We are also aware that in this contract, Africa50 has 87.5% and Gambia Government will receive 12.5% of the money fetched from the bridge and that the contract will last for 25 years.
Mr President, it is really not bad to monetize our bridge but we would like to urge you and your government to put the money into good use by advancing our infrastructural development, such as investing in good roads, electricity and transportation, and most especially by giving attention to our ferries in order to improve the socio-economic development of the country.
According to Mrs Amie Bojang Sissoho, Director of Press and Public Relations at the Office of The President, Africa50 will give the government US$20 million immediately after the signing of the agreement, and additional US$50 million and US$30 million will be subsequently paid the same year.
It should be noted that Africa50 will be responsible for collecting fees and managing the Senegambia Bridge. However, the bridge remains Gambia’s own.
Minister of Finance and Economic Affairs, Seedy Keita, stated at a press conference recently that the US$100 million deal with Africa50 is not a sale transaction, a mortgage or a privatisation contract. We appreciate his clarification that the arrangement goes into revenue-producing assets, which provide predictable and reliable cash flow to the country.
Africa50, established by African Governments and AfDB with the objective of addressing Africa’s infrastructure gap through viable investments, has been in about 30 African countries. Even though each country focuses on its infrastructure development, it is also important to lay emphasis on regional integration if we are to harness the inclusive development potential of the continent. One example of a regional project is the Trans-Gambia Bridge. It is important to note that without eliminating administrative barriers, regional infrastructure projects would only be white elephants and the African Continental Free Trade Area (AfCFTA) would only be a dream.
Mr President, each country has its comparative advantages and to prioritize Gambia’s infrastructure development needs, we must be guided by our comparative advantages. The Gambia’s comparative advantages are in the services sector (including Tourism) and agricultural production and processing.
Mr President, the monies gained from these contracts should be wisely spent on infrastructure development priorities which include electricity, ICT infrastructure (including reliable internet connectivity), road and transport infrastructure (including airport and seaport infrastructure), and training and skills development (including expansion of UTG into the sciences and skills development).
These, Mr President, should be our focus areas for infrastructure investment because developing these sectors means creating jobs, revenues, income and expertise. However, these must be supported by sound and friendly private sector investment policies and commitment to regional integration for bigger market access.
Note that 75% of our GDP comes from the services and agric sectors (Services 53% and Agriculture 22%). Therefore any investment in infrastructure should focus on these two sectors. The services sector is driven by ICT while the agric sector is driven by equipment, transport and market access. Of course both are sustained by expertise, therefore training infrastructure is important.
Finally, Mr President, it has come to our knowledge that the Global Tracking Maritime Solution (GTMS) is still trying to reintroduce Cargo Tracking Note (CTN). If this is the case, it may unhelpfully affect businesses.
The business community is expressing fear that the CTN would be detrimental to the cost and prices of goods or commodities in the country. The charges that will be levied on business operators may have a negative trickle-down effect on consumers or the people.
A case in point is Sierra Leone where the government, on 15 February 2019, decided to terminate their contract for breach of terms and conditions which brought about more economic hardship in the country.
Mr President, it is good for government to always investigate or carry out due diligence before signing contracts with companies to avoid taking steps or entering into deals, which may make your government unpopular.
Good Day!