By Lamin Kujabi
Mr Ousman Bah, Minister of Communication and Digital Economy, has sought cabinet approval to structure and reposition the state telecoms and GSM operators Gamtel and Gamcel, “taking into consideration new developments affecting the continuity of both companies”.
Minister Bah made the presentation of the joint memorandum for the repositioning and structuring of the Gamtel-Gamcel together with the Minister of Finance and Economic Affairs, Mr Seedy Keita, during the last cabinet meeting at State House.
The memorandum requested cabinet to reaffirm its previous conclusion on the restructuring and repositioning of Gamtel and Gamcel.
Giving background on the matter, Minister Bah stated that the government of The Gambia entered into financing agreement with the World Bank on 28th May 2020, which centred on fiscal management, energy and telecom reforms, and development policy financing.
As stipulated in the said agreement, he said there is need to prepare for a private sector participation in the management and operation of the fiber essential asset through a proper support vehicle.
The paper, according to the Minister of Information, who was updating the press after the meeting, provides an overview of the current status of Gamtel-Gamcel highlighting the issues and challenges they are facing.
The Communication Minister informed cabinet that a study was conducted on Gamcel to value it for privatization, which was completed in 2021. The paper provided recommendation, rational and actionable steps for cabinet to make informed decisions and implement the restructuring and repositioning strategy effectively.
He argued that for the two institutions to regain their former glory, government must undertake significant restructural and operational reforms including addressing over-staffing issues, adopting modern innovative business strategies and technologies to generate the much-needed revenue.
In conclusion, Minister Bah requested cabinet to consider and approve restructuring of Gamtel into two distinct companies providing whole sale and retail services; consider and approve transfer of Gamtel fiber and relevant telecom assets to a special purpose vehicle which significantly refers to Gambia fiber Company limited, for its operationalisation and finally to consider and approve tender process for the privatisation and disposal of 60% of Gamcel shares to private investors.
According to the Information Minister Cabinet has granted the Digital Economy minister’s proposal.
