Gamcel to be sold

by PK Jarju, Birmingham, UK

Gambia's secretary of state for Finance and Economic Affairs have revealed that the Gambia government is planning to sell a huge chunk of its shares in the Gambia Telecommucations Cellular Company Limited (Gamcel).

Mousa Gibril Bala-Gaye made this revelation in a recent letter to Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF).

In the letter, Mr Gaye said the Gambia government will be offering a significant portion of its shares in the Gambia Telecommucations Cellular Company Limited [Gamcel] for sale.

Mr Gaye however, did not give any reason as to why the government is wanting to part with a huge portion of its shares in one of the most profitable public enterprise in the country

Gamcel was established by incorporation on November 16, 2000, as a limited liability company under the company’s Act of 1955. It is a wholly owned subsidiary of the Gambia Telecommunication Company (GAMTEL).

It began commenced business earnest on May 25, 2001 when the GSM network was launched, replacing the outdated analogue network (TACS) and has since being making huge profits.

Apart from 2007, Gamcel have registered huge profits year after year and have pumped millions of Dalasis into the country's economy.

In 2004, the company made a turnover of D313 million an increase in revenue of D39.6 million registered in 2003.

In 2005, it registered a total operating profit, before tax of D240.3 million, which, compared to the corresponding period as at end 2004, show an increase of D70.5 million, representing an increase of 41.49 percent.

In 2007, the company made a profit before tax of D163 million, a decrease of D79 million or 48 per cent over 2006.

In a similar development, Secretary of State Gaye revealed that the Gambia government have received US$28 million out of US$35 million from Spectrum Group, which bought 50 per cent shares of Gamtel/Gamcel in November 2007. He added that the said amount was received before government terminated the partnership agreement with Spectrum Group and negotiations are ongoing between the two parties for the settlement of the outstanding US$6.5 million