Gambiaj.com – (BANJUL, The Gambia) – The Minister of Communications and Digital Economy, Lamin Jabbi, has informed the National Assembly that the restructuring of Gamtel and Gamcel has reached its final phase, with Gambian-owned Ycell selected as the preferred bidder to assume control of major components of the two state-owned telecom operators.
According to the Minister, 486 employees have already been laid off, receiving a combined D210.6 million in compensation, along with D32.8 million in notice payments.
An additional 155 workers are expected to be paid D29 million before the end of December, bringing total layoffs to nearly 700. A grievance office has been established at the Gamtel Serrekunda Exchange to support affected staff.
The minister further disclosed that the cabinet has approved a D50 million partnership between Gamtel and Sysroad Limited aimed at upgrading infrastructure and improving service delivery.
He stressed that the agreement carries no government guarantee and includes a performance bond monitored by independent experts.
Providing an update on the broader restructuring exercise, the Minister said eight companies submitted proposals, from which DK Telecoms and Ycell were shortlisted after rigorous technical and financial evaluations.
Ycell ultimately emerged as the strongest contender with an investment proposal valued at D6.7 billion.
The government will now enter negotiations with Ycell, with the final contract subject to Cabinet approval. Under the proposed terms, the state will divest 80% of its shares in Gamcel while retaining the remaining 20%.
For Gamtel, the arrangement will follow a build-operate-and-transfer model, allowing ownership to revert to the government after an agreed period.
The Minister said the government stands to receive up to D800 million from the initial sale of Gamcel shares, while the remainder of the investment will be directed toward modernizing the network and expanding Gamcel’s market footprint.
Addressing recent shifts in data prices, the minister attributed the changes to heightened competition following Comium’s return to the market with LTE services. This, he said, prompted Africell and QCell to reduce their tariffs.
He added that improvements in 4G and 5G capabilities, coupled with rising data consumption, have contributed to lower operational costs. Comium’s strategy of offering low-cost data has helped it grow its customer base to approximately 800,000 subscribers.
On regulation, the minister noted that PURA is finalizing a cost-of-service study designed to guide fair pricing across the telecommunications sector. This follows recent market disruptions that warranted the temporary lifting of the price-floor restriction.
