Rédaction Africa Links 24 with babucarr balajo
Published on 2024-03-12 09:59:00
The decision by the Gambian government to award a $50 million loan facility to Jah Oil has sparked widespread concern and criticisms. Trade Minister Baboucarr Ousmaila Joof has come out to defend the process, stating that it is being misconstrued.
The loan agreement was approved by the National Assembly last June, with the aim of supporting Gambian businesses involved in the importation of food and essential commodities. The loan was secured from the Arab Bank for Economic Development in Africa (BADEA).
Finance Minister Seedy Keita confirmed that the loan was indeed given to Jah Oil and that the process was handled by the trade minister. This raised questions from the public and National Assembly members about how Jah Oil became the sole beneficiary of the loan.
In response to the criticisms, Jah Oil’s CEO, Hamidou Jah, explained that his company was not favored by the government but was the only one willing to accept the conditions of the loan, taking on the risk.
Trade Minister Joof clarified the purpose of the loan, stating that it was not specifically meant to import commodities to reduce prices in the market. Instead, the loan was negotiated to support commodity trade in The Gambia and provide traders with the necessary capital injection to improve commodity trading. The $50 million loan was meant to support various commodities, including petrol, and was not a grant but a loan with conditions set by BADEA.
The eligibility criteria for accessing the loan proved challenging for many importers, with conditions such as purchasing products from countries within the BADEA family and putting up a substantial amount of money as a guarantee. Despite several rounds of invitation and explanation of the criteria, most importers found the conditions difficult to meet.
However, Jah Oil stood out as the only company willing and able to meet the requirements, including putting up a substantial guarantee. The decision to award the loan to Jah Oil was based on their capacity and willingness to adhere to the conditions set forth by BADEA, not favoritism.
The PS Ministry of Trade, Lamin Dampha, emphasized that the loan came with zero cost to the government and highlighted additional conditions such as repayment in dollars and importing only from Arab and African countries.
In conclusion, the awarding of the $50 million loan to Jah Oil has come under scrutiny, but Minister Joof and other officials have defended the decision, citing the company’s readiness and ability to meet the stringent criteria set by BADEA. While the process may have raised concerns, it was ultimately based on the company’s capacity and compliance with the loan conditions.
Read the original article on The Standard
