By: Alieu Jallow
The Minister of Finance and Economic Affairs, Seedy Keita, has said the government aims to revamp the telecommunications sector in The Gambia by restructuring The Gambia Telecommunications Company Limited (GAMTEL) and privatising its subsidiary, GAMCEL, in a bid to attract capital and increase competitiveness in the sector.
The finance minister made these remarks during his budget speech in Parliament.
In 2000, GAMTEL was established as the National GSM Operator. However, this cellular has been unable to provide tough competition to other telecommunication giants such as Africell, Qcell, and Comium. On the other hand, GAMTEL, which owns the fiber-optic cable that runs across the country and controls the country’s connection to the international internet via the ACE submarine cable system, has been underperforming in terms of providing fast and high-quality internet.
“The Government is supporting GAMTEL’s network upgrade and expansion initiatives geared towards enhancing inclusivity, providing adequate redundancy, and building resilience.
“To achieve this, the government will restructure GAMTEL and privatize GAMCEL in a bid to attract and induce the much-needed capital to help revive the sector and restore its competitiveness,” Keita told parliament.
Hon. Keita announced that the Ministry of Communication and Digital Economy is currently working on a plan to revitalize and reposition GAMTEL/GAMCEL. This involves drafting a National Fibre Protection Policy that will address the frequent network interruptions caused by cuts on the national fiber backbone.
In February 2019, reports emerged that the government had agreed to restructure GAMTEL and GAMCEL, which would allow GAMCEL to operate independently and divest shares in GAMCEL. However, no further developments have been reported since then.
Hon. Keita also mentioned that the Ministry of Communications and Digital Economy (MoCDE) is prioritizing the development of a comprehensive National Postal Service Policy and Strategy. Additionally, they are conducting a thorough review of the existing Postal Service Act to ensure that it is up-to-date and reflects the modern reality of postal services.
“In accelerating The Digital Terrestrial Transmission Process, the ministry continues to intensify resource mobilization efforts for the deployment of a robust platform that will anchor the digital migration process, ensure nationwide coverage, and provide better-quality television transmission,” Keita said.
It has been reported that GAMCEL, a telecommunication company, may face closure in 2020 due to financial struggles and difficulties competing in the market. The company’s general manager, Elizabeth Johnson, confirmed this during a meeting with the Public Enterprise Committee (PEC) of the National Assembly.
According to Johnson, the GAMCEL network is not easily accessible and experiences serious network congestion in areas where it is accessible. She also stated that the company is unable to expand its network coverage from its internally generated revenue and requires capital injection.
Additionally, Johnson mentioned that GAMCEL has lost 70% of its market share to competitors in the last decade. In response to these challenges, the government is considering restructuring and privatizing the company to increase competition and improve internet affordability and quality for citizens and non-citizens alike.
