By Yero S. Bah
The Chief Executive Officer (CEO) of the Gambia Chamber of Commerce and Industry (GCCI), Mr. Alieu Secka, has observed that the effects of the coronavirus Disease (Covid-19) could be felt in all sectors of the Gambian economy.
He informed this medium, during an interview, that from an impact assessment, his office gathered through a third party that the principal actors of Gambian economy are the small and micro businesses which employ between one to five people.
The Chamber’s senior official went on to state that, despite a large presence of bigger companies, the microbusinesses are playing a crucial role in terms of the contribution to the country’s Gross Domestic Products (GDP) as well as job creation for Gambians, adding that 98 percent of all businesses are small and medium enterprises in the Gambia even though bigger companies pay a lot higher taxes and employ larger number of people in certain respects.
CEO Secka disclosed the impact assessment highlighted that the Covid-19 pandemic has impacted everyone across the board.
“It doesn’t matter whether you talking about tourism, agriculture, education, businesses and even individual households,” he told Mansa Banko Online. Among the direct impacts of the global pandemic he referenced are total or partial job losses, partial or total income losses, and scaling down of operations. He noted also that most importantly, most businesses face immediate liquidity crisis within three months, and as per the CEO’s views, Gambians are well into that stage now.
The survey also indicated that the youth population between 25 and 35, represented about 35% of these microbusiness enterprises, while the overall data shows that between 25 and 45% represent the entrepreneurs of the Gambian business sector.
“It is these small businesses that keep our economy going, as they produce or sell on a daily basis and that is how they survive too,” Secka added. He pointed out that the physical trading aspect of the Gambian business sector has been affected ninety percent (90%), since physical interactions were severely restricted by the bug safety measures countrywide.
The impact assessment also pointed out that over 35% of employers would lay off their staff due to the liquidity crisis they faced as a result of the coronavirus and its subsequent lockdown measures; and that their chances of survival is minimal since some of them borrowed capitals to commence their businesses.
Overall, the GCCI CEO argued, over 60% of the businesses have been impacted and faced this liquidity crisis in the Gambia. “To be specific, everyone will be affected within twelve months, so you cannot overemphasize the negative impact of this coronavirus,” he stated.
However, he said his office has made numerous interventions against the deadly virus by doing most of their work online, discussing with the National Business Council to devise methods to cushion the effects of the virus, which show the total rehabilitation of the sanatorium; their collaboration with Mustapha Njie of Taf to renovate the Ndemban Clinic at the tune of over two million dalasi (over D2million); and that they worked with the UNDP in which a minivan was purchased for the Gambia Prison Services for ease if transportation in this period. He said the private sector also renovated some of the prisons to ensure hygiene in this pandemic period within the prison entity.
Secka disclosed that they actually raised 14 million dalasi to help the Gambia government’s fight against the highly contagious deadly virus, indicating also that at the moment, through the GCCI’s partnership with the private sector, rehabilitation works are underway to renovate the clinics at the prisons, acquired 200 bump beds for the youth Remand Wing of the prisons. He lamented that congestion is a key challenge and they are pleased to be working with the UNDP in these interventions.
“The prisons are in desperate need of support as they are in dire situation,” CEO Secka vouched, cautioning that with the potential threats of Covid-19, if it breaks loose in the prisons, the whole of the Gambia is at risk. Justifying, he said because if prison officers and prisoners are released to the communities it could be disastrous; but he also held that, there is a humanitarian aspect to these interventions too which often is neglected.
On the education sector, Secka reminded that the private sector stepped in to provide thermometers to schools through the Ministry of Basic and Secondary Education (MoBSE) which would be used by students to curb the spread of the coronavirus in schools. “We have also conducted various sensitizations on radio and TVs as well as provided facemask or face shields,” he added.
He remarked also that the pandemic has sharply bitten tourism like no other sector, and this has immense consequences on the country’s economy since it contributes over 25% to the GDP and employs one in every seven Gambians. Furthermore, he said investors in the industry face massive losses considering their huge capital investments by erecting expensive tourism structures but at the end face redundant tourism.
“How will they pay their creditors, overhead bills and most importantly, their workers?” Secka queried. He told this medium that, over 20% of the Gambian economy also comes from the Gambian diaspora community through remittances, and most of these Gambians are also affected by the global Covid pandemic. Therefore, he said it has serious ramifications in Gambian homes and the national economy as well.
He disclosed that his office is in consultation with the government of the Gambia to implement certain measures that could revive the ailing economy such as deferment of loans by Commercial Banks, tax payments to Gambia Revenue Authority, Income tax, relaxation of certain requirements of the Commercial Banks by the Central Bank, reasoning because it is a regulatory body so as to help each of the actors fulfill or continue their operations in these trying moments.
The GCCI CEO used the interview to urge Gambians to stick to the Covid-19 Safety Regulations advanced by health experts at all times in public, reminding of the old adage, ‘the life you save might be your own’.
