Banjul-
April 8, 2020- A four-page proposal entitled: “Draft Concept Paper for a
Stimulus Plan: ‘Addressing the Socio-economic Impact of the Coronavirus on
lives and livelihoods’” calling on the government of President Adama Barrow to
prioritize its resource allocation to the poor, vulnerable and struggling SMEs
and strategic businesses, was released today. It details modes of financial
assistance to the poor and vulnerable to provide cash transfers/payments using
Government – to – person (G2P) and other mechanisms to cover three months of
lost income to those who have lost their jobs and/or their incomes due to Covid
– 19. It also proposes the introduction
of systems and mechanisms to obtain data on the informal sector, like taxi
drivers via the Transport Union to assist them with fuel subsidy using fuel
coupon schemes, to incentivize those who adhere to the 50% passenger
regulation. It also proposes support to
SME’s/businesses affected by the economic slowdown in the form of tax and
import duty rebates, access to foreign currency, concessional loans and other
economic stimulants. It proposes a set
aside financial package of thirty million dollars for this.
“We understand the rationale for a effecting a
State of Public Emergency, we concur that this is indeed is a necessary
strategy to ‘flattening the curve’. However, a State of Public Emergency, where
movement and freedoms are curtailed, must include incentives and other actions
that would buffer against the opportunity cost and consequences of such a
decision. It must give [financial]
incentives to the populace and the various sectors of the nerve centre of the
economy. It must have the backing of the
public, without which any plan will not succeed,” said one of the authors of
the plan.
The
backers of the plan, which includes the Gambia Chamber of Commerce, have asked
President Barrow to consider giving support to strengthen the Central Bank’s
Supervision Department to better manage the licensing, regulation and
supervision of the banking sector and mobile money operations. It also proposes
a lowering of interest rates and introduction of deferrals on repayment of
loans in critical sectors, like the hospitality industry, to cover the January-
May 2020 period, where loss of tourist revenue has had a direct impact on the
sector. Eighteen million dollars is
proposed, as an allotment, for this component.
“This
proposal is smart, realistic, time bound, attainable and applicable to our
unique circumstances as a nation that is struggling economically, and is still
to recover from a legacy of attendant corruption, and poor governance
experienced over a period of 22 years of its half a century of existence,” said
one of the endorsees of the proposal.
The
proposal is coming at a time when the country rests at a precipice of a health,
social and economic catastrophe, as it stares down into an abyss whose depths
are unknown. In a letter, which
accompanied the submission sent to the President Barrow, the endorsers stated
that:
‘We
hope that this modest proposal will be taken in the spirit in which it is
meant: to strengthen our national response to the situation through collective
action; transparent partnership led by an accountable government and supported
by a willing and able citizenry at home and abroad.’
Background:
The
proposal has been forward to the Authority of the national Assembly and the
multi-lateral and bilateral partners of The Gambia.
The
proposal was endorsed by: Gambia Chamber of Commerce and Industry (GCCI); BPAS-
Democratic Union of Gambian Activists (DUGA); Gambia Participates; Gambia Conference of Reforms and Democracy
(GAMCORD); Right to Know (R2K) Gambia; The Association of Non-Governmental
Organizations in the Gambia (TANGO); and Team Gom Sa Borpa.
For
more information, please contact: r2kgambia@gmail.com
