter administration of the Service du Conditionnement, which issues inspection certificates enabling produce to be moved, might make these certificates useful documents for the obtaining of credit from OPAT or even from commercial banks. ANNEX II INDUSTRY - TRANSPORT - SERVICES 1. The non-agricultural sectors, other than government and other adminis- tration, account for over 42% of GDP (1964), a substantial proportion for a country in which over 75% of the active population is primarily engaged in agriculture. This is due, both to the recent development of important industrial activities, and to the traditionally important role of commercial services in Togo. A. Industry. Construction, Electric Power Industry 2. Only 1,600 people were employed in mining and manufacturing industry in 1964, of which 150 were non-Africans. The figure for 1967 almost certainly exceeds 2,000. It has been estimated that total g-:oss investment made in the past in the industrial sector, up to the end of 1964, amounts to nearly CFAF 7.7 billion. Taking account of the most recently completed projects (1965-66) total industrial investment by the end of 1966 and valued at original cost must be of the. order of CFAF 10 billion. The major outputs produced are shown in Table 1: Table 1 Industrial Production of Principal Products 1960 1961 1962 1963 1964 1965 1966 1. Phosphates (tons) (tons) 79,100 197,500 476,100 776,450 981,800 1,151,56' 2. Cotton fabrics ('000 yds.) 1834 3. Sa water (hl)L/ 6,258 7,893 8,820 11,006 11,045 40,0653 4. Beer (hl) - - - - - 24,000/- 5. Cassava starch (tons) 5,705 3,393 2,730 5,747 6,500 2,330 negl.4/ 6. Palm oil (tons) 491 436 247 516 864 544 487 7. Soap (tons) 540 690 730 780 n.a. 400 n.a. 1/ 1961-1965: Production of most important of two units. 1966: including output of newly added soft drink unit of brewery. / 8 months. 3/ Mission estimate. 4/ Ceased operations during 1966. Expected to resume operations in 1967. Source: Inventaire economique du Togo, 1965 - Service de la Statistique. ANNEX II Page 2 In addition to the productions shown, other notable activities of indus- trial or semli-industrial character include: 2 quarries; 4 small cotton ginneries which process some 8,000-9,000 tons of cotton (i.e., about 3,000 tons of fiber); 1 small coffee roasting mill; a few furniture makers; 1 small unit of tire retreading; the government printing shop; 4 modern bakeries, etc. All the firms are in the Lome area or in the South, except the gin- neries and the textile mill located in the center of the country. 3. No general appraisal is possible given the small number and variety of the enterprises involved. Briefly, the phosphates mine is technically efficient and financially successful. So is the brewery whose extension has been decided upon in 1967. Its capacity will be increased from 36,000 hl to 95,000 hl., of which 65,000 hl for beer and 30,000 hl for soft drinks. The textile mill of Dadja has now overcome technical difficulties but finan- cial results are not yet satisfactory and costs are still too high compared to prices of imported Japanese material. The cassava starch mill, the oldest industry in Togo, has never shown good financial results owing to difficulties in getting regular and sufficient supplies. The problem is being tackled on two fronts now: technical assistance to the farmers who produce the cassava, and an extension of the size of the plant judged to be suboptimal in any case. The Alokoegbe palm oil mill is presently working at a low rate. It is in the process of reorganization but its long-term future will depend on the success of the oil palm plantation now being envisaged. Construction 4. In the ttmodern" sector there are some 20 construction firms, employing over 1,000 workers in 1964; this, however, does not include foreign con- tractors who occasionally take on works without having a permanent base in Togo. The most important example of this is in the construction of the Port of Lome. Activity in this sector fluctuates greatly with the financing of projects of foreign aid. The level of activity has significantly increased and has remained high over the last few years. An indication of this are the imports of cement which have grown from an average of 24,000 tons for 1956-59 to 46,000 tons in 1964-66. Available statistics for housebuilding in Lome show a trend towards more expensive houses rather than a greater number with a total value remaining around CFAF 350-400 million per year. Power 5. Generation and distribution of electric power is carried out by: (i) a national company, the Compagnie d'Energie Electrique du Togo (CEET) formed after the nationalisation of the private company Union Electrique d'Outre-Mer (UNELCO) by the Government in 1963, supplying the main centers of Lom6 Palirne, Anecho and Atakpame, (ii) the Public Works Department and Municipalities supplying centers in the Interior and, (iii) private indus- trial enterprises. ANNEX II Page 3 Present installed capacity and production are as follows: CEET - 7,943 kw of which 1,600 kw at the hydro-electric plant at Kpime (Palime) 6,255 kw diesel generating capacity at Lome and 88 kw of diesel generating capacity at Atakpame. PWD - 1,400 kw of diesel generating capacity. Industries - 10,800 kw of diesel generating capacity of which alone 9,600 kw are operated by the Compagnie Togolese Mines du Benin (phosphate mines). Production in 1966 by CEET was 14.3 million kwh representing an average annual increase since 1960 of approximately 20%, by the PWD and Municipalities 1.2 million kwh and by industrial producers 22.8 million kwh. The overall average increase of consumption 1960-1966 was approximately 10%. 6. Rates charged by CEET are among the highest in West Africa with an average of 27.5 CFAF/kwh in 1966 and 31.5 CFAF/kwh in 1965. (US mills 110 respectively 126/kwh) (Ghana US mills 50/kwh). CEET incurred a loss of CFAF 16.9 million (US$ 67,500) in 1964 and made net profits at CFAF 53.7 million (US$ 215,000) in 1965 and CFAF 58.1 million (US$ 233,000) in 1966. The hydro electric plant at Kpime (Palime) which required an investment of CFAF 401 million (US$ 1.63 million or US$ 1,020/kw installed) is operated at a loss (CFAF 22.3 million in 1966 or US$ 89,000). 7. The future of electricity production in Togo was, at one time, believed to be in the multi-purpose hydro project on the Mono River at Nangbeto. Subsequent studies however, have shown economic advantages in deferring the Mono River project and importing power from Ghana (Volta River Project). An agreement in principle between Togo and Dahomey on the one hand, creation of a cormon electricity company, the Comunaute Electrique du Benin (CEB) to be responsible for generation and high voltage transmissions in both coun- tries, and Togo and Dahomey with Ghana on the other hand, for the import of power (Volta River Austerity) has been reached in principle. The project - 185 miles of 165 kw transmissionline Akosombo-Lome-Cotonou with substations at Lome and Cotonou - would require external financing. B. Transpcrt 8. Togots internal transport needs are served mainly by its roads and its railway: inland water transport is economically insignificant. A local airline, Air Togo, serves the interior once a week with a five-passenger aircraft, operating from the country's single international-class airport at Lome, which is being improved to handle large, modern jet aircraft. The estimated present road and rail transport volumes are 114 and 7 million tkm for road and rail respectively and 283 and 73 million passenger-km. Road Transport 9. The road net of Togo consists of about 1,700 km of national highways (200 km of which are paved) and some 3,000 km of unpaved secondary and feeder roads. This is 83 km per 1,000 sq.km., and 2.8 km per 1,000 persons. The density in relation to area is thus somewhat lower than that found in the richer nearby West African countries such as Ghana and the Ivory Coast, but it is slightly higher than in neighboring Dahomey and about the same as in Nigeria. 10. The road net serves the country reasonably well and major new itiner- aries to be developed are few. But intensified maintenance is an obvious priority program for Togolese roads, in the light of paving operations now being financed or considered by the European Development Fund (FED) on itineraries parallel to the railway lines. In addition, there certainly is ANNEX II Page 4 scope for construction or improvement (to all-weather, loose surface standards) of a number of secondary roads serving areas of good agri- cultural or stock-raising potential. Unfortunately, total funds for all maintenance of roads in Togo will amount in 1967 only to about CFAF 180 mil- lion, which follows a like amount in 1966 and is about 50% of reasonable requirements. 11. Somewhat more than 90% of goods traffic in Togo--on a ton-km basis-- is handled by the 1,800 trucks registered in the country; they have an output of over 100 million ton-km per year (as shown in Appendix - Table 23). Rates charged for goods transported by road vary widely, as might be expected, from CFAF 7 to 25 per ton/km (see Appendix - Table 24). Operating costs were evaluated for 1962 at CFAF 9 per ton/km (including taxes) for all goods trucks, at full load as a nationwide average, and at about CFAF 14 per actual ton/km. 12. Passenger transporl: on Togolese roads is handled by a wide variety of vehicles, but on a commercial basis, taxis and microbuses predominate. These constitute a popular form of entrepreneurship: yet competition is keen and profits are low. Many owner-drivers combine some commercial activity, such as trade in produce, with their transport enterprise; the profits from trading tend to compensate for the losses in hauling goods or passengers. On the whole, road transport--though not thriving--serves the national economy reasonably well under trying circumstances. Improved mainte- nance of roads is one of the most effective practical steps which could immediately serve to augment productivity of road transport in Togo. Railways 13. There are two railway systems in Togo, a public and a private one belonging to the phosphate mine. The public railway system (officially designated, together with the Wharf at Lome, as "Le Reseau des Chemins de Fer et du tIharf du Togo," or "CFT") operates on a total of 499 track-km with three main lines, all of meter gauge (see Appendix - Table 26). 14. The rolling stock and motive power is more than adequate to meet traffic demands and is generally underutilized; for example, the average load of the diesel-electric locomotives is only half of their hauling capacity, and seat occupancy in the passenger coaches averages only 50% or so. Details on rolling stock and motive power are set forth in Appendix Table 25. 15. The CFT is operated in conjunction with the wharf at Lome, which pre- sently handles all seaborne foreign trade except phosphate exports and petroleum imports. Financial statistics for the CFT are presented in Appen- dix - Table 28. In the past, the wharf has subsidized the railway, but this year is the wharf's last. Next year new urgency will attach to the pr6blem of the railway's deficit. Prospects for reducing the deficit are practically nil. Two-thirds of revenues arise from passenger traffic which has fortunately held steady over the last five years, but which cannot be expected to increase ANNEX II Page 5 in the face of competition from road transport. Revenue from goods traffic is steady but trucks have skimmed the cream of the market. It is generally agreed now that the railway is uneconomical and should be abandoned as soon as parallel roads can be paved. IPort of Lome 16. A man.made harbor, built a few kilometers east of Lome, will be inaugurated late this year. Total investment will be about CFAF 4.5 bil- lion (US$18 million equivalent), all of which except for CFAF 250 million is furnished by the West German Kreditanstalt f'u'r Wiederaufbau loan (see Chapters III and V of the Main Report). The capacity of the new port is of the order of 500,000 tons per year; this volume slhould be reached in some twenty years. Current levels handled by the wharf are 200,000 tons annually. In the coming decade it is not likely that port revenues can contribute to meeting the debt service on account of the port; revenues will be small and they will only slightly exceed operating expenses. As traffic increases in l ater years, it is to be expected that the debt service burden may be partly met from port income. 17. Three main tasks now lie ahead for the government in the transport sector: (i) the improvement of the secondary and feeder roads network; (ii) the proper maintenance of the whole infrastructure; (iii) the setting up of an efficient system for the management of the new port in order to minimize the losses in the initial years of operation. C. Commercial Services L8. The importance of "commerce" in GDP (18% in 1964) is attributable to a combination of five factors: (i) the importance of imports in the country's total resources; (ii) the importance of export crops; (iii) the importance of re-exports; (iv) the relatively great amount of domestic foodstuffs sold rather than directly consumed by the producer; and (v) the traditional inclination and ability of the Togolese people for trading. 19. There are 16 large trading firms engaged in import-export activities. The import side has become dominant since the exporting of agricultural produce is the prerogative of the marketing board (OPAT). Most of these concerns do not specialize in any particular product or group of products. Despite complaints by commercial circles that "business is not so good as it used to be" total sales of the firms concerned have been increasing in the past--by 50% between 1962 and 1966--although with great irregularity. 20. With the exception of SOTEXIM, all the important trading firms are foreign or have a high proportion of foreign capital. In 1966, the state- owned SOTEXIM ranked fifth among the sixteen most important trading firms on ANNEX II Page 6 the basis of total sales, which have increased by nearly two-thirds from 1965 to 1966. However, since its creation in 1964, SOTEXIM has accumu- lated significant losses partly disguised by the fact that it has failed to pay all customs duties due. 21. Outside the "modern" sector there are numerous small but quite active traders, either Togolese or "Lebanese," most prominent among them some 250 "revendeuses" who specialize in the commerce of textile goods. It is increasingly the responsibility of these smaller outfits (together with SOTEXIM) to distribute goods outside the main towns as the foreign firms are more and more concentrating their activities at the wholesale level and in the main population centers. The trading of agricultural export produce is a state monopoly (OPAT) which uses private firms as buying agents. Profits made by OPAT account for a substantial part of the important share of commerce in GDP. ANNEX III FINANCING OF GROSS CAPITAL FORMATION 1. The object of this note is to help explain and clarify the available figures on the crucial problem of the gross capital formation and its financing. Table I Financing of Gross Capital Formation (In Billion CPA francs) 1962 1963 1964 1965 1. Gross fixed capital formation 3.2 3.238 5.833 n.a. 2. Inventory accumulation 0.2 1.305 2.402 n.a. 3. Total 3.4 4,543 8.235 10.5 4. Provision for capital consumption n.a. 2.640 2.669 2.7 5. Savings of corporate enterprises n.a. -.412 2.198 2.12 6. Savings of households and non- profil: societies n.a. -.412 -.067 n.a. 7. Government savings n.a. .905 .942 1.0 8. Less import surplus on current account n.a. 1.822 2.489 4.7 Sources: 1962: Statistical Office from estimates made by the Plan - 1963, 1964: Statistical Office (see Comptes Nationaux du Togo, op.cit., p. 17) - 1965: Mission's estimates except: line 5 given by Statis- tical Office and line 8 from BCEAO's estimates of the Balance of Payments for 1965 (op.cit.). 2. It will be convenient to examine the content of every item (1) to (8), for years 1963 and 1964 first, and for the 1965 Mission's estimates subse- quently. 3. Content of Gross Fixed Capital Formation (line 1): The definition adopted for years 1963 and 1964 is that of the UN. It comprises two cate- gories (i) construction, including major repairs, when they involve the use of "modern" materials; (ii) machinery and other imported equipment. This ANNEX III Page 2 includes in particular office furniture, laboratory and medical equipment, and transport equipment, excluding private cars. 4. The definition used thus excludes two important items: (i) the building of traditional houses involving mud, leaves, timber, etc., because of their "short duration and small unitary value," (ii) land clearance, land improvement and other works made by the farmers on their own farms when these do not involve the use of imported equipment. This double ex- clusion may be of great importance: thus, for Dahomey, in 1963, item (i) is included and valued at CFAF 1,700 million and so is item (ii) valued at CFAF 2,000 million. 5. However, in the estimate of value added of the construction and lbuilding sector is included the value of those houses, built with "light" materials, supposed to be necessary on account of population growth (see Comptes Nationaux 1963, p. 55): gross value is put at CFAF 362.6 million and value added at market prices is CFAF 141.6 million. No account is taken of renewals of this type of construction. Also, on the income side, an imputed rental value is given to all houses in the country, including "light" ones. 16. Taking the number of rural houses and. their unit costs as given in the Cmpates Nationaux 1963 and assuming that one such house, on the average, is rebuilt every three years (i.e., by successive "major" repairs which are necessary, especially after each rainy season), the investment value involved would be: . total number of houses (1963) = 163,000 (one for 7 persons) . of which 50% or 81,500 made of mud and 50% or 81,500 made of leaves, etc. . number built annually &1,500 = 27,000 of each category . value: 27,000 x CFAF 15,000 = 405,000,000 27,000 x CFAF 6,000 = 160,000,000 Total CFAF 565,000000 7. As can be seen from this rough calculation (which is based on probably conservative figures as compared to Dahomey) this item of investment is important. If for no other reason, consistency with calculation of the "output" and "income" aggregates should have led the Comptes Nationaux of Togo to include the corresponding "expenditure" magnitude. 8. Inventory accumulation (line 2): This item is built up from 18 categories of goods, including natural growth of livestock, an estimate not often made in other African countries (cf. Dahomey). 9'. Provision for Capital Consunption (line 4): Separate estimates are given for 1i branches but no indication is given as to the method used except ANNEX III Page 3 for corporate enterprises where the book value of depreciation has been taken (see Comptes Nationaux - 1963, p. 62). The difficulty introduced by this item, however, lies elsewhere as explained below. 10. Savings of Corporate Enterprises (line 5): No explanation is given for the negative value of this item for 1963. The Mission's guess is that this is partly due to the fact that corporate savings of line (5) are net of depreciation allowances. But for 1965 the gross income of corporate enterprises ("exce'dent d'exploitation des Soci4t6s'") is estimated at CFAF 1.307,8 million (see Comptes Nationaux - 1963, p. 23); after income tax (CFAF 127.2 - see p. 22)_7this becomes CFAF 1.180.6 million. and depreciation would therefore have to be 1.180.6 - 412 = 1.592.6 on account of "societes" alone, out of a national total of CFAF 2.207.4 million (see Comptes_Nationaux - 1963, p. 63). This is not very likely. The less so as in 1964, with a gross income ("excedent d'exploitation") of CFAF 3.282 mil- lion, savings of "societe's," are still CFAF 2.198 million, or a difference of CFAF 1.084 million imputable to depreciation (and corporate income taxes of CFAF 184.3 million). 11. Savings of households and non-profit societies (line 6): The surprising fact that for both 1963 and 1964 this item is negative stems from reasons different from those just mentioned. Savings here are simply arrived at as a difference between estimated income (wages, income of individual entre- preneurs, farmers, etc.) and estimated expenditure (consumption, taxes, transfers abroad, etc.). Thus, under-estimation of the former and over- estimation of the latter of the order of only 1% in each direction, even in 1963 when the negative value of savings is greatest, can easily account for a negative difference between the two. The estimate cannot be considered statistically significant. 12. Government savinas (line 7): This figure apparently is equal to government investment- (including that of provinces and municipalities) as 1/ However, corporate income tax for 1963, is put at CFAF 226.3 million in Comptes Nationaux for 1964 (see CN-1964, p.16), and total provision for capital consumption at CFAF 2,639.5 million (see ibid. p.15). But cor- porate savings are still given as CFAF 411.6 million, in the 1964 edition of the :1963 accounts (see ibid. p.16) - no explanation is given of these discrepancies. 2/ Actually government savings proper as a difference between current expendi- ture and current revenue are never shown in the Comptes Nationaux. Only figures for "capital expenditure" made through the various public budgets, excluding those financed by foreign aid, are given. "Capital expenditure" comprises gross capital formation plus capital transfers to other public or private bodies. It is, therefore, assumed that these transfers are not counted as "savings" by the receiving institutions. ANNEX III Page 4 defined by the UN. Thus, as noted in Chapter III of the Main Report, the figures arrived at are significantly bigger than those of the govern- ment "investment" budgets. It includes gross repairs, major maintenance items, and such goods as office furniture which in the relevant budgets, as in the figures in Chapter III, are classified as "current." Let it be noted, however, that the figure of government investment varies from one table to the other of the Comptes Nationaux 19641/ 13. Import surplus on current account (line 8). This is an estimate of the balance on account of goods and services made in the absence of an overall balance of payments (see Chapter V of the Main Report). See further comments, paragraph 15 below. 14. For the year 1965, item (5) (corporate savings) was supplied to the Mission by the Statistical Office (national ccounts unit). Item (4) (pro- vision for capital consumption) was simply taken as similar to the 1964 figure as there was no evidence of any important change in the order of magnitude. Item (6) was not available and the figure implicitly chosen-- zero--is probably not worse than the two previous ones (see paragraph 12 above). Item (7) government savings: investment in central government budgets given by Statistical Office (CFAF 916.8 million); balance to CFAF 1 billion is estimated investment by other public budgets. Item (8) (Current import surplus) is defined as for 1963 and 1964 but the figure is derived from the BCEAO estimate of the overall balance of payments for 1965 (see Chapter V) and is, in all probability, better than the previous ones. 15. Note that in defining the current import surplus only goods and services are considered and not "current transfers" as defined by the IMF. This is preferred to any other definition since the most important item by far in current transfers for a country such as Togo is "public current trans- fer" to the country, i.e., public grants-in-aid. Since the current import surplus aims at measuring the gap between domestic savings and domestic capital formation it is clear that public external aid should be considered as one element in filling this gap, and, therefore, not be put in the same basket as current receipts from exports or sale of services. 16. FinaLly, the figure for capital formation (line (3) for 1965 is arrived at as the sum of lines (4) through (8). The amount of gross fixed capital formation is not known, but unless an improbably large increase in inventories is assumed, it must have well exceeded CFAF 6 billion in 1965. 1/ For examnple: p.62 capital formation of the central government investment budget for 1964 is CFAF 469.4 million (items 1, 2 and 3 of the table p.62, i.e., excluding capital participation) whereas p. 64, column 2, it is CFAF 431.6 million, etc. ANNEX IV THE MAIN FEATURES OF THE BUDGETARY SYSTEM 1. Certain institutional and organizational features of the public financial system are of great importance for the functioning of the system and, incidentally, account for much of the difficulty in arriving at a clear and meaningful picture of the situation and of its development over time. Three of them require a brief explanation because their function is different from other fiscal systems. The first two concern the central government budget and the other the role of the Tresor. (i) Definition and Classification of Items 2. Because of a peculiar presentation on one side and because of the abusive extension of the so-called system of the "exercice" on the other side, the government budget loses a great deal of its significance as an instrument of economic policy. The problems consist of two different sets of questions. The first is a conceptual problem: what is a current expendi- ture, what is a transfer, etc. The second stems from a confused accounting practice as to the time period(s) to which different budgetary entries refer. 3. The first defect manifests itself in the fact that the current budget and the investment budget are not clearly separated. The investment budget consists of a listing of projects by ministries. Although ostensibly (and sensibly) geared to administrative convenience, the investment budget does not in fact contain all proposed investment expenditures, while the ordinary budget contains not only much that should be classified as investment but large transfers to the investment budget. The distinction or a current and an investment budget is primarily one of administrative convenience. 4. The surplus (or deficit) in the recurrent budget which defines, in an economic sense, budgetary savings or dissavings, forms the link between the current and investment budget. As the budget is set up in Togo and as ac- counting procedures are organized, it is virtually impossible to determine whether or not the current budget has a deficit or surplus, surely a piece of information of considerable importance for the policymaker. 5. Moreover, the legal and accounting view of the budget dominates the economic view so much that transfers from the current to the capital budget are always written into the budgetary estimates regardless of the existence, if any, of a current surplus. Such a transfer is considered a current expenditure (thus under Title IV, Chapter 41, Article 8 of the 1967 budget there are substantial transfers sandwiched among various small aids to public miscellaneous institutions and before the chapter relating to scholarships....) ANNEX IV Page 2 This practice sometimes leads to sheer absurdity when it is claimed in all seriousness that government investment expenditures are being financed by current resources when the overall gap between total outlay (current and capital) and current revenue is greater than the "transfer" from the current to the investment budget. Thus, the budget for 1967 is presented as having a deficit of CFAF 615.5 million while transfers to the capital budget are inscribed into the budget of CFAF 569.5 million. 6. This has other consequences. The Togolese authorities are continually concerned with the budget "deficit." By this they mean the overall gap as defined above (although not calculated on a yearly basis: see below) and they never mention the current deficit, which properly defined turns out to be a surplus more than once since 1960. In addition, the overall deficit is not a meaningful magnitude from the point of view of aggregate equilibrium (e.g., in order to assess the extent of inflationary pressures, etc.), because Togo is a member of the CFA area. Hence, any excess demand in the economy will promptly induce additional imports without other disturbing monetary consequences. On the contrary, for purposes of resources allocation, and more particularly in order to know whether local currency funds or counter- parts for external aid are available, it certainly would be vital to know the extent of the current surp'lus, if any, a fact which the system tends to conceal. 7. Thus, the Government is not aware of the part that current revenue plays in the financing of investment outlays, nor has it any better notion of what other resources have been, or are going to be. In discussion with Togolese representatives the Mission has been at pains to convey the idea that, even without any profound administrative reform the basic structure of the budget of the type shown below should and could be adopted. (ii) The "Exercice" System 8. The second sort of difficulties, for the purpose of policy-making as well as for the appreciation of the situation stems from the fact that the annual periodicity of the budget has been progressively eroded by the so- called "exercice" system. As the system operates, it refers to no clear-cut period at all. According to the rules of the systemi, receipts and expendi- tures are imputed to one given budget even when they actually take place after the close of the calendar year. The complementary period inherent in the system has been, in fact, progressively extended. It is now normal that over the same calendar year two budgets are being executed at the same time. Legally, the period of "overlap" was first limited to March 31, then to June 30 of the following year. In fact, bills referring to a particular budget are paid until November 30 of the following year and they are all dated June 30 in order to remain within the law. It is thus not always pos- s ible to find out when payments were actually made. While receipts come in more or less during the calendar year for which they were budgeted, expendi- tures are spread over nearly two years. ANNEX IV Page 3 9. As a result, it is practically impossible to ascertain with any reasonable degree of assurance what ti:e cash flows have been during a particular year, and no one seems concerned about it. In addition, the results of a particular budget are not known until the third year after the budget has been passed, with the result that a forthcoming budget must be prepared without even an approximate knowledge of the results of the preceding two years. Thus, the budget for 1967 has been adopted in due time iLn December 1966, whereas the final results of the 1965 budget even in the "exercice" sense were not known until May 1967, and the true cash budget for 11963 or 1964 has not been known to the authorities. In fact, they have not been concerned about it. IO. Thus, the concept of an annual cash budget is being completely over- looked and with the confusion introduced into the picture by the "transfer" practice described previously, it can be said without exaggeration that there are success-ive budgets but no budgetary policy. (iii) The Role of the Tre"sor 11. The second main feature of the public financial system is to be found Ln the central role of the Tre'sor, an institution to be most properly regarded aIs a bank and not simply as a fiscal agent. Unlike the "exercice" system whose pathological features have just been described, the Tresor fulfills a powerful, logical and on the whole positive function. The Tresor is the collector of revenue for the Government and for the local authorities and their paying agent through its central agency and its branches ("agents speci- aux") throughout the country. It also administers the "special accounts." At the same time, cash balances of various public or semi-public agencies, other- wise entirely autonomous in their operations, are de facto or by statute deposited wLth the Tre"sor. This is the case of the former Price Stabilization Funds (cocoia, etc.) and, since June 1964, of their legal successor, OPAT (Office des Produits Agricoles du Togo); the Pensions Fund; the Post Office; the local authorities and various other depositors. Not all the funds of the foregoing institution are kept with the Tresor; in particular, OPAT holds its working balances with the commercial banks. It has, however, been the policy of the Government to ensure that a very sizeable proportion is. 12. The active role of the Tresor as a banker simply drives from the fact that the funds deposited by all its creditors enter a common pool which becomes available to finance all calls made on it. Since, however, some institutions (particularly OPAT) have been consistently net creditors of the Tresor, while others (mainly the Government and some state enterprises) have been debtors either continuously or intermittently, it is automatic that the creditors "finance" the debtors. Since the Tresor operates lilce a bank, it is no more possible to identify any particular creditor as financing a debtor than it would be with any commercial bank. Furthermore, the role of banker so dominates the thinking of the Tresor, that the Treasurer is mainly if not solely concerned ANNEX IV with his cash position and the net creditor or debtor position of his depositors, rather than with the flow of income and expenditure during a given period. This preoccupation is reflected also in the available statistics,, The "bank" nature of the Tresor is further enhanced by the fact that it may hold promissory notes of importers in the form of customs bills ("obligations cautionnees") which it may discount at the Central Bank. Such four-month bills are elsewhere held by commercial banks. The Tresor enters here as a matter of routine a field elsewhere reserved to monetary policy. 13. The Tresor in its turn, holds its liquid assets in the form of cash balances needed for its current operations, some accounts with the com- mercial banks, customs bills and mainly a creditor "special" account with the Central Bank which is in turn deposited at the French Tresor where it earns interest. The movements of the latter account are most closely watched by the authorities as being the most significant indicator of the degree of liquidity of the Government. ANNEX V EXTERNAL AID 1. As mentioned in the text of the Main Report, differences in pre- sentation of figures by donor or lending countries and agencies make it difficult to assess the exact amount of aid disbursed year-by-year. In addition, details of aid from certain countries, mainly Germany, or on aid in goods and still more on aid in the form of technical assistance are not readily available. Other difficulties exist such as the fact that, for the pre-independence period, expenditure in Togo by various French ministries and agencies other than the ministry of cooperation or the former ministries of the colonies, are not available. Also, part of the aid bene- fitting the countries of the former French West Africa was spent in France or in the federal capital (Dakar), or in specific countries where a federal institution (research center, hospital, teaching center, etc.) happened to be located. The figures given in the text and in this Annex are therefore only reasonable approximations. Pre-Independence Period 2. Before 1960, the most important, if not exclusive, form of aid were French official investment grants channelled through the Fonds d'Investissement et de De'veloppement Economique et Social (FIDES). 3. To the investment grants must be added the direct subsidies to the local budget which averaged about CFAF 400 million over the last four pre-Independence years, and soft loans granted by the Caisse Centrale de Cooperation Economique (CCCE) formerly Caisse Centrale de la France d'Outre-Mer (CCFOM). These loans were principally t:o finance the Togolese contribution to FIDES and have amounted to CFAF 1,215 million, subsequently consolidated in 1962 into one single loan. Other loans by CCCE to the govern- ment prior to 1966 have amounted to CFAF 115.6 million (this does not include loans to the private sector or advances to Credit du Togo: see Chapter IV-- see also Appendix-Table 8 for list of external loans to the government out- standing.) ANNIEX V Pag 2 Table 1 French Investment Grants 1947-1959 (In Million CFA francs) First Second FIDES FIDES Program Program Total 1947-54 1954-59 1947-59 1. Infrastructure 1,360 1,295 2,655 2. of which: railways (515) (350) (865) 3. wharf (151) (63) (214) 4. roads (615) (627) (1,242) 5. Social sector 794 586 1,330 6. health (406) (160) (566) 7. education (123) (115) (238) 8. water supplies and towns (265) (311) (576) 9. Production (agriculture) 176 953 1,129 10. Studies 18 46 64 11. Total 2,348 2,880 5,228 Note: The figures refer to payment authorizations. Therefore, part of the authorizations for the 1954-59 period have actually been spent after 1959, especially in 1960 and 1961. Source: Togo Development Plan 1966-70, p.16. Period 1960-1966 4. From 1960 onwards French official aid has continued through the Fonds d'Aide et de Cooperation (FAC), but other sources of grants, mainly Fonds Europeen de De'veloppement (FED), West Germany, USA and UN; have become in- creasingly important. Soft loans from various sources, mainly France and West Germany, have also appeared as significant items. 5. Grants on account of FAC and FED are given below, in rounded figures. ANNEX V Page 3 Table 2 FAC and FED Investment Grants (In Million CFA francs) 1960 1961 1962 1963 1964 1965 1966 1. FAC (98) 292 599 208 658 546 2. FED 2 36 284 420 371 524 291 3. Total - - 576 1,019 579 1,182 837 Note FAC: The above figures do not include some CFAF 500 million granted by France to the current and investment government budgets over the period (see Chapter III of the Main Report). Source: Mission d' Aide et de Cooperation, Lome; Caisse Centrale, Lome. The figures of the above table must be interpreted with great care. Figures for 1960-1966 for FED and 1962-1966 for FAC are actual payments as given by CCCE (paying agent). For 1960 and 1961 actual payments of FAG credits are not known: they include part of credits granted in 1960 (known) and not included in credits spent in 1962 or later as shown. This amounts to CFAF 98 million. Also, payments on account of FIDES for credits granted before 1960 (and included in Table 1 above) have taken place in 1960 and 1961. It must be nocted that total authorizations from 1960 up to tlhe end of 1966 have been CFAF 2,892 million for FAC and CFAP 3,385 million for FED, or a total of CFAF 6,777 million for these two sources, whereas payments as shown in the table amount to only CFAF 4,193 million. The balance corres- ponds to payments taking place after the end of 1966, for projects not yet completed or not yet started. 6. Griants directly to the government budgets have drastically diminished after 1959. As explained in the Main Report, no more subsidies have been necessary to balance the budget. France has, however, granted CFAF 639 mil- lion over the 1960-66 period for specific purposes undertaken within the governmetnt current budget (CFAF 173 million) and investment budget (CFAF 466 million) (see Chapter III of the Main Report). 7. French public loans on soft terms have been granted by CCCE after 1959. They comprise (i) the consolidated loan of CFAF 1,250 million referred to above, (ii) CFAF 131 million to the government, (iii) CFAF 250 million to local authorities, and (iv) CFAF 1,700 million advances to Credit du Togo (see Appendix-Table 8), ANNEX V Page 4 8. American aid under AID and Food-for-Peace programs, i.e., excluding Peace Corps or other forms of public or private technical assistance is as follows: Table 3 United States Public Direct Aid Authorizations for U.S. Fiscal Years (In Millions CFA francs) 1960 1961 1962 1963 1964 1965 1966 (Estimate) 100 350 950 250 450 325 (400) Source: US-AID, US overseas loans and grants, special report for the House Foreign Affairs Committee, March 1966. Other forms of American aid, including Peace Corps (some 80 members to be raised to 120 in 1967), scholarships, etc. may be estimated at about CFAF 700 million over the period under consideration.. 9. The main contribution of the German Federal Republic has been the long-term loans granted for the construction of the deep water port of Lome for a total of CFAF 4,300 million. Expenditure on these loans started in 1964 and the works are expected to be completed before the end of 1967. Another soft loan from West Germany has been granted in 1965 for water supply equipment of Sokode for a sum of CFAF 320 million. (See Appendix-Table 8). The amount of public investmenit grants from West Germany is not exactly known for the whole period: the total is around CFAF 1,800 million, or a yearly average of over CFAF 250 million. For 1963 actual payments have been CFAF 212 million, and CFAF 255 million for 1964 according to Coinptes Nationaux du Togo 1964 (p.75). 10. Aid from the UN is mainly in the form of technical assistance and specifically for study and research projects financed urder UND?. From 1960 to 1966 such approved projects have amounted to around $4 million, or CFAF 1 billion, of which about 60% will have been spent over the period 1960-67. Sectoral Distribution of Aid 11. Distribution of aid by economic sectors is given in the text for the period 1947-1964 for French and Common Market aid on the basis of payments ANNEX V Page 5 authorizations (see Chapter VI, Section A). No details on all projects financed by foreign aid for a later period are available. 12. French aid now goes much more into the production sector (agri- culture) than into infrastructure or the social sector as in the past. Table 4 Distribution of FAC Funds by Sector (Agreements signed after 1964) (In Million CFA francs) Rural sector 415 31 Infrastructure 328 24 Social 154 12 Administrative infrastructure 294 22 Studies 152 11 100 13. Aid granted under the second FED (1964-68), CFAF 915 million up to the end of 1966, has been for infrastructure (roads) for 72%7, the rest is for the diversification and development of agricultural production in connection with the development of the Plateaux Region. 14. German aid, including long-term loans on concessionary terms, has been massively for infrastructure. Nearly CFAF 4.5 billion of the total CFAF 6.4 billion of German estimated aid since 1960 has been for the Port and CFAF 320 million for water supplies. The rest has gone into the rural and social sectors and to other infrastructures (communications and railways) in unknown proportions. 15. American aid over the period 1960-65 has consisted in "food-for- peace" programs for about CFAF 1.1 billion, or 45% of the total, the rest being approximately in equal shares for public works equipment, rural sector (teaching center and experimental farm of Tchitchao in the Kara region), and social grants (medicines). 16. As already mentioned, UN aid through the UNDP consists mostly of research and pre-investment proiects in the agricultural sector, the most important one now under way being a general agricultural survey in the Kara (Kabre) region, executed by FAQ (see Annex I). ANNEX V Page 6 Technical Assistance 17. It is not possible to evaluate all technical assistance programs in the widely varying forms they assume. This, however, is certainly an important item in Togo. The most important source for this sort of aid is France which finances most of the cost of 150 technical assistants, among which are 82 teachers. This, together with assistance through the operations in Togo of various research institutes or crop development agencies amount to an equivalent of the order of CFAF 1,700 million for the period 1960-66 (see Bulletin de l'Afrique Noire, No. 470, July 5, 1967). ANNEX VI PROJECTIONS The following Tables and Notes present the detailed estimates of projections used in Chapter VI with the reasons for making the assumptions. Table 1 Projections of GDP by Sectoral Origin (In CFAF Billion) "Base" 1970 1. Agriculture 19.7 22.4 2. Extractive Industries 4.1 4.5 3. Manufacturing Industries 2.0 2.6 4. Construction 1.5 1.5 5. Electricity, Water 1.0 1.6 6. Transport 2.7 3.3 7. Commerce 8.2 9.9 8. House Ownership 1.1 1.6 9. Government 3.2 4.1 10. Other Services 0.9 1.4 11. Total 44.4 52.9 Agriculture - Output figures of export crops for 1970 and 1975: Mission estimates. crops Prices for exports/- Producer prices paid by OPAT in 1964/5. Producer prices for coffee, cocoa, copra, cotton and palm kernels are already rather low, and OPAT profits particularly on the first two are high. It is assumed that these prices will not be further reduced. Variations in world market prices are absorbed in OPAT margins and are allowed for in the projections in "commerce." "Base period: quantities assumed are the average of output in 1964, 1965 and 1966. Output figures for food crops: cassava and yams production given in Appendix Table 31 are almost certainly too high. An output of 2 million tons of root crops for a population of less than 1.7 million would mean a per capita consump- tion of 1.2 tons per year per man, woman and child, or over 3 kg. per head per day. The figures used instead are from the National Accounts 1964. Other figures aee Appendix Table 31. All outputs except rice are assumed to grow with population of 2.5% p.a. compounded. For rice: Mission estimate. Prices calculated from National Accounts 1964; assumed unchanged. Livestock: No estimate made. Forestry: No estimate made. An irLdex was constructed from the detailed data and applied to the GDP by use of the base period. Table 1 (Cont'd) Extractive Industries: Growth of 8.5% assumed from 1966 to 1970. It is assumed that phosphates will maintain a production of 1.3 million tons, at least until 1970. No new investment planned as yet. New investments would not produce before 1970. Manufacturing Industry: Value added was constructed of ginneries, textiles, beer and cassava starch. Ginneries output was assumed as increase on cotton output. For textiles, beer and starch, the Five-Year Plan annex or industry figures for 1970 giving capacity outputs were assumed. The value added for the base period pul: into the calculation was: Million CFAP 1964 1970 Ginneries 17.7 24.2 Textiles 117.3 325.8 Beer 97.6 386.5 Starch 0 102.0 Total 232.6 838.5 Increase in value added: CFAF 606 million. Although there is reasonable certainty that a 10,000 ton phosphate fertilizer plant will be built, nothing definite is known. There is also talk of a cement plant. None of the uncertain projects have been allowed for. Even if realized it is unlikely that they will be producing much by 1970. Electricity and Water: Assumed to increase as power output (Mission estimate) as follows: 1964 1965 1966 1970 Million KWH 31.2 32.8 38.3 61.1 Increase from 1966 to 1970: 159.9%. Government: The Plan assumes an increase by 54%. This is possibly realistic but very high. It is assumed that government can hold the increase to 5% per annum compounded, or 28% in five years. This is an important policy assump- tion of the Mission. Construction: Since no new major investment projects are in sight, it is assumed that investments and with it construction will remain at the present high level. In fact, the Mission feels that it will take a considerable effort to find replacements (say, through road construction to be financed by FED) for the Port or phosphate mines. leCt_ Commerce: Assumed to increase as the combined value of imports and exports. The import projections are made with the implicit assumption that prices will remain constant. Export projections have assumed price decreases, specified in the discussion of export estimates. The method of projecting commerce implie: some reduction of margins on exports, particularly for OPAT, which seems reasonable. Transport: Assumed to increase as the volume of agricultural production, plus imports. House ownership: ) Assumed to increase by CFAF 0.1 million per annum. ) Other Services: ) Essentially an arbitrary extension of past trends. Table 2 Projections of GDP By Use (In CFAF Billion) 1965 1970 Consumption 32.2 42.8 Government consumption 3.5 4.5 Gross Inivestment 10.5 10.5 Exports (8.4)1/ 8.8 less Imports (11.8)1/ -12.3 less Service and factor income (-1.3)1/ i.4 Balance Total 41.5 52.9 1/ From BCEAO estimates of the Balance of Payments for 1965. Government Consumption: It is assumed that the government can hold the increase in government consumption to 5% p.a. compounded or to 127.6% over the five years. Investments: It is assumed that the high level of investments of 1965 can be maintained. It should be remembered that the definirion of investment follows UN practice and includes storage ("inventories") of cassava, as well as a portion of expenditures from the current budget. SeeP Annex III "Financing of Capital Formation" for details. The assumption of the high level of invest- ment implies that present major projects coming to an end (e.g., the Port) will be replaced by others of similar size (e.g., road paving to be financed by FED, or electricity transmission line). Exports: See Table on Exports and Notes. Irports: See Table on Imports and Notes. Service balance: It is assumed that the balance in 1970 will be slightly larger than in 1965. See Table 8, note b/. Consumption: Residual. Table 3 Projection of Imports, 1970 (In Millions CFA francs) "Base" 1970 Food, Drink and Tobacco 2,365 3,318 Petroleum Products 419 535 Chemicals 548 699 Clothing and Textiles 2,017 1,737 Metals, machinery, etc. 2,804 2,804 Transport equipment 930 1,135 Other 1,560 2,087 Total Imports 10,643 12,315 Food, Drink and Tobacco - Assumed to increase at 7% per annum compounded. This is slightly faster than the projected growth rate of GDP. Petroleum products: ) Assumed to increase at 5% per annum compounded, essen- Chemicals: ) tially as GDP. No particular user increases in sight. Clothing and Textiles: It is assumed that about half of textiles is re-exported to neighboring countries without being recorded. (See BCEAO, Balance of Payments 1965, preliminary). The total domestic demand is assumed to increase from 1,018 to 1,225 million (5% p.a. compounded). Full capacity of the mill will be 5 million valued at about 743 million. About a fourth of this will be import needs of import substitution. This gives: Basic demand for textiles 1,286 less import substitution 743 543 plus import requirement of mill 186 u unrecorded exports 1008 1737 Metals, etc.: This is mostly investment goods. Because investment is assumed constant, no change is assumed. Transport equipment: This consists of about 60% of cars and buses" about 40% investment goods. 60% is assumed to grotw at 6% compounded, 40% constant. Base for Projections: Because there have been violent fluctuations in imports, in some cases without a noticeable trend, it is impossible to project past trends, or to associate imports either with income or prices. For that reason the base for projections has been the average of the three years, 1964 to 1966. Table 4 Projection of Exports, 1970 and 1975 (Million CFA Francs) "Base" 1970 Cocoa 1,669 1,731 Coffee 1,948 2,415 Cotton 243 250 Groundnuts 107 105 Palm kernels 525 472 Copra 90 60 Phosphates 2,198 3,381 Total (7 products) 6,780 o041 Total estimated Exports Total recorded Exports: 7,137 'l,050 Add. unrecorded re-exports: of imported goods: 1,000 (9, 850) "Base" For agricultural products: average 1964-1966. For phosphates: customs value, 1965. All 1970 values in expected 1970 prices. A. To 1970: Cocoa: Quantity assumed to increase 13.3% (Mission estimate). Projection implies re-exports of cocoa at present levels. Price expected constant. Coffee: Quancity assumed to increase 27.8% (Mission estimate). Price assumed to decline from about 33˘ to about 32˘, or to 97%. Cotton: Quantity assumed to increase 36.7% (Mission estimate). Price assumed to decline from 26.6˘, to 20˘, or to 75.2%. Groundnuts: Increase in quantity 6.5% (Mission estimate). Decrease in price from L70:10 to L65, or to 92.2%. Palm Kernels: No change in quantity (Mission estimate). Price decrease from 1658.7 to L52.8 or to 90%. Copra: QuantiLy to decrease by one-third (Mission estimate). No price change. Phosphates: Increase in output to full capacity of 1,250,000 tons assumed, or 153.8% over 1965. No price change. Gei2val Note: See following table for price assumptions. Table 5 Summary of Price Assumptions 1970 "Base' tWorld Market" "Mission" Coffee (lb.) 33˘ 32˘ 32˘ Cocoa (lb.) 22˘ 22˘ 22˘ Cotton (lb.) 26.6˘ 204 20O Groundnuts (long ton) 670:10 1660-65 665 Palm kernels (long ton) b58:7 :48-50 652:8 Palm oil (long ton) E89:2 L73 683:° SOURCE: "Base" and "1'970: world market": IBRD Commodities Division - "1970: Mission": see Notes below. 1. Base: Average of the three annual averages for 1964, 1965 and 1966, i.e., same base period as for quantities exported. 2. Coffee: Price of the Robusta variety (spot price New York). Price retained by Mission as forecast by IBRD Commodities Division. 3. Cocoa: Spot price New York. The price for base period may be somewhat underestimated as applied to Togo because while spot prices have been low (1965) OPAT has sold on the forward market at higher levels. Future price may be a little low in view of Ghana's crop expectations and of a possible international agreement. 4. Cotton: In view of past average and present price (New York, Contract No. 2, September: 29.45 cents), price for 1970 may be too low. 5. Groundnuts, Palm kernels, Palm oil: 1970 world market prices: forecast by IBRD Commodities Division. Recent information from EEC indicates that a firm agreement is being reached between EEC and African associated countries to the effect that support will be given to export prices of fats and oils when world market prices are below the prices indicated under the column "1970: Mission." Those prices have therefore been retained as the 1970 relevant prices for Togo since they are above or equal to world prices as forecast by IBRD. Table 6 Public Sector Projection--Cash Budgets Current Receipts (In Million CFAF) 1965 1966 Base 1970 Plan 1970 Mission Import and Export Taxes 3,421.2 4,064.8 3,743 4,265 4,,566 Direct Taxes 401.8 496.3 449 920 1,035 Others 958.3 763.0 861 1,180 861 Total 4,781.3 5,324.1 5,053 6,365 6,462 New Taxes 1,170 210 Participations (Phosphates profits to Government): _ 145 161 Grand Total 7,680 6,833 Current Expenditures Current Expenditures as budgetted 4,726.4 4,943.4 4,715 5,247 6,035 Add public debt payments (Included in above) 120 227 457 Total 4,726.4 4,943.4 4,835 5,474 6,492 Surplus on current budget + 54.9 380.7 218 2,206 341 subtract maintenance of equipment -1,298 Renewal of Equipment - 75 a/ National Assembly - 93 Recurrent Surplus + 745 341 a/ Included in current expenditure as current practice. Base: For recurrent receipts, average of 1965 and 1966. Cash budget as Appendix Table 6. 1970 Plan : Development Plan 1966-70, op.cit. 1970 Mission Estimate: Import and Export Taxes: An increase of 22%. This corresponds to increase in foreign trade volume, allowing for a price decline for exports as specified in Notes to the Export Projections. This implies no, or little, increase in import or export taxation. Mission has given reasons why this is a reasonable policy assumption: if import duties are raised too much, there will be diver- sion of imports for re-exports; if export taxes are raised without reduction in producer prices, OPAT profits will fall by the same amount. If producer prices are lowered, there is danger to supplies. Structure of imports will change towards goods with higher rates of taxation because the level of investment goods imports (little taxed) assumed constant. Other items rise. Direct Taxes:- Estimate made in two parts: (a) Direct taxes on existing base increase by 25%. This corresponds roughly to combined increase in GDP of "(,overnment" (salary payments) manufacture and commerce, the main sources of Direct Taxes. (b) In 1970, CTMB will pay profits tax at the rate of 37%; CTMB was tax exempt in 1965. Profits in 1964 were CFAF 821 million, with a production of 801,500 tons (National Accounts 1964, p. 26). If it is assumed that profits will rise proportionately to output--very likely a conservative assumption--l capacity output of 1,250,000 tons would give a profit of CFAF 1,280 m:Lllion. The profit tax of 1,250,000 tons = CFAF 473.6 million. Other: Other recurrent budgetary receipts are a miscellany which has shown no clear trend. The same figure is put in for 1970 as for the "base year." Income from Participations: The Government owns 19.95% in CTMB. Profit after taxes on 1,250,000 tons is CFAF 806.4 million; the Government share is CFAF 161 million. New Taxes: The Plan foresees a number of new taxes, in particular, on imports and exports. Export taxes would come out of OPAT profits, unless producer prices are reduced, a contingency that on balance appears unwise to the Mission at least for the major export crops on which OPAT has made substantial profits. OPAT profits are available to finance investments, at least in part, in any case. Substantially new import duties would reduce the tax base by slhifting imports for re-exports. The Mission does not: believe that there is much scope in this direction. There are, however, possibilities for other minor taxes on real estate, transportation, etc., as suggested in the Plan, and better collection of taxes. Plan Budget: Plan, p. 191. Total investment in the Government budget is put at CFAF 1,110 million for 1970. Since total government expenditure is CFAF 7,700 million, current expenditure is CFAF 7,700 million -CFAF 1,100 mil- lion= CFAF 6,590 million. Expenditure: A modest 27% increase is assumed. Cutrent surplUs: The government budget surplus in the text (Chapter VI) is put at CFAF 800 million as against CFAF 341 million in the table above. The dif- ference is investment expenditure included in "current expenditure as budgeted," about CFAF 500 million as shown in Table 10 (CFAF 519 million). Table 7 Overall Picture of Public Sector Outside Central Budget (In CFAF Million) "Base" 1970 OPAT +627 -,+678.4 Railway -114 -80.0 Whar-f +106 0 Port: - -60.0 SOTEXIM 0 0 included in Budget Hospital included in the budget Edi togo Electricity +56 100 Phosphates - 161 Profits from the Brewery expected to offset losses from other public enterprises. Losses cf Hospital Railway plus wharf (net). Edit:ogo included in current expend'tures in budget in 1965/66 and 1970. Losses of Hospitaland Editogo included in budget in 1970. Losses of Railway plus Port not included (i.e., CFAF 140 million). These are deducted from net profits of public enterprise. Base: Average 1965 and 1966. OPAT: Assumed to increase as value of agricultural exports. This allows for decreases in export prices, which are assumed to be absorbed by OPAT. See export projections for detail. Rate of growth: 108.2%. Rail-way: Some lines or sections of lines assumed to be phased out. Wharf: Will not be in operation in 1970. Port: Comes into operation late in 1967. Will probably make operating losses for a number of years. SOTEXIM: Assumed at least to break even. Included in the Budget. Phosphates: Were tax exempt in 1965/6. Expected profits corresponding to 19.95% participation. See notes to Table 6 above. Table 8 Balance of Payments, 1970 (In Million CFA francs) Plus Minus Net Mierchandise 8.8efi 12.3 -3.5 Services (net) 0.0 Factors income (net) -1.4d_ / Balance on Current Account -4.9 Repayment of Government loans, including interest -0.3 Capital flow required 5.2 iotes: a/ The method of estimating exports does not allow for the unknown amounts of unrecorded exports of previously imported goods, particularly textiles, sugar and liquors. Imports are under- valued less. Unrecorded imports involve mainly cocoa. Estimates vary widely. If the 1965 corrections were applied, the true import surplus on current account might be a little less than CFAF 1 billion smaller and the capital inflow required might therefore be of the order of CFAF 4.2/4.4 billion. b/ "Net" is the resultant of large transfers; of private profits (-) and other private factors income. It is impossible to estimate individual items. The increase from -1.3 in 1965 to -1.4 in 1970 should be due in the first place to some increase in the phosphate company's transfer of profits. The modest increase thus allowed for is justified in view of the fact (i) that the company will hopefully invest some CFAF 260 million of its expected profits into a fertilizer plant in Togo in the course of the next few years, (ii) the profits tax (37%) is applicable to the company starting in 1968, and (iii) 20% of the profits will accrue to the government starting in 1967. Table 9 Balance of Payments Projections 1970 (Billions of CFA Francs) 1965 1970 Balance on Goods and Services (including -4.7 -4.9 factors income)a/ Private transfers on current account b/ +0.4 -0.4 Public transfers on current account c/ +3.3 +2.5 Private capital inflow +0.5 Debt repayment and interest payments, (public)d/ -0.1 -0.3 Public capital flows +0.9 Errors and omissions -1.5 Total 0 -2.3 Remains to be financed - +2.3 Balance to be financed if balance on goods is corrected for undervaluation of exports and imports (Exports+l billion; Imports +200 million). +1.5 ah3alance of Goods and Services from Table 9 above. b/Private transfers on current account: Assumed unchanged. c/Public transfers on current account: 1965 contains a large military grant oif FAF 850 rnillion assumed not to be renewed. Other grants (FAC, FED, German, U'S AID, etc.) asouiied unchanged since they are already running at a relatively high rate. d/ I)ebt repayment: Only repayment of existing public debt, including interest. Table 10 Savings - Investment Account (In CFAF Billion) 1970 Investments 10.5 */ Possible Financing Government Sectors Budget surplus ) +0.180* CTB Profits ) +0.161* OPAT Profits ) 0.9* +0.678* Railway, Pori: losses ) -0.140* Investments included in current budget 0.5* +0.519* Provinces and Municipalities 0.1* Inventories (mainly manioc) 2.4* Foreign grants, public and private 2.9* External loans 1.5-2.3 Household Savings ) Business Saving ) 2.2-1.4 Provision for capital consumption ) I/ Independently estimated. Investments included in current budget: Assumed at 8% of current budget a1s in the past. See Chapter III. Inventories: As in 1964 (National Accounts). This item is self-financing. .Foreign grants: See Table 9g External Loans: Requirements, Table 9. Household and Business Savings: Residual. (of which electricity CFAF 100 million) PART II APPENDIX TABLES Table 1 POPULATION (thousands) A - Population by Area At the date of survey Rate of Estimated on Region City 1959/60 growth January 1,1967 MARITIME Lome 73.6 2.3 88.3 An6cho 10.4 2.6 12.7 Ts6vie 9.2 " 11.9 Lom6 52.2 " 62.2 An6cho 187.8 " 221.2 Ts6vi6 103.6 " 123.1 Tabligbo 52.3 if 61.6 TOTAL 489.1 581.0 PLATEAUX Atakpamn6 9.5 3.4 12.3 Palime 12.0 11 15.4 Akkposso 96.1 " 121.0 Atakpam6 90.3 113.7 Klouto 104.3 129.5 Nuatja 53.4 66.8 TOTAL 365.6 458.7 CENTRALE Bassari 9.2 1.8 10.5 Sokod6 14.7 16.8 E3afilo 21.5 " 23.9 13assari 64.5 it 71.6 I:ama-Kara 88.0 " 98.3 Niamtougou 43.7 " 48.8 F'agouda 38.6 , 43.1 S'okod6 82.9 92.4 TOTAL 363.1 405.4 SAVANES Dapango 141.4 2.4 164.5 Kande 32.7 if 37.8 Mango 47.5 it 54.9 TOTAL 221.6 257.2 TOTAL TOGO 1,439.4 1,702.3 B - Age Distribution of Population (1965) Age Numbers % O to 5 years 412,437 25.5 6 to 13 " 372,002 23.0 14 to 19 " 126,157 7.8 20 to 60 " 635,638 39.3 Over 60 " 71,166 4.4 1,617,400 100.0 Table 2 ACTIVE POPULATION 1. Agriculture 498,767 2. Industry & Construction 5,603 of which Extractive (908 Manufacturing (2,680 Construction (1,346 Electricity, Water, etc. (669 3. Transport & Communications 7,480 4. Cormmerce 55,728 5. All Others 88,905 of which armed forces (1,583 artisans, workers (49,365 service workers (3,025 miscellaneous (25,180 services, liberal professions 1/ (5,045 top civil servants- (384 office employees (4,323 6. Total 656,683 1/ Including top ranking private employees. Source; Comptes Nationaux 1964. ORIGIN AND USES OF GDP 1964 Current Market Prices, (Million CFAF) Origin Uses 1. Agriculture, etc. 18,932 1. Private Consumption 29,863 of which Agriculture 15,936 of which subsistence 9,226 ForestIr 789 other 20,670 Animal Husbandry 1,596 Fishing 611 2. Public Consumption 3,449 2. Industry & Construction 5,660 of which civil 3,157 defense 293 of which Extrac-tive 2,023 Manufacturing 1,517 3. Gross Fixed Capital 5,833 Construction 1,344 Electricity & Water 776 of which construction 2,771 equipment 3,062 3. Transport 2,228 4. Inventory Accumulation 2,402 of which road transport 1,333 railways 2574 5. Exports 8,799 maritime 487 ~§i2 air 154 6. Imports -11,914 4e Commerce 7,051 5. House OwnershiEl 947 6. Government and other administration 2,914 7. Other Services 701 of which teaching 118 mainitenance of means of transport 131 financial services 242 other 210 8. Total 38,431 7. Total 38,431 Source: Republique Togolaise, Haut Commissariat au Plan, Comptes Nationaux du Togo, Annee 1964, Lome, August 1966, pp. 26, Table IV; Table III, p. 24. Detail does not add because of rounding. TL.jlle 4 `IICL; C1' GIa. 1',C2 - (In Billions CFA Francs) 1962 1963 1964 1965 1966 1. Agriculture, Forestry, Animal Husbandry, Fishing 18.2 17.6 18.9 20.1a 20.1 2. Extractive Industries ( 1.0 2.0 ( 2./ 4.1 3. Manufacturing Industries ( 1.4 1.5 ( 1.7W 2.0 4. Construction and Public Works ( 0.8 1.3 1.5] 1.5 5. Electricity and WaterL/ 0.8 o.8 0.8] 1.0 6. Transport 1.7 1.6 2.2 2.42J 2.7 7. Commerce (8.0) 5.5 7.1 ( 7.7 8.2 8. House Ownership ( 0.8 c).9 1.0] 1.1 9. Governmnent and other Adminis- ( 4.1 2.2 2.9 ( 3.1] 3.2 trations ( 1O. Other services 0.6 0.7 ( 0.81 0.9 11. Total ( 34.6&" 32.4 38.4 ( 1.52/ 44.8 Source: 1962: Supplied by Statistical Office with express warning of incomparability to other years. 1963: Comptes Nationaux du Togo, 1963 (Lome, October 1965). 19?64: Comptes Nationaux du Togo, 1964 (Lome, August 1966). 1965: / Final estimates from Bureau oI' Statistics. bJ Preliminary estimates made by Mission in consultation with Bureau of Statistics. j Preliminary estimate by Bureau of Statistics. #/ Mission estimate, on assumption that commerce would move parallel to other sectors. i Mission estimate, in consultation with Bureau of Statistics, revised. g/' Includes both running water and well water in villages. g/ Probably overestimated on a comparable basis. 1966: Mission estimates, as follows: agriculture: on basis of production figures, Annex I; extractive industries: proportionate to increase in phosphate output; manufacturing: allowing for the fact that the brewery and textile factory have come into production; construction: no major new projects appear to have been started; old projects continued at old rate; transport; commerce: increased approximately 15% accord- ing to BCEAO; volume of foreign trade increased ap- proximately at the same rate; government: there has apparently been no radical increase (see Chapter III). others: guesstimate. Ta21ce 5 ESTL_'.TiL1) CDW .3" US,, (hi 3ILLIOZ.U CF CFA, inr";ic;) 19G2-1965 1962 1963 1964 1965 1. Private Consumption 27.3 28.730 29.863 32.2 2. Government Consumption 2.4 2.936 3.449 3.5 3. Gross Fixed Capital Formation 3.2 3.238 5.833 ( 10 5 4. Inventory Accumulation 0.2 1.305 2.402 ( 5. Exports of Goods and Services 5.6 5.497 8.799 10.4 6. Less Imports of Goods and Services -8.1 -8.608 -11.914 -15.1 7. GDP at MIarket Prices (a) (30.6) 33.097 38.431 41.5 (b) (32.4) Source: 1962: Detail and total marked (b) communicated to Mission by Statistical Office. Total marked (a) is sum of detail. Discrepancy not explained. Figures not strictly comparable with later years. 1963 and 1964: Comptes Nationaux, 196k, op.cit., p.17, Compte 3. 1965: Total: See Tnble 2.2. Government consumption: Statistica:L Office. Imports and Exports: BCEAO, preliminary Balance of Payments estimates for 1965. Estinates not strictly comparable with previous years because of allowance for unrecorded trade and adjustment for true prices. Capital Formation: See Appendix Table 2.2 and accompany- ing text. Private Consumption: residual. Table 6 GOVERNMENT CURRENT BUDGET (in mi1ron GFA francs) 1960* 1961 1962 1963 1964 1965* 1966* 1967 (estimates) 1. Direct taxes 186.1 208 3 286-4 340.6 332.9 01.8 h96.3 500.2 2. Imrnort and Export taxes 2128.2 2681.0 2791.3 2819.8 3611.0 3421.2 ho64.8 3951.0 3. Other 633.5 412.7 432.7 l83.9 906.9 591.3 763.0 822.0 4. Unallocated - - - - - 367.0 5. Total current receipts 2947.8 3302.0 3510.4 3641i.3 4850.8 4781.3 5324.1 5273.3 6. External contribution to current expend. 55.8 _- - 89.0 - 28.3 - 7. General services 880.8 n.a. 939.3 1181.5 1011.0 1395.7 1557.2 1316.1 8. Defense - n.a. 141.3 228.6 682.1 651.4 609.8 620.4 9. Economic services 498.1 n.a. 1453.3 479.1 588.9 811.0 790.8 650.2 10. Social services 800.4 n.a. 725.7 807.2 961.6 1105.6 1212.2 1177.6 11. Government "interventions" 389.1 n.a. 1037.3 621.1 798.h 558.9 546.7 864.0 12. Debt 67.6 n.a. 129.2 393.2 89.5 114.8 122.4 316.4 13. Other and unallocated 25.6 n.a. 336.2 421.2 492.14 88.8 104.3 375.0 14. Total current expenditure 2661.7 3197.0 3707.8 4131.9 4623.9 4726.4 4943.4 5319.7 15. Current balance ,l(5)-(14)7 +286.1 +105.0 -197.4 -1487.6 +226.9 +54.9 +380.7 -L46.0 MNotes: Years marked (*) show cash flows on a calendar year basis. Others, except 1967, are final out-turns of the "exercice". Sources: 1960, 1965 and 1966: data prepared forthe Mission by the Tr4sor. 1962 to 1964: from Comptes Dfinitifs du Budget G6n6ral - 1961: from SEDES-IFO Annex to the Five-Year Plan - 1967: from Budget estimates. Table 7 GOVERNMENT CURRENT BUDGET: BREAKDOWN FOR S3LECTED YEARS (in million CFA francs) 1962 1963 1964 1967 (estimates) A. Revenue - Direct taxes 286.h 340.6 332.9 500.2 Profits taxes (223.3) (181.4) (282.0) . Other income taxes (255.5) (104.0) (136.8) (202.0) . Other direct taxes (30-9) (13.3) (14.7) (16,2) - Indirect taxes 2,791.4 2,877.7 3,765.8 4,091.0 . Import duties (1,220.5) (1,216.8) (1,397.8) (1,580.0) . Export duties (296.9) (233-4) (385-9) (400.0) . Other taxes on 1/ external trade - (1,274.0) (1,286.7) (1,765-7) (1,971.0) . Other indirect taxes (140.8) (216.4) (140.0) - Other revenmes 432.6 426.0 752.2 682.5 . Post office (173.3) (18h-5) (320.6) (311.0) . Others (fees, etc.)!/ (259.3) (2141.5) (431.6) (371-5) Total 3,510.4 3,644.3 4,850.9 5,273.7 - 'rench grant - - 89.0 - B. Expenditure - Public debt and 129.2 404.8 99.6 316.4 - Services National assembly 79.0 71.6 90.8 98.6 . Presidency 40.6 103.9 77.3 120.9 Defense 142.3 228.6 682.2 620.4 Foreign affairs 63.8 63.3 88.2 121.8 Interior and Information 416.0 487.4 329.5 500.3 . Finance 243.8 261.6 303.3 314.9 Commerce & Industry - - 14.7 20.1 Justice 43.6 51.9 54.4 79.5 Public worlks 314.3 326.9 367.5; 353.8 Agriculture 139.0 152.2 221.6 296.5 . Health 323t 371.3 444.8 459.3 Social affairs 51.4 58.4 42.1 59.7 Education 402.8 435.9 516.9 718.3 Common expenditures 336.2 421.2 492., 375.0 - Maintenance and Repairs 166.6 350.3 177.( 180.0 - Subsidies,Darticipations, e-t. ~--T 6816.2 342.5 621.5 68h.1 Total 3,70708 4,131.9 4,623.9 52196 Exercice surplus or deficit -197.14 - 487.6 + 226.9 _ 46.o 1/ Almost entirely "taxe forfaitaire representative de la taxe sur les transactions" and levied for about 80% on imports. 2/ Including "droits d'enregistrement". 3/ Net of the "transfer to the investment budget". Sources: 1962 through 1964: Comptes Definitifs du Budget general. For 1967: Budget estimates. The Comptes definititfs refer to "exercice" periods, i.e., for periods extending over 15 to 23 months. Though most revenue occurs during the first 12 months, expenditure may be spread over a much longer period. Comptes definitifs for 1961, 1965 and 1966 are not available. No details avaiable for composition of annual cash budgets for 1960, 1965 and 1966, whose totals and main components are given in text of main report. Table 8 EXTERNAL PUBLIC DEBT : LIST OF LOANS - Outstanding No. Lender Date Terms Currency Total 12.31.66 (Ilillion CFA francs 1. IWest Ge!rmany 7.11.63 ) 2.125% DM 3,381.2 3,381.2 ) 30 years la. West Germany 1.--.67 ) 5 years grace DM 913.2 913.2 2. Netherlands 5. 9.64 3% per semester Guilder 76.9 55.0 - 7 years 3. Netherlands 3.27.65 3% per semester Guilder 197.7 175.0 - 10 years 4. France 4.1831 4% and 4.5% Franc - - 8. 2.32 ha. France 1956-66 2.5% to 5% Franc 246.6 28.6 5. Germany 4.10.29 - DM - - 6. BIAO 1949 See note Franc - - 7. France 11. 7.62 1% - 40 years Franc 1,214.7 1,179.7 8. Wlest Germany 3.31.66 2% - 20 years DM 320.8 320.8 5 years grace Total (excluding 4-5-6) 6,351.1 6,053.5 Source: Ministere des Finances, Togo and CCCE. Notes to Loans: 1 and la - Loan made by Kreditanstalt fuir Wiederaufbau (Frankfurt/Main) for the construction of the deep water port of Lome. 2 and 3 - Loans by Phillips CY: (Holland) for telephone equipment. 4 - Loans by France for various purposes (railway and health). 4a - Seven loans by Caisse Centrale de Cooperation Economique (Housing, water supply, loans for government participation in capital of enter- prises). 5 - Various German supplies. 6 - Fees to BIAO (formerly Banque de l'Afrique Occidentale and operating as central bank until 1955) in payment for management of loans under item 4. 7 - Debt to CCCE on account of Togo's participation to FIDES 1946-1959, funded into one loan on 11.7.62. 8 - Loan from Kreditanstalt fur 'Jiederaufbau for water supply at Sokod6. General Notes: (1) For repayment schedule of loans 1 through 8 see table 10 (2) In addition to loans described in the table the Government has guaranteed a Yugoslav suppliers credit to CEET (the public elec- tricity corporation) of US$1,634,000 granted for the construction of the hydro electric plant of Kpim6 (1961). This is equivalent to CFAF 01 million. (3) Loans to local authorities from CCCE, not included in the table, reach CFAF249.4 million of which CFAF 140 outstanding by 12.31.1966. (4) Advances by CCCE to Credit du Togo over the period 1960-1966 have reached CFAF 1.7 billion of which CFAF 1.1 billion guaranteed by the government. By the end of 1966 outstanding advances were over CFAF 715 million of which CFAF 662 guaranteed by the government. Six monthly repayments on these loans amount to CFAF 65 million, of which CFAF 52 guaranteed by the government. Table 9 114TERImAL PUBLIC DEBT : LIST OF WANS Outstanding No. Lender Date Terr,s Total 12.31.66 (Talliorn CFh francs) 9. OPAT iisy 1967 2, - 10 years 300 300 10. Cocoa Stab.Fund 9.30.59 2.5% - 10 years 300 135 11. OPAiT 12.31.65 3%o - 12 ycars 575 575 12. OPAT 3. 5.66 3% - 5 years 125 100 1,300 1,110 Source: tlinistry of Finance, Togo. i!otes to Loans: 9 - Loan to the Government for extension of works of new port of Lom6. 10 - Loan to the Government for the construction of liotel "le Be'nin" in Lom6. 11 - Loan to the Government for the purchase of 19.95% of the equity capital of CTMB (phosphates mine). 12 - Loan to the Government for the purchase of UNELCO, the private elec- tricity cornpany now CEET (compagnie d'Energie Electrique du Togo). CEET is now main borrower with government guarantee. General Note: Numbering is as in Appendix Table 10, ?cbi* 10 110A38U0? B,0LU8 OF AM0TMZMIN~ INIUNT Aib OhEIU108T pATIENT GO9I3NNUT DnT oNLy 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 I For-ir- I. lor_ ,' Lom6 (Ge-on) 1,987,470 20,593,120 34,898,735 48,797,343 63,595,951 149,792,000 213,540,400 210,911,600 208,282,C00 241,434,200 238,086,200 234,738,200 231,390,200 228,042,200 224,694,200 AetUp:.. vi, zelphono 9,656,000 5,576,000 15,658,496 14,927,360 14,196,224 13,465,088 12,733,952 - _- - _ _ 3. Z ]Ip ,Ne th-rlads -u:.les _ _- 19,608,208 19,609,563 15,910,640 30,812,7722 29,468,140 28,123,644 26,779,080 25,434,516 24,089,952 11,540,824 _ _ _ F-e-ch Or,sni- 5n.a. _.a. 15,127,000 24,988,000 21,514,000 22,000,000 23,000,000 24,500,000 25,275,000 9,- -970,00 5. ~ ~ ~ __ 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 970,000 975,000 - __ _ . . _ _ _ 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 135,000 7. -v t cp eo CC:E - - 20,720,000 20,720,000 25,600,000 23,450,000 21,425,000 19,575,000 17,250,0i0 - - - - S. s, ,,. I' S ,&r V,,ppl C :- , ~ - - - 3,700,000 3,700,000 3,700,000 11,687,000 23,101,975 22,739,275 22,376,575 22,013,875 21,651,175 21,28,475 20,925,775 II. 0cc t c 9. p -t cc Lnmc (OPAT) - - 36,000,000 35,400,000 34,800,000 34,200,000 33,600,000 33,000,000 32,400,000 31,800,000 31,200,000 30,600,000 20 ociL. 70air0 (Coco. Price Sc',MI.zatlo- Fand) _ . 34,313,000 33,563,000 32,813,000 32,062,500 32,312,500 30,562,500 - - - - - - 11. Pcrtr_fcipoticconCTMO(OPAT) - - - * 63,840,000 62,400,000 60,960,000 59,520,000 38,080,000 56,640,000 55,200,000 53,760,000 52,320,000 50,880,000 49,440,000 i2. 1l: 1L,:co U8Elno (OPAT) - - - 28,750.000 28,000,000 27,250,000 26.500,000 25.750.000 - - - _ Tol .2 2957,470 31 219,720 139,047,943 192911.1 407 262,373 951 336,2C6,516 456,144.128 457.286,696 419.841.855 4.8,720,991 402,625,727 385,197.899 339.606.375 332,515,675 326,764.975 SOLRCE: Government' of Tog.. Table 11 TRESOR POSITION AT TlE END OF YEAR (In iL11ion of CFA Francs) 1961 1962 1963 1964 1965 1966 1967 (Mar.31) 1. Tr6sor's deposit at BCEAO 575 984 1115 1575 1300 1435 1535 2. Other liquid assets n.a. n.a. n.a. 791 n.a. 1185 1270 3. Deposits with Tresor 460 2000 2150 2632 2700 2620 2815 of which 4. Stabil. funds or OPAT (130) (511) (800) (1548) (1707) (1603) (1728) 5. Pension Fund) (568) (646) (673) ) 6. Post Office ) (330) (1489) (1350) (1084) ) (425) (206) (295) ) ) 7. Others ) ) (158) (119) Source: From Tr6sor annual "Situation de Tr6sorie". Figures for 1964, 1966 and 1967 -from year-end (or monthly) statements. Other figures derived from various Tr6sor documents. Differences in the figures for 1966 due to rounding. Table 12 ADVANCES BY THE TRESOR (OUTSIDE THE BUDGET) TO PUBLIC ENTERPRISES. POSITION AT TIUE END OF YEAR (in million CFA francs) 1964 1965 1966 1. Pharmacy 130.6 149.1 125.2 2. Sotexim (import-export) 50.0 50.0 50.0 3. CNH (national hospital) 46.4 42.1 21.5 4. Regie Nationa:Le des Eaux (water supply) 1.1 6.7 16.8 5. Editogo (printing shop) 13.0 13.0 13.0 6. CEET (electricity corp.) 10.5 210.9 272.4 Total 251.6& 471.8 1478 - Source: Tr6sor Accounts. Notes: The figures given in the Table exclude medium- or long-term loans for equipment (the main one being of CFAF 45 million to CEET) and they only reflect direct Treasury advances. In some cases the debt to the government is much higher: thus, total debt to the Tr6sor of Sotexim, the Government import-export company, was CFAF 148 million at the end of 1966, of which the greatest part was to the customs department for duties and taxes due on imported goods. Sotexinm had an operating loss of CFAF 12.5 million in 1965 and an operating ":profit" of CFAF 14.0 million in 1966 and a cumulated net loss of CFAF 7.2 million by the end of 1966. If the import duties and other import taxes had been paid, the "profits" would, however, have disappeared. The national hospital (CNH) has a current profit of some CFAF 30 million, whereas Editogo's current losses turn around CFAF 38 million and Hotel "le B6nin" has a cumulated net loss of CFAF 4.9 million. The position of CFT has improved over the last ten years, though the railway itself runs deficits of CFAF 133, 95, and 100 million during the past three years. CEET has shown profits of CFAF 54 million in 1965 and CFAF 58 million in 1966, after a small loss of CFAF :17 million in 1964. Deficits are made good from the central budgets. Table 13 LIST OF PUBLIC ENTERPRISES AND PUBLIC AND SEMI-PUBLIC ORGANIZATIONS WITH LEGAL AND FINANCIAL AUTONOMY 1 - Office des Produits Agricoles du Togo 2 - Cr6dit du Togo 3 - Compagnie d'Energie Electrique du Togo (C.E.E.T.) 4 - Caisse de Compensation des Prestations Familiales et des Accidents du Travail 5 - Societ6 Togolaise d'Hotellerie et H6tel ("LE BENIN") 6 - R6gie Nationale des Eaux 7 - Soci6t6 Regionale d'Axmnagexnent et de D6veloppement - Nfaritime 8 - Societ6 R6gionale d'Am6nagement et de D6veloppement - Plateaux 9 - Societ6 Regionale d'Am6nagement et de D6veloppement - Centrale 10 - Societe Regionale d'Am6nagenent et de D6veloppement - Kara 11 - Soc:i6t6 R6gionale d'Am6nagement et de Developpement - Savanes 12 - Societe d'Extraction d'Huile de Palme (formerly huilerie d'Alokoebge) 13 - Chambre de Commerce 14 - Centre de Formation Professionnelle Inter-Entreprise 15 - Office National du Tourisme 16 - Loterie Nationale Togolaise 17 - Etablissement National des Editions du Togo (EDITOGO) 18 - Societ6 Togolaise d'Exportation et d'Importation (SOTEXIM) 19 - Centre National Hospitalier (CNH) 20 - Compagnie des Chemins de Fer et du Wharf du Togo (CFT) Table 14 UTILIZATION OF CREDITS GRANTED BY SECTOR AND TERM BY MARCH 31 OF EACH YEAR (Million CFA francs) Various Credit Term Agriculture Industry Construction Transport Commerce Services Institutions Total 196L short 25 667 94 16 2,057 17 86 2,962 medium 5 277 11 - - - - 293 long - 2,570 - - - _ 2,570 customs bills - 29 - 22 420 - - 471 Total 30 3,543 105 38 2,477 17 86 6,296 1965 short 25 174 78 23 1,974 57 89 2,420 medium 7 4 13 - 60 - - 84 long - 2,574 - - - _ 2,574 customs bills - 43 - 29 406 - - 478 Total 32 2,795 91 52 2,440 57 89 5,556 1966 short 23 142 143 28 1,979 28 72 2,415 medium 8 3 23 - 56 - - 90 long - 1,794 - - - _ _ 1,794 customs bills - 17 1 76 479 - - 573 Total 31 1,956 167 104 2,51L 28 72 4,872 1967 short 22 167 74 22 1,446 12 91 1,834 medium 22 134 20 - 45 - - 221 long - 1,792 - - - _ 1,792 customs bills - 3 - 10 471 - - 484 Total 44 2,096 94 32 1,962 12 91 4,331 Source: Statistics communicated by BCEAO, Lom6. Notes: Statistics shown cover only individual credits of CFAF 10 million or over. Industry: The large figure of long term credit to this aector is mainly by CCCE to the phosphates mine CTMB - Amount outstanding on this account by March 31, 1967, is CFAF 1759 million. Commerce: short term: almost exclusively for export-import trade., The amount for the financing of exports of coffee and cocoa is for the years 1963-67: CFAF 440, 157, 293, 136 million. Medium and long term: The proportion of medium and long term credits granted by CCCE in the total shown is, the years 1963-67: 88%, 96%, 94%, 92%. Customs bills ("obligations cautionn6es"): promissory customs bills from importers held by bankers or by the Tresor and which may be rediscounted at the central bank. Table 15 EXPOR73 Quantity: Tons Value: Million CFA francs 1960 1961 1962 1963 1964 1965 1966 1960 1961 1962 1963 1964 1965 1966 1. Cocoa 9,414 11,534 11,080 10,263 13,488 17,153 17,124 1,382 1,289 1,182 1,176 1,632 1,687 1,688 2. Coffee 4,393 10,230 11,541 6,224 16,140 10,655 13,227 636 1,245 1,430 801 2,525 1,365 1,953 3. Palm kernels 14,181 11,140 10,400 12,748 14,477 15,316 16,601 487 308 283 396 445 584 544 4. Cotton 3,178 2,433 1,911 2,751 1,311 2,301 2,553 361 313 251 353 166 287 275 5. Phosphates - 57,162 184,725 441,434 801,466 812,624 968,733 - 155 489 1,068 1,948 2,197 3,771 6. Live animals 861 583 157 73 57 6 51 33 21 6 4 2 .3 3 7. Fish 255 165 61 90 45 8 9 21 12 4 6 2 1 1 8. Cassava flour 5,349 3,527 562 357 142 122 134 114 126 38 20 4 3 13 9. Cassava starch 3,098 4,917 2,907 4,604 5,698 4,176 557 38 118 73 121 133 93 12 10. Tapioca 998 1,241 442 743 672 600 50 88 42 14 25 22 20 2 11. Groundnuts (unshelled) 1,571 3,372 1,840 2,809 2,603 2,059 3,363 69 153 74 119 1). 82 126 12. Copra 3,412 4,818 1,894 2,964 3,772 1,020 901 164 180 68 118 149 55 36 13. Palm oil 631 834 304 172 138 13 156 28 44 16 - - .5 9 14. Cotton seeds 3,968 3,244 1,970 3,788 1,410 2,162 2,665 49 41 20 35 16 29 32 15. Castor seeds 453 364 956 732 389 296 375 16 13 27 17 10 7 8 16. Sheanuts - 332 165 733 1,250 299 2,170 - 7 3 18 16 8 28 17. Others 5,530 7,204 4,941 5,067 4,252 4,198 4,215 102 548 261 232 267 260 371 18. Total 57,292 123,100 235,856 495,552 867,310 873,oo8 1,032,884 3,588 4,615 4,239 4,509 7,448 6,679 8,872 Sources: Statistical bulletins 1966 and 1967 - And Annuaire retrospectif du Commerce special 1937-1964, Special Issue of Statistical bulletin - Undated. Notes: The figures on the table are the official figures from the Customs statistics. Important imports (mainly cocoa from Ghana) and exports (of imported goods, to Dahomey and Ghana) are not recorded. See text of main report, chapter V, section A. Table 16 IMPORTS BY PRINCIPAL COMMODITY GROUPS (Millions of CFA Francs) Average 1956-59 1960 1961 1962 1963 196 1965 1966 1. Food, Drink and Tobacco 834 1119 1442 1985 197l4 2406 2045 2644 2. Petroleum products 222 332 455 395 413 439 367 483 3. Chemicals 179 271 471 481 503 608 612 521 4. Clothing and Textiles 522 865 1116 1267 14614 1456 2181 2414 5. Metals, Machinery, and Metallurgical Products 517 2268 1501 1140 1525 2331 3574 2508 6. Transport equipment 351 649 787 679 581 934 955 897 7. Other 654 948 704 777 707 1112 1366 2201 of which Cement (201) (162) (203) (179) (160) (250) (292) 8. Total 3278 6451 6475 6724 7167 9286 11100 11668 1/ Figures for 1964 add to 1,000 less than the figures given in previous tables. Discrepancy unexplained. Source: See ApnenOix - TabIl 15 Table 17 IMPORTS OF SELECTED ITEMS: QUANTITIES (in tons) 1960 1961 1962 1963 1964 1965 1966 1. Fish (fresh) 9 24 104 1,049 905 1,002 2,024 2. MJlk 286 328 714 929 977 597 688 3. Fruits 510 682 307 935 506 398 474 4. Vegetables 122 167 524 460 782 442 904 5. Potatoes 240 255 293 293 319 346 393 6. RiLce 2,708 3,089 3,159 2,965 3s106 2,888 3,667 7. Wheat flour 1,517 1,562 3,679 4,621 4,574 5,203 7,328 8. Edible oils 204 189 912 259 261 329 365 9. lNat (canned) 66 81 127 116 116 98 136 10. Fish (canned) 298 577 504 362 641 155 253 11. Slgar 2,632 3,071 6,100 3,70]. 4,182 3,0914 7,584 12. Beer 1,664 2,416 1,921 2,598 3,362 2,767 1,815 13. Wines (ordinary) 848 1,457 1,692 1,659 2,2141 1,738 1,776 1T. Liquors 702 699 809 730 883 718 684 15. Tobacco (raw) 51 108 70 118 91V 150 238 16. Tobacco (processed) 360 387 556 455 496 650 593 17. Salt 4,990 8,229 9,2149 10,934 10,865 6,987 6,836 18. Csment 40,535 37,191 44,694 40,191 30,991 47,444 59,936 19. Kerosene 6,286 6,728 7,856 7,749 8,627 8,743 10,2314 20. Gasoline 8,363 8,138 8,199 7,398 7s,994 8,455 10,174 21. Gas oil, Fuel oil 8,1447 14,683 13,644 20,857 25,657 26,940 38,576 22. Cosmetics 363 377 237 219 257 136 287 23. Soaps 383 596 661 861 1,024 742 346 24. I!atches 150 336 300 253 277 244 1412 25. Timber 4,771 2,008 2,891 3,322 5,198 4,870 14,837 26. Paper and paper products 795 995 798 661 1,017 1,178 1,028 27. Cotton material 1,140 961 1,210 1,675 2,889 2,811 3,475 28. Clothing 176 176 214 252 364 416 258 29. Iron and steel 7,516 5,095 5,066 10,055 8,681 8,698 11,000 30. Hardware 415 459 758 568 983 690 584 31. Misc. metal structures 5,090 2,976 673 351 1,595 1,839 1,360 32. Machines 1,995 1,814 955 1,013 2,626 3,497 1,817 33. Electric machinery 949 448 458 458 634 910 935 34. Private cars 498 544 721 442 584 727 781 35. Trucks 704 695 637 562 762 806 811 36. Other transport material 863 3,177 830 629 1,581 1,149 722 37. Total 1-36 106,646 110,718 121,522 129,700 136,051 1147,857 183,331 38. Others 11,417 10,916 20,254 13,738 20,606 22,542 22,132 39. Trotal 118,063 121,634 141,776 143,438 156,657 170,399 205,463 - - = ==-- --= Sources Bulletins de Statiatique 1966 and 1967 - Annuaire Retrospectif du Commerce Special 1937-1964 (from Customs Statiatios of recorded imports - see text of main report, Chapter V). Table 18 IMPORTS OF SELECTED ITEMS: VALUEH (million CFA francs) 1960 1961 1962 196L 1964 1965 1966 1. Fish (fresh) 1 1 6 64 75 87 212 2. Milk 29 28 52 62 75 65 72 3. Fruits 50 77 33 80 57 51 65 4. Vegetables 8 9 18 23 19 13 22 5. Potatoes 7 7 10 10 9 12 15 6. Rice 109 102 66 140 75 99 142 7. Wheat flour 51 55 131 162 171 177 254 8. Edible oils 23 24 68 31 32 38 43 9. Meat (canned) 14 18 29 27 30 28 35 10. Fish (canned) 30 67 63 44 72 20 33 11. Sugar 136 159 255 151 252 151 287 12. Eleer 76 95 81 96 114 116 79 13. Wines (ordinary) 39 56 63 69 95 76 75 1a. Liquors 166 203 231 200 252 188 211 15. Tobacco (raw) 16 36 23 l2 29 49 83 16. Tobacco (processed) 474 353 191 212 251 280 510 17. Salt 85 56 84 39 36 59 94 18. Cement 206 168 208 184 168 254 300 19. Kerosene 82 129 112 107 104 76 88 20. C,asoline 130 120 114 97 91 69 88 21. Gas oil, Fuel oil 97 151 136 169 185 165 217 22. Cosmetics 84 89 54 52 65 46 102 23. Soaps 28 4 49 59 72 55 46 24. Matches 25 57 39 43 43 45 66 25. Tixmber 117 83 56 42 63 60 66 26. Paper and paper products 89 104 115 91 148 186 182 27. Cotton material 673 736 882 1,Th5 2,027 1,766 2,061 28. Clothing 78 102 111 96 179 160 148 29. 1ron and steel 374 240 234 430 392 381 468 30. Hardware 57 69 87 67 100 93 80 31. Misc. metal structures 379 278 57 03 155 218 137 32. Machines 890 546 369 360 1,088 1,723 1,111 33. Electric machinery 419 223 189 316 303 569 506 34. Private cars 168 170 248 169 232 293 288 35. Trucks 182 203 180 173 209 249 264 36. Other transport material 367 304 363 268 48o 616 213 37. Total 1-36 5,759 4,753 5,007 5,363 7,749 8,533 8,663 38. Others 693 1,723 1,717 1,804 2,538 2,567 3,005 39. Total 6,452 6,476 6,724 7,167 10,2861/ 11,100 11,668 Source: Bulletins de Statiatique 1966 and No. 1967 - Annuaire Retrospectif du Commerce Special 1937-1964 (from Customs Statistics of recorded imports : see text of main report, Chapter V). Note _/: List of items given in the Annuaire retrospectif add up to 9,286 although the total given consistently in the statistics is 10,286. Table 19 ESTIMATES OF THE 3ALANCE OF PAYMENTS - 1965 (in Million of CFA francs) I. Detailed Items Credit Debit A - loods and services 10,2.56.3 15,113.6 1. Merchandise 8,46o.i 11,831.5 1.1 Exports FOB - Imports CIF 8,40L.1 11,831.5 3. Transport and insurance costs on international shipments 6.6 3.1 Transport 6.6 6. Other transport 179.3 182.3 4.1 Passengers 182.3 6.3 Port expenses 179.3 5. Travel 0.3 212.6 6. Investment income 131...7 1,658.6 6.1 Direct investment 1,260.8 6.3 Miscellaneous 136.7 197.6 7. Government transactions (not recorded 806.7 936.0 elsewhere) 7.1 Military 32.1 69.9 7.2 Non military 77U.3 866.1 8. Other services 931.2 686.2 8.1 Insurance (other than on goods) 90.6 169Th o.2 Miscellaneouts 86o.6 316.8 B - Transfer payments 3,799.6 1B,'6 9. Private L2.7.7 132. 7 9.1 To or from foreign governments 285. 24.0 9.2 Miscellaneous 17?.3 108.2 10. Government 3,31.9 53.6 10.1 Inter-government 3,321.0 30.9 10.? Miscellaneous 20.9 22.5 Assets Liabilities Credit Debit Credit Debit C - Capital and monetary gold 2,225.6 1,837.3 90.5 11. Private - long term 93.5 837.8 11.1 Direct investment 1,14h.8 11.6 Various commercial loans and credits 307.0 11.7 Others 93.5 12. Private - short term 156.3 56.7 12.3 Commercial loans 1i6.7 70.6 12.14 Others 9.3 13.9 13. Local governments 25.3 13.3 Miscellaneous 25.3 12. Central government 39.2 '83.I 16.4 Long term loans 7B3.h 16.6 Others 39.2 15. Central monetary institutions 1,476.0 8,.5 15.? Negotiable assets 275.0 15.3 Deposits 1,715.1 8.5 15.5 Others 35.9 16. Other monetary institutions 650.6 216.1 16.1 Negotiable assets 266.2 16.2 Deposits 50.2 68.1 16.3 Loans 8.6 16.6 Others 6L6.6 255.6 II. Summary of Part I Credit Debit 17. Goods and services (1 to 8) 10,656.3 15,113.6 1B. Transfer payments (9 plus 10) 3 ,799.6 185.6 19. External assets and monetary gold 2,215.6 (11 to 16 : Assets) 20. External liabilities (11 to 16 : Liabilities) 1,746.8 21. Total net transactions (17 to 20) 16,002.7 17,51L.6 22. Errors and omissions - net 1,$11.9 23. Total (21 plus 2?) l7,51L. 17,516.6 Source: Balance des Paiements - Togo - 1965 Estimation provisoire - BCEAO. Table 20 BALANCE OF PAYMENTS WITH NON-FRANC-AREA COUNTRIES (In Billion CFA Francs) 1959 1960 1961 1962 1963 1964 1965 1. Imports 1.0 1.1 2.19 2.76 3.15 4.84 5.00 2. Exports 0.75 1.0 1.69 1.76 2.15 3.65 3.80 3. Trade balance -0.25 -0.1 -0.50 -1.00 -1.00 -1.19 -1.20 4. Services (net) ) -0.17 0.01 0.02 -0.65 -0.80 -0.39 ) -0.20 5. Transf'ers (net) ) -0.02 0.14 0.60 0.70 0.58 0.75 6. Capital (net) 0.02 0.02 0.07 0.59 0.54 1.45 1.45 7. Overall balance -0.43 -0.27 -0.28 0.21 -1.04 0.04 0.61 Source: La Zone Franc, annual reports by the Comit6 Monetaire de la Zone Franc. Table 21 GEOGRAPHICAL DISTRIBUTION OF EXPORTS (In %) 1957-59 1960 1961 1962 1963 1964 1965 1966 1. Franc area 96 64 63 60 56 47 46 43 2. EEC (excl.Franc) 16 14 14 14 20 30 26 3. Sterling area ) 3 6 3.5 3 7 6.5 14 4. Dollar area ) 4 7 13.5 10 7.5 10 2 5. Other ) 10 3.5 12.5 9.5 16 17.5 15 :100 100 100 100 100 100 100 100 Source: Se!e Appendix - Table 15. Table 22 GEOGRAPHICAL DISTRIBUTION OF IMPORTS (In %) 1957-59 1960 1961 1962 1963 1964 1965 1966 1. Franc area, 60 59 52 42 41 35 36 36 of which France (57) (51) (42) (33) (34) (28) (31) (31) 2. EEC (excl. France) 9 15 13 1I.5 13.5 22 26 20 3. Sterling area 12 18 20 20 18.5 15 11 15 4. Dollar area 8 6 8 7.5 9 5.5 6 6 5. Japan negl. negl. 3.5 5 9 13.5 14 14 6. Other 11 2 3.5 9 9 9 7 9 100 100 100 100 100 100 100 100 Source: See Appendix - Table 15. Table 23 ROAD TRANSPORT IN TOGO - 1967 A. Estiim.iate oif ton/kmn (Motor Vehicles) Vehicle Tons Average type average load Number of Annual km Tori-km capacity factor, 7% v2hicles in Togo (millions) Pick'up 1.5 50 1,200 24,000 22 Truclk 6 60 400 30,000 43 Truck 10 70 200 35,000 49 Total 114 B. Estiwate of passenger-km Vehicle Seats, Average Passenger- type average load Number of Annual km km capacity factor, % vehicles in Togo (millicns) Private passienger autos 5 40 3,000 10),000 60 Taxis and Station wagons (Peu-eot 404) 5 60 1,000 40,000 120 Microbus (Renault 1400 kg) 16 50 400 30),000 96 Mlotorcycles 1 100 400 10,000 4 Motorbikes 1 100 800 5,000 4 Police, military, etc. 4 50 120 7,500 2 Total 286 SOURCES: M!ission Estimates and vehicle registration data. Table 24 RATES FOR ROAD TRANSPORT CFA francs per ton/km 7 - 12 : Owner-drivers and small enterprises ll - :17 : Large operators 6 - :12 : Official rates, main roads 15 - 25 : Official rates, secondary roads 12 : Nationwide average in 1962, evaluation by SEDES-IFO in transport study. Table 25 CHEMINS DE FER DU TOGO MOTIVE POWER AND ROLLING STOCK (January 1967) Description Number of Units Motive Power: Locomotives, 750 hp, diesel-electric (BB Alsthom)....... 8 Locomotives, 1100 hp, diesel, Henschel ............. , .... 2 Railcars, 300 hp, 95 seats (Renault ABJ) ................ 2 Railcars, 500 hp, diesel (Dietrich)..................... 2 Yard engines, 80 hp, diesel (Moyse) ........ O-* .... 6 Yard engines, 180 hp, diesel (Gmeinder) ................. 2 Total 22 Rlolling Stock: Passenger coaches, all types............ 60 Baggage cars ........... so**............ .a.. . 20 Boxcars, mostly 10- O-o.. ...... 197 lopper cars .......... . . ... . ... ........ a.. 49 Flat cars, mostly 3-ton................... ......... 155 Taak car ...... ..O ..... ........ 10 Railway postoffice carsars....... .. .. 6 Service units. n 12 Special units ............ ...................... . ..... . 38 Railway crane . . . l Total 548 SOURCE: CFT Annual Report, 1966 (updated by Mission). Table 26 RAILWIAYS SYSTEM Age of rails Approximate % Description Km years of traffic Lom6 - Blitta 276 2-25 60 Lom6 - Palim6 116 mostly 60 30 Lom6 - Anecho 44 62 10 Spur, Agbonou - Atakpani6 4 5 Spur to port, yards, wharf, miscellaneous 59 30-60 499 Source: CFT Table 27 CHEMINS DE FER DU TOG0 TRAFFIC STATISTICS (Mlillions of Units) Passengers Goods (b) Year Number Passenger-km Tons Ton-km 1950 1.49 57.7 0.14 12.3 1960 2.29 78.3 0.10 8.4 1961 2.34 82.4 0.06 6.3 1962 1.83 70.7 0.07 8.6 1963 1.84 74.1 0.07 (c): 7.0 (c); 1964 1.84 77.3 0.10 0.02 8.2 0.4 1965 1.69 71.7 0.08 0.45 7.4 32.2 1966 1.73 72.6 0.08 0.85 7.0 61.0 1967(a) 1.75 74.0 0.08 0.50 7.2 35.8 Notes; (a) Figures for 1967 are Mission estimates. (b) Goods traffic excludes non-revenue service traffic. (c) Quarry rock hauled to new artificial harbor, finished in 1967. SOURCE: CFT Annual Report, 1966. Table 28 RESEAU DES CHEIPNS DE FER ET DUl WHARF DU TOGO FINANCIAL STATISTICS (millions of CFA francs) I. Summary Recapitulation (railroad + wharf) Deficit (- Year Income Outgo or Profit (+ 1956 .343 447 - 104 1957 367 454 - 87 1958 398 483 - 85 1959 395 488 - 93 1960 493 543 - 50 1961 504 540 - 36 1962 492 483 + 9 1963 1483 481 + 2 1964 556 537 + 19 1965 517 550 - 33 1966 561 543 + 18 1967 480 500 - 20 II. Railwray and Wharf Analysis, 1962-1967 Railway Wharf Total 1962 incorne 287 205 492 outgo 362 1.21 483 balance - 75 + 84 + 9 1963 income 276 207 483 outgo 361 120 1481 balance - 85 + 87 + 2 1964 income 319 237 556 outgo 403 134 537 balance - 84 + 1.03 + 19 1.965 income 274 243 517 outgo 407 143 550 balance - 133 + 100 - 33 1966 income 310 251 561 outgo 405 138 543 balance - 95 + 1.13 + 18 1967 income 300 220 520 outgo 400 140 540 balance - 100 + 80 - 20 Notes: (a) Figures for 1967 are Assion estimates. - (b) 1W,harf will cease operations in late 1967. Source: CFT Annual Report, 1966. Table 29 SELECTED STATISTICS - PORT OF LOME (WHARF) Freight Passengers Value (million CFAF) Year Ships Discharged Loaded Disembarked Embarked Imports Exports _('000 metric tons) 1950 224 46.9 60.5 2,242 1,951 30.7 18.1 1960 360 85.9 48.3 2,266 1,871 114.7 32.8 1961 364 86.0 57.3 2,475 1,882 116.2 37.0 1962 469 106.5 56.2 2,847 2,039 138.0 29.8 1963 477 103.8 53.4 2,565 2,883 140.1 32.3 1964 486 109.2 65.1 2,777 3,770 147.9 40.8 1965 362 116.5 56.7 2,314 1,5670 160.2 39.6 1966 389 139.6 59.9 3,796 n.a. n.a. SOURCES: Inventaire Economique du Togo, 1964 and 1965; CFT Ainual Report, 1966. Table 30 AREA, POPULATION AND CULTIVATED AREA OF TOGO 7 of Totaa Cultivated Area2 Population2 Cultivatel Area Hectares Region km Population per km Area km Cultivated Per Person Savannah 8,470 204,000 24 1,385 16.4 0.68 Kara 4,490 215,000 48 784 17.5 0.36 Central 17,110 182,000 11 900 5.3 0.49 PlateaU 20,430 382,000 19 1,339 6.6 0.35 Coastal 6,100 430,000 70 1,291 21.2 0.30 Total 56,600 1.413,000 25 5,699 10.1 0.40 2) Production of Major Food Crops (metric tons)-(1963) Millet and Paddy Groundnuts Region Sorghum Rice Maize Yams Cassava (unshelled) Savannah 56,000 470 - 30,250 1,375 3,150 Kara 37,500 1,872 - 139,750 29,520 7,050 Central 20,760 1,085 2,360 342,400 47,400 2,265 Plateau 4,365 19,500 28,650 442,673 166,480 3,245 Coastal - - 34,500 46,100 843,500 1,723 Total 118,625 22,927 65,510 1,001,173 1,088,275 17,433 Average Yields 0.5 1.1 0.5 10.2 7.8 0.4 SOURCES: Plan. Regional Programs; Economy of Togo. Table 31 AGRICULTURAL PRODUCTION Industrial crops (in metric tons) 1960 1961 1962 1963 1964 1965 1966 Coffee 7,000 7,035 9,349 10,980 8,277 9,708 10,185 Cocoa 7,000 5,420 6,525 7,345 6,588 8,140 6,449 Copra - 4,027 2,940 - 3,200 3,381 2,400 Cotton (raw) 9,000 70745 8,244 6,140 8,117 8,361 9,881 Groundnuts (un- shelled) 12,000 8,895 21,529 17,433 18,492 20,862 17,169 Palm kertyls - 10,555 6,365 10,372 16,660 14,414 10,527 Palm oil- _ 1,968 312 689 1.,089 3,228 993 Food crops (in '000 metric tons) 2/ Cassava 564 667 987 1,088 1,015 982 1,015 Yams2/ 800 502 857 1,000 1,232 391 936 Corn 31 70 84 66 77 88 111 Sorghum, millet 103 50 74 118 125 135 128 Rice (paddy) 11 9 18 23 17 15 29 1/ These figures are inconsistent with the production oi. palm kernels. The figures given in Annex I are more probable. 2/ The figures for 1963-66 are probably too high. National Accounts, 1964 gives cassava 820,000 tons (p. 45), for yams 530,000 tons. This seems a more reason- able order of magnitude. The figures in Table VII.2 imply a very high per capita consumption of cassava and yams. SOURCE: Ministry of Agriculture. Table 32 DEPARTMENT OF AGRICULTURE-' NUMBER OF PERSONNEL (1965) Senior officers 3 (of which 2 expatriates) Agricultural officers 8 Agricultural assistants 13 ( Extension workers 58 ( Field overseers, ( All local tractor drivers, etc. 94 ( Total 176 1/ Excludes forestry, fisheries, veterinary services. SOURCE: Rapport Annuel 1965, Department of Agriculture. Table 33 SHARE OF CO-OPERATIVES IN INTERNAL MARKETING 1964 1965 1966 ----% of tonnages marketed---- Cocoa 11 15 14 Coffee 11 14 13 Cotton 12 4 10 Grcundnuts 6 7 11 SOURCE: OPAT. Table 34 TALDTInG CHAEES A. Cocoa 1966/7 CFA frs. per ton Price to the producer 55,000 1. ('ommission for the primary buyer 1,400 2. Handling and storage by primary buyer 400 3. Transport to Collection Center 1,500 3,300 Cost at Collection Center 58,300 4. Hlandling and storage by Approved Buyers 450 5. Railway tranisport 1.075 1,525 Cost at Lom6 weighing scales 59,825 6. Sacks 1,283 7. Amortization of sacks 128 8. Handling into and out of Lome warehouse 250 9. Wastage 0.5 percent 299 10. Storage Lom& 200 11. Loss of interest at 7% on VM for 3 months 1,149 12. Fixed overhead charges 2,500 5,809 Cost in Lome warehouse 65,364 13. Local transport 1,031 14. "Approved Buyers" commission 2,000 3,031 Invoice to OPAT 68,665 15. Wharf and lighthouse dues 670 16. Statistics tax 1% (on VW + 1,425) 614 17. Tolls and phytosanitary dues 225 18. Export tax 7.5% (on VM 60,000) 4,500 19. Conditionnement tax 1.5% (on VM 60,000) 900 20. Turnover tax 6.5% on F.O.B. 5,254 12,163 Cost F.O.B. Lome 80,828 Table 34 (Cont'd) B. Coffee (good quality) 1966/7 CFA frs. per ton Price to the producer 70,000 1. Commission for the primary buyer 1,800 2. Handling and storage by the primary buyer 400 3. Iransport to Collection Center 2,000 4,200 Cost at Collection Center 74,200 4. Handling and storage by "Approved Buyers" 800 5. Railway Transport 1,075 1,875 Cost at Lome weighing scales 76,075 6. Waste 1,600 7. Grading ("Calibrage") 1,500 8. Sacks 1,500 9. Amortization of sacks 150 10. Handling into and out of Lome warehouse 400 11. Storage Lome 300 12. Loss of interest at 7% on VM for 4 months 2,017 13. Fixed overhead charges 2,900 10,367 Cost in Lome warehouse 86,442 14. "Approved Buyers" commission 2,624 15. Local Transport 1,031 3,655 Invoice to OPAT 90,097 16. Wharf and lighthouse dues 670 17. Statistics tax 1% (on VM + 1,666) 1,067 18. Tolls and phytosanitary dues 225 19. Export tax 12% (on VM 105,000) 12,600 20. Conditionnement tax 1.5% (on VM) 1,575 21. Turnover tax 6.5% on F.O.B. 7,385 23,522 Cost F.O.B. LomA- 113,619 Table 34 (Cont'd) C. Cotton (1967) CFA frs. per ton Price to the producer 27,000 1. Commission, handling, storage for the primary buyer 2,000 2. Transport to ginnery 1,500 3. Handling and storage by "Approved Buyers" 650 4,150 Cost on arrival at ginnery for seed-cotton 31,150 4. Sacks 800 5. Loss of interest at 7% for three months 579 6. Overhead charges of Approved Buyer 1,130 7. Wastage at 1% 311 8. "Approved Buyers" commission 1.200 4,200 Cost to ginnery for seed-cotton 35,170 Cost of fiber cotton basis 34.5% outturn 101,942 9. Ginning, baling, storage, loading, railway transport 18,590 Invoice to OPAT 120,532 10. Wharf and lighthouse dues 645 11. Local transport (transit) 1,031 12. Statistics tax 1% (on VM) 1,000 13. rolls and phytosanitary dues 225 14. Export tax 2.5% (on VM 100,000) 2,500 15. iConditionnement tax 1.5% (on VM) 1,500 16. Turnover tax 6.5% on F.O.B. 8,859 15 760 Cost F.O.B. Lomi 136,292 Table 34 (Cont'd) D. Groundnuts_(1967) CFAF frs. per ton Zone III Plateaux and Maritime Price to the producer 27,000 1. Commission for the primary buyer 800 2. Transport to Collection Center 1,500 3. Handling and storage by "Approved Buyers" 250 4. Transport to Lom6 1,434 3,984 Cost at Lom4 weighing scales 30,984 5. Sacks 1,200 6. Amortization of sacks 165 7. Handling into and out of Lom6 warehouse 250 8. Storage Lom6 200 9. Loss of interest at 7% for three months 604 10. Fixed overhead charges 1130 3,549 Cost in Lom6 warehouse 34,533 11. Wastage - 1% 333 12. "Approved EBuyers" commission 1,200 13. Local transport 1,031 2 .564 Invoice to OPAT 37,097 14. Wharf and lighthouse dues 670 15. Statistics tax 1% (on VM + 1,333) 373 16. Tolls and phytosanitary dues 225 17. Export tax 8% (on VM 36,000) 2,880 18. Conditionnement tax 0.5% (on VM) 180 19. Turnover tax 6.5% on F.O.B. 2,880 7,208 Cost F.O,B. Lom6 44 I305 Table 34 (Cont'd) E. Palm Kernels CFA frs. per ton Price to the producer 21,000 1. Commission, handling, storage for the primary buyer 800 2. Transport to Collection Center 1,000 3. Handling and storage by "Approved Buyers" 450 4. Local transport 615 2,865 Cost at LomA weighing scales 23,865 5. Sacks 1,125 6. Amortization of sacks 113 7. Handling into and out of Lom& warehouse 250 8. Storage Lome 200 9. Loss of interest at 7% for three months 468 10. Fixed overhead charges 750 2,906 Cost in LomA warehouse 26,771 11. Wastage 3% 803 12. "Approved Buyers" commission 900 13. Local transport 1,031 2,734 Invoice to OPAT 29,505 14. Wharf and lighthouse dues 670 15. Statistics tax 1% (on VM + 1,250) 263 16. Tolls and phytosanitary dues 225 17. Export tax 4% (on VM 25,000) 1,000 18. Conditionnement tax 0.5% (on VM) 125 19. Turnover tax 6.5% on F.O.B. 2,210 4,493 Cost F.O.B. Lom6 33,998 Table 35 EEC CONTRIBUTION TO SUPPORT PRICES For 1964/65, Togo submitted the following claims for price supp from the European Economic Community, based on the Convention 351/TO of October 7, 1965: A. Cotton 1. Quantity exported February 17, 1965 to November 4, 1965 - 2,219,177 kgs. 2. Average sale price per kg/fob 123.285 CFAF 3. Target price per kg/fob according to Convention 130.50 CFAF 4. Deficiency per kg(N.3 minus N.2) 7.215 CFAF 5. Deficiency: Total claimed (N.1 x N.4) 16,010,929 CFAF B. Groundnuts 1. Quantity exported February 11, 1965 to November 22, 1965: 2,057,746 kgs. 2. Average sale price per kg/cif 46.254 CFAF 3. Target price per kg/cif according to Convention 51.50 CFAF 4. Deficiency per kg(N.3 minus N..2) 5.246 CFAF 5. Deficiency: Total claimed (N.1 x N.4) 10,794,935 CFAF Note: The average costs per kg from fob to cif were - 5.064 CFAF C.. Palm Oil 1. Quantity exported March 3, 1965 to October 27, 1965 485,432 kg. 2. Average sale price per kg/cif 60.247 CFAF 3. Target price per kg/cif according to convention 58. - CFAF 4. Deficiency nil Note: The average costs per kg from fob to cif were estimated at ------------------------------------- 6.885 CFAF SOURCE: OPAT. Table 36 OPAT BALANCE SHEETS (MAIN ITEMS) A s s e t s L i a b i i i e s 9/30/65 9/30/66 9/30/65 9/30/66 - ------- Millions of CFAF ---- Stabilization Stocks 1/ 174 100 Reserves: cocoa 1,033 1,081 Due from overseas 93 326 - coffee 1,001 1J428 Cash and Deposits at Banks 533 1,006 - cotton 62 28 Deposits at Treasury 1,648 1,089 - groundnuts 15 nil Long-term loans to 2/ 3/ - copra nil 4 Government 165 901 - palm-kernels nil 60 - sheanuts nil 1 Net Profits on Commodities 497 759 Sundry 4 2 Sundry 9 63 2,617 3 ,424 _2,617 3J424 At cost price. 2/ Hotel Le BAnin. 3/ Hotel Le B&nin 150 Lom6 Municipali- ty so Lom& Electricityl25 Phosphate Ldine 576 SOURCE: OPAT. Table 37 OPAT RECEIPTS AND EXPENDITURES 1964/65 1965/66 Purchases Sales Purchases Sales ------Thousands of CFAF -------- Castorseed 2,915 2,531 10,657 8,397 Cocoa 1,559,832 1,602,424 1,091,383 1y394,044 Coffee 745,717 817,520 1,627,358 2,109,919 Copra 20,332 24,003 45,090 43,655 Cotton - - 343,917 280,876 Groundnuts 98,091 84,769 151,961 130,166 Kapok - - 13,975 16,090 Palm kernels 314,866 374,399 676,245 691,345 Sheanuts 6,689 8,045 47,335 30,670 Nuatja Ginnery 6,536 6,543 10,199 9,942 Total 2,754,978 2,919,234 4,018,120 4,715,104 Note: OPAT also received: Interest on bank deposits 6,394 13,258 Sundry profits 65,940 2,926,628 4,794,202 SOURCE: OPAT. Table 38 AGRICULTURAL EXPORTS EFFECTED BY OPAT (In Kgs) 1/ 2/ 1964/65 1965/66 Castorseed 100,020 375,240 Cocoa 14,841,334 16,271,094 Coffee 6,290,640 14,502,632 Copra 450,060:3/ 1,000,500 Cotton 816,544-- 3,147,651 Cottonseed 2,286,240 2,242,020 Groundnuts 2,057,746 3,355,575 Kapok - 625,491 Palm kernels 9,200,400 19,750,880 Sheanuts (Karite) 298,695 2,169,922 Total 36,341,679 _63,441,005 1/ October 1, 1964 - September 30, 1965. 1/ October 1, 1965 - September 30, 1966. 3/ In 1964/65 OPAT was not the sole exporter of cotton. SOURCE: OPAT. Table 39 C.I,F. VALUES OF AGRICULTURAL EXPORTS BY OPAT 1964/65 1965/66 ---- Millions of CFAF ---- Castorseed 3 8 Cocoa 1,602 1,394 Coffee 818 2,110 Copra 24 44 Cottonl/ n.a. 281 Groundnuts 85 130 Kapok n.a. 16 Palm kernels 374 691 Sheanuts (Karite) 8 31 1/ Including cottonseed. SOURCE: OPAT. Table 40 C.I.F. UNIT VALUES OF OPAT EXPORTS 1964/65 1965/66 - Thousand CFAF per ton -- Castorseed 25.3 22.4 Cocoa 108 85.7 Coffee 130 145.5 Copra 53.3 43.7 Cottonl/ n.a. 52.1 Groundnuts 41.2 38.8 Kapok n.a. 25.7 Palm kernels 40.7 35 Sheanuts 26.9 14.1 1/ Including cottonseed. SOURCE: OPAT. Table 41 OPAT COST PRICES FOO.B. LOME 1966-67 CFA Francs per Ton Cottonseed 29,452 Cocoa 80,828 Coffee: good quality 113,619 Coffee: poor quality 65,668 Copra 44,908 Cotton 136,292 Groundnuts 44,305 Palm kernels 33,998 Sheanuts (Karite) 22,182 SOURCE: OPAT. Table 42 TAXES PER TON ON EXPORT SHIPMENTS 1966/67 FOR AGRICULTURAL COMMODITIES 1/ Turnover Tax (TFRTT) Tax statis- Conditionnement Export Tax Total 6.5% on FOB tics 2/ 2/ 2/ West Afr. frs. 1% Rate W.Afr.frs. Rate W.Afr.frs. W.Afr.Frs. W.Afr. frs. % OK Castorseed 1,914 267 nil nil 4 1,000 4,076 Cocoa 5,254 614 1.5 900 7.5 4,500 12,163 Coffee (good quality) 7,385 1,067 1.5 1,575 12 12,600 23,522 Coffee (low-grade "triage")- 4,268 1,067 1.5 1,575 12 12,600 20,405 Copra 2,919 267 2.25 563 2 500 5,144 Cotton 8,859 1,000 1.5 1,500 2.5 2,500 14,729 Groundnuts 2,880 373 0.5 180 8 2,880 7,493 Palm kernels 2,210 263 0.5 125 4 1,000 4,493 Sheanuts (karite) 1,442 43 0.5 15 nil nil 2,395 lt Includes also small taxes for wharf, lighthouse, tolls and phytosanitary inspection. 2/ The rates for the conditionnement and export taxes are generally calculated on a fixed value ('valeur mercuriale'). This is frequently far below the actual value, but sometimes, as for low-grade coffee, higher. The statistics tax is usually calculated on a different fixed assumed value, i.e., "valeur mercuriale" plus X CFA. SOURCE: Calculation by Mission from OPAT sources. Table 43 AGRICULTURAL LOANS MADE BY CREDIT DU TOGCO 1957-1966 Year Borrowers Amounts Number Lent ----- Million CFAF ----- 5/29/57-6/30/58 173 48 7/1/58-6/30/59 367 124 7/1/59-6/30/60 540 126 7/1/60-6/30/61 393 161 7/1/61-6/30/62 277 144 7/1/62-6/30/63 34 63 7/1/63-6/30/64 40 66 7/1/64-9/30/65 57 79 10/1/65-9/30/66 275 71 Total 2,156 882- 1/ Of these loans granted, credits of a total of 129 million to 157 borrowers were subsequently cancelled. SOURCE: Credit du Togo. Table 44 AGRICULTURAL LOANS OF CREDIT DU TOGO OUTSTANDING ON JUNE 30, 1966 To collective To individual borrowers borrowers Total ---- Thousands of CFAF Long-term 366 0 366 Medium-term 14,791 10,831 25,622 Short-term 692 52 744 Doubtiful 93,321 16,675 1092996 l'otal 109,170 27,558 136,728 SOURCE: Credit du Togo. Table 45 A. EXPECTED DEMAND FOR AGRICULTURAL CREDIT: ESTIMATES BY ILO EXPERT 1967 (Millions of CFA Francs) 1967 1968 1969 Total Short-term 150 290 380 820 Medium- and long-term 100 100 65 265 Total 250 390 445 1,085 B. CREDIT REQUIREMENTS 1966-70 ACCORDING TO TIE PLAN (Million CFA Francs) Million CFA Francs Cashew nuts 20 Coconuts 18 Cocoa/Coffee 165 Cotton 150 Groundnuts 46 Oil Palms 381 Total for 5 years 780