By Ramatoulie Jawo
Hon. Seedy Keita, the Minister of Finance and Economic Affairs, addressed the National Assembly on Monday to explain the implementation of the $50 million credit facility from the Arab Bank for Economic Development in Africa (BADEA) in The Gambia.
Responding to a query from Hon. Sainey Jawara, the National Assembly member for Lower Saloum, Minister Keita detailed how the facility was utilized and the purpose of the agreement between the Gambian government and BADEA.
Minister Keita informed the Assembly that the credit facility was signed to mitigate the rising cost of basic and essential commodities in the country, a challenge faced between September and October 2022.
“The idea was to buy bulk quantities of Basic and Essential commodities from African or Arab countries for supply in the Gambian market to bring down prices. Before finalizing the facility with BADEA, we engaged the MoTIE to reach out to the prominent Basic and Essential commodities traders in the country on the subject facility,” he said.
He mentioned that in a meeting with the traders of basic and essential commodities, all the terms and conditions of the facility were shared with them, but they did not show any interest.
“Later, Jah Oil Co. Ltd. expressed interest in the facility and paid all the fees associated with the facility amounting to US$770,000.00 as a Condition Precedent to effectiveness and disbursement.
Consequently, the company was appointed as the Executing Agent for the facility. Jah Oil Co. Ltd. also paid Commitment charges of $45,138.89. Currently, 40% of the financing is utilized, as the first tranche of US$20 million has been disbursed since January 2024,” he told the members.
Honorable Samba Jallow, the National Assembly member for Niamina Dankunku, inquired about the progress of the second tranche of US$15 million, which is currently being processed. The Minister responded that once approved, this disbursement will bring the financing utilization to 70%. Regarding the implementation status, the Minister explained that they cannot prepare a report until the disbursement reaches an advanced stage.
“This is a requirement of BADEA. And when you said, the implementation report is not for the ministry, but is for the Financer to ensure that the proceeds of the financing facility are used as expected,” he said.
He explained that BADEA follows a checklist to ensure that disbursements align with the terms agreed upon.
Honorable Yahya Sanyang, the National Assembly member for Latri Kunda Sabiji, inquired if the Gambian government is assuming the primary guarantor role should Jah Oil default.
In reply, the Minister confirmed that they have identified all the commitments Jah Oil has undertaken as borrowers.
Hon. Lamin Ceesay, representing Kiang West, queried whether they had assessed the impact of this initiative on the lives of Gambians.
“Yes, indeed, we did. As a ministry, and just to mention, before Eid, Jah Oil imported rice, which was sold below the market price. He also imported cooking oil which at a 20-liter amount of 1500, which is all below market prices. Effectively, they have suppressed the market prices for these two commodities. And we believe the second consignment will be rice, and we expect a similar impact to be there,” he responded.