EU Commits D450M to Gambia’s Development

(Daily Observer)--The European Union (EU) will this year start the implementation of a 10 million euro (D450 million) development programme in The Gambia, its new ambassador to The Gambia has disclosed.

Her Excellency Dominique Dellicour, who will be based in Dakar, was speaking to the State House press corps Thursday afternoon shortly after presenting her letters of credence to the president- elect, His Excellency Sheikh Professor Alhaji Dr Yahya Jammeh .

Ambassador Dellicour who was accompanied to the presidency by the new EU charge d’affaires to The Gambia explains: “This year we will start implementation of a Euro 10 million equivalent to D450 million, a programme for supporting the government of The Gambia in strengthening the independence of the Judiciary and also improved access to justice for ordinary citizens and the knowledge of their rights; and also a programme in the media sector to implement the constitutional provisions regarding the freedom of the press but also the professionalisation of the press to permit that the press plays an important role in promoting information and communication on important public policy issues.”

Ambassador Dellicour also told journalists that another good news is that the European Commission/Union is about to take positive decision for The Gambia which she said is funding the Millennium Development Goals (MDGs). While further disclosing that there will be additional money that will come from the EU to fund progress to accelerate reaching the country’s MDGs, Dellicour further disclosed that one of the domains that they have chosen in this regard is food security.

This, she said, is due to the fact that there is a lot of progress to be made and achievements to meet, while underscoring that another programme in the field of climate change and management of territories and coastal regions and coastal erosions will form part of their interventions.

She added: “We have also very important programme on economic governance to try to improve the public finance management, the transparency in the budget process; more accountability of the government in terms of planning and implementation of the budget; and so that is very important aspect of our cooperation.”

The EU diplomat said her closed-door discussion with the Gambian leader also touched on the regional funds, underscoring that they discussed the proposal to fund under the regional programme the bridge over The Gambian River. That project, she underpinned will be very important to the regional integration process, thus allowing the circulation of goods in the region to be freer.

Touching on the relations between The Gambia and the EU, Ambassador Dellicour underscored that it has been fruitful in that they have one of the biggest cooperation programmes in The Gambia.

She pointed out that today if one looks at their portfolio programmes in the country, they have already committed to The Gambia almost D3 billion for cooperation in very critical domains of economic development. She cited the infrastructure sector as one such domain of their intervention in which they are doing a lot to promote the development of the road system – the main Trans-Gambia Road amongst others, as well as rural roads that link agricultural areas to export their goods and import what is necessary for better food security.

Dellicour stressed that what is also important is the fact that they discussed with the president -elect political dialogue in addition to the existing cooperations they have on issues not only on development but also the essential elements of the Cotonou Agreement.

The essential elements of Cotonou Agreement she explained, includes the consolidation of democracy, the rule of law and human rights, and the civic society empowerment with a view to allowing them be an actor in the discussion of development policies of the country.

2012 Draft Budget is D5.77BN

(Daily Observer)--The total revenue and grants of The Gambia government budget for the fiscal year 01st January to 31st December 2012 is projected at D5.77 billion. This was disclosed by the minister of Finance and Economic Affairs, Mambury Njie before deputies at the National Assembly yesterday.

This is in accordance with Section 152 (1) of the 1997 Constitution of The Gambia for the president to instruct the Finance minister to submit to the National Assembly, at least 30 days before the end of each financial year, the estimates of revenues and expenditures of The Gambia for the following year.  According to the Finance minister, the revenue is expected to increase in nominal terms to D4.61 billion in 2012 on account of increased receipts from non-tax revenue.

Net-lending projection
Minister Njie added that the total expenditure and net-lending is expected to increase by about 10% from D61.11 billion in 2011 to D6.72 billion in 2012. The rise in total, according to him, is explained mainly by increases in other current expenditures and anticipated project grants.

Other charges and personnel expenditures
The Finance and Economic affairs minister stated further that the personnel expenditure is projected to increase to D1.73 billion in 2012, representing an increase of 3%, compared to D1.67 billion in 2011. “Other charges are estimated to stand at D2.54 billion in 2012 compared to D2.26 billion in 2011, reflecting a year-on-year growth of 12.6%. The increased provision to accommodate the new subvented institutions in the budget contributed to the increase in other charges expenditures,” said Minister Njie. According to him, the 2012 budget will see an increase in domestic borrowing and settlement of NAWEC arrears and other liabilities.

While seeking approval from lawmakers, the draft budget estimate for the coming year, the Finance and Economic Affairs minister pointed out that the budget will be a useful tool in their drive to accelerate growth and reduce poverty as well as to sustain macroeconomic stability. He said: “On the onset, allow me to state that government is steadfast and determined to continue with the fiscal and structural reforms undertaken during 2011. It will continue to consolidate the macroeconomic gains recorded for the past successive years.”

The Finance and Economic Affairs minister noted that despite the uncertainties in the global economic environment, the Gambia economy remains strong. According to him, the GDP is estimated to grow by 5.5% in 2011 underpinned by healthy performance of the agricultural and telecommunication sectors.

“Inflation continues to be subdued with end-September 2011 inflation standing at 4.1% compared to 6.2% a year earlier. The decline in inflation is explained mainly by food items, accounting for 55% of the weight of the basket of goods and services and inflation is expected to remain within the target of 6% during the year 2011,” he explained.

According to Minister Njie, government fiscal operations during the first three quarters of 2011 yielded an overall deficit (excluding grants) of D889.9 million, 2.8% of GDP, mirroring expenditures of D3.7 billion against a revenue outturn of D2.8 billion during the period under review.

The Majority leader and National Assembly member for Serekunda East, Fabakary Tombong Jatta, who seconded the motion thanked the Finance minister for the draft estimate budget including the development expenditure for the year 2012.
According to him, government’s commitment and determination for effective fiscal and structural reform in the financial sector is unprecedented despite the global financial crisis.

Like the Finance minister, Hon. Jatta also observed that despite the global financial downturn, the Gambia economy remains strong. He finally commended the government for its determination to ensure improved tax policies and tax administration and the idea of widening the tax-base.

Gov’t To Establish Tax Tribunal

(Daily Observer)--The minister of Finance and Economic Affairs has revealed that a tax tribunal will be established while taxpayer education will also be reinforced so as to reverse the current decline in revenue, reducing the deficit to the target that will allow sustainable growth in the economy. Mambury Njie made these revelations on Thursday evening while presenting the 2012 Draft Budget Estimates of Revenue and Expenditure including development expenditure of the government of The Gambia.

He said his Ministry will continue tax reforms, and that such measures will include reducing the maximum tax rate, broaden the tax base, and enhance taxpayers’ compliance.  “Over the last few years, my Ministry made concerted efforts to improve tax policy and administration. However, volatility in revenue performance has been evident which affects both the budget preparation and execution process. In almost all indicators revenue performance signals a downward trend in recent years,” he noted.

He added: “In addition, preparations are on course for the implementation of the VAT while it is envisaged that the VAT would simplify their tax structure and also increase revenue collection.”

Budget Session Starts Dec. 1st

(Daily Observer)--Members of the National Assembly will this Thursday be presented the Draft 2012 Estimates of Revenue and Expenditure including the Development Expenditure of the Government of The Gambia for the fiscal year January 1st to December 31st 2012 (both dates inclusive).

To be submitted by the Minister of Finance and Economic Affairs, Mambury Njie, the session will accord lawmakers the opportunity to proceed and debate on the 2012 Draft Estimates from Monday December 5th to 7th 2011. According to reports from the National Assembly, members of the house shall on Wednesday December 7th, 2011 debate on a Motion on Ecowas Commission's Decision on the 24th November Presidential Polls.

Other reports and bills will also be laid before the National Assembly for consideration, adoption and enactment by the lawmakers during the fourth meeting of the 2011 Legislative Year. “The Auditor General’s Report on the Financial statement of the Government of The Gambia for the year ended 31st December 2007, by the minister of Finance and Economic Affairs; External Auditors Report on the Audited Accounts and Financial Statement of the National Audit Office by the vice chairman of the Public Accounts/Public Enterprises Committees of the National Assembly,” it stated.

Deputies will also look at the Gambia Public Transport Corporation Repeal Bill 2011 and The Gambia Tourism and Hospitality Institute Bill 2011 to be presented by ministers of Works, Construction and Infrastructure Dr Njogu Bah, and Aja Fatou Mass Jobe-Njie, minister of Tourism and Culture respectively. On Friday 16th December 2011, the Finance and Economic Affairs minister shall present the Appropriation Bill, 2012 (Budget Speech) at 5 p.m. highlighting The Gambia government’s development programmes for the coming fiscal year 2012.

GGC Pegs Groundnut Price At D10,250 Per Ton

(Daily Observer)--Following the announcement by the Agribusiness Services & Producers Association (ASPA) of a farm-gate producer price for groundnuts of D9,300 (nine thousand dalasis) per metric ton in the 2011/12 groundnut-marketing season and the setting of the official start date of 5th December 2011.

The Gambia Groundnut Corporation Ltd (GGC) is pleased to inform the farming community, the Cooperative Produce Marketing Societies (CPMS), traders and all other stakeholders that the depot price for this year’s groundnut marketing season is pegged at D10,250 (ten thousand two hundred and fifty dalasi) per metric ton, a press release from the GGC revealed yesterday.

According to the release, due to the nature of the infrastructure in the depots, the minimum tonnage acceptable is being initially set at 5 (five) metric tons. “GGC solicits the cooperation and support of all stakeholders,” the release concluded.

Central Bank Introduces New Payment Systems

(Daily Observer)--In collaboration with the West African Monetary Institute under the West African Monetary Zone Monetary Integration Programme, the Central Bank of The Gambia has embarked on the modernization of the country’s payments, clearing and settlement system infrastructure.

The development is part of a regional payments system initiative and forms an integral part of the prerequisites for effective West African monetary integration. This revelation was made by the governor of The Central Bank, Amadou Colley on Tuesday November 2011 during a briefing of stakeholders at the bank’s board room, to expose them to the new automated cheque processing (ACP/ACH) and the Real Time Gross settlement System (RTGS).

According governor Colley, the initiative is also part of the Central Bank’s strategic vision of modernizing the payments and settlement system into a world class standard, comparable to the rest of the world. The system will lower costs, make payments and settlements more accurate and pave the way for increased financial innovations in the country.

The process spans across different facets and include the establishment of the Real Time Gross Settlement System (RTGS), the Automated Cheque Processing/Automated Clearing House (ACP/ACH), Securities Settlement System (SSS) and an electronic National Switch for retail payments.

The rationale for the projects is justified by the fact that: The Gambia remains a cash based economy, with payments of large value transactions requiring heavy movement of cash and its attendant risks; the continued dependence on cash payments also results to delays in cheque processing and inefficiency; and the cost of printing currency is quite high, thus the substitution of banknotes in favour of plastic cards under the National Switch project seeks to alleviate this problem.

He added that the Central Bank currently operates a manual cheque clearing system, where commercial banks meet to physically exchange cheques and net balances settled through their current accounts held with the Central Bank, which is time consuming and less efficient in detecting cheque frauds; the delay in confirmation of customer balances due to the lack of real time gross settlement systems results to the acceptance of cheques, which would otherwise be rejected outright.

Some of these cheques turn out to be dishonored due to various reasons; and The Gambia has registered significant progress in her socio-economic development, with growth rates of GDP averaging between 5 to 6 percent per annum. These gains will be consolidated through the modernization of the payments system and the creation of a conducive environment for further growth.

 The systems when fully functional, he asserted will help the Bank achieve  among other objectives, eliminate or minimize risks associated with payments, clearing and settlement system, eliminate float size for individual customers and banks as well as significantly reduce the float time for cheque clearance, with the possibility of reducing the clearance time from five days to one day in addition to combating fraud and forgery, pave way for reducing high case intensity and gradual migration to high usage of electronic modes of payment, and bring efficiency to Government receipts and payments and all other consumers and leverage them for financial deepening of the economy.

It will also ensure compliance with international principles and standards, especially the core principles for the Systematically Important Payments Systems (SIPS) of the Bank for International Settlement (BIS) and enhance the Central Bank’s monetary management capabilities.

Cheque Imaging System
Explaining the teachniques behind the projects, the central bank boss noted that in their quest to ensure the realization of Government’s vision 2020, the Central Bank wishes to harness technology to its advantage and the rest of the financial system. He said the applicable technology in the field of finance enables the elimination of heavy dependence on physical movement of cheques for clearing purposes.

It presents the fastest and most secure mode for clearing cheques through digital means and replaces the physical exchange of cheques between the presenting and paying banks. However, the effectiveness of the system depends largely on how users handle cheques.

He further revealed that the Central Bank will soon embark on a sensitization geared towards educating the public on the up-coming projects and the importance of careful handling of cheques.

He also seized the opportunity to inform the general public that under the new system, all cheques payable through our banking system shall be in compliance with specific characteristics, critical among which is the Magnetic Ink Character Recognition (MICR) code.

The MICR represents a unique code which is inscribed on each cheque leaf and forms the basis of electronic processing. Once the cheque passes through a scanner, an image is generated, which passes through the system electronically for timely confirmation of customer balances and the immediate payment of beneficiaries where applicable.

However, the scanner cannot capture images of damaged cheques, which may result to processing failure. Cheques, he emphasized may be damaged through, writing on the MICR code area, folding of cheques in a form which may prevent its passage through the scanning machine, soiling of cheques with oils, paints or other permanent marks, wear and tear of cheques due to poor storage facilities, stapling of cheques, forgeries aimed at defrauding the system among others.

Governor Colley conduced that all banks are adequately equipped with the means for the implementation of the new measures; and solicits the cooperation of the public in ensuring full implementation of the new payments system projects, which will contribute a long way towards the development of our country.

Six Dangerous Moves For First-Time Investors

(Investopedia)--Thanks to online discount brokerages, anyone with an Internet connection and a bank account can be up and trading stocks within a week. This ease of access is great because it encourages more people to explore investing for themselves, rather than depending on mutual funds or money managers. However, there are some common mistakes that first time investors have to be aware of before they try picking stocks like Buffett or shorting like Soros.

Jumping In Head First
The basics of investing are quite simple in theory – buy low and sell high. In practice, however, you have to know what is low and what is high in a market where everything hinges on different readings of a variety of ratios and metrics. What is high to the seller is considered low (enough) to the buyer in any transaction, so you can see how different conclusions can be drawn from the same market information. Because of the relative nature of the market, it is important to study up a bit before jumping in.

At the very least, know the basic metrics such as book value, dividend yield, price-earnings ratio (P/E) and so on, and understand how they are calculated and where their major weaknesses lie. While you are learning, you can see how your conclusions work out by using virtual money in a stock simulator. Most likely, you'll find that the market is much more complex than a few ratios can express, but learning those and testing them on a demo account can help lead you to the next level of study.

Playing Penny Stocks
At first glance, penny stocks seem like a great idea. With as little as $100, you can get a lot more shares in a penny stock than a blue chip that might cost $50 a share. And, if the two blue chip shares you bought went up $1 you'd only make $2, whereas if 100 shares of a $1 stock went up a $1 you would double your money. Unfortunately, what penny stocks offer in position size and potential profitability has to measure against the volatility that they face. Penny stocks can shoot up. It happens all the time - but they can also crash in moments, and are exceptionally vulnerable to manipulation and illiquidity. Getting solid information on penny stocks can also be difficult, making them a poor choice for an investor who is still learning.

Going All In with One Investment
Investing 100% of your capital in a specific market, whether it is the stock market, commodity futures, forex or even bonds is not a good move. Although you may eventually decide to throw diversification to the wind and put all your available capital into these markets once you are familiar with them, it is better to risk a little bit of capital at a time. This way, the lessons learned along the way are less costly, but still valuable.

Leveraging Up
Leveraging your money by using a margin is similar to going all in, but much more damaging. Using leverage magnifies both the gains and the losses on a given investment. Some forms of leverage, such as options, have a limited downside or can be controlled by using specific market orders, as in forex. Learning to control the amount of capital at risk comes with practice, and until an investor learns that control, leverage is best taken in small doses (if at all).

Investing Cash Reserves
Studies have shown that cash put into the market in bulk rather than incrementally has a better overall return, but this doesn't mean you should invest to the point of illiquidity. Investing is a long-term business whether you are a buy-and-hold investor or a trader, and staying in business requires having cash on the sidelines for emergencies and opportunities. Sure, cash on the sidelines doesn't earn any returns, but having all your cash in the market is a risk that even professional investors won't take. If you only have enough cash to invest or have an emergency cash reserve, then you're not in a position financially where investing makes sense.

Chasing News
Trying to guess what will be the next "Apple," a revolutionary produce or a rumor of earth shaking earnings, investing on news is a terrible move for first time investors. The best case scenario is that you get lucky, and then keep doing it until your luck fails. The worst case scenario is that you get stuck jumping in late (or investing on the wrong rumor) time and time again before you give up on investing. Rather than following rumors, the ideal first investments are in companies you understand and have a personal experience dealing with. This connection makes it easier to stomach the time and research that investing demands.

The Bottom LineWhen you are starting to invest, it is best to start small and take the risks with money you are prepared to lose. As you gain confidence and become more adept at evaluating stocks and reading the market sentiment, you can start making bigger investments. None of these investments are bad in and of themselves, but they do tend to be very unforgiving towards rookie mistakes. Leverage, penny stocks, news trading, etc. can all become part of your investing strategy as you learn, should you choose it. The trick is learning to invest in more stable markets before you jump into the wilder areas.