QCell the highest investor in telecoms sector

Annual investment in telecommunication sector has reported that QCell, the latest entrant in the Gambia’s telecommunication market, is the highest investor in the sector, though the total annual investment of all the operators in the sector has fallen down in 2009.

The 2009 Annual Report of The Gambia Public Utilities Regulatory Authority (PURA) stated that annual investment in the telecommunication sector reported was equivalent to D699.3 million in 2009 compared to the 2008 figures of D847 million.

“This shows a 17.4% fall in investment figures in the sector.  The reported figures show QCell with the highest investment figures in 2009 explained by the fact that they came into the market in mid 2009,” the report elucidated.

The CEO of QCell, Muhammed Jah has once said that QCell is an investment of over D1 billion.
The PURA report indicated that 2,139 people were employed in the telecoms sector at the end of 2009, from the 2007 and 2008 levels of 1976 and 1840 employees respectively.  This shows that the sector has registered moderate 8.3% growth in employment during the period under review.
Subscriber base
The telecoms sector reported 1,409,732 voice subscribers in 2009 a net addition of 194,732 voice subscriber to the 2008 figures of 1,215, 004 voice subscribers, which represented 3.6% growth. 
The number of reported mobile subscribers grew by 16.7% during 2009 compared to 45.9% recorded during 2008; whilst the fixed line subscribers had recorded a decrease in growth rate of -0.8%. “The less impressive growth in the mobile subscribers number in 2009 could be a as a result of the market reaching saturation,” the reported stated.
Telephone penetration level
The telephone penetration level, which is measured as the percentage of the population owing a fixed and or mobile services, has been very impressive over the last three years, 2007, 2008, and 2009, registering, 54.47%, 76% and 88.11% respectively.  According to the report, the rationale for this impressive performance in the penetration level is as a result of the strong performance registered in the mobile subscriber base.  The mobile penetration level constitutes about 94%, 96% and 97% of the total penetration levels in 2007, 2008, and 2009 respectively.
GSM growth in Africa
Africa leads in the GSM growth rate, according to the GSM Association Universal Access Report, which maintains that mobile operators are providing universal access in many developing markets, and have done so “at a pace unimaginable’.  The report stated that in Africa the growth rate is the fastest in the world and already contains some very significant success stories”.  It also revealed that amongst the 43 African countries surveyed, 10 have achieved GSM coverage greater than 90% of population and a further 8 have coverage of 70% or greater.
According to the report, approximately half of African countries face a greater challenge to bring greater geographical and population coverage to markets where penetration and affordability are low.  It added that these are generally low income countries, mostly with large geographical areas or topographical and electricity supply infrastructures, which contribute to high operator costs.

Gambia calls for lifting of sanctions on Cuba

The Gambia National Assembly Members had ratified a resolution calling on the United Nations, the United States of America and the International Community, to lift the economic, commercial and financial blockade imposed on Cuba since 1960.

“It is a matter of particular urgency,” said Hon. Fatou Mbye, Deputy Speaker of the National Assembly of The Gambia on Monday while tabling the motion before the National Assembly for ratification.

Hon. Mbye calls on the United Nations Security Council and all its bodies to reconsider their positions and urge the Government of the United States of America to lift the embargo and blockade imposed on the Government and people of Cuba for over half a century now.

The United States of America imposed sanctions on Cuba which was endorsed by the Security Council, following the Cuban missiles crisis in 1960.

The Government of The Gambia, through the National Assembly of The Gambia, is calling on the Security Council and the USA to lift this “inhumane and unjustified” sanction against people of Cuba.

The Deputy Speaker said United States spent millions of Dollars to enforce “that unjust embargo in the name of protecting the people of America from threat of communism”.  “History has proved that Cuba and Communism had never been threat to the USA and its peace loving people,” she added.

The Parliamentarians said the threat from Cuba was a perceived speculation and fifty years on, “we can conclude that the threat was not real but perceived”.

“Cuba and Communism had never been a threat to the security of The United States of America, and the United States must also admit that ‘a dwarf is in as much a human being like a giant’ that is a small peaceful republic like Cuba is a sovereign state like the most powerful kingdom on earth,” Hon Mbye said.

In 2009, 187 Member states of the United Nations voted in favour of lifting the blockade.  This constitute a true demonstration that the battle to lift the blockade enjoys the acknowledgement and backing of the overwhelming majority of the International Community, including The Gambia.

The President of The Gambia, Dr. Yahya AJJ Jammeh on September 24^th 2009, in addressing world leaders at the 64^th United Nations General Assembly in New York, called on the UN to urge the United States of America to immediately and unconditionally lift the embargo on Cuba in accordance with the wishes of more than 98% of the membership of the UN.

“This trade embargo continues to hurt Cuban women and children.  The Cuban children that are born into these extreme hardships have committed no crime.  The punishment of women and children because of political difference is a very serious violation of Human and Children’s Rights,” President Jammeh said.

The Majority Leader of the National Assembly, Fabakary Tombong Jatta said the blockade violates International Law.  He said: “It is against the purposes and principles of the United Nations Charter.  It constitutes a transgression on the right to peace, development and security of a sovereign state.  In its essence and purpose, it is a unilateral act of aggression and constitutes a flagrant, massive and systematic violation on the rights of an entire people.”

Hon Jatta explained that the American taxpayers are financing the cost of this blockade at the expense of the much needed welfare service for the poor.

He said the state apparatus of the United States of America particularly the CIA got it all wrong in 1960 for advising and imposing economic sanctions and blockade on peace loving people of Cuba.

Investment in telecoms sector drops

Investment in The Gambia’s telecommunication sector has decelerated in 2009, as indicated by the latest report of the sector’s regulatory body.

The latest annual report of The Gambia Public Utility Regulatory Authority (PURA) states that total annual investment in the telecommunication sector was equivalent to D699.3 million in 2009 compared to the 2008 figures of D847 million.

“This shows a 17.4% fall in investment figures in the sector,” the report states.  The reported figures show QCell, the latest entrant in the country’s telecoms sector, with the highest amount of investment in 2009.

Before 2009, The Gambia has been experiencing steady growth in the telecommunications sector, especially as the cell phone revolution intensified in the country in the last six years with the coming of Africell, Comium, and QCell in 2009.  These developments shot up telecoms investment in the country and spurred competition in the sector by mobile operators.

Employment
While unemployment poses a serious challenge to national development, and the government continues to put in place remedial measures to create job opportunities for Gambians, the PURA report indicated that 2,139 people were employed in the telecoms sector at the end of 2009, from the 2007 and 2008 levels of 1976 and 1840 employees respectively.  “This shows that the sector has registered moderate 8.3% growth in employment during the period under review,” the report states.
Subscriber base
The telecoms sector reported 1,409,732 voice subscribers in 2009 a net addition of 194,732 voice subscriber to the 2008 figures of 1,215, 004 voice subscribers, which represented 3.6% growth. 
The number of reported mobile subscribers grew by 16.7% during 2009 compared to 45.9% recorded during 2008; whilst the fixed line subscribers had recorded a decrease in growth rate of -0.8%. “The less impressive growth in the mobile subscribers number in 2009 could be a as a result of the market reaching saturation,” the reported states.
Telephone penetration level
The telephone penetration level, which is measured as the percentage of the population owing a fixed and or mobile services, has been very impressive over the last three years, 2007, 2008, and 2009, registering, 54.47%, 76% and 88.11% respectively.  According to the report, the rationale for this impressive performance in the penetration level is as a result of the strong performance registered in the mobile subscriber base.  The mobile penetration level constitutes about 94%, 96% and 97% of the total penetration levels in 2007, 2008, and 2009 respectively.
GSM growth in Africa
Africa is leading in the GSM growth rate, according to the GSM Association Universal Access Report, which maintains that mobile operators are providing universal access in many developing markets, and have done so “at a pace unimaginable’. 
The report states that in Africa the growth rate is the fastest in the world and “already contains some very significant success stories”.  It also revealed that amongst the 43 African countries surveyed, 10 have achieved GSM coverage greater than 90% of population and a further 8 have coverage of 70% or greater, the report reveals.
It says that approximately half of African countries face a greater challenge to bring greater geographical and population coverage to markets where penetration and affordability are low.  It added that these are generally low income countries, mostly with large geographical areas or topographical and electricity supply infrastructures, which contribute to high operator costs, the report indicates.

Low payment of regulatory fees hampers PURA’s activities

The Gambia Public Regulatory Authority (PURA) has disclosed that low payment of regulatory fees by operators in the telecommunications, electricity, and the water and sewage sectors has continue to hamper some of its regulatory activities.

Even though the amount collectible as regulatory fees by PURA was pegged at a ceiling of 1.5% of the operators’ turnover – which is one of the lowest rates charged by regulatory authorities in Africa - operators in The Gambia still not paying up fees as invoiced by the Authority.

According to PURA’s 2009 Annual Report, out of amount of D42, 606 million budgeted as regulatory fees income, only D34, 376 million was collected, leaving an outstanding balance of D8, 229,651.   

The report added that all telecoms operators and Internet Service Providers (ISPs) have fully paid their regulatory fees for 2009, excepted Gamtel, Africell, and Unique Solutions.  Out of the D11, 761,542 invoiced to Gamtel, it only paid D8, 821,157 leaving an outstanding balance of D2, 940,385.  Africell paid D9, 500,000 out of D10, 825,256 invoiced to them leaving an outstanding balance of D1, 325, 256.  Unique Solution did not pay a single butut out of D50, 000 invoiced to them.  

Again, National Water and Electricity Company (NAWEC) owe PURA, as they did in 2007.   NAWEC paid D5, 000,000 out of D6, 448 608 invoiced to them, leaving an outstanding balance of D1, 448,608 for 2009 regulatory fees. Global Electric Group (GEG), an independent power production company, paid D2, 000,000 out of D4, 465,402 invoiced to them, leaving an outstanding balance of D2, 465,402. 

“Undoubtedly, the non compliance by NAWEC and GEG has continued to hamper the implementation of some of PURA’s regulatory activities in the energy sector,” the report stated.

“PURA depends on two main sources for its income.  These are regulatory fees from regulated utilities and government subvention,” it added.    

The amount demanded from operators as regulatory fees is based on the annual budget of PURA, which is approved by the Board of Commissioners.  The amount collectible as regulatory fees pegged at a ceiling of 1.5% of the operators’ turnover, which is one of the lowest rates charged by regulatory authorities in Africa. 

The ceiling was determined to ensure that “operators do not incur exorbitant regulatory charges which are passed on to consumers”, the report noted, adding that in the year 2009, 1.3% of operators’ turnover was invoiced.  Despite that consideration, the payment of regulatory fee by NAWEC and GEG has not been encouraging.  

The report noted that the major expenditure of the PURA has been on staff cost, the same as of last year.  “The Authority has been very prudent in utilizing its financial resources,” it stated adding that with the recruitment of more staff, and the outlook for the next nine months it is envisage that more resources would be spent on the procurements of essentials spectrum monitoring equipments and staff training, consumer outreach and sensitization programmes, consumer parliament sessions, consultancies and other staff incentives policies.

Finance Minister counters Sidia Jatta’s comment on agriculture

The Minister of Finance, Hon. Abdou Kolley has countered the claimed by Hon Sidia Jatta, National Assembly Member for Wuli West, who said there is no growth in the agricultural sector in 2010 because the 2011 budget statement has it that national output from crops, livestock, forestry and fishing activities is projected to grow by 4.6% in 2010 compared to a growth of 9.8% in 2009. 

“To me there is no growth, there is downward trend because in 2009 agricultural growth was 9.8% and 2010 it was 4.6%, so if I understand this statistic, agriculture is going downwards, it is not going upwards,” Hon. Sidia Jatta said at the National Assembly in Banjul during the adjournment debate on the 2011 budget statement.

The Finance Minister, Hon Abdou Kolley, in response, said when you look at growth from one year to another, to say that because in the previous year you have 9.8% growth and this year you have 4.8%, so there is no growth, “I disagree with that analysis”. 

“You can say yes, there is growth but at a lesser pace compared to the previous year why because if you look at agriculture from where we were coming from, we had several years of drought and low agricultural production as a result, then come 2008 and 2009 with good rain and bumper harvest, so we had a big jump in agricultural production and growth, once you have a jump in agricultural productivity and growth, the subsequent years will not be that significant because you are already at a solid base and moving forward, that those not mean there is no growth,” Hon said.

Gov’t calls for private sector participation in agriculture

The Gambia Government has called for greater participation of the private sector in agriculture saying that agriculture should not be seen as a part time business activity but a real time business venture that can generate wealth and income just like any other business. 

Hon. Kolley said the private sector should invest in productive sectors of the economy like agriculture, which would eventually bring about a structural transformation of the economy given the contribution the agricultural sector makes in terms of creating employment, raising farmers’ incomes, improving food security, increasing foreign exchange earnings and tax revenue.

Hon. Kolley was responding to concerns raised by the National Assembly Members that despite many resources been devoted to the agricultural sector yet still the expected impact is not been felt.

The Finance Minister said government cannot do it all alone, the private sector should also come forward and invest in agriculture.  He said provisioning of farm implements and fertilizer is among the many areas that the private sector can invest into, as the government is moving towards the commercialization of agriculture.

“We all know that the current form of agriculture, which is subsistent and rain feed agriculture will not and is not the solution to our agriculture, the Ministry of Agriculture is cognizant of this and this has been adequately highlighted in the GNAIP and the main thrust of that Program is the move towards the commercialization of agriculture and greater involvement of the private sector,” Hon. Kolley said.

He said the Gambia National Agricultural Investment Programme (GNAIP) if successfully implemented will go a long in modernizing the agricultural sector so that it will be able to contribute the desired level as expected by all.  “It is also in this drive the government has decided to increase the funding to the sector to help the sector in meeting most of its requirements or objectives.”

The government has doubled the budget allocation to the agricultural sector from 3 percent in 2010 to 6 percent in 2011.

Central Bank to revoke some banking licenses

Six out of the fourteen banks in country are at risk of having their banking license been revoked by the Central Bank of The Gambia due to their inability to raise their minimum capital requirement to D150 million by December this year, as directed by the Central Bank of The Gambia

Two years ago, the Central Bank of The Gambia raised the minimum capital requirements of commercial banks to D150 million and D200 million to be observed by end December 2010 and 2012 respectively “in order to strengthen the country’s banking system”.

Hitherto, the minimum capital requirement was pegged at D60 million.

The Minister of Finance, Hon Abdou Kolley, while tabling the budget statement and economic policy financial year 2011 before the National Assembly in Banjul on Friday, said the latest assessment indicates that eight of the fourteen banks had already met the capital requirement of D150 million. 

“The six banks that are yet to meet the requirements are being rigorously monitored by the Central Bank of The Gambia,” he said.

Although the Central Bank of The Gambia is optimistic that all banks would observe the capital requirement, the Finance Minister said: “The CBG is resolved not to grant request for forbearance if a bank fails to meet the requirement and to mitigate systemic risk that may arise from the revocation of a banking license, the CBG shall take the following actions: invoke section 45 of the Banking Act 2009 and take over the bank, thereafter the CBG may invoke Sections 48 and 51 of the Banking Act 2009 and place the institution in conservatorship to be sold, merged or restructured, and apply to the High Court for compulsory liquidation under Section 52 of the Banking Act as a last resort.”

While announcing the increment of the minimum capital two years ago, the Central Bank says the action has been taken in view of its desire to deepen the financial sector and "in pursuance of the Gambia’s Vision 2020 aim of transforming the country into a financial centre"

Thisday, a Nigerian newspaper has reported that the Managing Director of GTBank said the new capital base had increased the challenges of banks operating in that country.

Mr Lekan Sanusi said only the creative financial institutions were likely to survive the industry competition and deliver returns commensurate to the expanded capital base.

The Gambia, which used to be serviced by less than four commercial banks until a few years ago, has in recent times been affected by the phenomenon of an upsurge in the number of banks registered here, mainly from Nigeria.

GTBank MD said the Gambia could only take a certain number of banks.

He was quoted as saying: "But do we really need as much as 14 banks in a relatively small country like The Gambia? If you divide the number of banks in this country by the population of about 1.7 million, you have an average of 100,000 people per bank. Revenue is going down. What I know is that in the long run, people will count their numbers.

At the end of the 2009 financial year, the Gambia’s banking industry recorded total loss of about 45 million Dalasis. Ten of the banks declared losses.