Let me now Discuss Government's
Development Strategy for 2006 as it relates to the key Sectors of the
Economy
v. DEVELOPMENT STRATEGY FOR 2006
a. PRSP Implementation
52) The end of 2005 marks the completion of The
Gambia's first Poverty Reduction Strategy Paper (PRSP) implementation
cycle of 3 years. The implementation process has been hindered by a
number of set-backs that has made the overall PRSP process less successful.
The most serious set-back was the suspension of the PRGF program by
the IMF in 2003, and because of the program suspension, The Gambia could
not reach completion point as planned in June 2003, as reaching completion
point is conditional on satisfactory implementation of a PRGF.
53) The second set-back which was a direct result
of the PRGF suspension, was that the $115 million funds pledged by Donors
during the 2002 Geneva Round Table Conference on The Gambia was not
disbursed. Thus, implementation of PRSP programmes was undertaken with
a lower than anticipated budgetary resource envelope. Although macroeconomic
stability has been restored in 2004 and 2005, the single biggest threat
to Government operations, the heavy domestic debt burden, took a significant
portion of the budget resources, thereby, further reducing the budget
funding for the PRSP programmes. As we come to the end of the first
PRSP implementation period, the annual reviews have concluded that less
than 40 per cent of the PRSP programmes have been implemented.
54) The low implementation rate of PRSP programmes
is not only due to shortfalls in budget resources, but the reviews have
also highlighted the low capacity existing in all the sectors to formulate
and execute programmes. Also, although some level of budget reform has
been undertaken, the slow pace of the reform has not helped the key
sectors attain a sufficient level of programme budgeting.
55) Recently, a new 6-month Staff Monitored Program
has been negotiated in October 2005 with the IMF. It is hoped that by
the first half of 2006, the SMP will be successfuly concluded, paving
the way for a new PRGF for the period 2006-2008. Indeed, one of the
immediate objectives of Government is to successfully conclude a first
review of the PRGF during end-2006, paving the way for The Gambia to
reach HIPC Completion Point.
56) However, Government's medium-term strategy encompasses
much more than reaching HIPC Completion Point. The preparation of the
second PRSP, covering the period 2005-2008, began in earnest in 2005,
and has now reached the final stages
57) SPACO is in the process of reviewing and updating
the PRSP/SPA-II to PRSP-II/SPA-III for 2006-2008 as the second cycle
for the implementation of the PRSP within the medium term framework
of three years each up to the year 2015.
58) In order to establish an effective monitoring
and evaluation system for the PRSP, a Baseline Service Delivery Survey
was conducted, and the report will soon be finalized. The purpose of
this survey is to ascertain the quality of services rendered by selected
institutions in order to properly evaluate required support for service
delivery during the second PRSP implementations. The survey results
will also serve as baseline data for monitoring the improvements in
service delivery for these institutions.
Mr. Speaker, Sir, I will now move on to certain key Sectors of
the Economy
b. Social Sector
i. Education
59) The education sector employs over 6800 staff,
and three quarters of these are school personnel. During the 2005 year,
the education sector was allocated D287 million, and D262.2 million
was for the recurrent budget, and D24 million for development. More
than half of this amount was spent on improving access to Education.
In our quest to meeting the Millennium Development Goals, and Education
for All, the education sector continues to make significant progress
based on set priorities and strategies.
60) The Government of The Gambia is committed to the
provision of nine years of uninterrupted basic education. To fulfill
this commitment, the education sector has expanded over the past year
at all levels, but, most significantly at the Basic Education level.
The numbers of upper basic schools have increased from 142 to 149, lower
basic schools from 392 to 400, and senior secondary schools from 44
to 47. This translates into enrolments from 56,201 to 66,025, from 174,984
to 185,227 and from 20,203 to 27,160 respectively. Gross enrolment stands
at 76 per cent for formal lower basic schools , 65 per cent for formal
upper basic schools, and 26 per cent for formal senior secondary schools
respectively. in the same period, 138 Classrooms were built, 5 Teachers
quarters, 5 multipurpose laboratories, and additional 57 classrooms
across all the regions from the Fast Track Initiative (FTI), and Europena
Union funds.
61) These efforts were supplemented by the provision
of scholarships for girls in regions 3-6 by the Department of State
for Education through World Bank assistance, and regions 1 and 2 by
PEGEP and other individuals (Dina Said and Angel Trust Fund etc), using
an all inclusive approach, with also support from the Sight Savers International
Integrated Education Project.
62) In a bid to continue to provide improved quality eduction,
the Department of State for Education has trained 255 students of Higher
Teachers' Certificate on yearly basis, and quiet a good number of teachers
have continued to receive in-service training at both the Gambia College,
the University of The Gambia, and at GTTI. Also, the Department of State
for Education has created a new directorate, Curriculum and In-service
Training, to ensure the relevance of the curriculums at all levels of
the Education System.
63) To enhance quality delivery at the school levels,
the Department of State for Education has received $4 million from the
Fast Track Initiative (FTI) in 2005 for the provision of classrooms,
textbooks, and support to education management. The Department of State
for Education was also able to provide incentives for teachers posted
in remote areas of the country in the form of allowances.
64) The Department of State for Education has also
established a National Training Authority responsible for the registration,
supervision and monitoring of vocational and technical institutes in
the country. Revenues from the national Training Levy will be used to
maintain the services of the National Training authority.
65) The Deparment of State for Education continued
to finance the training of professionals by providing D6.0 million annually
to the University of The Gambia as sponsorship to students, and an additional
D6.5 million as subvention for staff salaries, and D10.5 million for
trainings for both institutions.
66) The Deparment of State for Education has also
completed the construction of 105 classrooms, 20 teachers' quarters,
20 wells and the rehabilitation of 50 classrooms blocks through a delegated
programme with GAMWORKS, and also 22 classrooms and 5 teachers' quarters
under BADEA Improved School Management Program in collaboration with
Action Aid.
ii. Health
67) The health sector continues implementation of
its policy priority of increasing access to basic health service provision,
as well as health management. The Tertiary hospitals have expanded from
3 to 4, and a fifith one is under construction. Government, in with
donor partners, has completed the construction of the Serekunda Hospital.
Four minor health centres were constructed in 2005, namely, Albread,
Sara Kunda, Foday Kunda, and Kafuta. Two major Health Centres (Basse
and Kuntaur) are being upgraded to District Hospitals, all minor Health
Centres are to be upgraded to major Health Centres, while the Diepensaries
will be upgraded to Minor Health Centres, and some Out-Reach Stations
will be upgraded to Dispensaries. This has increased the geographical
access of services, and has also reduced the distance to the nearest
basic health care facilities.
68) Government has also decided that, in order to
ensure effective and efficient management of decentralized health services,
and for ensuring the availability and retention of trained and skilled
personnel in the health sector, a financial incentive package for health
staff has been included in the 2006 Budget, especially for skilled and
trained nurses, pharmacy staff, laboratory personnel, theatre nurses,
etc.
iii. Youth
69) Government continues to support the strengthening
of the Divisional Youth Committee in all the divisions of the country
to allow the young people of the country to contribute meaningfully
in the development of the economy.
70) In the area of youth empowerment, the Department
of State for Youth, Sports, and Religious Affairs plans to organise
the Seventh National Youth Conference and Festival in Brikama, Western
Division, in 2006. This is one of the most important fora in which policies
and any major decisions affecting the youths are discussed by the young
people themselves, Government policy makers, and donor agencies, with
a view to agreeing on the policies and strategies for youth participation
in the socio-economic development of the country.
71) In the area of Youth Development, the National Youth Service
Scheme (NYSS) has had over 200 hundred corps members from the apprenticeship
program. In addition, NYSS, in collaboration with the National Maritime
Institute, has provided training to 16 corps members in maritime studies
during the current year. It is anticipated that, with additional budgetary
resources in 2006, more corps members will be trained. The National
Youth Service Scheme (NYSS) has been provided an additional D1 million
in the 2006 Budget to rehabilitate the residences of rice growers in
Sapu, as well as provide other logistical support for increased rice
production.
Mr. Speaker, Sir,
c. Productive and Manufacturing Sector
i. Trade
72) The Trade policy of Government continues to be
guided by the principles of trade liberalisation, deregulation and investment
promotion. This has motivated the gradual and progressive reduction
of tariffs, and continued improvements in infrastructure to increase
competitiveness in the sub-region and beyond.
73) In the area of private sector develoment, Government
continues to aim at stimulating growth, and encouraging active private
sector participation. It is in this context that a policy on Small and
Medium Enterprise (SME) development was formulated, and now awaiting
implementation, once the required resources have been secured.
74) Furthermore, as a demonstration of its commitment to the
development of the productive sector, Government, in collaboration with
the International Trade Centre, has now completed the first phase of
a pilot project in the development of a National Export Strategy. This
include identification of sectors with export potential, such as fisheries,
horticulture, tourism and the sesame sub-sectors. During 2005, training
on export processes and procedures, as well as standard requirements
of the European Market, was organized for GAMHOPE members by Department
of Department of State for Trade, Industry and Employment.
75) Guaranteeing good standards, and safeguarding the welfare,
health and safety of its citizens through the provision of high quality
goods is a priority of Government. In this regard, a draft Consumer
Protection Bill and Rules, and will come before the National Assembly
in 2006. In addition, legislation on Limits of Error for package commodities,
prepared by Commonwealth Secretariat, has already been enacted, and
gazetted. These legislations will enforce the implementation of standard
and quality control, control the level of pilferage, and ensure that
permissible errors indicated on the packaged commodities are strictly
adhered to. The legal instruments will also enable consumers to seek
redress in the courts of law in the event of unfair trade transactions
and practices.
ii. Agriculture
76) The Government continues to be fully committed to the revitalisation
and improvement of the agricultural sector in order to ensure increased
output, foreign exchange earnings, national food and income security.
In this respect, Government continues to actively engage the donor community,
the private sector, and Non-Governmental organizations (NGOs), to invest
in the sector for agricultural development.
77) Remarkable increases were achieved in crop cultivated area,
yield and production levels during the 2004/2005 cropping season. The
overall cultivated area of cereals increased from 173,390 hectares in
2003/2004 to 192,312 hectares in 2004/2005, representing an increase
of 11 per cent, while production increased from 215,046 metric tonnes
to 225,008 metric tones, an increase of 5 per cent in the same period.
Coarse grains production increased from 183,825 metric tonnes in 2003/2004
to 190,704 metric tonnes in 2004/2005, with early millet production
contributing about 48 per cent. Total paddy rice production also registered
an increase from 31,221 metric tonnes in 2003/2004 to 34,304 metric
tonnes in 2004/2005, indicating an increment of 10 per cent.
78) Groundnut, the most important cash crop, has performed better
in 2004/2005 than in the 2003/2004 cropping season. The total cultivated
area under the two-groundnut varieties, 73/33 and 28/206, recorded an
increase of 8 percent, while gross production increased from 92,937
metric tonnes to 135,698 metric tones, representing a 46 per cent increase.
79) During 2005, the National Agricultural Research Institute
(NARI) has made significant progress in its search for tectnologies,
aimed at alleviating some of the crop production constraints of Gambian
farmers. To this end, NARI embarked on research to restore soil fertility
through agro-forestry techniques, researched into developing suitable
drought tolerant crop varieties, and also promoted the production of
the New Rice for Africa (NERICA).
80) Agricultural marketing and financing have been major issues
confronting the agricultural sub-sector over the past years. However,
Government is highly committed to adequately address these problems.
Prior to the 2004/2005 trade season, The Gambia Agricultural Marketing
Company (GAMCO) was set up to ease the problem, and operated within
the approved Regulatory Framework. Furthermore, participation in the
groundnut trading is now fully liberalized, and interested operators
meeting the criteria in the Regulatory Framework will be allowed to
buy nuts in the 2005/2006 season.
81) The Africa Development Fund (ADF), and the International
Fund for Agricultural Development (IFAD), will fund the Participatory
Integrated Watershed Management Project (PIWAMP), which will be fully
operational by January, 2006. The project will empower communities to
increase their productivity of crops, livestock and forest resources
at the grass-root level, through the transfer of control of efficient
land use management from Government to the local people.
iii. Tourism
82) Tourism continues to be the fastest growing industry in
The Gambia, contributing about 16 percent of GDP. It is the largest
earner of foreign exchange, and is also the biggest source of formal,
non-farm employment. Provisional figures show that tourist arrivals
from the 2003/2004 season to the 2004/2005 season grew by 22 percent,
and projects indicate that this will further increase to 40 percent
in the 2005/2006 tourist season.
83) To broaden the promotion of The Gambia as a tourist destination
of choice, The Gambia will feature during 2006 on CNN prime time advertisement
slots. This will bring The Gambia to the screen of millions of viewers.
This campaign will last throughout the year. To further expose The Gambia,
the Department of State for Tourism and Culture has agreed to host a
Symposium on Eco-Tourism to be organised by the African Travel Association
(ATA) in October, 2006. This meeting will attract a lot of international
travel and tour operators, as well as other international participants.
84) In anticipation of the rise in the number of tourist arrivals,
it is expected that six new hotels and entertainment centres will be
completed during the course of 2005 and 2006. An increase of 1000 beds
is expected from this development. The much-awaited Sheraton Hotel is
scheduled to open in March, 2006, and will be fully operational by July,
2006.
iv. Fisheries
85) The Fisheries sub-sector continues to contribute significantly
to socio-economic development of the country. This sub-sector provides
employment, and income generating opportunities for many Gambians.
86) Government has provided substantial amount of resources
to the sub-sector to exploit the potentials in the fishing sector. The
Government, in collaboration with development partners, i.e., African
Development Fund (ADF), and the Arab Bank for Economic Development in
Africa (BADEA), are supporting the construction of a Fisheries Port.
This will enable industrial fishing vessels to land some of their catches
in the country and supply the domestic market, and, thereby, contribute
to achieving the national goal of food security.
Mr. Speaker, Sir, I will now discuss Government's Divestiture
Programme
d. Divestiture Strategy
87) A number of Public Enterprises have been lined-up for possible
privatisation during the course of 2005. A key transaction that The
Gambia Divestiture Agency (GDA) embarked on in 2005 was the disposal
of Government's 50 per cent shareholding in Senegambia Beach Hotel.
This transaction is now completed, and the hotel is now being operational
by the new owners.
88) In collaboration with The Gambia Investment and Free Zones
Agency (GIPFZA), and The Gambia Ports Authority (GPA), 80 per cent of
GPA's shareholding in Banjul Shipyard has been disposed-off to a Malaysian
Company. The value of the investment for the 80 per cent ownership will
be utilized in the Shipyard for capital equipment, refurbishment, and
modernization of the shipyard assets.
89) Another transaction that The Gambia Divestiture Agency (GDA)
worked on is the divestiture of The Gambia Groundnut Corporation (GGC).
Invitations for Expressions of Interest to be pre-qualified as a strategic
investor for 51% shareholding, and as institutional investors for 29
per cent shareholding, were announced, and Expressions of Interest received.
The process of privatisation was delayed due to funding difficulties.
In light of the delays experienced, the strategy now is to target June,
2006 for completion of privatisation of The Gambia Groundnut Corporation
(GGC), while parallel measures are being put in place to ensure a successful
2005/2006 groundnut-marketing season.
90) The process to dispose of the majority of Government's stake
is GAMCOT is also in progress. The negotiation process with the majority
shareholder, DAGRIS, is ongoing, and the negotiations are expected to
continue, and to be finalised soon.
91) Negotiations were also held with Banjul Breweries Ltd on
the disposal of Government's shareholding in the Brewery. Unfortunate,
due to the low offer for Government's shareholding, this transaction
could not be concluded. The Gambia Divestiture Agency (GDA) expects
to resume discussions with Banjul Breweries, and complete this transaction
in 2006.
92) Following the completion of the Technical and Financial
Assessment of the Maintenance Services Agency (MSA), and submission
of the recommendations for the way forward, Government will soon deliberate
on the recommendations, and the divestiture of Maintenance Service Agency
(MSA) will be concluded in 2006.
93) An important activity embarked on by The Gambia Divestiture
Agency (GDA) is the Redundancy and Compensation Framework Study. This
study is of critical importance to the divestiture strategy, as it will
develop the framework required to achieve consistent standards for employees
of Public Enterprises in relation to potential redundancy, and compensation
for redundancy, during the divestiture process.
94) Significant work on the procurement process for the Transport
Sector Study was done during 2005. This Study encompasses the entire
transport sector on The Gambia (Air, Marine and Road Transport), and
aims to review and assess the institutional and operational activities
of each sub-sector within the transport sector, and make recommendations
regarding private sector participation.
95) The procurement process for an Environmental Audit Study
also got under way during the course of this year. This process is expected
to be conducted and completed during 2006.
96) The Telecommunication Sector Study and Assessment was announced.
Expressions of Interest were received, and evaluations of bids are being
conducted presently.
97) The Study of Options for the Divestiture of the Social Security
and Housing Finance Corporation is ongoing. A revised Draft has been
received from the Consultants, and the report will be finalized before
the end of 2005, and recommendations will be submitted to Cabinet in
2006.
98) The main constraint facing The Gambia Divestiture Agency
(GDA), which has led to delays in implementing some of the transactions
has been funding. It is expected that the funding issues will be resolved
with the World Bank soon so that the Divestiture Program me objective
of the Government will be accomplished.
Mr. Speaker, Sir,
e. Infrastructural Development
i Electricity and
Water
99) The Rural Electrification Project is scheduled to be commissioned
in 2006 and 46 rural towns and villages will either have access to power
for the first time, or have their existing service improved tremendously.
As at end-September 2005, NAWEC has spent over D20 million as counterpart
contribution towards the project, and the total project cost is $19
million, funded by the African Development Fund (ADF), the Islamic Development
Bank (IDB), the Arab Bank for Economic Development in Africa (BADEA),
and The Gambia Government. Although the project has been delayed due
to a retendering of one of the components, all the components of the
project will now be completed in 2006.
100) In addition, the Kotu Ring Water Project is expected to
commence in 2006. The funding for this project (US $11 million) comes
from the Islamic Development Bank, and the Government of The Gambia.
The project consists of the construction of additional boreholes, expansion
of the capacity of the treatment facility at the Sukuta Treatment Works,
and the construction of additional elevated tanks to increase storage
volume and supply, and increase security of water supply.
ii. Road
101) The Gambia Roads and Technical Services Act provides the
framework for better management of the road network. The Highway Authority
established by the Act, is expected to be fully operational by 1st January,
2006.
102) Considerable achievements were made in the road sub-sector
in the last 12 months. The second phase of the Serrekunda-Mandinaba
Road Project has made substantial progress, and will be completed in
the first quarter of 2006. With regard to the Mandinaba-Soma stretch,
works are expected to start very soon once the on-going consultations
with the donors are concluded by the end of 2005.
103) In the North Bank, the contract for the reconstruction
of the Kerewan-Farafenni road has been signed, and the Contractor is
in the process of completing mobilization. Works on the complementary
section of this trunk road, Farafenni-Laminkoto, are well underway,
and are expected to be completed in early 2006. The Government has already
received a grant from the Kuwait Fund to conduct a study to upgrade
the Laminkoto-Passimas road on the North Bank, and the Basse-Fatoto
road on the South Bank. On the completion of the study, financial assistance
will be sought to upgrade these roads so that the entire North Bank
trunk road will be constructed to bituminous standard.
104) The European Union has financed the study and design for
the reconstruction of the Barra-Amdallai, Transgambia Highway, the Basse-Sabi,
Soma-Basse roads and the resealing of the Mandinaba–Seleti road.
Works are expected to commence in April 2006. In the meantime, patching
works are underway on the Barra-Amdallai and Soma-Base roads.
iii. Ports
105) The Gambia Ports Authority plans to embark on new projects
in 2006 and one of these projects is the Fourth Banjul Port Project.
The objective of the Project is to ease the imminent problem of congestion,
increase the container yard capacity, reduce the occurrence of flooding
at the Northern Terminal, accommodate expected traffic increase, and
deepen the entrance channel to allow larger vessels access to the Port.
iv. Telecommunications
106) During 2005, GAMTEL pursued its two main objectives of
providing services with great socio-economic benefits, and maximizing
revenue. A CDMA switch has been installed in 2005, and a 10,000 lines
pilot project was launched aimed at providing GAMTEL customers with
Next Generation Network (NGN) services. The CDMA expansion project will
be launched in 2006. In line with its objective of providing Universal
Access, GAMTEL expects of complete its Air span Project by December,
2005 thus enabling 800 villages to be connected to the telephone network
in the form of Wireless Local Loop.
107) GAMTEL will continue to support GRTS, and plans to rehabilitate
and expand GRTS facilities to give it effective national and regional
coverage. The 50 Watts Medium Wave (MW) transmitter at Bonto is to be
upgraded to 250 Watts, and a nation wide digital UHF TV station is to
be established with additional transmitters installed in Bwiam and Basse.
-end.