Gambia gov’t expenditure outmarch income

The Gambia has registered an estimated fiscal deficit of more than D50 million (fifty million dalasis) because the government’s expenditure is far more than its revenue. The country’s fiscal performance continues to be challenged by higher-than-projected expenditures by the government that is not matched by revenue performance of the country. The governor of Central Bank of The Gambia, Amadou Kolley, while speaking at the quarterly Monetary Policy Committee press briefing held on Friday at the Central Bank in Banjul, has revealed that the preliminary estimates indicate that the country has a fiscal deficit of D58.3 million (fifty-eight million and three hundred thousand dalasis) equivalent to 0.18 percent of Gross Domestic Product (GDP), in the first quarter of 2011. However the current fiscal deficit is lower than the D84.0 million (eight-four million dalasis) which was equivalent to 0.3 percent of GDP in the corresponding quarter in 2010. The total fiscal deficit of The Gambia for 2011 is estimated at D466.36 million or 1.47 percent of GDP.  The deficit would be financed by foreign and domestic borrowing amounting to D833.82 million and D120.00 million respectively. The country’s balance of payments, which is the difference between the export and import of goods and services, indicates an overall deficit of US$15.2 million in 2010 compared to the revised surplus of US$54.6 million in 2009. Exports and imports increased to US$100 million and US$315 million, or 5 percent and 6 percent respectively, in the first quarter of 2011. Governor Kolley said at the end-March 2011, gross international reserves amounted to US$164.6 million, equivalent to 4.9 months of import cover. “The domestic debt increased to D9.3 billion, equivalent to 28.7 percent of GDP, in March 2011, or 23.9 percent from a year ago. Treasury bills, accounting for 63.0 percent of the debt, rose to D5.9 billion or 12.4 percent,” he said. The yield on the 91-day, 182-day and 364-day Treasury bills decelerated from 10.01 percent, 10.60 percent and 13.09 percent respectively in March 2011. Data on the maturity structure of Treasury bills indicate that 364-day bills accounted for 70.4 percent of the debt stock, while the 182-day bills and 91-day bills accounted for 19.2 percent and 10.4 percent respectively. Dalasi depreciates The Gambian dalasi has depreciated against some major international currencies.  Governor Kolley explained that year-on-year to end March 2011, the Dalasi depreciated by 1.9 percent in nominal effective exchange rate terms. “Against individual currencies, the Dalasi weakened by 5.3 percent and 1.3 percent against the US dollar and the British Pound but appreciated by 4.7 percent against the Euro,” he said. Money supply increases In the year to end-March 2011, Gambia’s money supply grew by 14.9 percent, lower than the 21.7 percent a year earlier. CBG governor explain that of the components of money supply, quasi money rose by 21.7 percent and narrow money by 7.8 percent. Reserve money, the CBG’s operating target, grew by 15.9 percent relative to 15.7 percent a year ago. “The banking industry remains fundamentally sound,” he remarked, adding: “The key financial soundness indicators show that the average capital adequacy ratio was 49.0 percent in March 2011 compared to 46.3 percent in December 2010, and over and above the minimum requirement of 8.0 percent.” He said all the banks had now met the requirement of D150 million from D60 million.  The banking industry’s assets increased to D17.7 billion, or 14.0 percent from March 2010. Commercial banks’ loans and advances increased to D5.4 billion, or 17.4 percent from March 2010. Credit to all sectors increased with loans to distributive trade, agriculture and building and construction increasing by 25.9 percent, 10.0 percent and 10.4 percent respectively. Similarly, credit to transportation, tourism and other commercial loans rose by 6.3 percent, 5.0 percent and 23.1 percent respectively, despite increased lending, impaired advances to gross and advances declined to 14 percent in March 2011 compared to 16 percent in December 2010. Inflation accelerates Data from the latest Business Sentiment Survey indicate that inflationary expectations remain high. End-period inflation, measured by the National Consumer Price Index, was 5.4 percent in March 2011 compared to 4.0 percent in March 2010. Annual inflation was 5.4 percent, higher than the 3.8 percent a year earlier. Food price inflation accelerated to 7.5 percent in March 2011 compared 5.0 percent in March 2010, but lower than the 8.4 percent and 8.3 percent readings in September and December 2010 respectively. Non-food inflation, on the other hand, decelerated to 2.0 percent compared to 2.6 percent in March 2010. Core inflation, which excludes the prices of energy, utilities and volatile food items, increased from 4.0 percent in March 2010 to 5.3 percent in March 2011. Headline inflation was slightly below the CBG’s inflation target of 6 percent, reflecting in the main, the deceleration in food prices. Although the outlook for inflation is uncertain, high energy and food prices as well as elevated inflationary expectations remain upside risks. Revised estimates from the Gambia Bureau of Statistics indicate that the Gambian economy grew by 5.0 percent in 2010 driven by the strong growth of the agricultural sector.  Growth in real GDP is projected at 5.5 percent in 2011.

Malaria hinders achievement of MDGs

Malaria, which is caused by a parasite that is transmitted from one human to another by the bite of infected Anopheles mosquitoes, remains a serious obstacle to the achievement of many of the Millennium Development Goals (MDGs), particularly Goal 2, universal primary education, and Goal 4, the reduction of infant mortality. Reducing the impact of malaria is key to the achievement of the MDGs, as agreed by every United Nation Member State.  These include not only combating the disease itself, but also goal related to women’s and children’s right and health, access to education and the reduction of extreme poverty. In cognizant of the fact that malaria causes significant economic losses, and can decrease gross domestic product (GDP) by as much as 1.3%, the African Media and Malaria Research Network (AMMREN) through it’s Gambia Chapter has, as part of the World Malaria Day commemoration, organized a day-long seminar for 25 senior reporters and editors from both the print and electronic media houses to discuss, among other things, the current state of malaria in The Gambia as well as the state of pneumococcal vaccine trial in the country. “You will agreed with me that Malaria is a particular problem and a major one in areas of Asia, Africa, and Central and South America as it poses a serious threat to society and unless precautions are taken, our countries will face serious consequences,” Pa Momodou Faal, the national coordinator of AMMREN – The Gambia Chapter said while delivering a statement at the seminar which was held at the conference hall of National Malaria Control Programme in Kanifing. The Gambia, according to Mr Faal, has registered significant strides in the control and prevention of malaria through the change of treatment policy and the provision of the anti-malarial drug called Coartem in all public health facilities, as well as an increased community mobilization and participation to prevent malaria. “Despite all the gains registered in the fight against malaria, it is clear that much more needs to be done to ensure a malaria-free society,” AMMREN national coordinator said. He explained that malaria is a major killer disease as research reveals that every year between 350 and 500 million people get infected, and one million die as a result of malaria, predominantly in the sub-Saharan Africa. Malaria is still a major public health problem, in the Gambia accounting for over 40% of hospital visits and being the leading cause of morbidity and mortality. Mr Faal urges authorities to give more attention to the Abuja Declaration which was passed by 53 African Heads of State in April 2000, to intensify their efforts in the fight against malaria. “The declaration should not be left like that,” he said, adding: “The battle should be intensified to save the lives of many African children and women.” AMMREN national coordinator told the media practitioners that this is the fourth time AMMREN, a leading organization in the fight against malaria, is engaged in Malaria Day commemorations in its 10 member countries in Africa. Balla Kandeh, the deputy programme manager at the National Malaria Control Programme, Prof Umberto D’Alessandro, team leader Disease Control and Elimination MRC The Gambia also spoke at the occasion.

Nigerian Investors Look at Gambia Business Potentials

Gambia Investment and Export Promotion Agency has made bare investment potentials in the country to Nigerian investors who are currently in The Gambia to explore investment opportunities which exist in the country, particularly in the area of light manufacturing. A delegation from the Manufacturers Association of Nigeria (MAN) are on a four day investment mission in The Gambia which is geared towards providing opportunity for Nigerian private sector operators to network with The Gambian business community and build sustainable  business relationships. Pic: Naffie Barry, P.S. Min. of Trade and Fatou Jallow, CEO of GIEPA Ben Roberts, director of business and export development department of GIEPA told the Nigerian investors that The Gambia has many unexploited investment opportunities especially in the area of agriculture, fisheries, energy, manufacturing, mining and exploration, transportation, and warehousing. Mr Roberts was speaking at a day-long forum organized by GIEPA in collaboration with Gambia Chambers of Commerce and Industry under the theme “harnessing business opportunities in The Gambia”. He said the investors should invest in The Gambia because the country is a liberal economy, it is closed to many major international markets, and the government offers attractive investment incentives. Investment incentives offer by the government includes waiver on corporate tax for 5 to 10 years, depending on area of investment, and waiver on import tax for inputs and capital equipments. Ambrose Orunche, leader of the Nigerian delegation, said the mere fact that they came to the Gambia to explore potential areas to invest in means they is ready to do business in the country The chief executive officer of GIEPA, Fatou Jallow, explained that the Nigerian delegation are in The Gambia is as a result of an initiative of their predecessor, Gambia Investment promotion and Free Zone Agency (GIPFZA), which phased out in 2010.  She said GIPFZA targets Nigeria as a source of Foreign Direct Investment for The Gambia. “We believe that it is still important to pursue the initiative not only to attract investments but also to promote trade as a tool towards regional integration and as a means to enhance business links between our two countries,” she said. Trade between Gambia and Nigeria has been decreasing since 2007. The Gambia and Nigeria has always enjoyed excellent bilateral relationships particularly at the political, social and economic levels and significant growth has been registered in terms of business and investment particularly in financial sector.  The country in recent years has witnessed an influx of banks from Nigeria. Bai Matarr Drammeh, the president of Gambia Chambers of Commerce and Industry noted that the government of The Gambia has achieved significant milestones in creating an enabling environment for the private sector through the creation of sound policies.. He said the Chambers will also continue to plays its role of encouraging investment growth, and promoting trade and partnership between the Gambia business community and members of the private sector around the world, particularly within the sub-region. Sarata Conateh, officer-in-charge of the Chambers, said the interaction between Nigerian private sector operators and their counterparts in The Gambia has provided a unique opportunity at the doorsteps of members of both private sectors to interact and draw concrete plans for partnerships and business ventures. Naffie Barry, permanent secretary ministry trade, industry and regional integration, said the mission comes to reinforce the commitment of the two governments to encourage the private sector as the engine of growth and to concretize the policy of the African Union and ECOWAS to promote South-South integration through trade. He assured the Nigerian investors of Gambia government’s support.

ITAG brings Google services to the doorsteps of institutions and firms

Information Technology Association of The Gambia (ITAG), in collaboration with Google, on Wednesday started a two-day first technology and business forum to expose institutions in the country to Google products and services. Held at the Paradise Suites Hotel in Kololi, the forum targeted public and private institutions and looked at how institutions could use Google products and services to further grow and expand their businesses. Speaking on the occasion, the permanent secretary, Ministry of Information, Nancy Jange, said the ministry is delighted to be associated with ITAG because the initiative the association has taken “is in line” with her ministry’s policy. “The ministry is proud that ITAG has been able to organise its first technology and business forum with Google, focusing on developing the skills of developers and opening them to new and emerging technologies,” she said. ITAG’s line of operation is also in line with Google’s expansion and development in Africa, hence a forum to dilate on such venture is timely and germane. “In addition the business forum will provide businesses with the possibility to benefit from the various range of services and applications Google has to offer to support the growth of ICT industry across Africa,” she said. As the Information ministry puts all necessary ICT infrastructures in place, especially the ACE Africa and Europe submarine cable, it is glad to see ITAG taking steps with Google towards developing capacities and creating awareness within and outside the ICT community, Mrs Jange says. Speakers at the forum came from different parts of Africa and Europe to present various topics on IT.

Teachers resort to loan acquisition for housing construction

Many teachers are now going in for loans to acquire housing, as their salaries can hardly sustain them and with their families in the face of rapid rise in prices of basic human needs. The latest report of the Gambia Teachers Cooperative Credit Union (GTUCCU) states that out of a total of 3942 teachers who applied for loan at the credit union, more than 1200, representing 39%, do so for building purpose. This indicates that many teachers cannot afford the cost of building from their own savings or from their meagre salaries. A qualified HTC teacher, after spending three years at the college, earns not more than D3,500 a month when a mere Grade 12 graduate, employed as a cashier at a bank, could be earning  an initial salary of up to D4,500 or D5,000 with some fringe benefits. The GTUCCU has disbursed almost D25 million as loan, in two years, to almost two thousand five hundred teachers for building purpose. The Loans Review Committee of the union urges all the teachers to “honourably” repay loans and interests attached to them for subsequent disbursement to other applicants due for loans. However, the committee is worried at the rate of teachers failing to repay their loans.  It says:  “The rate at which bad loans or unpaid debts are showing their ugly faces is rather appalling.  We must repay all loans and interest accordingly.  That way, we shall maintain our GTUCCU flag flying above expectation.” Baboucarr O. Joof, general manager of GTUCCU, said the union would take “genuine and practical” steps to recover bad debts “at all cost in the foot of pro-action” in loan recovery. The management of the union has set itself realistic targets in these areas and in pursuing them, he said. However, to find out whether loan could be the only option through which teachers can afford housing, this reporter caught up with some teachers to gauge their opinions on the issue. Ebrima Bah, a qualified HTC teacher, said taking loans “is the only way now” most teachers can afford to build houses, because they cannot depend on their salaries for anything else save for feeding their families. If it were not for loans, 90 per cent of teachers in this country would not be able to build and own houses out of their salaries, he said, adding that before the advent of the GTUCCU, many teachers had spent all their productive lives in teaching and weren’t able to build a house for themselves. “They are still renting, even after retirement they are in their family compounds; this condition discourages many young people from the teaching profession,” he said. “This is why in The Gambia, teaching is associated with poverty.” Mr Bah said that in the past many teachers taught for years without being able to open a bank account for themselves. Isatou Sowe, daughter to a retired headmaster, said her father had been teaching even before she was born “but up to now we are still living in a teachers’ quarter as my father does not have a compound of his own”. Isatou’s father, who started teaching in 1973, retired in 2010 and is in his retirement, is still living in teachers’ quarter.  She said her father had pleaded with the education authorities to allow him to stay in the quarters till his elder sons find another residence for the family. “I don’t want anybody in my family to be a teacher again.  Enough of it,” she remarked.

GAWFA CEO counsels Africa microfinance technocrats

The Chief Executive Officer of Gambia Women’s Finance Association (GAWFA) has told managers of microfinance institutions, from all over Africa, that they should be “go getters” and always lead by example. Pics: GAWFA CEO and Participants Mrs Oley Njie Mbye advised microfinance institutions managers that where necessary, they should allow their subordinates to take the lead at times to motivate and provide them with the opportunity to be on the drivers seats in huddles and meetings “that way they can experience what it is like to a leader so that they can see your world though their own lens”. The GAWFA CEO was speaking on Monday at the beginning of a six-day management development course and training of trainers, for mid-level managers of microfinance institutions in Africa, organized by Africa Microfinance Network (AFMIN) in collaboration with the Centre for Microfinance Leadership at the Women’s World Banking and hosted by GAWFA, the largest microfinance institution in The Gambia. The programme, financed by Spanish Agency for International Development Cooperation, was aimed at addressing the key concepts of managing for results and also to develop transformational skills for microfinance institutions managers. GAWFA CEO said managers of microfinance institutions “must” be flexible and adapt well to changes and the many paradigm shifts that often face microfinance institutions. “You should therefore be able to wear different hats everyday and embrace both leadership and management skills with trust, integrity, diversity, and respect for all,” she remarked. She continued:  “Please do not assume that you can only develop your leadership skills from your immediate bosses but be diverse in your search and seek knowledge, wisdom and leadership from all sorts of life and all sorts of fields; be it from your family, community, government, and different fields, blue or while collar roles; and different industries from janitorial, engineering, medicine, banking, to microfinance and the list goes on and on.” For his part, Mr Davy Serge Azakpame, CEO of Africa Microfinance Network (AFMIN), said good leadership and governance are important in the management of microfinance institutions.  He said good leadership is one of key success factors in management. Ebrima Jawara, project coordinator of the rural finance project, said to date, the project has spent millions of dollars supporting microfinance institutions in The Gambia and “we will continue to strengthen them in a holistic manner”. The training course was designed to help managers in microfinance institutions to clarify their roles and responsibilities and to improve their strategic thinking through practical exercises base on technical knowledge in microfinance.

Gambian blogger attends Reuters’ training in Nigeria

Mr Jahateh at the Banjul International Airport

 The proprietor and publisher of Gambia News Online blog (www.gambianewsonline.blogspot.com), Lamin Jahateh, on Sunday morning left to Lagos, Nigeria, to attend an intensive weeklong training on Financial and Economic Reporting from 9-13 May 2011.

Mr Jahateh will join fourteen (14) other journalists from English speaking West African countries to undergo the training that is organized by Thomson Reuters Foundation in partnership with the Norwegian Agency for Development Cooperation (NORAD).

The course is designed to help business journalists in West Africa to strengthen their reporting on financial and economic topics by developing their understanding and skills.  ‘Learning by doing’ is a core part of the programme, which includes practical exercises and live reporting.

The course also focuses on improving coverage of national and international financial issues through detailed briefings, presentations by guest speakers and, where appropriate, a reporting visit to a financial institution. In-depth discussions will explore ways of tackling subjects such as resource exploitation, economic governance and capital flight from developing countries.

“The course will further enhance my knowledge in reporting financial and business issues and be of greater credit to the Magazine and the nation a whole,” said Mr Jahateh, who is also the deputy news editor of The Marketplace Magazine and also the correspondent of The Gambia Banker (www.thegambianbanker.com).

He added: “Coming together with media practitioners from different countries with different life and cultural backgrounds is something I always cherish because I feel it can help me increase my knowledge of how things are being done in other countries.”

Thomson Reuters Foundation provides Reuters Training Programmes for journalists around the globe, sharing the skills and values that have made Reuters (www.reuters.com) world-renowned as a highly reliable and trusted source of news and information.  The foundation also offers customised training programmes for media organisations and courses for NGOs and others needing insights into improving their media relations.