By Ramatoulie Jawo
The Gambia Civil Aviation Authority (GCAA) recorded a remarkable 74.03% growth in revenue for the year ending December 2022, according to its Director General, Fansu Bojang.
Presenting the 2022 annual report to the National Assembly Standing Committee on Public Enterprises, DG Bojang revealed that the authority’s turnover rose from D355.6 million in 2021 to D618.8 million in 2022.
“The operation performance of the authority for the year ended on December 2022 showed improvement with turnover increasing by 74.03% -D618,800,000 from D355,600,000 in 2021. This significant increase can be attributed to recovery from the Covid-19 pandemic,” he said.
He also disclosed that direct costs rose by 14.9% during the period, reaching D83.9 million compared to D59.7 million the previous year. The increase in direct costs was mainly driven by fluctuations in the exchange rate of the US dollar against other major currencies, as key expenditures were made in foreign currencies.
Despite higher costs, the GCAA achieved a gross profit of D534.9 million in 2022, reflecting an 18.7% increase compared to the previous year. Operating expenses—including administrative costs, staff expenses, interest, and depreciation—rose marginally by 2.1% during the period under review.
“I am glad to report that the authority was able to turn its operating loss of the previous year to an operating profit of D199,300,000 in the year 2022 from a loss of D32,700,000. Yet again the authority with all its efficiencies to register an operating profit could not convert saved into net profit. The authority has a net loss of D338,800,000 in 2022 which is attributed only to the interest expenses amounting to D531.3 million,” he said.
He highlighted that the net loss was primarily due to interest expenses and related charges, noting that the exchange rate of the long-term development loan contracted by the government and transferred to the Civil Aviation Authority accounted for 82.25%.
He further explained that the impact of foreign exchange fluctuations and interest expenses on the foreign currency-denominated borrowing, which was incurred for airport improvements, continued to negatively affect the financial performance of the authority.
Director General Bojang emphasized that the depreciation of the Dalasi, coupled with a significant increase in the foreign currency loan portfolio, amplified both the size of the loan book and the cost of servicing these loans through interest charges and foreign exchange losses.
Despite the government’s substantial contributions to the authority, he noted that the paid-up share capital remained unchanged at D139,733,000 over the year.“It should be noted that the government of the Gambia is the only shareholder of the GCAA,” he told the committee members.