Gamibia: Gamcel Calls For Govt Support To Avoid Shutdown

13 March 2020

Mergers, Acquisitions and Financial Results

Gambia’s telecoms operator Gamcel is reportedly at risk of closing down if the government doesn’t bail it out of the financial challenges that it is facing.

 

An insider source said that Gamcel is already very limited in its network coverage and that any new loss of coverage could result in a halt in its operation as a telecoms service provider.

She said that for the telco to continue operations, it needs significant capital investment to modernise and expand its infrastructure, but that the government was not doing anything to save the business from collapsing.

 

She added that Gamcel is still running a network infrastructure with only 2G and 3G networks, while its competitors had rolled out 3G and 4G countrywide.

 

Confirming the financial woes that the company is facing, Gamcel’s General Manager Elizabeth Johnson told Gambia’s National Assembly that Gamcel’s network is not easily accessible and that when the network is accessible, they face severe network congestion.

 

Johnson said that the company is not able to expand its network coverage from only internally generated revenue, hence the need for a capital injection.

 

The General Manager added that the company had lost 70% of its market share to the various competitors over the past ten years.

Source: ITWeb Africa