Mobile Telephony and Internet
Mobile Telephony and Internet
Business Model Description
Build an infrastructure network to develop mobile services, including mobile telephony, internet, Internet equipment and connected equipment and devices, to satisfy a growing market of the population and SMEs seeking competitiveness and innovation in a context of state support for incentives and basic infrastructure.
Expected Impact
Drive the adoption of new technologies and innovations, leading to increased productivity, generating jobs and supporting economic growth.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Togo: Maritime
- Togo: Plateaux
- Togo: Centrale
- Togo: Kara
- Togo: Savanes
Sector Classification
Technology and Communications
Development Need
Although internet access in 2022 reached 99% for G2 and G3 mobile networks and 96% for G4, fixed broadband internet subscriptions per 100 inhabitants in terms of connection speed remain limited from 0.0 people in 2007 to 1.1 people in 2022. In addition, a limited share of only 0.76% of schools had access to the Internet for educational purposes in 2021 (1, 2).
Policy priority
The Government's Roadmap 2025 emphasizes digital transformation as a strategic priority for the country (21). For this purpose, the World Bank approved financing of USD 11 million to enhance connectivity in Togo and develop the country's digital economy. This funding supports the West Africa Regional Communications Infrastructure Programme (WARCIP) in Togo (22).
Gender inequalities and marginalization issues; The percentage of women using the internet in 2021 was 17%, compared to 26% for men for a national average of 21.5% in 2021. The proportion of women in the population owning a mobile phone was 79% in 2021, compared to 90% for men for a national average of 84.5% in the same year (3).
Investment opportunities introduction
Togo would like to make digital technology a real lever for the modernization of the economy and society by making the country a hub of services and an international center for innovation and digital skills. Thus, improving the territory's digital coverage to guarantee broadband access for all will offer business opportunities (4).
Key bottlenecks introduction
Withn the technology and communications, key bottlenecks include infrastructure, education, and security, which hinder the realisation of the sector's potential (23).
Internet Media and Services
Development need
ICT in Togo, although progressing in terms of access to mobile phones, internet (+2.3%) and mobile internet connection speed (+5.4%) between 2022 and 2023, face several challenges such as the digital divide between urban and rural areas; the high cost of equipment and services; the low level of digital literacy; vulnerability to cyber threats (25, 26).
Policy priority
The Togolese Government has undertaken ambitious reforms to strengthen the internet media and services sub-sector. Togo is extending fixed and mobile internet coverage, pursuing a digitalization of key public services, undertaking the development of a digital innovation hub and increasing electricity production, transmission and distribution capacity (24, 5).
Gender inequalities and marginalization issues
Mobile phone usage was limited to 63% in rural areas, compared to 78% in urban areas, while rural population access to internet at home, due to lack of infrastructure, was 8.6% compared to 49.2% for the urban population. Women are less likely to own a mobile phone (39%) than men (49%), but also the internet with a rate of 79% compared to 90% for men in 2021 (3).
Investment opportunities introduction
Togo's internet media and services sub-sector provides promising investment prospects for those looking to contribute to the country's digital growth. This includes investments in expanding fixed and mobile internet infrastructure, as well as support local startups and companies developing innovative solutions in internet media and services (22).
Key bottlenecks introduction
Challenges in the interned media and services sub-sector include qualified workforce, effective internet use, cybersecurity and data protection, and monetization of online content (25).
Internet Media and Services
Pipeline Opportunity
Mobile Telephony and Internet
Build an infrastructure network to develop mobile services, including mobile telephony, internet, Internet equipment and connected equipment and devices, to satisfy a growing market of the population and SMEs seeking competitiveness and innovation in a context of state support for incentives and basic infrastructure.
Business Case
Market Size and Environment
< USD 50 million
The Regulatory Authority for Electronic Communications and Posts (ARCEP Togo) provides quarterly information which, when compiled, gives an overall annual turnover for fixed and mobile telephony as well as fixed and mobile internet of USD 368,650 million in 2022 and USD 396,650 million in 2023, an increase of USD 28 million (29, 30, 31).
The margins of progression dictated by the need to cover the entire territory whose mobile telephony penetration rate was 87.6% (i.e. 12.4% not connected) in the third quarter of 2024 for 7,430,744 subscribers, while the penetration rates of mobile data and high-speed mobile data were 67% (i.e. 33% not connected) and 49.9% (i.e. 50.1% not connected) respectively (29).
The margins of progression according to the type of network concern 4G for TogoCel and Moov Togo whose subscriptions increased by 45% and 32% respectively between the 3rd quarter of 2023 and 2024. For high-speed mobile internet, the progression for the same period was 3,785,270 subscribers in the 3rd quarter of 2023 and 4,229,857 subscribers in the 3rd quarter of 2024 (29).
In 2023, the annual turnover of USD 396,650 generated by electronic communications was distributed among the main telephone and internet companies as follows: 54.9% for Togo Cellulaire, 26.6% for Moov Africa Togo and 13.9% for Togo telecom (29, 30, 31).
Indicative Return
10% - 15%
The capital remuneration rate of 13.56% set by the Electrical and Postal Communications Regulatory Agency for 2021 and 2022 indicates the level of return expected on investments made by operators of electronic communications networks and services (32).
Investment Timeframe
Medium Term (5–10 years)
For a rate of return on capital applicable to 13.56%, the return on investment period of capital can be estimated at more than 7 years, and thus over a period of between 5 and 10 years (32).
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Business - Business Model Unproven
Impact Case
Sustainable Development Need
Togo has a significant share of unconnected population according to the type of media used with 12.4% for mobile phones in the third quarter of 2024, while 33% did not have access to mobile data and 50.1% did not benefit from high-speed mobile data over the same period (29).
The low level of connection of the populations is linked to low income and the lack of infrastructures. For example, 74.4% of the population in the Savanes region own a mobile phone compared to 81.2% in the Centre region and 97% in Lomé (3).
Gender & Marginalisation
The proportion of women in the population owning a mobile phone was 79% in 2021, compared to 90% for men for a national average of 84.5% in the same year. Women are less likely to own a mobile phone (39%) than men (49%), but also the internet with a rate of 79% compared to 90% for men in 2021 (3).
Only 79% of women in 2021 use the internet compared to 90% of men. The gender gap in access to information is widening for digital media. At least 41.9% of men receive information via the internet at least a few times a week, compared to only 25.1% of women (3).
Overall mobile phone usage is lower in rural areas 63% than in urban areas 78%. Only 8.6% of the rural population, faced with infrastructure issues, has access to the Internet at home compared to 49.2% for those living in urban areas (3).
Expected Development Outcome
Mobile telephony and internet offer populations who have them information and training opportunities, to improve their skills for better social and professional integration while strengthening electronic communications.
Mobile telephony and internet offer electronic communications services that can enable populations in the context of their activities and businesses to improve their efficiency and the income they derive from these activities.
Gender & Marginalisation
Mobile telephony and internet made accessible to rural populations, women and young people will allow them to implement more productive and profitable business production models.
Mobile telephony and internet made accessible to rural populations, women and young people will constitute an important link to strengthen their financial inclusion and access financing for their projects.
Primary SDGs addressed
4.4.1 Proportion of youth and adults with information and communications technology (ICT) skills, by type of skill
N/A
N/A
9.c.1 Proportion of population covered by a mobile network, by technology
98% for 2G; 97% for 3G; 59% for 4G in 2021. The proportion of subscribers to a fixed broadband internet connection increased from 0.35% in 2018 to 0.87% in 2021 (1).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Indirectly impacted stakeholders
People
Public sector
Outcome Risks
Mobile telephony and the internet, while providing valuable services to their users can also cause many inconveniences such as health and security risks that deserve to be considered.
Mobile telephony and the internet, while providing young people with the information and entertainment they seek, can nevertheless plunge them into cyber-addiction when awareness is limited.
Mobile telephony services can be a major emitter of greenhouse gases if the energy used is carbon-based.
Technological innovation represents another challenge, as companies must constantly innovate to remain competitive, which carries risks in terms of costs and implementation complexity (15).
Impact Risks
Mobile telephony and the internet rely on the reliability of services and the trust of populations that could be affected in the event of limited observance of regulation of activities.
Mobile telephony and the internet, despite high penetration rates, reveal different realities depending on the areas of coverage.
Mobile and internet companies, through the provision of their services to their customers, must also ensure the security of their network to protect their reputation from damage.
Impact Classification
What
Telecommunication infrastructure and services reduces information costs and contributes to sustainable economic growth and job creation.
Who
Businesses benefit from advanced technologies, especially industries, and consumers' access to telecommunications services improves their ability to find information and employment.
Risk
The contributions of mobile telephony and the internet to information, learning and improving the productivity of the economy can be affected by a lack of trust, uneven coverage and a limited consideration of cyber security.
Impact Thesis
Drive the adoption of new technologies and innovations, leading to increased productivity, generating jobs and supporting economic growth.
Enabling Environment
Policy Environment
Togo's objectives for ICT (2018-2022) aim at the development of infrastructure; the dissemination of ICT in the economy and among the most vulnerable groups; the strengthening of competition and the guarantee of national digital sovereignty, cyber-security and the protection of citizens (9).
Togo 2025 Roadmap aims to make Togo a regional reference in digital matters with the actions selected: Extension of fixed and mobile internet network coverage; Strengthening the internet connection to the global network; Digitalization of the main public services; Reform of digital regulation (5).
The government, through ARCEP, regulates the sector to ensure the quality of services and protect consumers. These combined efforts aim to improve connectivity, reduce costs, and foster an inclusive digital transformation for all citizens (10, 34).
Financial Environment
To reduce the costs of creating infrastructure for the development of electronic communications, Togo is obtaining concessional financing from the AfDB and the World Bank under the Regional Communication Infrastructure Program in West Africa for companies operating in electronic communications (22).
Financial incentives: In Togo, WARCIP received USD 30 million in funding to strengthen connectivity by building new infrastructure, such as data centers (“Carrier Hotels”) and Internet Exchange Points (IXPs) (22).
Fiscal incentives: Article 27 of Law No. 2015-1785 of December 2015 on Finance for the year 2016 abolished the administrative tax payable by electronic communications operators, by repealing VII of Article 45 of the Finance Law for 1987 (No. 86-1317 of 30 December 1986) (35).
Regulatory Environment
The Law No. 2012-018 on electronic communications, in Art 2 aims, to gradually achieve an open and competitive market for electronic communications networks and services in the interest of users by creating the conditions for effective, fair, equitable and sustainable competition (34).
Its Article 5 states that electronic communications network networks and services are subject to licensing. The holder of a license is subject to the payment of financial compensation, royalties and various contributions under conditions defined by decree under the Regulatory Authority (34).
The specifications indicate the conditions of permanence, quality, availability of the network and/or service, its operation, etc. A call for competition is made by the minister responsible for the electronic communications sector for the granting of an individual license (Article 7) (34).
Marketplace Participants
Private Sector
Togocom, Moov Africa, Canalbox, CAFE Informatique et Télécommunication, Groupe Vivendi Africa Togo (GVA Togo), TEOLIS SA.
Government
Ministry of Digital Economy and Digital Transformation, Electronic Communications and Postal Regulatory Authority (Arcep).
Multilaterals
West Africa Regional Communications Infrastructure Program (WARCIP), International Finance Corporation (IFC) (22).
Public-Private Partnership
Togo has set up a partnership for the sharing of digital communication infrastructures with the private sector supervised by the regulatory authority (ARCEP). Togo also operates with the private sector in Togocom, a company in which it owns 49% of the capital (11, 34).
Target Locations
Togo: Maritime
Togo: Plateaux
Togo: Centrale
Togo: Kara
Togo: Savanes
References
- (1) Togo, VNR, 2021
- (2) United Nations Department of Economic and Social Affairs Statistics Division, Country Profiles, https://unstats.un.org/sdgs/ "3) Millennium Challenge Coorporation. United States of America, Organisme de mise en œuvre Millennium Challenge Account (OMCA-TOGO). Plan d’intégration du genre et de l’inclusion(PIGIS), Programme Treshold du Togo, juin 2022. https://omcatogo.tg/wp-content/uploads/2020/07/PLAN-DINTEGRATION-DU-GENRE-ET-DE-LINCLUSION-SOCIALE-PIGIS.pdf "
- (4) République Togolaise, Ministère des Postes et de l’Économie Numérique, Togo l’économie numérique en marche, novembre 2018. https://numerique.gouv.tg/wp-content/uploads/files/2018/12%20-%20D%C3%A9cembre/economie-numerique-en-marche-au-Togo-Novembre-2018.pdf
- (5) Présidence de la République Togolaise Feuille de route Gouvernementale Togo 2025 https://presidence.gouv.tg/feuille-de-route-gouvernementale-togo-2025/
- (6) Groupe de la Banque Mondiale, Renforcer la connectivité au Togo grâce à des infrastructures numériques, https://www.banquemondiale.org/fr/news/press-release/2021/05/24/improving-connectivity-in-togo-through-digital-infrastructure
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