Insurers met to review achievements, constraints

Captains of The Gambia insurance industry

Top brass of the insurance companies in the country has converged at a local hotel in Kololi on Saturday to review the achievements of their association as well as the constraints that may hinder its progress in 2013.

It was the 26^th annual general meeting of the Insurance Association of The Gambia (IAG) during which senior insurance practitioners from various companies noted that the insurance industry has made modest progress in the year under review.  They also pointed out that the industry continued to be faced with challenges like unhealthy competition among companies which is hindering its growth.

Speaking on the occasion, the new president of the IAG, Almamy B Jobarteh, said his ambition is to gradually tackle the main challenges of the industry to enable to the insurance companies tap the fallow fertile areas in the market.

Mr Jobarteh, IAG President

“The Executive Committee (of the IAG), under my leadership, is convinced that one robust way of achieving this is to lobby for the establishment of a National Insurance Commission which would be the driving force for the growth of the insurance industry,” said Mr Jobarteh, who is also the managing director of Sunshine Insurance Company.

“This is a major project for our industry and I wish to call upon each and every one of us (the insurance practitioners) to put together all the necessary resources and efforts to ensure the realization of this project,” he added.

Already a position paper on the establishment of a National Insurance Commission for The Gambia has been prepared for presentation to the authorities.

Code of conduct for the industry

The IAG President, Mr Jobarteh, stated that another area that his executive would like to look into is the issue of the self-regulation and collaboration in practices especially in the area of underwriting and claims management. 

He said a code of conduct has been drafted and already reviewed by the Executive Committee (of the IAG) to address these concerns.  

The code of conduct is expected to take care of the unprofessional and unethical insurance practices that are partly responsible for the slow growth and development of The Gambia insurance industry.

Number of Gambians defaulting in repaying loans increased significantly

The number of people who took various kinds of loan from the banks in The Gambia and failed to pay has increased considerably in 2013, the Central Bank of The Gambia (CBG) says in a report.

The ratio of Non-performing loans (NPLs), loans given to customers which they failed to pay back, increased significantly, from 12.1 per cent in 2012 to 19 per cent in 2013, the quarterly report, released on Friday, of the Monetary Policy Committee of the CBG states.

The intense competition in the banking industry has left commercial banks in the country rocking the boat of bad debts.  This is due to unprecedented increased in lending to both the public and private sectors, which unfortunately led to increased risks of NPLs.

Vulnerable to bad debts

The International Monetary Fund’s mid-2010 report states that though the increased number of banks in The Gambia helped to fuel economic growth.

However, it says increased number of banks has also heralded intense competition among the banks, which makes them vulnerable to bad debts.

Greater risk

The managing director of Sky Bank Gambia, Akim Yusuf, has earlier on said the incidence of loan default is greater and intensive than even the competition, as a risk to the banking system.

Monies from foreign donors to Gambia government reduced significantly in 2013

US Dollar notes

Grants to The Gambia, moneys donated by multinational organisations and foreign governments, had reduced by more than D1 billion (about US$ 2,632,000) in 2013, statistics from Central Bank of The Gambia (CBG) has indicates.  

The Monetary Policy Committee (MPC) of the CBG states in its quarterly report, released on Friday, that grants (to The Gambia) declined significantly from D1.8 billion (US$  5, 260, 000) in 2012 to D725.1 million (US$ 2,000,000) in 2013.

The Committee has not given any reason for this negative development.  However, in 2013, President Jammeh abruptly withdrew The Gambia from the Commonwealth, and also cut diplomatic relations with Taiwan; an organization, and a country that used to donate to the country.

The MPC report states that provisional data on the execution of the 2013 budget show that total revenue and grants amounted to D5.9 billion (US$ 15, 790,000) , equivalent to 17.5 per cent of the country’s Gross Domestic Product (GDP).  This total revenue is well below the target of D7.7 billion (US$ 21,056,000), or 20 per cent of the GDP.

This steep difference in the targeted total revenue and grants, and the amount realized is due to negative donor response from the country’s donor partners.

Former National Assembly Member for Basse, Hon. Sellu Bah, has earlier on said that The Gambia should not depend on grants to finance its economy.

”Let us work as a nation to ensure that we collect our domestic revenue to the letter to counter any negative response on grants,” Hon. Bah said.

“I think this [huge reduction in grants] would teach us a lesson,” he added.

Domestic revenue increase

Gambian currency registers highest depreciation in three years

Gambian currency notes

The Gambian currency, the Dalasi, continues to be weakened and lose value against all the major international currencies, the report of the Monetary Policy Committee (MPC) of the Central Bank of The Gambia has said.

The report which was released on Friday during the quarterly meeting of the Committee, states that the Dalasi depreciated significantly in the second half of 2013.  The currency was generally stable in the first half of the year though.

“As at end-December 2013, the Dalasi depreciated against the US Dollar by 14.8 per cent, Euro 21 per cent and Pound Sterling 14.8 per cent from December 2012,” the report says.

The report indicates by the end of December 2013, the Dalasi registers the highest depreciation in three years.  This is due to the fact in nominal effective exchange rate terms, the currency depreciated by 15.1 per cent as at end-December 2013; this higher than the 13.5 per cent, and 7.3 per cent depreciation registered in 2012 and 2011, respectively.

The depreciation of the Dalasi was partly the result of reduced foreign exchange receipts, coupled with strong demand owing in part to the high level of liquidity in the economy.

Gambia validates 6-year policy on blood transfusion

Stakeholders from both the public and private sectors on Friday gathered to validate The Gambia National Blood Transfusion Policy and Strategic Plan (2014-2020), under the aegis of the Ministry of Health and Social Welfare.

The development and validation of the policy is in cognizance of the World Health Assembly’s resolution which recommends member states to adopt a well-organised centrally coordinated blood transfusion service with quality system, based on 100% volunteering non-remunerated blood donation.

Pa Modou Jagne, the director of National Public Health Lab, said blood transfusion is needed in many areas of health in The Gambia, which includes the replacement of blood lost during birth, emergency surveys and those involved in serious accidents. 

Mr Jagne said half a million women die every year from complications related to pregnancy and childbirth worldwide. Out of this, he said, 99% of them are in the developing countries.

The permanent secretary at the Ministry of Health and Social Welfare, Dr Makie Taal, said blood transfusion has immensely contributed towards saving millions of lives yearly and improved life expectancy and quality of patients suffering from life-threatening conditions, worldwide. 

He said in many countries, including The Gambia, many people still die, due to the inadequate supply of blood and blood products.

Gambia’s economy projected to increase more than 7%, inflation to reduce to 5%

Governor Amadou Colley

The growth of The Gambia’s economy is projected at 7.5 per cent in 2014 while inflation is forecasted to moderate to within the target of 5 percent by the end of the year, latest statistics from the Central Bank of The Gambia has indicated.

The Monetary Policy Committee (MPC) of the Central Bank of The Gambia said due to the robust expansion of agriculture, and services, particularly tourism, the growth of the country’s real Gross Domestic Product (GDP) is projected at 7.5 percent in 2014.

“This indicates that The Gambia economy is gradually close to potential,” the Governor of the Central Bank, Amadou Colley said on Friday during the quarterly meeting of the MPC.

Real GDP growth of The Gambia economy for 2013 is provisionally estimated at 5.6 per cent lower than 6.1 per cent in 2012 and the contraction of 4.3 percent in 2011.

Governor Colley projected inflation to moderate to within the target of 5 per cent by end-end December 2014.  The projection is premised on prudent implementation of monetary and fiscal policies.

Dutch businessman trains Gambian youths to run business with little money

Bert Min, a Dutch businessman, has recently organised a training workshop for some Gambian youths on ways to start and grow a small business successfully with little money.  

The aim of the training, held in Brusubi, was to help augment knowledge of the participants – some of whom are already in business and others aspiring - on basic business skills, tactics and strategies to start and grow a business, even with little capital.

Some of the participants

Mr Min, who owns a video production firm in Holland, said he realised many Gambian youths have the potentials to do business but they lack the courage. 

“Their lack of courage is usually caused by lack of money to start business.  They think without money there is no business and without money no business can grow,” said Mr Min, who is also the initiator of Gambia Speelt Mee, a foundation that helps schools in The Gambia.

According to Mr Min, money is important but that does not mean it is everything in business.  For him, starting a business does not have to require a large investment. 

“Money should not be the first thing in the equation to start business,” he said.  “As aspiring businessmen and women, you need to sit down first and think what business do you want and make plans of how you want to start and run the business.  Otherwise, even if you are given enough money to do the business, you may not be able to manage it properly.”

Participants

He explained that without a clear idea of where you want to go and how you plan to get there, one may find himself stumbling through the stages of starting a business and facing unwanted stress and frustration, even with enough capital.

“From the beginning, every business, be it small or large, needs to have clearly set goals because business success depends on the owner’s ability to set and achieve goals,” he added.

Publicity is key

Mr Min said visibility is key for business success. Therefore, a business needs to be advertised for customers to know the products or services that are being offered.