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The Economy: The Gambian economy in 14 years

Mon, 21 Jul 2008 04:35:09 GMT

Monday, July 21, 2008

The development prospect of any nation is dependent on its economy. Therefore, one would expect that the conspicuous development transformation The Gambia has undergone since July 22, 1994 can only be credited to a parallel achievement in an economic sector that continues to receive clean bills of health from international financial and monetary institutions around the world.

What was a traditionally agriculture-dependent economy has over the years manifested promising tendencies towards industrialization, with the private sector being led by tourism, trading and fisheries, which are experiencing modest growth. Already, the banking and financial sector has been given a new outlook, with no sign of a halt to the inflow of more financial institutions.

The APRC government under President Jammeh, and the policies they instituted over the years have been very receptive of the financial sectors and that has made it possible for the enormous growth in the sector. All these factors have enabled the country to progress and the people to be provided with alternative sources of finances to suit their varying needs, all in the quest for national development.

There is so much capital inflow into the country that we are all spoilt for choice in our banking needs and all these are credited to the government’s judicious management of the economy. The Dalasi did finally stabilize after some shaky times in the last quarter of 2007, with the exchange rate market remaining stable as revealed in the diagram below as per international currencies.

In 2008, growth in GDP of The Gambian economy is projected at 6.5 % promised on continued growth in tourism, telecommunications and construction. We must, however, not ignore possibilities of uncertainties in the global economy which could slow economic output.

Earlier this year, an International Monetary Fund (IMF) staff mission arived in the country to conduct discussions for the 2008 Article IV consultation and the third review under the Poverty Reduction and Growth Facility (PRGF) arrangement. The mission met with The Gambian Secretary of State for Finance and Economic Affairs, the Governor of the Central Bank of The Gambia (CBG) and some other high profile authorities in the economic sector, as well as representatives of the civil society, and the country’s development partners. Their verdict at that meeting amounted to a total approval of the country’s economic policies.

Part of that report revealed that real GDP growth had been realized at over 6 percent a year, a performance that compares favorably with the record of other countries in the region. Growth was said to be led by the construction, tourism, and telecommunications sectors, facilitated by a steady inflow of foreign direct investment and remittances. A relatively tight monetary policy stance and appreciation of the Dalasi helped contain the impact of rising world food and oil prices on inflation in The Gambia. Inflation rose to 6-7 percent during most of 2007 from less than 1 percent in December 2006.

The country also managed to reach the target for the Heavily Indebted Poor Countries (HIPC) Initiative, which enabled it to qualify for debt cancelation from the International Monetary Fund (IMF) and the World Bank Group's International Development Association (IDA). A total relief from all of The Gambia's creditors was worth nearly US$67 million in Net Present Value (NPV) terms, which is equivalent to 27 percent of total debt outstanding after the full use of traditional debt relief mechanisms.

Preliminary data on Government fiscal operations showed that in the five months to the end of May 2008, revenue and grant totaled GMD1.58 billion, more than the GMD1.66 billion in the corresponding period of the previous year. Total expenditure and net lending amounted to GMD1.51 billion, compared to GMD1.48 billion in the same period last year. The overall budget surplus (including Grants) on commitment basis was GMD102.5 million, but lower than the GMD159.6 million during the same period in the previous year. The budget surplus (excluding grants) on commitment basis declined to GMD51.4 million during the period under review from GMD119.7 million in the corresponding period, a year earlier.

As at end-June 2008, gross International Reserves totaled GMD2.9 billion or US $142.8 million equivalent to 5.1 months of import cover.

Development in the foreign exchange market continued to be characterized by increased transaction volumes. Volume of transactions in the inter-bank market increased to US $1.6 billion in the year to end - June 2008 compared to US $1.4 billion a year ago.

Between December 2007 and June 2008, the Dalasi appreciated against all major world currencies traded in the inter-bank foreign exchange market except the Swedish Kroner. The Dalasi strengthened against the British Pound Sterling, US Dollar, Euro and the CFA by 8.5%, 2.3% and 3.7% respectively while depreciating by 3.0% against the Swedish Kroner.

Author: DO

Ecobank opens more branches

Fri, 04 Jul 2008 05:22:20 GMT

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Friday, July 04, 2008

Ecobank, a household name in The Gambia for efficient, friendly, customer focused and excellent banking services, yesterday, opened two new branches. The new branches are at the Kanifing highway and West Field.

In an interview with the Daily Observer, shortly after the official opening ceremonies, Fitzgerald Odonkor, managing director of the leading Pan African banking group with an unparalled reach and a unique operating platform in The Gambia expressed delight that they have been able to take an important step in bringing the Ecobank brand of banking closer to the public.

According to Mr Odonkor, the Kanifing Branch will forcus on the industrial hub. “with the opening of these two branches, we will be able to serve the industrial sector better by providing a range of products including trade finance, leasing and regional payment services both for importers and exporters to the sub-region. We expect these products to further enhance the profitability and efficiency of these industries,” he said.

The savvy Ecobank managing director added the Westfield branch which is the melting point of human activities is to embark on a very aggressive deposit mobilisation and make available products such as savings accounts, junior saving accounts, as well as Western Union services.

“This is the beginning of a campaign, which we have dubbed Ecobank Everywhere, to make our services more accessible and more available to the public. We welcome all and sundry to come and do business with us and they can be assured of excellent customer services at all our branches,” he enthused.

Mr Lamin Gaye, head of corporate affairs at Ecobank said the opening of the two branches is a major milestone in the operations of the bank given the fact that they started operations in The Gambia less than a year ago.

“Branch expansion is synonymous to our operation. It could be recalled that, we set ourselves a target from the inception to take banking and financial services to the doorsteps of the Gambian people and today we have made an indication of this commitment,” he concluded.

Author: by Lamin M Dibba

UEMOA to interconnect 80 banks

Thu, 19 Jun 2008 09:06:21 GMT

Thursday, June 19, 2008

The interbank money Group of the West Africa Economic and Monetary Union (UEMOA-GIM) will interconnect about 80 banks of this monetary zone by the year 2009. This revelation was made on Monday in Dakar by its director general, a native of Benin, Blaise Ahouantchédé.

Mr Ahouantchédé explained that "the new system will allow, for example, a client from any bank of the group to make all his operations in any other bank connected to the network . “The client simply needs to acquire our interbank money group credit card", he said. "The credit card,” he went on, “allows the settlement of all financial operations in the established banks of the sub-region with an electronic payment terminal that displays the logo GIM-UEMAO," said Ahouantchédé.

As regards the reliability and safety standards of the credit card for the UEMOA interbank connection, Blaise Ahouantchédé assured that clients have nothing to fear about. "The new card meets the current standards in industrialized countries, especially the EMV standards (Europa, MasterCard and Visa)," he added.

So far, 17 banks in the sub region are interconnected, and forty others expected to be connected by the end of 2008. "We need to go step by step in establishing our interbanking devices," said the Director General of GIM-UEMOA. He also assured that clients will enjoy all judicial guarantees endowed with the system. "We guarantee all our operations. Our institution has an alert mechanism within the security system operations which is monitored in a dynamic manner", he said.

Blaise Ahouantchédé recalled that the idea is to transform financial transactions in the UEMOA zone through a decisive move onto the electronic wallet to help reduce or even eliminate risks associated with banking transactions with the traditional system.

"The benefit is that the client no more loses money as he no longer needs to travel from one country to another with a suitcase full of banknotes. A simple card is enough for his operations," said Blaise Ahouantchédé, who is also chairman of the Regional Committee for the fight against fraud banking and cyber crime.

UEMOA zone counts about 80 million people and comprises eight countries: Benin, Burkina Faso, Cote d'Ivoire, Guinea Bissau, Mali, Niger, Togo and Senegal.

Author: by Frederick Tendeng

Reliance’s Sukuta Branch inaugurated

Thu, 12 Jun 2008 05:05:10 GMT

Thursday, June 12, 2008

Reliance Financial Services Company, one of the most competitive financial service providers in The Gambia, Tuesday, official opened a new branch in Sukuta, IMRES building, during a colorful ceremony, held at the premises, along Sukuta high way.

Delivering the inaugural speech, Buba A Sagnia, deputy director general of immigration, who read the statement on behalf of the Secretary of State for Interior, Ousman Sonko, hailed the financial service provider for their national expansion strategy and their objective of taking banking services to the door-steps of every Gambian.

Guest speaker, SOS Sonko, noted that this great initiative was central to the government’s development agenda, under the able and dynamic leadership of President Jammeh. He went on to advice the management of Reliance not to be complacent, urging them to ensure that there were financial institutions in every part of the country.

SOS Sonko concluded by challenging stakeholders to rally behind Reliance, by opening their own accounts.

The CEO of Reliance Financial Services, Mr Buboucarr Khan, in his welcoming address, thanked the community of Sukuta and its neighborhood for the warm welcome accorded them, adding that: "we are here to empower the community by providing them with services that are second to none."

According to him, amongst the several products that Reliance provides, there is the fact that one could also easily open an account with only D100, as well as encouragement of their client on business management matters, in an effort to increase their productivity.

He finally urged the community to co-operate with Reliance for the social economic development of the country.

Speaking earlier on, the Alkalo of Sukuta, Momodou Lowe Cham, thanked the management of Reliance for opening the branch in their community, and he added: "it will go a long way in reducing the cost of accessing financial services of the kind provided by them.”

Other speakers included the Deputy Governor of Western Region, Sainabou Faal; a youth mobilizer, Dawda Ndure; the director of CCF, Ousman Cham; the NAM of Kombo North, Adama Cham; and a representative of the paramount chief. Also present were religious leaders and a cross section of the society. The vote of thanks was delivered by Fatou Jobe, while the occasion was chaired by Kaddy Jammeh, all of Reliance.

Author: by Salifu M Touray

Banking and Finance Exposition Registers Success

Mon, 09 Jun 2008 05:01:38 GMT

Monday, June 09, 2008

The 2008 exposition on project financing and banking organised by the Gambia Chamber of Commerce and Industry in collaboration with the International Finance Corporation ended at the Paradise Suites on Saturday amidst a rousing success.

The exposition, which draw audience from the banking and finance sector in the Gambia, and from the international and regional financial institutions, was geared towards providing a platform for exchange of views and information on banking opportunities in The Gambia and abroad.

The three days forum, on the theme: Financing for Development-Accessing Information for Funding centered discussions on banking and financial industry concerns and SMEs access to Finance, to promote the development of private businesses, especially the Small and Medium Enterprises.

Also part of the deliberations were to provide information to the private sector on how to access financing for projects, to showcase the latest solutions, products and technologies in banking and financial services, provide a platform for joint ventures among others.

The exposition held at the Paradise Suites hotel also witnessed the presentation of a report by a consultant based on a survey made on all banks and financial institutions in the Gambia to bring about issues and constraints about the Gambia’s banking and financial sector among other issues.

Speaking at the opening ceremony, Mr. Bai Matarr Drammeh, President of The Gambia Chamber of Commerce and Industry (GCCI) said the chamber as the business support service institution in The Gambia, has reoriented its strategy to discharge its mandate as a service-oriented institution.

“I wish to state that the Gambia Chamber of Commerce and Industry is aware of the fact that the Government of the Gambia continues to give priority to private sector development as the engine of growth and development”, he said.

For her part, Mrs. Ida Gaye, Permanent secretary, State Department for Finance and Economic Affairs, said the gathering could not have come at a better time when advanced economies are facing credit crises leading to spill-over effects in developing nations.

She noted that the Government of the Gambia in its quest to eradicate poverty continues to develop sound macroeconomic tools and policies in order to hedge the most vulnerable of people from its devastating impacts.

Author: By Baboucarr Senghore

Source: Picture: Bai Matarr Drammeh

Expo on banking, finance under way

Fri, 06 Jun 2008 06:30:50 GMT

Friday, June 06, 2008

A three-day Expo on Banking and Finance on the theme: financing for development - accessing information and funding’, kicked off yesterday at the Paradise Suites Hotel in Kololi.

The Expo was organised by the Gambia Chamber of Commerce and Industry (GCCI), in collaboration with the International Finance Cooperation (IFC), to encourage joint ventures between banks and finance institutions, and foster close collaboration between The Gambia and other international financial institutions, to promote trade, industry and employment.

In his welcoming address, Bai Matarr Drammeh, the president of the GCCI, said his chamber, with support from business service institutions in The Gambia, has oriented its strategy to discharge its mandate as a service oriented institution.

“This is why, the chamber entered into a partnership with the International Finance Corporation to organise this expo in order to create the platform for awareness on the role of banking and finance in private sector growth and development,” he said.

The GCCI boss said the chambers was aware of the fact that the government of The Gambia continued to give priority to private sector development as the engine of sustainable growth and development, adding that this was evident in the liberal price system, streamlining procedures for the registration of business and public private sector development.

For her part, Ida Gaye, the permanent secretary at the Department of State for Finance and Economic Affairs, who represented SoS Musa Gibril Bala Gaye, said the government has continued to develop sound macro-economic tools and policies in order to hedge the most vulnerable of people from the devastating effects of poverty.

“This country has already moved a long, difficult, tiresome journey of far-reaching reforms in the last 3-4 years. The massive reform undertaken over these years in the fiscal-financial and economic areas have restored macro-economic stability and provided the investment required for growth and for the development of the country,” PS Gaye said.

Abdou Kolley, the secretary of state for Trade, Industry and Employment, thanked the organisers and sponsors of the event for the initiative. He pointed to access to finance as one of the most important and difficult challenges to national development and urged the gathering to discuss the matter in order to promote rapid growth and development.

Other speakers at the ceremony included Ebrima Suma, a representative of IFC, Basiru Njie, the first deputy governor of Central Bank of The Gambia.The ceremony was well attended by participants from the banking and finance industry.

Author: by Sheriff Janko

Reliance inaugurates new office complex

Fri, 09 May 2008 07:08:21 GMT

Friday, May 09, 2008

In its drive to bring banking services to the living rooms of each and every Gambian, Reliance Financial Services, the first non-banking financial institution in the country, on Wednesday inaugurated a new office complex in Churchill’s Town.

Situated at the New Plaza Building just stone’s throw from the new mosque in Serrekunda, the opening of the new office was hailed by many who described it as an indication of Reliance’s commitment to providing unrivalled financial services to Gambians.

Being a very economically active and at strategic location, the new Churchill’s Town branch manifests a fulfilled promise made by Reliance to making banking and international remittance services available to all Gambians.

In his inaugural statement read on his behalf by Momodou Jaiteh, Councillor of Kololi Ward, Yankuba Colley, Mayor of the Kanifing municipality, described Reliance’s move as ‘very’ central to government’s development agenda and in particular, The Gambia under the leadership of President Jammeh.

“ While it is a common knowledge that these small, medium and micro enterprise traders are extremely hardworking individuals, it has been realised that major constraints to their growth and development in accessing basic financial services like loans, insurance and remittance services and the all important business development training are lacking,” he said.

The presence of Reliance in Churchill’s Town, Mayor Colley went on, is very re-assuring, while encouraging the management of Reliance not to be complacent until there is a financial institution in every part of the country.

Delivering the vote of thanks, Mr Baboucarr Khan, Reliance’s Chief Pioneer Executive Officer, expressed his company’s resolve to bring financial services to the doorsteps of each and every Gambian.

In Mr Khan’s view, the provision of value-added and unrivalled services is part of Reliance’s vision and mission.

Assan O. Jallow, Chief Credit Officer and Head of Risk and Compliance, delivered the welcome remarks while Isatou Jarra, Officer-in-Charge of Churchill’s town office.

Among the services offered by Reliance Financial Services include the opening and managing, Western Union money transfer services, business loan facilities, foreign exchange and Business Development Advisory Services.

Author: By Njie Baldeh

IBC to be revamped - Says new CEO

Mon, 10 Mar 2008 07:44:28 GMT

Monday, March 10, 2008

Efforts to overhaul the status quo of International Bank for Commerce (IBC) to restore its fading glory are in high gears, barely few months after a new management took charge, after it was bought by the Bank PHE of Nigeria.

The new managing director and chief executive officer of IBC confirmed this to stakeholders on Friday at the Sunbeach Hotel and Resort, where several dignitaries, notably the speaker of the National Assembly, Fatoumatta Jahumpa-Ceesay, and the secretary of state for Finance and Economic Affairs, Musa Gibril Bala Gaye, were hosted to a cocktail. Prominent Gambian businessmen and representatives of various companies also attended the cocktail.

IBC was believed to have been losing ground in the country’s looming competitive banking industry, characterised by a wide range of aggressive and innovative services in face growing customers and increasing private sector investment, including medium sized-entreprises.

In a speech delivered at the cocktail, Chuks Chibundu, the managing director and CEO of the bank, observed that the support for IBC has been growing despite all odds; despite the capacity constraints.

"We are going to revamp IBC and we are going to make it something that all of you will be proud of," he said.

According to him, IBC still remains the "prime bank" in The Gambia, adding it will be repositioned to second leading bank in the country is the next 9 to 10 months. "This is a new dawn. The changes are going to start and in fact they have started," he added.

"You work with us and we work with you. This is going to be a partnership. And the partnership is this: I know what your needs are and we are always going to be there for you," said Mr Chibundu.

The IBC new CEO said the bank will be the most innovative in terms of IT, noting that the brand will remain the same despite change of ownership. However, he expressed hope that it will be rebranded in their course of transformation.

Author: by Ebrima Jaw Manneh

GTBank officials visit Observer

Thu, 28 Feb 2008 05:59:28 GMT

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Thursday, February 28, 2008

A delegation of three top brass officials from the Guaranty Trust Bank (GT Bank), The Gambia Ltd, on 22 February paid a courtesy call on the Daily Observer Company Ltd in Bakau.

The bank officials comprised Mama Fatima Singhateh, company secretary and legal adviser, Babou Gai, corporate officer, and Mr Tijan Conteh, head of public sector group.

The group was received on arrival by Mr Andrew Dacosta, the Deputy Managing Director, on behalf of Mr Dida Halake, Managing Director and Editor-in-chief of the Daily Observer Company Ltd.

The visit was part of efforts meant to strengthen the already existing cordial relationship between the two institutions.

It was also meant to introduce the Bank’s newly appointed corporate affairs officer and to present a small parcel of gift to the Daily Observer, in recognition of their invaluable contribution towards national development, especially their relationship with GT Bank,The Gambia Ltd, among others, said Mama Fatima Singhateh.

Tejan Conteh, head of public sector group, spoke at length on the bank’s aims and objectives. “We are taking the banking level to an extra mile and we as well value our customers very much,” he said.

Babou Gai, corporate officer, briefed the Daily Observer deputy managing director on the bank’s adoption of a family house at the SOS children’s village in Bakoteh. According to him, the adopted family house cost $8,500 per year which is inclusive of expenses such as paintings, feeding and clothing of the children as well as school fees, among others.

“This gesture is part of the bank’s social responsibilities,” he said.

For his part, Andrew Dacosta, DMD of the Daily Observer, assured the bank officials of his company’s readiness to work with them at all time.

He spoke at length on what he called the long-standing relationship between the two institutions, touching on many facets of corporate relationship and other aspects of life.

He took the visiting officials on a conducted tour of the various departments of the Daily Observer to expose them to the operations of the country’s leading newspaper company.

Author: by Sanna Jawara

Reliance praised for fulfilling pledges

Mon, 11 Feb 2008 04:16:25 GMT

Monday, February 11, 2008

Ousman Sonko, secretary of state for the Interior, has applauded Reliance Financial Services for taking banking services to the doorstep of all Gambian through its Kiosks and branches established in all corners of the country.

According to Secretary of State Sonko, Reliance Financial Services has fulfilled all their pledges made 13 months ago.

Speaking at the official inauguration of the institution’s new branch at Lamin market ,SoS Sonko said Reliance Financial Services is playing its part to boom the country’s economy with the provision of a wide range of banking services.

The Interior secretary of state noted that without access to capital, it will be difficult to overcome the challenges which are a pre-requisite to economic development.

” But it all starts with the cultivation of a very strong national savings culture and reliance certainly has provided this platform”. He then urged the market vendors to open accounts with Reliance Financial Services Kiosks, noting that with only a minimum of a hundred dalasis, one is legitimate to bank with the Kiosk.

For his part, Baboucarr Khan, chief executive officer of Reliance Financial Services said the installation of Kiosks at economic centres are part of his company’s national expansion strategy.

He emphasised the needs for banking services to be closer to the grassroot economic activity ventures, noting that such an opportunity will enables vendors to save their daily earnings from their small income generating activities. He advised vendors especially women to open account with the Kiosk so as to realized faster income generation.

Sainabou Faal, deputy governor of Wester Region, hailed the initiatives of Reliance Financial Services saying Lamin Kiosks is the third to be inaugurated in Western Region.

Other speakers included Ya Kaddy Sambou, president of Banjulinding Women’s Horticultural Garden and Mba Ara Jatta, president of Serrekunda Market Women Vendors.

Author: by Hatab Fadera