THE GAMBIA: BUDGET 2003

BUDGET SPEECH 2003

PROGRAMME BASED BUDGETING FOR EFFICIENT RESOURCE ALLOCATION AND USE WITH A POVERTY REDUCTION DIMENSION

119. During the year under review, the Government continued to accord highest priority to the agricultural sector, both as the source of food for the people and a major foreign exchange earner in the country. Food security being the ultimate goal of the Government, several projects and programmes, have been developed with a holistic approach that could facilitate and enhance this achievement on a sustainable basis.

120. Cereal production increased from 175,000 metric tons in 2000/2001 to 187,000 metric tons in 2001/2002, an increase of 6.9%. Early millet production of 89,000 metric tons represents 52% of the overall cereal production. However, the production of rice (the main staple food of the country) declined from 34,000 metric tons in 2000/2001 to 19,000 metric tons in 2001/2002, a decline of about 44%. This is due to reductions in both upland and swamp rice production.

121. The National Agricultural Research Institute (NARI) has made significant strides during the year under review in crop research. A rice variety - New Rice Variety for Africa (NERICA), which was developed for uplands by the West African Rice Development Agency (WARDA) is being promoted by NARI through on-farm trials for seed multiplication. If successful, the seeds will be distributed to farmers for increased production.

122. In accordance with the international common agricultural trade policy, intensive inspection and certification of all plants and plant produce for both import and export is being implemented at seven international trade routes on the country's borders. Inspection and certification helps in maintaining good quality produce export, which makes Gambian produce acceptable in the international market.

123. Programmes and projects geared towards improving food security include the Lowland Agricultural Development Programme (LADEP), Rural Finance and Community Initiative Project (RFCIP), Peri-Urban Smallholder Improvement Project (PSIP), and the Irrigated Rice Development Project (IRRDP) as well as other micro-projects under the various technical departments

124. There are three further appraised projects in the pipeline ready for implementation in 2003. They are the Integrated Watershed Management Project (IWMP), Farmer Managed Tidal Irrigation Project (FMTIP) and the Integrated Livestock Development Project (ILDP). All the three projects are to be jointly funded by the Government of the Gambia (GOTG) and ADB.

125. The Telefood Micro-Projects being sponsored by FAO increased from 16 in 2001 to 22 in 2002 (38% increase) with a total value of US$250,000. They focused mainly in the areas of horticultural production, commercial poultry and rabbit raising, fisheries, agro-forestry and beekeeping. FAO also sponsored the Agricultural Census Project which, ended in August 2002 on a cost sharing basis with Government.

126. One other investment worth mentioning in the sector is the Package Deal Programme (Crop Production Improvement). The objective of this programme is to support farmers with improved inputs such as seeds, fertilizer and provision of recommended crop production information. With the implementation of this programme, 3,715ha of land have been planted with maize, groundnuts, early millet, late millet, sorghum and rice.

127. As a sequel to The EU's groundnut revitalisation process, the Agric-business Service Plan Association (ASPA) that consists of producer organizations, donors and industrialists in collaboration with the Government continued to determine the nominal producer price of groundnuts. However, difficulties continued to be experienced in groundnut marketing culminating in credit buying. To address this problem for good, the Government and its development partners have elaborated strategic plans to enhance the efficient and effective marketing of groundnuts.

128. Despite the successes achieved, the agricultural sector continued to experience several constraints. These include lack of adequate investment, vagaries of weather, increased salinity and acidity of the lowlands, low soil fertility, increased degradation and depletion of the natural flora and fauna and lack of affordability and accessibility to inputs. For the sector to contribute meaningfully to the socio-economic development of the country and reduce endemic poverty the provision of adequate public and private sector investments cannot be overemphasized. This calls for concerted efforts and better coordination among the private sector, government and its development partners.

129. The transfer of Agricultural portfolio to H.E. the President underlines not only the importance attached to increased productivity of the sector by Government, but also to refocus and reposition the sector for revival and to meet targets for poverty reduction and contribute to GDP and growth of the economy.

Mr Speaker Sir,

130. Implementation of the Gambia Fisheries Development Project has now commenced. This project, with a countrywide coverage, will not only establish a Central Fish Market at Bakoteh, a Fisheries Port in Banjul, but will also rehabilitate Tendaba, Bintang and Albreda Fishing Centres. Similarly, the Banjul Ice Plant Project mentioned in last year's speech, has also commenced operations.

131. The Government of Japan has continued its steadfast support of our efforts to develop the fisheries sector by approving a US$7 million grant to The Gambia to finance the Project For The Improvement of Artisanal Coastal Fisheries in The Kombo South District. The Project for the Provision of Technical Assistance and Equipping of the Food Hygiene And Quality Control (QC) Laboratory funded by BADEA to the tune of US$350,000 has also been approved. The availability and operation of this QC laboratory will enhance the competitiveness of our fishery products in the international market.

132. Franco-Gambian cooperation in fisheries development has continued to make significant strides towards more fruitful developments. The IRD/Fisheries Department one-year research on estuarine areas of the River Gambia will increase knowledge of the resource potential of the River fisheries, thus enabling us to increase production.

133. In terms of contribution of fisheries to national revenue, Government received over D4 million as license fees for fishing vessels. The Departments of State for Fisheries and Defence are working together to acquire a patrol boat to protect our resources. The presence of this boat will therefore ward off poachers and ensure that no illegal fishing practices occur.

Mr Speaker Sir,

134. Perhaps the most significant development for the tourism sector in the year just ended was the setting up of the Gambia Tourism Authority (GTA) - a dynamic new institution that is seeking to reform the sector. The GTA, working in close collaboration with the tourism private sector operators and other stakeholders, is preparing detailed programmes and activities to address the issues of marketing, standards and quality and human resource development in the sector.

135. We have witnessed a further consolidation in our biggest source market, the United Kingdom. A new tour operator, Direct Holidays, which is part of the My Travel group, launched a programme to The Gambia this winter and The Gambia Experience significantly increased its operation from three to four flights a week in the winter.

136. For the first time in the history of our tourism industry, we now receive a direct charter flight from the Czech Republic where Fischer Air is operating two flights to Banjul every fortnight. There has also been a positive development in the Swiss market where Olympia International, is operating a weekly flight between Zurich and Banjul in collaboration with a Swiss tour operator Hotel plan.

137. This additional traffic from the United Kingdom, Switzerland and the Czech Republic would have the effect of reducing the rate of decline in tourism traffic. There are now positive indications that the tourism sector is heading for a turnaround, with 15 charter flights a week instead of 13 last winter. Moreover, initial projections show that the number of air charter arrivals should increase by more than 30% in 2003.

138. As part of the efforts to address the issue of standards in our hotels, the Department of State for Tourism & Culture, with the help of the European Commission Support Office, has identified a consultant to review and implement the Gambia Hotel Classification and Grading System. This is the first time that our hotels are geared according to international standards. The EC is also supportive in upgrading the hotel school into a Tourism and Hospitality Institute. The Department of State in partnership with GAMWORKS will soon implement the TDA Street Lighting project. This D4.5 million electrification project jointly funded by the Department and the Gambia Hotel Association will light up the whole of the Bertil Harding highway from Shell to Senegambia.

139. Government is also conducting a comprehensive review of the tourism sector, which will result in a detailed Development Master Plan focusing on the key aspects of the industry. The Master Plan will guide the Government to formulate and adopt appropriate policies and procedures and institute the necessary reforms for the sustained development of the sector. The project, jointly funded by the Government of the Gambia and the ADB amounting to D14 million. A reputable consulting firm has just been awarded the contract for the study.

140. It is gratifying to note that the National Council for Arts and Culture (NCAC) have successfully completed the World Bank sponsored Project for Capacity Building of the institution, the final outcome of which has been the formulation and presentation of a five year Strategic Plan 2002 - 2007 for the development of the sub-sector.

141. The National Council for Arts and Culture's five year Strategic Plan 2002 - 2007 has undoubtedly put the Cultural Sector on the pedestal of a new path for the development of The Gambia's Cultural Heritage that is closely linked to all spheres of national life, and calls for the full involvement all.

142. In the same vein, and in the context of Government's unwavering commitment to and interest in protecting the works and creative genius of Gambian artists, a new draft Copyright Bill 2002 was also tabled and passed by the National Assembly last year at about the same time as the new National Council for Arts and Culture Act.

Mr Speaker Sir,

143. A Trade Facilitation Centre has been recently established with the purpose of assisting the private sector by providing relevant information and data on businesses, market opportunities, trade regulations and requirements within the domestic and international markets. The emphasis lies particularly in industrial production where we encourage greater resource mobilization with the view to stimulate large-scale industrial manufacturing and production of a wide range of goods both for the domestic and export markets.

144. The Government is also reviewing its trade laws/measures, with the aim of making them consistent with the World Trade Organisation agreements. Being conscious of its impact on trade, the Standards and Consumer Protection Bureau continues to pursue policy measures that regulate and maintain product standardization, quality control and the overall protection of consumers.

145. The creation of The Gambia Investment Promotion and Free Zones Agency (GIPFZA), marks the high level of interest and support demonstrated by our bilateral and multilateral partners in the country's trade and investment promotion efforts. This year, the World Bank approved a $16 million loan for The Gambia Trade Gateway Project under GIFZA and DOSTIE. This Project will, over the next five years, develop a Free Zone at the Banjul International Airport, and generate over 4,000 new jobs in the economy. In addition, the Project is expected to attract a large inflow of investment.

146. In respect of Employment and Human Resources Development, the government has successfully completed the formulation of both the National Employment Policy and the National Employment Action Plan. These two documents are part of the essential components of the national poverty reduction strategy with special emphasis on women and youths, since employment and disposable incomes of the citizens are the critical link between economic growth and poverty reduction.

147. In line with Government's determination to pursue a strategy of partnership and participatory development, which is a crucial factor for sustainable development, DOSTIE launched The Gambia Interface Capacity Building Project (GICAP) funded by the Africa Capacity Building Foundation (ACBF). The implementation of this Project, which is entirely funded by the ACBF to the extent of $850, 000, has commenced with the ultimate purpose of harmonizing the activities of the Public Sector, Private Sector and Civil Society.

148. Furthermore, the review of the Labour Act has just been completed and the drafting of the required amendments has commenced. It is important to note that this Act seeks to establish a more humane, adequately remunerated, safe and healthy work environment for Gambian workers. Also by the beginning of the year 2003, implementation of the International Labour Organisation (ILO) Conventions will be started in order to facilitate a decent work environment.