Administ r d b Digital Economy Diagnostic The Gambia 2 Photo credit – Alhagie Manka The Gambia Digital Economy Diagnostic TABLE OF CONTENT ACKNOWLEDGEMENTS 7 LIST OF ACRONYMS 8 EXECUTIVE SUMMARY 12 INTRODUCTION 30 - Background on Digital Economy and DE4A Methodology 30 - The Gambia at a Glance 33 1. DIGITAL INFRASTRUCTURE 39 1.1 Importance 39 1.2 Diagnostic Findings: Current State of Broadband Internet Development 41 1.3 Recommendations 72 2. DIGITAL PUBLIC PLATFORMS 75 2.1 Importance 75 2.2 Diagnostic Findings: Current State of Digital Public Platforms 76 2.3 Recommendations 88 3. DIGITAL FINANCIAL SERVICES 91 3.1 Importance of Digital Financial Services (DFS) 91 3.2 Diagnostic Findings: Current State of DFS 93 3.3 Recommendations 108 4. DIGITAL BUSINESSES 112 4.1 Importance 112 4.2 Diagnostic Findings: Current State of Digital Businesses 113 4.3 Recommendations 127 3 5. DIGITAL SKILLS 132 5.1 Importance 132 5.2 Diagnostic Findings: Current State of Digital Skills 133 5.3 Recommendations 142 CONCLUSION 146 Cross-Cutting Issues and A Way Forward 146 REFERENCES 152 ANNEXES 158 LIST OF FIGURES Figure 1. ICT regulation benchmarking in the gambia and selected peers, ICT & RWI 60 Figure 2. Mobile taxes in the gambia and selected peers 65 Figure 3. Data regulation diagnostic across selected ssa countries 70 Figure 4. e-government development index (edgi) for the gambia and selected peers 88 Figure 5. Share of adults with access to financial services in the gambia & selected peers 95 Figure 6. Mobile money indicators in the gambia and selected peers 96 Figure 7. Awareness of financial services in the gambia 104 Figure 8. Mobile money agent networks in the gambia and selected peers 106 Figure 9. Doing business ranking, the gambia and selected peers, 2020 118 Figure 10. Top ten business environment constraints in the gambia 121 Figure 11. Incubators, accelerators & other capacity development providers in the gambia 123 Figure 12. Global entrepreneurship index, the gambia and selected peers, 2019 124 Figure 13. Comparing firm–level technology absorption index 126 Figure 14. Learning-adjusted expected years of schooling in the gambia & selected peers, 2020 135 Figure 15. Types of educational activities conducted since school closures in the gambia, 2020 (% of respondents) 137 4 The Gambia Digital Economy Diagnostic LIST OF TABLES Table 1. The gambia in brief – key Figures and indicators 35 Table 2. Impact of a 10-percent increase in mobile broadband penetration on gdp growth 40 Table 3. Effect of 10-percent increase in mobile broadband penetration in the gambia and selected peers 40 Table 4. Summary of key first mile challenges 44 Table 5. Key national fiber infrastructure 46 Table 6. National fiber routes in the gambia and selected peers 48 Table 7. Summary of key middle mile challenges 50 Table 8. Retail mobile broadband market in the gambia 51 Table 9. Mobile internet usage and coverage gaps in the gambia and selected peers 52 Table 10. Analysis of broadband supply in the gambia 54 Table 11. Summary of key last mile challenges 55 Table 12. The gambia vis-a-vis senegal: benchmarking frist-to-last mile indicators 56 Table 13. Key policies, regulations and legislations related to ict/digital infrastructure in the gambia 58 Table 14. Gamcel audited financial statements 69 Table 15. Summary of key invisible mile challenges 70 Table 16. Main entrepreneurship policies in the gambia 117 Table 17. Doing business in the gambia and selected peers: starting a business and paying taxes 119 5 6 Photo credit – Alhagie Manka The Gambia Digital Economy Diagnostic ACKNOWLEDGEMENTS This report was prepared by the World Bank Group Manager). Additional guidance and contributions were team led by Aneliya Muller (Digital Development provided by Alexandre Arrobbio (Practice Manager, Specialist, Chapter Lead for Digital Infrastructure Governance); Consolate Rusagara (Practice Manager, and co-lead for Digital Businesses) and comprising Finance, Competitiveness and Innovation); and the following members: Dolele Sylla (Public Sector Meskerem Mulatu (Practice Manager, Education). Specialist, Chapter Lead for Digital Public Platforms); Katie Kibuuka (Private Sector Specialist, Chapter Lead The team is grateful to the peer reviewers of this report for Digital Financial Services); Farah Dib (Private Sector for their valuable comments: Jerome Bezzina (Senior Specialist, Chapter co-Lead for Digital Businesses); Digital Development Specialist); Constantin Rusu Alison Grimsland (Education Specialist, Chapter (Senior Public Sector Specialist); Maimouna Gueye Lead for Digital Skills); and Penny Williams (Program (Senior Financial Sector Specialist); Eva Clemente Manager, Lead on Social Protection and ID). Miranda (Private Sector Specialist); Mariam Nusrat (Education Specialist); and Edoardo Totolo (Operations The team also included Naomi Halewood (Senior Officer). Digital Development Specialist); Samuel Mills (Senior Health Specialist); Lucine Park (Digital Development The team would like to express their sincere gratitude Specialist); Christoph Stork (Digital Infrastructure to all government and private sector organizations Consultant, Partner at Research ICT Solutions); Luisa for their insights and generous cooperation during Sande Lemos (Private Sector Development Consultant); the drafting of this report. It would especially like to Merridy Gaye Wilson Strydom (Education Consultant); thank the teams of The Gambia’s Ministry of Finance Poncelet Ileleji (Education Consultant); and Paulette and Economic Affairs and teams from the Ministry Zoua (Program Assistant). The team benefited from of Information and Communication Infrastructure the insights and leadership of Feyi Boroffice (Resident and Public Utilities Regulatory Authority, as well as Representative in The Gambia) and the Gambia country members of the Central Bank of The Gambia and team, including Mehwish Ashraf (Country Economist), Ministry of Basic and Secondary Education; Ministry of Sering Touray (Poverty Economist), and Yassin Njie Higher Education, Research, Science and Technology; (Program Assistant). The graphic design of the report the Ministry of Trade, Industry, Regional Integration was prepared by William Ursenbach. and Employment; and the Gambia Chamber of Commerce and Industry for their precious cooperation The team worked in close collaboration with colleagues and availability. from the International Finance Corporation (IFC), led by Josiane Kwenda (IFC Country Manager) and The Gambia DE4A Report elaboration was supported comprising Lorentz Nwachuku (Senior Investment by the Digital Development Partnership (DDP), Officer); Karamba Badio (Senior Investment Officer); administered by the World Bank Group. DDP offers Ami Dalal (Senior Investment Officer); Guillaume Xavier a platform for digital innovation and development Touchard (Investment Officer); and Pauline Deschryver financing, bringing public and private sector partners (Associate Investment Officer). together to advance digital solutions and drive digital transformation in developing countries. Valuable guidance was provided by Nathan M. Belete (Country Director); Michel Rogy (Practice Manager, www.digitaldevelopmentpartnership.org Digital Development); and Luc Lecuit (Operations 7 LIST OF ACRONYMS 4G Fourth generation of broadband cellular network ESSP Endorsed Education Sector Strategic Plan technology EU European Union ABP Annual Borrowing Plan FDI Foreign Direct Investment 3G Third generation of broadband cellular network FMD Fiscal Management Development technology FSPS Financial Services Providers ACE Africa-Coast-to-Europe (submarine cable) FTTX Fiber to the x (generic term for any broadband ACE Africa Centers of Excellence network architecture using optical fiber to provide all ACH Automated Clearing House or part of the local loop used for last mile AFDB African Development Bank telecommunications) ASA Advisory Services and Analytics G2B Government-to-Businesses ATM Automated Teller Machine G2C Government-to-Citizens AU African Union G2G Government-to-Government AXIS African Internet Exchange System GAIN Gambia Angel Investor Network BOP Balance of Payment GAMBIS Gambia Biometric Identification System CBG Central Bank of The Gambia GAMCEL Gambia Cellular Company CCRT Catastrophe Containment and Relief Trust GAMPOST Gambia Postal Services CEN Country Engagement Note GAMTEL Gambia Telecommunication Company CIIP Critical Information Infrastructure Protection GBA Greater Banjul Area CIO Chief Information Officer GBOS Gambia Bureau of Statistics CISF Capital Investment Stimulation Fund GCAA Gambia Civil Aviation Authority CRB Credit Reference Bureau GCCPC Gambia Competition and Consumer Protection CRVS Civil Registration and Vital Statistics Commission CSIRT Computer Security Incident Response Team GDP Gross Domestic Product CTO Chief Technology Officer GEI Global Entrepreneurship Index DFS Digital Financial Services GERMP Gambia Electricity Restoration and Modernization DLDM Directorate of Loans and Debt Management Project DPF Development Policy Financing GIA Gambia International Airlines Limited DPPP Directorate of Public-Private Partnerships GICTA Gambia Information & Communication Technology DSA Debt Sustainability Analysis Agency DSSI Debt Service Suspension Initiative GIEPA Gambia Investment and Export Promotion Agency ECF Extended Credit Facility GIZ German Agency for International Cooperation ECOWAS Economic Community of West African States GMD Gambian Dalasi EDMS Electronic Document Management System GNI Gross National Income EEZ Exclusive Economic Zone GNPC Gambia National Petroleum Company EFT Electronic Fund Transfer GOBS Gambia Bureau of Statistics EGDI E-government Development Index GOTG Government of The Gambia EGRA Early Grade Reading Assessment GPA Gambia Ports Authority 8 The Gambia Digital Economy Diagnostic GPE Global Partnership for Education MOHERST Ministry of Higher Education, Research, Science and GPPA Gambia Public Procurement Authority Technology GPPC Gambia Public Printing Corporation MOICI Ministry of Information and Communication GPRS General Packet Radio Service Infrastructure GRA Gambia Revenue Authority MOTIE Ministry of Trade, Industry, Regional Integration and GRTS Gambia Radio and Television Service Employment GSC Gambia Submarine Cable Company Limited MOU Memorandum of Understanding GSMA Global Systems for Mobile Communications MSMES Micro, Small and Medium Enterprises HFO Heavy Fuel Oil MTDS Medium-Term Debt Strategy ICT Information and Communication Technologies MTFF Medium-Term Fiscal Framework ICT4D Information and Communication Technologies for MTO Money Transfer Operators Development MVNO Mobile Virtual Network Operator ID Identification NAQAA National Accreditation and Quality Assurance IDA International Development Association Authority IFAD International Fund for Agricultural Development NAWEC National Water and Electricity Company IFC International Finance Corporation NBN National Broadband Network IFMIS Integrated Financial Management Information System NDP National Development Plan ILO International Labor Organization NEA National Environment Agency IMF International Monetary Fund NEDI National Enterprise Development Initiative IMVF Instituto Marques de Valle Flor NEET Not in Education, Employment, or Training IP Internet Protocol NEMA National Environment Management Act IPFS Investment Project Financing NEP National Entrepreneurship Policy IPPS Independent Power Producers NFBIS Non-Bank Financial Institutions ISDB Islamic Development Bank NFIS National Financial Inclusion Strategy ISOC Internet Society NFSPMC National Food Security Processing and Marketing ISP Internet Service Provider Corporation IT4D Information Technology for Development NICI National Information and Communication ITAG Information Technology Association of The Gambia Infrastructure ITAS Integrated Tax Management System NIN National Identification Number ITFC Islamic Trade Finance Corporation NPP New Project Proposal ITU International Telecommunication Union NREN National Research and Education Network IXP Internet Exchange Point OECD Organization for Economic Co-operation and KPI Key Performance Indicator Development KYC Know Your Customer OMVG Gambia River Basin Development Organization LDP Letter of Development Policy (Organisation pour la Mise LMS Learning Management System en Valeur du Fleuve Gambie) MDAS Ministries, Departments and Agencies OTT Over-The-Top MICS Multiple Indicator Cluster Survey P2P Person-to-Person MNO Mobile Network Operator PC Performance Contract MOBSE Ministry of Basic and Secondary Education PDO Program Development Objective MOFEA Ministry of Finance and Economic Affairs PEFA Public Expenditure Financial Assessment 9 PFM Public Financial Management TIN Tax Identification Number PIP Public Investment Program TVET Technical and Vocational Education and Training PKI Public Key Infrastructure UK United Kingdom POP Points of Presence UN United Nations PP Public Procurement (Act) UNCDF United Nations Capital Development Fund PPA Performance & Policy Actions UNCITRAL United Nations Commission on International PPP Public-Private Partnership Trade Law PSI-PMI Piloting Progressive Science Initiative and UNDP United Nations Development Program Progressive Math Initiative UNICEF United Nations Children’s Fund PURA Public Utilities Regulatory Authority WACREN West Africa REN PV Present Value WAEMU West African Economic and Monetary Union QOS Quality of Service WAMZ West African Monetary Zone RCF Rapid Credit Facility WAPP West Africa Power Pool REN Research and Education Network WARCIP West Africa Regional Communications Project RTGS Real Time Gross Settlement WB World Bank RWI Regulatory Watch Initiative WBG World Bank Group SAP Supplementary Appropriation Bill WFP World Food Program SCD Systematic Country Diagnostic Y/Y Year-on-year SDF Social Development Fund YEP Youth Empowerment Project SDFP Sustainable Development Financing Policy SDG Sustainable Development Goal SDP Strategic Development Plan SDR Special Drawing Rights SIM Subscriber Identification Module SIXP Serekunda Internet Exchange Point SMP Staff Monitored Program SOE State-owned enterprise SPD Standard Procurement Document SPV Special Purpose Vehicle SRB Strategic Review Board SSA Sub-Saharan Africa SSHFC Social Security and Housing Finance Corporation T&D Transmission and Distribution TA Technical Assistance 11 Photo credit – Alhagie Manka EXECUTIVE SUMMARY Digital technologies are paving the way for new exposing a stark digital divide between the connected economic growth and service delivery models across and unconnected. Moreover, the pandemic has Africa and beyond, particularly in the wake of the highlighted a critical need to effectively adopt digital global COVID-19 pandemic. Rooted in expanding technologies across key socioeconomic sectors, broadband penetration and supported by innovation, including health, education, water and sanitation, entrepreneurship and public services digitization, financial services, and agriculture to improve their digital transformation has spurred the development productivity and service delivery efficiency. of a small but rapidly growing digital economy, which encompasses a wide range of new applications of At the same time, the COVID-19 crisis presents an information and communication technology (ICT). opportunity to “build back and forward better”, as While consensus on how to define and measure emerging evidence suggests that affordable access the digital economy is still emerging, its share in to and productive use of digital technologies can global and African GDP is expected to continue not only help countries respond to emergencies but growing, possibly outpacing the growth of the overall also stimulate long-term, economy-wide inclusive economy. The 2020 e-Conomy Africa Report by the productivity growth, poverty reduction, and job International Finance Corporation (IFC) and Google creation. The rapid adoption of digital technologies finds that Africa’s internet economy can potentially in the global economy has meant their benefits reach US$180 billion or 5.2 percent of the continent’s are widely dispersed and their indirect aggregate gross domestic product (GDP) by 2025, and US$712 growth impacts are difficult to estimate, as they billion or 8.5 percent of the continent’s GDP by have effectively become a factor of production3. At the 20501. This trend is likely to accelerate, as digital same time, emerging empirical evidence suggests technologies have come to the forefront of the that reaching the African Union’s (AU’s) 2030 “Digital unprecedented global fight against the COVID-19 Transformation for Africa” goal of universal and pandemic, during which digital connectivity has become affordable internet coverage, contingent on the an even more essential public good and prerequisite appropriate human capital investments, can raise real for business and operational continuity. Digital GDP growth per capita by 5 percentage points (p.p.) per technologies can, and are, enabling more economic year and reduce poverty headcount by 2.5 p.p. per year activities to happen — and to happen safely  albeit across Sub-Saharan Africa (SSA)4. The usage of digital unevenly — across firms, sectors, and geographies2, technologies has positive correlations with economic 1 IFC, Google, 2020. E-Conomy Africa 2020. Available at: https://www.ifc.org/wps/wcm/connect/e358c23f-afe3-49c5-a509-034257688580/e-Conomy-Africa-2020.pdf?MOD=AJPERES&CVID=n- muGYF2. 2 World Bank, 2020. Europe 4.0: Addressing Digital Dilemma. Available at: https://openknowledge.worldbank.org/handle/10986/34746. 3 World Bank, 2016. World Development Report – Digital Dividends. Available at: https://www.worldbank.org/en/publication/wdr2016. 4 Choi, J., Dutz, M., Usman, Z. 2019. The Future of Work in Africa: Harnessing the Potential of Digital Technologies for All. Washington, DC: World Bank. 12 The Gambia Digital Economy Diagnostic growth and inclusion across countries of different servants to seize opportunities in the digital world; income levels and is directly linked to the World Bank regulations that create a vibrant business climate Group’s (WBG’s) twin goals of ending extreme poverty and let firms (including informal ones) leverage digital and promoting shared prosperity. More specifically, technologies to compete and innovate; and accountable as evidenced for households in neighboring Senegal, institutions that use the internet to provide services mobile internet coverage is associated with 14 percent and empower citizens8. higher total consumption and 26 percent higher non-food consumption, as well as a 10 percent lower In this context, relying on the Digital Economy for extreme poverty rate. At the enterprise level, firms with Africa methodology9, the report conducts a timely more sophisticated levels of technologies in Senegal diagnostic of the state of the digital economy have higher levels of productivity, generate more in The Gambia. Based on desk research and a jobs, and, on average, increase the share of unskilled comprehensive program of interviews with a wide workers on their payroll5. Moreover, the introduction range of stakeholders, including government entities of digital technologies can have a transformative and members of the private sector, civil society and effect on governments. It is estimated that developing development partners, the assessment focuses on five countries could collectively save 0.9 to 1.1 percent pillars of the digital economy – digital infrastructure, of GDP (equivalent to US$220 billion to 330 billion digital public platforms, digital financial services, annually) by introducing digital platforms6. Even for digital businesses and digital skills. The report aims to small, poor, and fragile countries like The Gambia, highlight opportunities to develop The Gambia’s digital digital transformation can unlock significant dividends economy, with an emphasis on policies that can help by strengthening local and national public services, the country address its fragility, spur inclusive growth promoting private investment, and helping civil society and job creation (critical for its young population) and build community networks7. However, as highlighted bridge the existing digital divide while strengthening in the World Bank’s 2016 World Development Report resilience in the face of crises, such as COVID-19. on Digital Dividends and underscored by the 2020 Actionable recommendations are put forward to and 2021 volumes of the WBG Africa Pulse reports, inform national decision-making, constituting a mix these long-term development impacts are by no of possible policy reforms, investments, and capacity- means definitive; instead they will depend on the building activities. The findings also aim to provide country’s success in making the internet universally guidance on potential areas of WBG support in The accessible and affordable (boosting connectivity), Gambia for the implementation of the AU Strategy for while strengthening analog foundations consisting of Digital Transformation and the WBG’s twin goals to skills that allow individuals, entrepreneurs, and public end extreme poverty and promote shared prosperity. 5 World Bank, 2021. Inclusive Digital Senegal: Opportunities for Jobs and Economic Transformation (P168s247) by Cruz, M., Dutz, M., and Castelan, C. World Bank, Washington DC (forthcoming). 6 IMF (International Monetary Fund). 2017. Digital Revolutions in Public Finance. Washington, DC: International Monetary Fund. 7 World Bank, 2020. Strategy for Fragility, Conflict and Violence 2020-2025. Washington, D.C.: World Bank Group. Available at: http://documents.worldbank.org/curated/en/844591582815510521/ World-Bank-Group-Strategy-for-Fragility-Conflict-and-Violence-2020-2025. 8 World Bank, 2016. World Development Report – Digital Dividends. Available at: https://www.worldbank.org/en/publication/wdr2016. 9 World Bank. Digital Economy for Africa Initiative. Description available at: https://www.worldbank.org/en/programs/all-africa-digital-transformation. 13 Notwithstanding important assets, in the context importance of affordable and reliable digital access of a fragile and poverty-stricken environment, The to ensure the continuous functioning of the economy Gambia’s digital economy remains embryonic, leaving and availability of vital services. As both the public the country ill-prepared to face a rapidly spreading and private sectors had to switch to a largely virtual global reality of digitally enabled economic and modus operandi, digital infrastructure has been put personal interactions. Despite its strategic coastal under significant pressure. According to some internet location, which allows The Gambia to enjoy direct service providers (ISPs), with the onset of the pandemic submarine fiber optic cable access to Europe, the the bandwidth usage in The Gambia experienced country faces critical bottlenecks all along its digital roughly a 30 percent increase across the entire infrastructure value chain that result in high prices, low broadband network, reportedly resulting in significant quality, and feeble reliability of broadband services, key congestion and reduced quality. At the same time, as supply-side barriers, leaving downstream development nine out of ten Gambian households experienced a of the digital economy largely stifled. Access to basic decrease in income between March and mid-August services — critical for economic development and 2020, 43 percent of households couldn’t honor their digital transformation — is insufficient, with access electricity payments and 27 percent couldn’t pay to electricity reaching 60 percent of the population their internet bills, with the latter share increasing to nationally but only 35 percent in rural areas. Over 36 percent during the period October to December 60 percent of the Gambian workforce have no formal 202011. With its schools and universities closed for schooling, while almost 50 percent of the adult more than six months from mid-March 2020 and population (15 years+) is estimated to be illiterate10. online learning neither effective nor accessible to all, Coupled with the fact that almost half of the population due to uneven and weak broadband connectivity, the live below the national poverty line, these factors curb country has witnessed a learning crisis that weakens demand for digital solutions. At the same time, weak the productivity of future generations, especially business regulatory environment, characterized by among the poor in remote areas. In the private sector, the high cost of starting a business and burdensome an estimated 50,000 to 100,000 direct jobs were taxation, joined with poor access to finance — especially lost due to negligible tourism activity (a lifeline of the for early-stage start-ups — limit the development of Gambian economy) during the lockdown period, and the private sector in general and digital businesses in multiple companies, particularly young micro, small particular. Against this background, key foundations, and medium enterprises (MSMEs), filed for bankruptcy. particularly broadband connectivity and digital literacy However, in line with regional trends demonstrating and skills, are deemed insufficiently strong to underpin that 22 percent of SSA firms have started or increased demand for digital solutions and support the growth of the use of digital tools in response to COVID-1912, there digital businesses. is some encouraging evidence that the uptake of digital technologies has been rising among enterprises in The These vulnerabilities have been amplified by the Gambia, particularly by companies offering financial COVID-19 pandemic, highlighting the critical and ICT services. 10 Latest available WDI data for 2015 11 World Bank, Gambia Bureau of Statistics and State and Peace-building Fund, 2020. High Frequency Survey on the COVID-19 Impacts on Households. Waves 1 and 3, published in October 2020 and February 2021, respectively. 12 World Bank, 2021. Africa Pulse. Covid-19 and the Future of Work in Africa: Emerging Trends in Digital Technology Adoption. Available at: https://openknowledge.worldbank.org/bitstream/han- dle/10986/35342/9781464817144.pdf?sequence=10&isAllowed=y 14 The Gambia Digital Economy Diagnostic The Government of The Gambia (GoTG) recognizes the the development of digital financial services (DFS) and importance of the digital economy for accelerated, digital businesses are likely to derail. The GoTG’s ability inclusive and sustainable growth, especially in the to develop digital platforms and leverage technology COVID-19 era; however, the effective implementation for improved efficiency and service delivery is key of strategic digital transformation directives have to enabling the interlinkages between the pillars to been lagging. The National Development Plan (NDP) create synergetic effects. The combined effect of these 2018–2021 has, under the Critical Enabler 5 “Making improvements is larger than their sum. The Gambia a Digital Nation and Creating a Modern Information Society”, outlined a framework to harness Digital infrastructure in The Gambia falls short the benefits of ICT in all sectors of the economy of its potential, mainly due to critical bottlenecks for equitable development. Although the NDP is in international connectivity and insufficient undergoing a mid-term evaluation and reprioritization competition in the middle mile, driven by a quasi- exercise, in a bid to support a resilient post-COVID-19 monopoly by the incumbent operator of the national recovery, the digital agenda will clearly continue to backbone, as well as its poor management and high play a central role among its revised objectives. In line access costs. The Gambia is reliant on a single Africa- with the GoTG’s overarching strategic vision, in March Coast-to-Europe (ACE) submarine fiber optic cable, 2020 the Ministry of Information and Communication which is entering the second half of its economic life Infrastructure (MOICI) presented a new ICT/digital and is incurring persistent damages and disruptions roadmap “2020–2024 ICT4D” that incorporates the (as many as three in January 2021 alone). Recent Broadband Strategic Plan 2020–2024 and includes concurrent breakages on an highly expensive terrestrial critical objectives, such as upgrading last mile back-up route to Senegal, operated by a state-owned network connectivity; improving regulatory policies; incumbent operator Gamtel (on the Gambian side) strengthening e-government and cybersecurity; and Sonatel/Orange (on the Senegalese side) have accelerating the rollout of regional ICT centers for acted as an aggravating factor, leaving the country communities/schools; improving digital literacy both cut off from the rest of the world and signaling the among civil servants and the entire population; and critical need for alternative redundancy networks. creating a conducive environment for digital local In the middle mile, the national fiber optic backbone content creation. It would be important to build on network is relatively well developed but remains this progress and on strategic guidance to ensure the largely underutilized (due to mismanagement and effective implementation of identified priorities, while quality issues), with only 5 percent of the population closing pending regulatory and legal gaps. connected to it. The situation is rendered more difficult by an existing moratorium issued in 2018 by the The conducted analysis of the five foundational GoTG on laying aerial and terrestrial fiber networks pillars of the digital economy underscores the that private operators widely find to be restrictive synergetic importance of a coordinated, holistic and especially in the context where the newly built National ecosystem-based approach, as each foundation plays Broadband Network (NBN) remains under the exclusive an important role in its own right but also depends use of Gamtel. Against this background, and despite upon, and reinforces, the others. For example, without a relatively competitive telecom market, mobile improved access to and use of affordable broadband broadband experiences usage gaps, as 63.5 percent of connectivity on the supply side, combined with those covered by the signal do not use mobile internet, enhanced digital literacy and skills on the demand side, while access to fixed broadband remains well below 15 the global average of 13.6 at 0.19 per 100 inhabitants Architecture and interoperability framework. An (ITU, 2020). Importantly, there is a distinct gender exhaustive mapping of all platforms and data registers dimension in the usage gap, with 44 percent of women maintained by public entities is missing, while the versus 52 percent of men reporting a regular internet proliferation of systems — implemented in various use13. 4G uptake is particularly low, as 4G data sectors in a partitioned manner — has created real, subscribers account for mere 4.5 percent of all data internal monopolies. Such a siloed approach appears subscribers. This is partly linked to the fact that mobile incompatible with the whole-of-government concept broadband remains very expensive and slow, leaving that implies a horizontal, networked, and collaborative The Gambia as the 159th out of 179 countries in the organization of exchanging data. Another critical 2019 ITU’s low consumption mobile-data-and-voice challenge for digital public platforms in The Gambia affordability ranking and the 165th out of 174 states is the country’s low coverage of birth registrations in the 2020 Ookla Global Speed-test Index. While the (according to UNICEF, in 2018 more than 40 percent sector’s regulatory environment is, in many ways, of children under five were still not registered at birth) sound, the regulator’s independence is hampered by and fragmented national digital ID systems, which a public stake in the sector, highlighting the need to impede citizens’ access to basic services and keep the reinforce the GoTG’s commitment to leverage state- transaction costs of certain processes (such as the owned supply assets more strategically, and to ensure electronic tax filing) high. Against this background, non-discriminatory open access to existing wholesale The Gambia finds itself behind most of its peers in the infrastructure and strengthen independent regulatory 2020 UN E-government Development Index (EGDI), oversight. ranking 181st out of 193 countries. To address these challenges, it would be important to adopt a national Digital Public Platforms. The GoTG has considerable interoperability framework, underpinned by an scope for progress in the domain of online public Enterprise Architecture, to allow for the use of common services and e-government. MOICI oversees the design IT standards; expand the accessibility, quality, and and implementation of the national e-government functionality of existing digital public platforms, program under The Gambia’s E-Government Strategic with a focus on e-ID, as well as improve transactional Plan 2020–2024, making considerable efforts to e-services through increased access points, embedded develop shared services available to other ministries, life journey/scenarios and data exchange. departments and agencies (MDAs) through a newly constructed Tier-3 data center, as well as operating In view of the persistent connectivity challenges and maintaining the existing government network mentioned above, as well as important other infrastructure. However, the performance of the constraints in the enabling environment, the adoption public sector in mainstreaming online services and and usage of DFS in The Gambia remains very low. back-office systems has been uneven. Progress has Financial Services Providers (FSPs) can leverage DFS been hampered by a lack of common vision, as well to offer basic financial services at greater convenience, as dysfunctions and limitations in the IT governance scale and lower cost than traditional financial services. landscape and the absence of a National Enterprise With almost 70 percent of the Gambian population 13 Afrobarometer, 2019. Africa’s Digital Gender Divide May Be Widening, Afrobarometer Survey Finds. News Release of 4 November 2019. Available at: https://afrobarometer.org/sites/default/files/ press-release//ab_r7_pr3_africas_digital_gender_divide_may_be_widening.pdf. 16 The Gambia Digital Economy Diagnostic excluded from the financial sector, DFS could provide and some investors (including a recently established an opportunity to broaden citizen access to affordable angel investors’ network). The country enjoys certain finance, particularly for currently unserved and advantages conducive to business development, underserved segments of the population, for instance including an English-speaking population, being in the those in rural areas and lower income households, as same time zone as the UK and having only a minimal well as to MSMEs. High mobile phone ownership (about difference with key European markets, as well as a 93 percent of Gambian households) means that mobile- relatively low unit labor cost that could be leveraged based financial solutions could help overcome some of for business processes outsourcing. Despite these the barriers to financial inclusion. At present, mobile developments and their potential for growth, the money penetration is very low, with only 2 percent of infrastructure challenges related to high broadband Gambian adults using these services, much lower than prices, as well as low penetration rates of both internet in peer countries. The penetration of other DFS is also and electricity throughout the country and their poor limited. Beyond connectivity issues, key underlying reliability, coupled with the lack of effective digital obstacles that work both together and separately payment solutions and gateways, continue to act as to keep DFS development and uptake low, include: (i) binding constraints both to the digitalization of existing weaknesses and gaps in the current legal, regulatory enterprises and to the development of innovative digital and policy environment, which is focused on traditional start-ups. Moreover, the growth of digital businesses in financial services; (ii) high reliance on cash for most The Gambia is inhibited by a weak business regulatory transactions, including those of the GoTG; (iii) lack of environment (including in the domains related to awareness and financial education; (iv) a nascent DFS taxation, private equity (PE) and venture capital (VC), sector with high perceived costs; and (iv) deficiencies crowdfunding and intellectual property protection), in the enabling financial infrastructure (notably in limited financing opportunities (particularly for payments’ systems and credit infrastructure). Efforts early-stage start-ups), insufficiently developed and to accelerate DFS development and growth will targeted support initiatives, and a critical lack of henceforth need to focus on: strengthening the policy digital skills. Addressing these challenges would and regulatory environment; enhancing financial require concerted efforts by the GoTG, private sector infrastructure; providing financial education and and key development partners to, inter alia, design literacy (including digital skills development); and incentive-based regulations to promote innovation, introducing market support incentives. expand funding opportunities for start-ups, boost the adoption of technology by enterprises, leverage strong Digital infrastructure bottlenecks also act as one of links to the diaspora, and consider pursuing a vision of the main binding constraints for the digital business The Gambia as a hub for software developers. ecosystem in The Gambia which, given the number of local MSMEs (close to 90,000) and a fast-growing, Notwithstanding the growing demand for and young population, could play an important role in importance of digital skills as a critical analog unlocking opportunities for economic growth and foundation of the digital economy, their development social inclusion. While still at a nascent stage, the is significantly constrained by the limited educational ecosystem of digital businesses in The Gambia is curriculum and quality training programs currently home to a few young and promising digital start- available in The Gambia. Educational outcomes in ups, several incubators and donor-funded support foundational skills, such as reading and numeracy programs specifically targeting tech enterprises, — both of which are critical for digital literacy — 17 are low in The Gambia. Digital skills development is important that the GoTG support such initiatives, further hindered by the lack of digital infrastructure in while establishing a comprehensive, multi-pronged educational institutions and the high cost of internet digital skills policy and implementation plan to ensure connectivity, as well as by weak cross-sectoral its population becomes fully digitally literate and coordination to address these challenges, which competent. create a barrier to online and remote learning. These constraints appear to be even more pronounced in Several cross-cutting challenges have been identified higher education that has traditionally relied on more throughout the analysis. Addressing them would technologically sophisticated teaching methods, labs, enable The Gambia to strengthen its ability to deal and equipment. At basic and secondary levels, digital with the challenges identified under the five pillars. literacy is low among teachers and teacher trainers, due in part to the extremely low availability and use Improving strategic institutional coordination. of computers and other devices in classroom settings. Although The Gambia is making strides towards Similarly, at home — another critical space to develop rolling out its digital vision, a whole-of-government and practice digital skills — only 42 percent of boys approach is necessary to bring together various public and 36 percent of girls report having a computer and constituencies, simplify governance architecture and using it at least once a week14. Against this background, strengthen strategic oversight. At the institutional digital skills among school-aged children remain level, the broad digital economy sector is characterized underdeveloped, with persistent gender disparities. by a complex governance fabric, in which the UNICEF has demonstrated that only 10 percent of multiplicity and instability of decision centers, as well adolescent boys and 6 percent of adolescent girls (aged as the lack of clarity over the roles and responsibilities 15–18 years) in The Gambia are considered as having of various institutions, result in initiatives that lack ICT skills15. In addition, little strategic emphasis has a shared vision, strategic steering or day-to-day been placed on developing intermediate digital skills advancement. Many of the key objectives, set by for general occupations by technical and vocational strategies and policies, lag in implementation, including education and training (TVET) institutions and enhancing access to broadband and boosting the use universities, while opportunities to acquire intermediate of ICT to increase efficiencies across all socioeconomic and advanced skills for ICT specific professions remain sectors, and improved digital literacy. This points to limited. Despite being narrow in scale, however, an underlying issue, related to overambitious strategy there have been some promising technology-enabled design and/or weak political buy-in. It also signals interventions to deliver learning in schools and enhance the lack of effective institutional coordination or digital skills more effectively, including the Progressive the lack of access to resources adequate to support Science Initiative-Progressive Math Initiative (PSI- implementation. Revitalizing efforts to operationalize PMI), a student-centered computer-assisted learning the ICT Agency, de jure established by the ICT Agency Act program for senior secondary students that has shown in 2019 but never implemented, could be an important positive results and is currently being scaled up. It is step towards ensuring the effective coordination and 14 UNICEF, 2020. COVID-19 and Education: The Digital Gender Divide among Adolescents in Sub-Saharan Africa. Available at: https://blogs.unicef.org/evidence-for-action/covid-19-and-education-the-digi- tal-gender-divide-among-adolescents-in-sub-saharan-africa/ 15 Ibid. 18 The Gambia Digital Economy Diagnostic rationalization of government policies and initiatives in bills on cybercrime and national data protection and the digital domain. privacy have been drafted but not yet been passed into law; they remain pending Cabinet/Parliament Enhancing regional integration. For a small country approval. Adopting and effectively implementing like The Gambia with a very narrow domestic market, these legislations, as underscored by the 2021 World fully enclaved by Senegal, it is hard to overestimate the Development Report on Data for Better Lives, will have importance of regional and international integration ripple effects across the digital economy, including for across all the five pillars of the digital economy analyzed the use of digital systems in social protection, e-ID, and here. Integration like this can take several forms. It e-commerce, shaping an enabling environment for a includes, for example, fully implementing the electronic wider and safer adoption of digital technologies. communications framework of the West African Economic and Monetary Union (WAEMU) and ECOWAS Overall, to tap into digital sources of growth and rules and regulations (the domestication of ECOWAS unlock digital dividends, The Gambia needs a mix regulations on free roaming, expected in 2021, is a of supply-side policies and investments to support step in the right direction); exploring a connection to affordable and reliable broadband and digital public an additional submarine cable and regional spectrum services, as well as demand-side interventions, auctions for broadband connectivity; strengthening incentives and skills-boosting programs to stimulate links to regional and international markets and value their adoption and productive use by individuals and chains to expand business opportunities, as well as enterprises (including those in the informal sector). access to finance, innovation and a larger customer Anchoring these in solid “analog” — legal, regulatory base; establishing a regulatory framework facilitating and institutional — foundations as well as regional cross-border payments; and ensuring that a national integration efforts will be critical for success and research and education network (NREN), when it is sustainability. Based on the analysis of key strengths rolled out to connect major education and research and weaknesses of each foundational pillar of the institutions in the country, is connected to a regional Gambian digital economy, the report offers a set of West Africa REN (WACREN). recommendations using an ecosystem approach, clustered by level of priority: (i) quick-wins – for Fast-tracking the adoption and implementation actions that can be delivered quickly/short-term, with of cybersecurity and data protection legislation. immediate tangible results; (ii) high-priority – for critical Overarching cybersecurity policy and strategy, a recommendations that can’t be relegated and could be government cloud strategy, and a critical information adopted within a short to medium timeframe; and (iii) infrastructure protection (CIIP) policy framework long-term – for actions spanning a wider timeframe have been pending approval since 2020. The relevant that focus on consolidating results (Table A). 19 TABLE A: Summary of Key Strengths, Weaknesses and Recommendations Per Pillar PILLAR KEY STRENGTHS & ASSETS KEY WEAKNESSES & ROADBLOCKS Digital • High mobile phone penetration at • Enabler: Insufficient availability, reliability Infrastructure 135 percent (Telegeography, 2020); and affordability of power (in some cases • High population density on a prohibitive to run sites 24/7); small territory coupled with a • First Mile: Dependence on one submarine high urbanization rate (top 10 cable (that experiences several disruptions most urbanized SSA countries), a year) and overly expensive alternative conducive to achieving universal terrestrial route to Senegal, requiring coverage and ensuring cost- cost-effective solutions for international effective provision of broadband redundancy; services to customers; • Middle Mile: Limited access to and poor • Competitive telecom market with maintenance of the wholesale national four MNOs and more than five fiber optic backbone infrastructure active ISPs; (ECOWAN), resulting in its underutilization • Strong 2009 Information and (mere 5 percent of population is connected Communication (IC) Act, serving as to the backbone, as per PURA); a foundation for a pro-competitive • Last Mile: GoTG’s moratorium market (albeit in need of updating); on laying last-mile fiber networks; low • Presence of local investments adoption and affordability of mobile (among MNOs and not only). broadband (particularly 4G); • Invisible Mile: Lack of specific holistic legislation / regulation covering all aspects/types of infrastructure sharing; pending cybersecurity and data protection regulations; lack of technological neutrality in the licensing regime; etc. RECOMMENDATIONS QUICK WINS (SHORT-TERM): • Lift the existing moratorium on fiber roll-out in alignment with the IC Act and licensing regime; • Incentivize and enforce active and passive infrastructure sharing through holistic regulatory measures both within the sector and across sectors (including by exploring the availability of the excess fiber optic capacity of the public electricity company - NAWEC). 20 The Gambia Digital Economy Diagnostic HIGH-PRIORITY (SHORT-TO-MEDIUM-TERM): • Ensure adequate and cost-efficient international redundancy by acquiring access to the second submarine cable with a separate landing station, while concomitantly supporting an alternative terrestrial fiber link to the border with Senegal; • Through increased private sector participation, complete wholesale network management reform to boost the utilization of this critical infrastructure and enable related debt payments, and leverage other state-owned digital infrastructure assets in a more strategic way; • Strengthen sector governance to withstand potential political capture by further separating ICT policy from ICT;regulations and reinforcing independence and accountability of PURA; • Conduct a new set of market analysis that defines markets for regulatory consideration, identifies operators with; significant market power and formulates regulatory remedies to address market faiures; • Accelerate adoption and ensure effective implementation of cybersecurity and data protection legislation. LONG-TERM: • Introduce service and technology neutral licenses; • Review sector specific fees and taxes to promote development and technological innovation; • Mobilize investment into the internet exchange point (IXP) and strengthen local expertise for its management as well as adopt a regulation to mandate its use. Digital Public • Recent adoption of a new and com- • Lack of a common vision and dysfunctions Platforms prehensive E-Government Strategic / limitations in the public IT governance Plan (2020-2024); landscape; • Important efforts to develop shared • Lack of an exhaustive mapping of digital services available to other minis- platforms and data registers (often siloed) tries, departments and agencies maintained by public administrations; (MDAs); • Absence of an Enterprise Architecture, an • Efforts to digitalize previously interoperability framework and platform paper-based civil registration and and a Public Key Infrastructure (PKI) vital statistics (CRVS) and merge it • Fragmented national digital ID systems, with MyChild immunization record impeding access of citizens and businesses system (with further impetus to basic online services (digital trust); provided by COVID-19 vaccination • Limited availability of ICT skills in the public campaign); sector needed to, inter alia, support digital • A fully digitalized Social Registry as platforms. a common gateway for household assessment for eligibility in social programs currently under develop- ment. 21 RECOMMENDATIONS HIGH-PRIORITY (SHORT-TO-MEDIUM-TERM): • Improve efficiency and interoperability of core government operations and trust services by (i) develop- ing and implementing an interoperability framework at the inter-ministerial level; (ii) adopting an Enter- prise Architecture to allow for the use of common IT standards; (iii) introducing appropriate incentives to encourage the compliance with these standards; • Facilitate strategic and coordinated leadership for digital platforms; • Expand accessibility, quality, and functionality of existing public digital service delivery platforms, with a focus on e-ID; • Improve access to and quality of public services through increasing access points, transactional e-ser- vices, implementing life journey/scenarios, and data exchange. LONG-TERM: • Increase citizen/government interaction and civic participation through CivicTech to enhance transparency and accountability of public services; • Strengthen the capacity of public institutions for evidence-based policy making, leveraging the use of Big Data. Digital • High mobile phone penetration; • Lack of trust and awareness of DFS on both Financial • Mobile money transactions growing demand and supply sides; Services at a good rate (20 percent growth • High costs linked to cash-out of mobile between June and September 2020, money and fees charged on digital when data collection started); payments; • Growth in formal remittances (of the • Weak infrastructure, limiting DFS main drivers of financial inclusion) development, including expensive and at a high rate during COVID-19, as unreliable internet; informal remittance channels shut • Underdeveloped ecosystem to support DFS, down; especially digital payments; • Development of a National Financial • Low capacity to develop DFS products Inclusion Strategy (NFIS). and services given: (i) limited data on the demand side (e.g., market surveillance surveys); and (ii) weak skills to develop them on the supply side; • Disproportionate regulations and supervision that impede financial innovation; • Small market size (limited scale-up opportunities); 22 The Gambia Digital Economy Diagnostic RECOMMENDATIONS QUICK WINS (SHORT-TERM): • Adopt draft regulations and guidelines that support DFS development, including “Know Your Customer” (KYC) Lite Framework, and clarify licensing as well as operation guidelines for e-money wallet providers; • Finalize and adopt the NFIS; • Boost electronic transactions volume by increasing the number of entities using the payment infrastructure and adopting policies to incentivize electronic payments. HIGH-PRIORITY (SHORT-TO-MEDIUM-TERM): • Strengthen the supervisory and oversight capacity of the Central Bank of Gambia (CBG) and foster cooperation amongst regulators and other relevant government entities; • Enact a government directive that harmonizes and prioritizes digitization efforts, particularly government payments and collections; • Ensure that the upcoming NDP includes a clear roadmap for DFS to highlight its development as a priority; • Upgrade payments systems infrastructure (notably GAMSWITCH) and achieve full interoperability across all FSPs and products, particularly between digital wallets and bank accounts, which could boost DFS uptake and use; • Enhance the functionality of current credit infrastructure to improve its usage, efficiency and effectiveness; • Develop a National Financial Literacy Program to address issues related to the lack of awareness and financial education. LONG-TERM: • Establish a legal and regulatory environment that is conducive to the development of diverse DFS (including e-signature and fintech); • Ensure full modernization of payment systems infrastructure to support a broader agenda for interoperability, going beyond agents; • Promote the development of a large merchant acceptance network of DFS for payments in-store; • Explore options for regional collaboration to address scale-up difficulties. 23 Digital • A burgeoning and dynamic • Weak regulatory framework around digital Businesses digital business ecosystem with business needs, rendering operating a promising potential to offer environment complex; employment opportunities to • Insufficient access to finance, specially at young people and solve local social early stages, compounded by regulatory problems; uncertainty in PE / VC domain; • GoTG’s recognition of the • Limited and expensive internet connectivity importance of developing a hindering both the demand for and supply of strong National Entrepreneurship digital services; Strategy, and combining it with • Lack of digital payment gateways / further support to digitalization of solutions, presenting a constraint to both businesses; digital businesses (particularly e-commerce) • Emerging support services, and consumers; some financial stakeholders and • Lack of workforce with networking opportunities in the advanced digital skills combined with strong digital business ecosystem; managerial capabilities. • Strong diaspora network that can offer knowledge and financial support to digital entrepreneurs back home. RECOMMENDATIONS QUICK WINS (SHORT-TERM): • Scale up the digital addressing solution (Google + Code) beyond the capital city of Banjul to unlock e-commerce potential; • Continue reforming business regulations that enable digital businesses to operate efficiently, including by strengthening consumer protection and intellectual property rights regulations. 24 The Gambia Digital Economy Diagnostic HIGH-PRIORITY (SHORT-TO-MEDIUM-TERM): • Consider adopting a Start-up Act or similarly designed incentive-based provisions to promote innovation, implement suitable legal regimes for start-ups and offer stimulus packages; • Expand funding opportunities for digital businesses, including through (i) the provision of pre-seed financing schemes for digital businesses at early stages of growth, (ii) the development of PE / VC regulations, (iii) the introduction of alternative collateral options for loans, and (iv) the support to business angel investor networks (risk sharing mechanisms and blended finance model); • Strengthen the capacity of existing support organizations to provide tailor-made services to entrepreneurs as well as enabling large private sector companies and the diaspora to support local ventures. LONG-TERM: • Consider boosting equity funding for digital businesses in The Gambia through a VC tax incentive regime; • Facilitate re-risking early-stage investment to enable the diaspora to invest in digital enterprises at home (through diaspora bonds or “patriotic discounts”); • Develop and implement the vision of making The Gambia a hub for software developers. Digital Skills • Endorsed Education Sector • Low learning outcomes, hindering the Strategic Plan (ESSP) 2018-2030 development of foundational skills critical that integrates ICT objectives; for digital literacy (only 1 in 5 students • Promising (potentially scalable) meets minimum reading threshold); digital skills initiatives at multiple • Weak current infrastructure acting levels (within and outside GoTG), as a major barrier, with many schools such as PSI-PMI; and education institutions still without • Private sector engagement: access to electricity, and limited internet Established links between TVET connectivity (including at the university institutions and ICT companies that level where low internet speeds are more can be leveraged for the provision of pronounced); better quality and higher relevance programs; 25 • Reform of teacher training at • Most TVET and high education institutions The Gambia College, offering an lacking equipment and materials necessary opportunity to ensure digital skills for teaching ICT courses, or integrating are embedded into the teacher intermediate digital skills into other training curriculum; subjects; • Youth entrepreneurship: The • Curriculum Framework for Basic and presence of a few but growing in Secondary Schools not adequately number youth-owned startups integrating ICT competencies; focused on technology skills. • Unmet demand for more advanced digital skills of firms driven in part by low capacity of tertiary institutions to prepare skilled graduates. RECOMMENDATIONS QUICK WINS (SHORT-TERM): • Leverage a small, but vibrant ecosystem of youth start-ups / MSMEs support structures as well as private sector partnerships to expand digital skills trainings; • Include ICT competencies in the ongoing Gambia College of Education Reform and basic and secondary curriculum revision process. HIGH-PRIORITY (SHORT-TO-MEDIUM-TERM): • Tackle critical connectivity challenges in education institutions at all levels, including by investing at the tertiary level in the NREN and connecting it to the regional network (WACREN); • Develop a comprehensive national digital skills framework, covering all levels of education and grounded in a solid analysis / understanding of market needs and prospects; • Enhance the breadth and quality of TVET offerings in the digital domain. LONG-TERM: • Expand options for Gambians to obtain tertiary degree-level qualifications in ICT. 26 The Gambia Digital Economy Diagnostic Conclusion and Critical Next Steps Suggested first order priority areas for action: The • Priority 2 (reforms): Strengthen digital main findings of the report identify three areas that economy enabling policy, legal, and institutional can be seen as the immediate priorities to driving environment. Despite the headway already made by digital transformation in The Gambia, with ripple the GoTG, diverging institutional interests, outdated effects on addressing challenges across all five pillars or missing legal provisions, and limited resources and of the digital economy. specialized skills hinder the effective implementation of the existing public strategies and plans. To • Priority 1 (mix of investments and reforms): remedy this, some key actions to consider include: (i) Close digital access and usage gaps by improving the operationalizing the ICT Agency with a strong mandate reliability and affordability of digital connectivity, and and the resources needed to drive stakeholder by attracting increased private sector investment coordination; (ii) rationalizing GoTG’s digital policies in the sector. Improving high-speed broadband and initiatives, while improving collaboration between connectivity across the country remains the most regulators (CBG, PURA, Financial Intelligence Unit, important foundational element in stimulating a etc.) and key MDAs; (iii) strengthening the capacity dynamic digital economy. To achieve this, the GoTG of the CBG and PURA; (iv) fast-tracking the adoption would need to consider: (i) investing in a cost-effective and implementation of cybersecurity and data manner in international redundancy to address a protection legislation; (v) developing and implementing single point of failure status-quo; (ii) attracting an interoperability framework at the inter-ministerial private participation in the wholesale network as level, as a key pre-requisite to digitizing government well as in the state-owned operators, Gamtel and processes and services; (vi) adopting and enacting Gamcel, to fully leverage the country’s critical fiber regulations and guidelines that support DFS and fintech optic backbone and reduce the fiscal burden of the development; (vii) strengthening and ensuring the full telecom sector; (iii) stimulating infrastructure sharing enforcement of consumer protection and intellectual and reinforcing market power regulation, while lifting property regulations; and (viii) adopting an overarching the moratorium on fiber roll-out; and (iv) mobilizing legislation/regulation in the PE/VC domain. additional investment in the IXP while strengthening local expertise for its management. Concerted efforts • Priority 3 (mix of investments and reforms): to achieve these measures are a necessary pre- Strengthen digital literacy, including digital financial requisite for the improved access and affordability literacy, and skills both among civil servants and the of broadband services in The Gambia, which will lay population. Weak digital literacy and digital skills act a solid foundation for the downstream development as both demand and supply side obstacles for digital of the digital economy and advancing the digital economy development. There is a critical need to transformation agenda across other pillars. strengthen currently weak basic digital education and awareness to enable people to take advantage of digital 27 services, including by driving the uptake of DFS and (ii) developing and implementing a national financial trust in other products offered by digital businesses. literacy program to address issues related to the lack There is also a scarcity of local ICT professionals with of awareness and financial education; (iii) developing more advanced digital skills, both in the public and special digital literacy programs for illiterate adults private sectors, who could boost digital platforms’ and small and informal MSMEs; and (iv) enhancing the development and support digital entrepreneurship. breadth and quality of TVET offerings, while expanding Measures in this domain could include: (i) conducting options for Gambians to obtain tertiary degree-level capacity building activities for key government entities; qualifications in ICT. The Gambia Digital Economy Diagnostic 29 Photo credit – Alhagie Manka INTRODUCTION Background on Digital Economy and DE4A Methodology This assessment of the Gambian digital economy16 • Digital Infrastructure, consisting of affordable has been initiated as part of the World Bank Group’s and reliable connectivity and data repositories18, (WBG’s) Digital Economy for Africa (DE4A) initiative, instrumental to bringing people, businesses, and launched to accompany the operationalization governments online; of the African Union (AU) Digital Transformation • Digital Public Platforms, offered by public Strategy for Africa (2020–2030). The strategy, institutions, underpinning e-government services developed by the AU with WBG support and adopted in and supporting the efficiency of core government February 2020, seeks to harness digital technologies operations; and innovation to transform Africa’s societies and • Digital Financial Services, enabling paying, saving, economies17. Prepared to advance the implementation borrowing, and investing through the digital means of this strategy, the WBG DE4A Initiative has set key to accessing digital services and expanding an ambitious vision, underpinned by measurable financial inclusion; goals and indicators (see Annex 1), to ensure that • Digital Businesses, including digital start- every African individual, business, and government ups (early-stage ventures creating new digital is digitally enabled by 2030. The initiative rooted in solutions or business models) and established five core principles (comprehensive, transformative, digital businesses that serve as a critical enabler inclusive, home-grown, and collaborative) also seeks to for traditional “offline” businesses to adopt new ensure that the digital economy is truly inclusive and technologies and business models; and addresses emerging risks, such as cybersecurity, as • Digital Skills, spanning from well as the growing market concentration associated foundational digital literacy to the intermediate, with a platform-based economy. advanced, and highly specialized digital skills, crucial to drive innovation and technology’s The related diagnostic is based on a broadly tested adoption. methodology focused on five foundational building- blocks of a vibrant, inclusive, and safe digital economy. These five pillars are as follows: 16 Digital economy is defined as the part of economic output derived from ICT and digital technologies with a business model based on digital goods or services. The digital economy is made up of various components including platform economy, gig economy (based on flexible, temporary, or freelance jobs), industry 4.0 (trend towards automation and data exchange in manufacturing technologies), data analytics, robotics and Artificial Intelligence (AI), machine learning, 3-D printing and ecommerce amongst others. (Ernst & Young Nigeria, 2018). 17 African Union, 2020. The Digital Transformation Strategy for Africa (2020-2030). Available at: https://au.int/sites/default/files/documents/38507-doc-dts-english.pdf. 18 Connectivity includes mobile and fixed access networks, metro and backhaul networks, national backbone networks, and international connections. Data repositories include data centers and clouds. The digital infrastructure also includes active and passive infrastructure necessary to develop the digital economy downstream (sites, masts, towers, spectrum, etc.). 30 The Gambia Digital Economy Diagnostic APPROACH PRINCIPLES Comprehensive Taking an ecosystem approach that looks at supply and demand and defines a narrow silo approach in defining the requisite elements and foundations for digital economy Transformative Aiming at a very different scale of ambition beyond incremental “islands” of success Inclusive Digital Economy for everyone, in every place, and at all times’ creating equal access to opportunities and dealing with risks of exclusions Homegrown Based on Africa’s realities and unleasing the African spirit of enterprise to have more homegrown digital content and solutions, while embracing what is good and relevant from outside the continent Collaborative Dealing with the digital economy requires a different flexible “mindset” requiring different type of collaboration among countries, among sectors and among publiv and private players, facilitations, retooling and encouraging risk taking. DIGITAL ECONOMY FOUNDATIONS / PILLARS APPLICATIONS LIKELY TO DEVELOP ONCE THE FOUNDATIONAL ELEMENTS ARE IN PLACE GOVTECH applications ECOMMERCE adoption USE CASES OPEN BANKING: non-banks offer tailored services DATA LOCKER to access selected services DIGITAL BUSINESSES DIGITAL PUBLIC PLATFORMS DIGITAL FINANCIAL SERVICES DIGITAL SKILLS DIGITAL INFRASTRUCTURE CROSS-CUTTING AREAS Strong legal and regulatory frameworks to foster competition and MFD agenda ; Manage risks including from legal and regulatory perspectives, data privacy, cyber security; Opportunitiey to empower women and apply to FCV 31 Digital transformation offers The Gambia important facilitate communication without physical interaction. opportunities for accelerated, inclusive and Importantly, digital technologies not only provide the sustainable socioeconomic development and job effective means to enable governments and businesses creation. Digital technologies are expanding access to to switch to online modus operandi but also bring global markets, changing business models, fostering opportunities to boost productivity, create jobs, and innovation, and delivering productivity gains. The build back in a more resilient manner19. This is in line Gambia could benefit from digital transformation, with a global call to strengthen access to and use of which has the potential to drive sustained, inclusive digital technologies that have been playing a critical economic growth and provide its youthful workforce role in supporting the response to and the recovery with much-needed jobs. The accelerating pace of from the COVID-19 crisis around the world through technology diffusion could also provide an opportunity connectivity and essential digital solutions20. to unlock new channels to access quality public and private services. The public sector plays an In this context, the report presents a timely diagnostic important dual role in this new environment, both as of The Gambia’s digital economy, demonstrating a user of digital technologies to deliver key products key existing opportunities and gaps and focusing on and services as well as a regulator of the functions policies that can help the country address its fragility and activities associated with the digital economy. as well as accelerate its post-COVID-19 economic Therefore, the GoTG should step up its efforts to recovery, job creation, and digital inclusion. Based adopt the institutional, policy and regulatory reforms on quantitative and qualitative assessments as well necessary to fully realize the benefits associated with as extensive consultations with key public, private digital transformation. and civil society stakeholders in the country, the diagnostic provides a comprehensive assessment of As governments worldwide seek ways to respond the five foundational elements of the Gambian digital to the economic and social consequences of the economy. Fully aligned with the overall objectives of COVID-19 pandemic, the need for seamless and the Government of The Gambia (GoTG), the report maps reliable digital services has never been more current strengths and weaknesses of each foundation important. In The Gambia, the pandemic has led to a and identifies challenges and opportunities for their sharp decline in economic growth at a time when the future growth. Its findings provide practical, actionable country was already facing deep economic and social recommendations to inform decisions in priority areas, challenges, with multiple fragility drivers. The ongoing proposing a mix of possible policy reforms, investments, pandemic and social distancing measures instituted to and capacity-building interventions to harness the curb the crisis have brought to the fore the importance economic and social benefits of digital technologies of digital connectivity and digital tools needed to and effectively mitigate associated risks. 19 World Bank, 2021. Africa Pulse. Covid-19 and the Future of Work in Africa: Emerging Trends in Digital Technology Adoption. Available at: https://openknowledge.worldbank.org/bitstream/han- dle/10986/35342/9781464817144.pdf?sequence=10&isAllowed=y. 20 There is a global recognition that broadband connectivity and digital technologies play a crucial role in addressing the unique challenges the Covid-19 pandemic poses, particularly to developing coun- tries. For instance, G-20 Ministers responsible for the digital economy issued a joint Covid-19 Response Statement, whereby they recognized the important role that digital technologies and relevant digital policies can play to strengthen and accelerate the global collective response to the pandemic. 32 The Gambia Digital Economy Diagnostic The Gambia at a Glance MAP 1: The Gambia Geographic Position TH E GAMBIA CITIES AND TOWNS MAIN ROADS REGION HEADQUARTERS REGION BOUNDARIES THE GAMBIA NATIONAL CAPITAL INTERNATIONAL BOUNDARIES RIVERS This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank GSDPM Map Design Unit Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 17°W 16°W 15°W 14°W 14°N 14°N To Kaolack 0 10 20 30 40 Kilometers To SENEGAL Kaolack 0 10 20 30 Miles CENTRAL RIVER Sukuta NORTH BANK Farafenni Janjanbureh BANJUL bi a BANJUL Kerewan Ga m Kanifing Mansa Konko Diabugu UPPER RIVER LOWER RIVER Ga mb ia Basse Santa Su Brikama ATLANTIC OCEAN WEST COAST Kalagi To Kolda To Kartung Kolda SENEGAL 13°N 13°N To Bignona To Bignona IBRD 33409R1 FEBRUARY 2014 GUINEA- BISSAU 17°W 16°W 15°W 14°W 33 Nestled within Senegal along the winding course of the It now ranks 51st out of 178 countries in the 2020 Gambia River, The Gambia is a small country in West Fragile States Index, an advancement of 14 positions Africa caught in an intricate web of fragility drivers vis-à-vis 201725. However, two decades of autocratic and experiencing a major economic and political rule characterized by political repression, economic turnaround after 22 years of autocratic rule that mismanagement, and the use of the security apparatus left the country impoverished and highly indebted. to control the opposition has left deep scars on the With an overall area of 10,689 square kilometers country’s development. At the same time, gains in and a population of 2.4 million people, The Gambia is quality of life and public services have not come rapidly the smallest and one of the most densely populated enough for a hopeful population amid the fraying countries in continental Africa21. It is also among the of Barrow’s political coalition and rising opposition, top 10 most urbanized countries in Sub-Saharan exacerbated by an abrupt economic contraction under Africa (SSA) as 62 percent of its population live in the COVID-19 pandemic. Demographic pressures, urban areas22, driven there by food insecurity, extreme economic constraints (particularly macro-fiscal weather conditions and few economic opportunities imbalances), fractionalized elites, human flight and in rural zones — some of the vulnerability factors brain drain26, as well as weak state legitimacy remain the country faces. Overall, in the wake of a peaceful, the country’s worst scoring fragility indicators. albeit protracted political transition in 2017, subject Combined with persistently limited administrative to diplomatic and military pressure23, and steps taken capacity, the inequitable and poor quality of public by the administration of President Adama Barrow to services and the country’s vulnerability to exogenous restore macroeconomic and political stability24, The shocks, these factors constitute a fabric of complex Gambia has markedly improved its fragility profile. and inter-connected fragility drivers. 21 The Gambia’s population density of 225.3 people per sq. km, contrasts starkly against the average for Sub-Saharan Africa, which stands at 50.8 people per sq. km, as per World Development Indicators (WDI) for 2018. Available at: https://data.worldbank.org/indicator/EN.POP.DNST?locations=GM-ZG. 22 WDI for 2019. 23 In January 2017, the Economic Community of West African States (ECOWAS) intervened militarily in the Gambian constitutional crisis that occurred as a result of President Yahya Jammeh refusing to step down after losing the December 2016 presidential election 24 The new GoTG led by President Adama Barrow has allowed a free press, rejoined the Commonwealth, rebuilt relations with Senegal and international financial institutions, and established the Truth, Reconciliation and Reparations Commission. Furthermore, it has taken critical measures to restore independence of the judiciary, strengthen the governance and operational independence of the Central Bank, establish a single account for the Treasury as well as audit the civil service, uniformed services, and strategic state-owned enterprises (SOEs). 25 Fund for Peace, 2020. Fragile States Index. Available at: https://fragilestatesindex.org/country-data/. 26 Large-scale emigration drains the country of its most educated and productive workers. Sixty-five percent of workers with higher education emigrate, which is almost three times higher than in Senegal. 34 The Gambia Digital Economy Diagnostic TABLE 1: The Gambia in Brief – Key Figures and Indicators INDICATOR VALUE SOURCE DEMOGRAPHY Population (thousands) 2,347.7 WDI based on 2019 data Urban population (% of total population) 61.9 WDI based on 2019 data Youth population (% of total population, aged under 25) 65 National census, 2013 Life expectancy at birth (years) 61.7 WDI based on 2018 data Infant mortality rate (per 1,000 live births) 35.9 WDI based on 2019 data Adult literacy rate (% of people ages 15 and above) 50.8 WDI based on 2015 data Youth literacy rate (% of people ages 15-24) 67.2 Ibid. Learning adjusted years of schooling 5.4 WB Human Capital Index 2020 Labor force participation (% of total population ages 15-64) 60.5 Modeled ILO estimate, as reported by WDI for 2019 Employment in agriculture (% of total labor force / estimated % of poor) 46 / 72 Integrated Household Survey (IHS), 2015/2016 ECONOMY & SHARED PROSPERITY GDP, 2020, market prices (GMB million) 97.9 GBoS Real GDP per capita, 2020 (US$) 680.9 WB calc. based on GBoS data Real GDP growth, 2020 (%) -0.2 GBoS Poverty rate, international poverty line, 2015 (US$1.9 per capita per day) 10.3 IHS, 2015 Poverty rate, national poverty line, 2015 48.6 Ibid. Gini coefficient, 2015 (%) 35.9 WB estimate based on IHS 2015 Access to electricity, national / rural, 2018 (%) 62.1 / DHS 2019-20 24.7 35 In this context, the incidence of poverty – associated despite being well ahead of the SSA average nationally with low endowment in human capital and assets (62 percent for The Gambia versus 48 percent for – remains high, while non-monetary indicators SSA in 201833), access to electricity in rural areas is paint a mixed picture. Based on the latest available less than one-third of that in urban settings, at 25 data27, 10.3 percent of the population lived below the and 79 percent, respectively. Moreover, the country international poverty line28 in 2015, with the proportion is extremely vulnerable to climate change34, being increasing to 48.6 percent using the national poverty exposed to growing temperatures and rising sea levels, line. Poverty in The Gambia is multi-dimensional and decreasing rainfall, and coastal erosion. unequally distributed, standing at 70 percent in rural areas against 32 percent in urban zones. Marked Socioeconomic vulnerabilities have been amplified by improvements over the past decade have been achieved the COVID-19 crisis, which halted economic growth in literacy, especially among the youth (15–24 years), in 2020, with projected severe impacts on the poor whose literacy rates doubled from 31.8 percent in and vulnerable populations, including women and the 2010 to 67.2 percent in 2015, and in stunting among elderly. GDP growth initially rose from 2.2 percent in children under the age of five, which decreased from 25 2016 to above 6 percent in 2018 and 2019, fueled by percent in 2013 to 18 percent in 2019/202029. However, rebounding public confidence, low interest rates, and gender gaps persist, with literacy rates among women recovery in tourism, trade, and construction. However, estimated at 47 percent versus 67 percent among largely due to the impact of COVID-19, GDP growth men30, one of the worst scoring sub-indicators for The is estimated to have fallen to -0.2 percent in 2020, Gambia in the 2021 Global Gender Gap Index, where compared with a pre-COVID projection of 6.3 percent. the country ranks dismally at 127th globally and 29th The external factors contributing to this contraction in the SSA31. Overall, without further improvements include a reduction in tourist arrivals (a critical factor in survival rates, nutrition, school enrollment and since tourism is the second largest contributor to GDP, learning outcomes, the cohort of children born today representing roughly 20 percent of the economy), and will only achieve 42 percent of its productivity potential trade disruptions. Domestically, private consumption (compared to the scenario of complete education and fell amid GoTG’s COVID-19 containment measures. On full health)32. While this is slightly higher than the SSA the positive side, official remittances reached record average, it still serves as a brake on the country’s socio- highs in 2020, bolstering international reserves, partly economic development. The situation is aggravated capturing the replacement of informal channels with by considerable inequities in access to basic services, official ones. The poverty rate (calculated based on such as electricity, water, and sanitation. For example, the international poverty line) is estimated to increase 27 The latest household survey was conducted in 2015. A new household survey was completed over 2020/2021 and the updated poverty data was expected to be available by March 2021. 28 US$1.9 (2011 PPP) per capita per day. 29 World Development Indicators (WDI) for 2018 based on UNICEF, WHO, and the World Bank harmonized dataset (adjusted, comparable data) and methodology. Available at: https://data.worldbank.org/ indicator/SH.STA.STNT.ZS?locations=GM. 2019-20 Demographic and Health Survey for The Gambia. 30 2019-20 Demographic and Health Survey, Government of The Gambia. 31 World Economic Forum (2021). Global Gender Gap Report. Available at: http://www3.weforum.org/docs/WEF_GGGR_2021.pdf. 32 World Bank, 2020. The Human Capital Project. Washington D.C. Available at: https://www.worldbank.org/en/publication/human-capital. 33 WDI for 2018. Available at: https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=GM-ZG. 2019-20 Demographic and Health Survey for The Gambia. 34 The ND-Country profile gives The Gambia the following rankings: overall vulnerability: 161/182 and food sector vulnerability: 170/192; adaptive capacity: 161/192. 36 The Gambia Digital Economy Diagnostic from 8.4 percent in 2019 to 9.2 percent in 2020, with resumption of tourism, albeit slowly in the short-run nearly 25,000 people pushed into extreme poverty. due to repeated lockdowns in key markets, notably the UK and Europe. As a result, real GDP is projected to grow GDP is projected to grow by 3.5 percent in 2021 (0.6 by 3.5 percent in 2021 and 5.5 percent in 2022, below percent in per capita terms) and continue to gradually the pre-pandemic growth rate. Over the medium-term, recover in the medium term. The economy is expected growth is expected to accelerate, spurred by services/ to gradually recover in 2021, as private consumption tourism, increased industrial activity, the recovery is less constrained by lockdowns and large public of agriculture (mainly fishing and forestry), and the infrastructure projects are implemented, including pandemic-induced absorption of technology. This projects for the Organization of Islamic Cooperation projection assumes a renewed focus on implementing (OIC) summit in 2022. Remittance inflows continue structural reforms, political stability, and normal to be strong, part of them typically directed to foreign weather conditions. The outlook is, however, subject to direct investment (FDI), notably in the construction downside risks stemming from the depth and duration sector, which has seen sustained private credit of the pandemic, the deployment of vaccines both in growth. Nevertheless, remittance-financed private The Gambia and across key tourist markets, the pace construction is expected to slow over time, given the of reform ahead of presidential elections (scheduled for subdued economic activity in 2020. Furthermore, the December 2021) and climatic shocks. Upside risks are strong agricultural performance of 2020, driven by limited, originating from a faster pandemic recovery exceptionally high rainfall, is not expected to continue and tourism rebound. in 2021. Over time, growth will be supported by the 37 38 Photo credit – Alhagie Manka The Gambia Digital Economy Diagnostic DIGITAL INFRASTRUCTURE Importance Accessible, reliable, and affordable broadband internet with these findings, reaching the AU’s 2030 “Digital is a key foundation of a striving digital economy and Transformation for Africa” goal of universal and digital inclusion. Although empirical work is ongoing affordable internet coverage joint with appropriate to analyze the causal impact of digital connectivity on human capital investment is estimated to raise real productivity and inclusion outcomes, a growing body of GDP growth per capita by 5 p.p. per year, while reducing research already offers positive correlational evidence. the poverty headcount by 2.5 p.p. per year across SSA35. Economic literature demonstrates that improved This positive correlational link has been confirmed by broadband penetration is associated with substantial country-specific studies based on historic data. For socioeconomic benefits, contributing to productivity example, mobile broadband coverage in Senegal has growth, information exchange and improved service been found to be associated with 14 percent higher total delivery across the economy. Table 2 lists a range of consumption for covered households (and a 26-percent studies that measure the macroeconomic effects higher non-food consumption), as well as 10 percent of mobile broadband penetration, ranging from 0.8 lower extreme poverty rates compared to households percent to 2.46 percent of additional GDP growth not covered by internet36. At the enterprise level, firms for an increase of 10 percent in mobile broadband using basic digital rather than analog technologies penetration (depending on a set of countries and report 14 percent higher job growth rate, confirming analyzed period). The estimates for Africa are at the that affordable digital infrastructure can be a potent higher end, with 2.46 percent of additional GDP growth enabler of productivity and employment growth37. per 10 percent higher broadband penetration. In line 35 Choi, J., Dutz, M., Usman, Z. 2019. The Future of Work in Africa: Harnessing the Potential of Digital Technologies for All. Washington, DC: World Bank 36 World Bank, 2021. Inclusive Digital Senegal: Opportunities for Jobs and Economic Transformation by Cruz, M., Dutz, M., and Castelan, C. World Bank, Washington DC (upcoming). 37 Ibid. 39 TABLE 2: Impact of a 10-Percent Increase in Mobile Broadband Penetration on GDP Growth GDP GROWTH, % COUNTRIES SOIRCES/AUTHORS 0.9 - 1.5 OECD, 1996-2007 Czernich et al. 2009 0.82 - 1.4 OECD, 2002-2016 Koutroumpis 2018 1.1 EU countries, 1980-2009 OECD 2011 1.4 Low income countries, 1980-2006 Qiang et al. 2009 1.35 Low income countries, 1980-2011 Scott 2012 0.6 – 2.8 Global, 2000-2015 Endquist et al. 2018 1.5 Global ITU 2020 2.46 Africa The size of the ICT sector and its contribution to GDP ITU modelling for Africa (2020) suggests that a 10 is still relatively modest in The Gambia, however percent increase in mobile broadband penetration in the upside potential is significant. According to The Gambia could lead to US$43 million in additional the Gambia’s Bureau of Statistics (GBOS), the GDP and US$4.1 million in additional tax revenues per communications sector38 contributed 3.4 percent to year (Table 3). This growth is not a one-time gain but a GDP in 2019, though its importance in the economy continuous benefit for the country’s development with via aggregate indirect effects and productivity gains ripple effects across all socioeconomic sectors. is likely to go much further. Replicating the latest TABLE 3: Effect of 10-percent Increase in Mobile Broadband Penetration in The Gambia and Selected Peersh39 COUNTRIES GDP 2019 ADDITIONAL GDP TAX TO GDP RATIO ADDITIONAL TAX (USD MILLION) (USD MILLION) (%) (USD MILLION) The Gambia 1,764 43 9.4 4.1 Structural Peers Guinea 95,503 2,349 15.6 366.5 Guinea-Bissau 7,667 189 17.3 32.6 Togo 10,1226 249 13.5 33.6 Aspirational Peers Rwanda 34,387 846 11,6 98.1 Senegal 23,065 567 15.2 86.2 Uganda 34,387 846 11.7 99.3 SSA 1,755,011 43,173 18.9 8,159.7 Source: WDI 2020; ITU 2020; and authors’ calculations 38 Defined as the production (goods and services) primarily intended to fulfil or enable the function of information processing and communication by electronic means, including transmission and display (based on ITU’s definition adopted in 2007). 39 The selection of peers has been informed by the 2020 World Bank Systematic Country Diagnostic of The Gambia. Guinea, Guinea-Bissau, and Togo represent The Gambia’s structural peers (countries that share several features with The Gambia, such as rapid population growth, high level of urbanization, fragility, weak public administration capacity, a small and an undiversified economy and narrow export base, mainly in tourism and agriculture). Rwanda, Senegal, and Uganda represent The Gambia’s aspirational peers (as countries that are considered to have dealt successfully with a youth bulge, managed to strengthen the capacity of the public sector, and made progress towards higher levels of regional integration). 40 The Gambia Digital Economy Diagnostic The global COVID-19 pandemic amplified the critical Gambia, according to some internet service providers need to close existing digital infrastructure gaps (ISPs), with the onset of the pandemic the bandwidth and highlighted the importance of affordable digital usage has experienced roughly a 30 percent increase access to ensure a continuous availability of vital across the entire broadband network, reportedly services. In the context of various waves and forms resulting in congestion and decreased through-put of lockdowns and pandemic mitigation measures capacity. In response to these challenges, an additional initiated in The Gambia (just like in the rest of the world) temporal spectrum was issued on a request basis starting from March 2020, digital technologies have to ensure increased capacity demand was met. This allowed the government, enterprises, and individuals facilitated the introduction of “stay safe” and “double to limit service disruption, while adhering to social your GB” bundles by some mobile network operators distancing requirements. However, in The Gambia (MNOs). As the pandemic continues to put pressure weak and uneven digital access and use, coupled on the country’s digital infrastructure, it is becoming with the unreliable quality of broadband services, more and more urgent to address existing constraints. underscored difficulties in ensuring the continuous As highlighted by the World Bank’s 2020 Africa Pulse provision of public and commercial services, distance Report, urgent efforts across SSA, including in The education and economic activity, leaving the whole Gambia, are required to ensure affordable, reliable country having to face multiple internet blackouts and universal access to broadband and avoid further over 2020–2021. While time series data on average “exclusion of already marginalized segments of the download speeds is not available from Ookla for The population from the benefits of connectivity”40. Diagnostic Findings: Current State of Broadband Internet Development This section provides diagnostic findings on the state continues through the middle mile (national backbone of broadband infrastructure development in The and intercity network, including internet exchange Gambia. Key constraints along the broadband value points (IXPs)) to the last mile (reaching the end user chain are analyzed based on the framework of the through local access networks). The chapter also 2016 World Development Report on Digital Dividends investigates the invisible mile (an enabling policy, legal and of the 2019 UN Broadband Commission Report and regulatory environment facilitating the intangible on Connecting Africa to Broadband41. The chapter parts of the network, such as spectrum, licensing, starts with the first mile (the point where the internet taxation, cybersecurity, etc.), which could constrain or connects a country to international networks) and promote the broadband access. 40 World Bank, 2020. Africa Pulse: Charting the Road to Recovery. Available at: https://www.worldbank.org/en/publication/africa-pulse. 41 Broadband Commission, Connecting Africa Through Broadband: A Strategy for Doubling Connectivity by 2021 and Reaching Universal Access by 2030. Available at: https://www.broadbandcommission. org/Documents/working-groups/DigitalMoonshotforAfrica_Report.pdf. 41 First Mile: International Connectivity members on May 21, 2013, liberalizing the international data gateway market but not the international voice The access to a high-speed fiber optic submarine cable getaway market, which stayed under the effective – that, despite its location on the Atlantic Ocean, monopoly of the state-owned incumbent operator, The Gambia has gained only in 2012 – is managed Gamtel, till mid-201944. In January 2021 all four MNOs through a public-private consortium. Until 2012, the – Africell, QCell, Comium and Gamcel (subsidiary of country had to rely for its international connectivity on Gamtel45) – had international voice gateway licenses. terrestrial fiber connections to the border with Senegal, At the same time, while the Gambian international where Sonatel (Orange Group) has onward connections access regime complies with the regional ECOWAS to the SAT-3 submarine cable landing in Dakar, or directive (C-REG-06-06-12), stipulating conditions for through costly satellite access via Intelsat. As a result, accessing landing stations of international submarine much of the international bandwidth was purchased at fiber optic cables, the implementation of these high prices through the provisioning of relatively small conditions could be reinforced. Following instances increments of capacity. With support from the World of colluding behavior by existing GSC members, a full Bank West Africa Regional Communications Project pricing model in relation to ACE was administered by (WARCIP), the country acquired a direct connection PURA (with support from the World Bank-financed to the international broadband network through the Fiscal Management Development Project (P166695)), Africa-Coast-to-Europe (ACE) submarine fiber optic facilitating the entry of several new ISPs over the cable that landed in Brusubi (close to capital Banjul) last two years. However, some ISPs are still reporting in 2011 and was ready for service in December 201242. challenges related to accessing ACE capacity. In this Subsequently, the GoTG established the Gambia context, it is important to continue ensuring that access Submarine Cable Company Limited (GSC), at least 51 to ACE remains open and affordable without becoming percent of which is owned by the private sector, as a bottleneck for new and smaller players in the market. a special purpose vehicle (SPV) or a member-owned From the capacity viewpoint, this should be feasible, cooperative form of a public-private partnership (PPP). as, according to PURA, only around 18 percent of ACE The GSC acquired, owns, and operates the submarine capacity is currently used. The GoTG’s capacity shares cable landing station and provides ACE capacity and could also be sold to new market players, effectively landing station access to its members43. making them members of the GSC. The international gateway is now fully liberalized, In view of the reliance on a single submarine cable and however there is a need to continue ensuring the its frequent disruptions, regularly leaving the country effective enforcement of open and fair access to ACE cut off from the rest of the world, there is a critical need capacity by newer players that are currently not GSC for redundancy of international connectivity. Following members. International licenses were issued to all GSC the arrival of ACE, international bandwidth costs 42 Prior to that, for international access other than via satellite (Intelsat), Gambia was at the mercy of Senegal that provides access to its landing station for the SAT-3/WASC international fiber optic submarine cable (in service since April 2002) - Gamtel has two fiber connections from Banjul and Basse to the Dakar cable landing station via Sonatel’s national fiber backbone. 43 The GSC members and their percentage ownership in the subsequently established Trust are, from the private sector, Africell (15 percent), Comium (10 percent), QCell (16 percent), Netpage (5 percent) and Unique Solutions (5 percent), and, from the public sector, GoTG (19 percent), Gamtel (20 percent) and Gamcel (10 percent). Each member has ACE capacity rights corresponding to its percentage partic- ipation, which also establishes its share of responsibility for GSC’s capital expenditures as well as operating and maintenance (O&M) expenses. 44 International voice liberalization was supported by the Gambia First Fiscal Management, Energy and Telecom Reform Development Policy Financing operation of the World Bank (P164545). 45 Gamcel was established in 2000 under the Gambia Companies Act as a wholly owned subsidiary of Gamtel. 42 The Gambia Digital Economy Diagnostic for domestic operators have significantly decreased Recognizing these challenges, the GoTG has (with the wholesale price for international capacity undertaken several mitigation measures, however dropping by 80 percent by 2015), which translated no definitive back-up solution has yet been ensured. into a significant increase in the Gambian bandwidth The GoTG has set up a public-private committee usage46. According to PURA, international bandwidth (comprising the Ministry of Information and capacity increased from 10 Gbps in 2015 to 100 Gbps Communication Infrastructure (MOICI), Public Utility in 2019 and 220 Gbps in 2020. However, the cable is Regulatory Authority (PURA), MNOs and the GSC) entering the second half of its economic life and, while to discuss the prospects of connecting the country it does provide sufficient capacity (Table 4), it is widely to a second submarine cable with a separate landing deemed to be unreliable in view of regular damage (on station. An initial technical proposal has been received average five to six disruptions a year, according to from Google to link The Gambia the Equiano cable some ISPs). These disruptions intensified in 2020/2021, system, which connects Portugal to South Africa and culminating in three breakdowns in January 2021 has several branching units along the West African (January 1, 18 and 28), the last enduring for 2.5 weeks. coast. Negotiations are ongoing and the cable could Most of the damage happens in the Gambian exclusive arrive in Banjul as early as the end of 2022. Parallel economic zone (EEZ) due to a combination of a very talks are ongoing with the Government of Cabo Verde shallow and rocky seabed (with the feeding cable/ and its main operator, Cabo Verde Telecom (CVT), to branching unit not buried deep enough in one vulnerable interconnect to the EllaLink, a submarine fiber optic location roughly 40 km from the shore) and frequent cable between Brazil, Portugal, and Spain that landed impairments caused by fishing vessels regularly in Praia, the capital of Cabo Verde, in January 2021. cutting and displacing the feeding cable, in the context The Gambia could get access to it through a branching of an absent formal mechanism and limited resources unit close to the maritime borders of Senegal. Another to monitor their activities47. To aggravate the situation, international cable that could be potentially considered one of the recent ACE damages was accompanied by a is 2Africa, a 37,000km-long cable around Africa, the concurrent disruption on the terrestrial back-up route Middle East, and the Mediterranean, spearheaded by to Senegal operated by Gamtel (on the Gambian side) Facebook48. A detailed feasibility study is warranted as and Sonatel/Orange (on the Senegalese side). The cost the next step to evaluate the cost-effectiveness of a of this back-up route (of about 10,000 euros per 1 Gbps second cable, and a business case for it, particularly per month) is considered to be excessive. Against this in view of current underutilization of the existing ACE background, redundant networks are critically needed capacity. In addition to pursuing alternative cable not only to minimize disruption and lower the cost of connections, the GoTG has been trying to minimize the back-up routes but to ensure national security and the damage inflicted to ACE by fishing vessels by declaring continued functioning of the public and private sectors a 500-meter zone on either side of the cable within which, particularly in the COVID-19 era, strongly the Gambian EEZ a maritime protected area, while depend on digital connectivity. simultaneously strengthening the capacity to monitor 46 Telegeography, 2020. Global Comms Database: Gambia. 47 Confirmed by an interview with the ACE landing station and GSC management. 48 The cable is expected to have 21 landings in 16 countries in Africa and, although The Gambia is not part of the list, the country could connect to the branching unit close to the territorial waters of Sene- gal, where 2Africa is expected to land. The cable is expected to go live in 2023/24, and with a design capacity of up to 180Tbps. 43 fishing activity49. However, a decision by the Ministry of in Senegal to identify an alternative terrestrial link for Justice and application decrees by the Gambia Maritime a back-up IP transit by-passing the Gamtel-Sonatel Administration related to the protected zone, are still route with the primary objective of lowering prices and pending and effective underlying regulation is required increasing connectivity reliability. Several proposals to ensure adequate monitoring. In the meantime, the received from Senegal’s MNOs in January 2021 are management consortium of ACE has agreed to replace reportedly at least 50 percent cheaper than current around 20km of the Gambian feeding cable with a Gamtel-Sonatel prices. These discussions have been stronger one (with the replacement expected to happen initiated in the context of pressure exerted by PURA by end 2021). on MNOs and ISPs, forcing them to ensure network back-up capacity50. The resolution of this issue will Private sector operators are also working on hinge upon either improving the reliability of Gamtel’s examining options for a second back-up terrestrial fiber backbone (as well as open, transparent, and fiber cable to connect to Senegal. Private-sector led equitable rules on its access) or allowing MNOs to lay negotiations have been ongoing with various operators an alternative link to the border with Senegal. TABLE 4: Summary of Key First Mile Challenges FIRST MILE INDICATORS VALUE CHALLENGE POTENTIAL REMEDY USAGE: Used International Bandwidth in Mbps per 129.50* N/A Not needed 10,000 population ACCESS & RELIABILITY: Direct Available ACE enters the second half of its Ensure access to the second submarine access to a submarine cable economic life and breakdowns (on top cable with a separate landing station, (51 percent private sector of damages inflicted by fishing vessels) avoiding shallow and rocky parts of the owned; 49 percent GoTG start to increase in frequency and seabed and adequately insulated from owned) duration, leaving the whole country in fishing activities. blackouts. BACK-UP AVAILABILITY, Available The backup route to Senegal is expen- Explore alternative terrestrial fiber links RELIABILITY AND AFFORD- sive and susceptible to systematic fiber to the border with Senegal. ABILITY: Terrestrial fiber cuts and power failures. route to Senegal operated by Gamtel. *Source: Telegeography, 2020 49 Navy is in the process of reinforcing its vessels fleet to be able to more effectively patrol the sea. 50 PURA has even issued fines to MNOs and ISPs for absent back-ups but has subsequently dropped them. 44 The Gambia Digital Economy Diagnostic Middle Mile: National Backbone and cost-based model has facilitated operators’ access to Supporting Infrastructure both lit and dark fiber. Nevertheless, while ECOWAN’s dark fiber is generally found to be acceptably reliable, The national fiber optic backbone network is the management and quality of the lit fiber – linked relatively well developed; however, it remains largely to Gamtel’s technical and financial capacity to underutilized due to mismanagement, weak capacity adequately manage it – is considered persistently to commercialize services, and related quality issues. weak. With respect to the NBN, it is currently under an The national fiber infrastructure comprises 817 km of exclusive use by Gamtel. Overall, despite an extensive the ECOWAS51 Wide Area Network (ECOWAN), 130 km coverage (over 90 percent of the population live within of Gamtel’s legacy fiber (incorporated into ECOWAN) 10 km of a fiber node, as demonstrated in Table 6), the and 420 km of the National Broadband Network (NBN) national fiber backbone remains considerably under- fiber launched in June 2019 (Table 5). Important to utilized, with only 27 percent of radio access network note that the ECOWAN network, interconnected to the (RAN)54 sites (mostly in urban areas) and 5 percent of international gateway, was funded primarily by debt the population connected to it, according to PURA. The financing from the Islamic Development Bank (IsDB), rural routes are considered to be unreliable due to fiber while the NBN project (that incorporates new fiber cuts, maintenance works and high prices. As a result loops in major urban areas as well as a data center) of inadequate price / quality characteristics, MNOs was financed with a loan from the Export-Import and ISPs continue to rely on a less efficient microwave Bank of China (Exim Bank), with a total sovereign debt network outside of major urban areas, with microwave amounting to around US $58.3 million52. The ECOWAN, accounting for 73 percent of RAN site connections currently operated as a wholesale network by Gamtel (fiber routes are typically duplicated by microwave with the total transmission bandwidth of 12.5 Gbit, backhauling for corporate clients so that they have offers fiber capacity, colocation, and dark fiber53 continuous internet connectivity). Recognizing these under non-discriminatory terms. The PURA’s 2019 challenges, the GoTG has embarked on a reform of intervention to adjust ECOWAN’s prices based on a state-owned fiber optic assets (see para. 35 below). 51 Economic Community of West African States that consists of 15 members, including The Gambia 52 World Bank, 2019. Options Study for State-Owned Communications Infrastructure in The Gambia (unpublished). 53 Dark fiber refers to unlit fiber-optic cables that are already installed in the ground and ready to be used but that haven’t been taken advantage of yet. In other words, dark fiber is pre-existing under- ground infrastructure that does not yet have the hardware or software to enable it to run services. While fiber optic cables actively sending data via light wavelengths are considered lit, the rest of the unused fiber laying “in wait” is deemed dark. 54 A Radio Access Network (RAN) connects individual devices to other parts of a telecommunications network through radio connections. A RAN resides between user equipment, such as a mobile phone, a computer or any remotely controlled machine, and provides the connection with its core network. 45 TABLE 5: Key National Fiber Infrastructure NETWORK LENGTH, KM RELATED DEBT, US $ COMPLETION OWNERSHIP MANAGEMENT CURRENT USE PERTINENT REGULATIONS (three concentric Open, non- rings: Greater 27.32 mln from Used by 6 discriminatory ECOWAN Banjul, West Early 2016 GoTG Gamtel IsDB55 operators access principles, Bikrama and as defined by PURA national) 420 (fiber exten- sions from the ECOWAN rings to 25 mln from Exclusive use NBN56 reach 107 commu- June 2019 Gamtel Gamtel Not regulated China Exim Bank57 by Gamtel nities and provide 358 fiber access terminals) MAP 2: The Gambia’s Fiber Backbone Source: Africa Bandwidth Maps, Hamilton Research 55 On 30 June 2011, GoTG and IsDB entered an Istisna’a Agreement and a Loan Agreement for the Gambia national component of the ECOWAN project. The Istisna’a Agreement established a US $ 23.69 million facility, and the Loan Agreement established an additional USD 3.63 million facility to finance procurement of ECOWAN assets and cover related project management and implementation expendi- tures and expenses. The portion of the IsDB’s debt (estimated between US $3-5 million) covered wireless 4G fixed network assets for e-government purposes. 56 Beyond wholesale backhaul and last mile access fiber, NBN project financed a national data center. 57 On 27 June 2017, Gamtel and Huawei entered a Gamtel National Broadband Network Project Contract for the supply of the infrastructure components of the NBN project for a fixed price of USD 25 million. On 22 December 2017, GoTG and China EximBank entered into a Government Concessional Loan Agreement that established a USD 25 million facility to cover the costs to be incurred under the Huawei Contract. 46 The Gambia Digital Economy Diagnostic BOX 1: Electricity Challenges as Digital Economy Binding Constraint The GoTG has been pursuing an ambitious vision of universal access to affordable and clean energy. The Energy Sector Roadmap, approved by the Cabinet in October 2017, lays out a vision to modernize the energy sector and move towards 24/7 electricity access for all Gambians. The GoTG plans to shift the energy mix from 100 percent Heavy Fuel Oil (HFO) to lower cost and cleaner energy through imports from the West Africa Power Pool (WAPP) and private investments in the form of domestic Independent Power Producers (IPPs) in renewable energy, such as solar. However, despite recent applaudable progress in improving electricity supply, efficiency and access in The Gambia, critical reliability and affordability issues remain. Available generation in the Greater Banjul Area (GBA) increased from 25 MW in October 2017 to 80 MW in November 2019, enough to meet peak demand of 70 MW. Jointly with measures taken in parallel by the National Water and Electricity Company (NAWEC) to improve grid stability, this has helped to increase power supply from 2-3 hours per day in October 2017 to almost 24/7 power in October 2019. With the help of WB-(co)financed projects, including, but not limited to the ECOWAS Regional Access Project (P164044) and Gambia Electricity Restoration and Modernization Project (P163568), electricity access rate rose from 56 percent in 2017 to above 60 percent in 2019. At the same time, however, average tariffs in The Gambia of $0.22 per kWh in 2020 continue to be some of the highest in SSA (where the median tariff is around $0.15 per kWh), and more than double the global average. The cost is set to come down, as the country interconnects with the WAPP over 2021-2023 (with the help of The Gambia River Basin Development Organization (Organisation pour la Mise en Valeur du Fleuve Gambie, OMVG) high voltage interconnection), allowing it to import much lower-cost electricity, and as it transitions to more renewable energy. In parallel, there are significant investments taking place to improve the stability of the grid, implying that over the medium term, businesses should enjoy better service quality and lower cost electricity. These issues of expensive and unreliable electricity have been persistently highlighted as critical constraints by private sector players during extensive DE4A consultations. In this context, and as access to affordable and reliable electricity is one of the main drivers of broadband internet adoption, it will be critical to maintain the progress and solidify recent gains in the power sector to promote a vibrant downstream digital economy. Sources: World Bank, 2020. The Gambia Electricity Restoration and Modernization Project – Additional Financing Project Document; The Gam- bia First Fiscal Management, Energy and Telecom Reform Development Policy Financing, Program Document 47 The situation is rendered more difficult by an existing hold. This prohibition, which is in direct contradiction moratorium on laying fiber, aimed at stimulating with MNOs’ and ISPs’ licenses and with national the use of publicly financed and managed backhaul regulations (particularly the 2009 Information and infrastructure. As a result of the moratorium on the Communications (IC) Act59), allows for the preferential rollout of fiber networks (both aerial and terrestrial) treatment of Gamtel, which has a majority market adopted by MOICI in December 2018 as a temporary share in the retail fiber market segment, keeping measure to protect significant public investment in national backbone access prices high and the quality of ECOWAN and NBN infrastructure, only Gamtel and service low. It also slows 4G investment, which requires one ISP (Netpage58) have existing fiber networks. All fiber backhauling to provide reasonable speeds to end the other players were forced to put their fiber plans on users. TABLE 6: National Fiber Routes in The Gambia and Selected Peers OPERATIONAL FIBER ROUTES POPULATION WITHIN REACH OF A FIBER NODE POPULATION AREA COUNTRIES (million) (1,000 sq. km) per 1,000 per million % within % within % within Km sq. km inhabitants 10-km 25-km 50-km THE GAMBIA 2.3 10.1 1,356.70 134 578 94.3 100 100 Structural Peers GUINEA 12.8 245.7 5,295.90 22 415 66.8 67.4 94.8 GUINEA-BISSAU 1.9 28.1 111.8 4 58 22.4 29.5 54.8 TOGO 8.1 54.4 2,466.50 45 305 39.1 76 97.8 Aspirational Peers SENEGAL 16.3 192.5 11,923.40 62 732 59.8 86.5 97.7 RWANDA 12.6 24.6 4,796.50 195 381 61.3 99 100 UGANDA 44.2 200.5 15,095.50 75 342 30.7 65.3 92.6 Source: WDI, 2020 (data for 2019) - for population and area; Hamilton Reseach, 2020 - for fiber routes. The Gambia’s Internet Exchange Point (IXP) is under- 2014 — registering it as a voluntary and non-profit resourced and insufficiently connected. Supported charitable company — to boost the speed and security by the African Internet Exchange System (AXIS), a of internet services across the territory60. The Gambian project of the AU implemented by the Internet Society, IXP is located at Gamtel’s Serekunda Exchange and is the GoTG launched the country’s first IXP in July referred to as Serekunda IXP or SIXP. It is currently run 58 Discussions are ongoing between Netpage and MOICI on the possibility of the GoTG to buy out existing Netpage’s fiber network. 59 More specifically, the moratorium contradicts Section 9b of the 2009 IC Act (“fostering transparency and non-discrimination and protecting effective competition and a fair and efficient market be- tween the organizations involved in the IC industry, duly taking into account the public interest and preventing distortion and restriction of competition”) and section 9f (“promoting open network provision and effective competition among licensees in The Gambia”) – 2009 IC Act. Available at: http://www.pura.gm/wp-content/uploads/2018/01/IC-Info-Comms-Act-2009.pdf. 60 IXPs allow operators to internet-connect directly to each other, in the process improving quality of service and reducing transmission costs. 48 The Gambia Digital Economy Diagnostic by a small team on a voluntary basis and has only 1 a well-functioning IXP would be beneficial and would Gbps internet capacity through ACE, which is barely result in reduced IP transit costs. Overall, for the SIXP enough to keep Google’s and Facebook’s storage, called to become more attractive to the industry and fulfill cache61, up to date. Africell, the largest mobile operator its role in international traffic optimization, it would in The Gambia, is a member of the SIXP, but does need to at least double its current capacity and secure not currently use it, due to its limited capacity and further investments to safeguard against technical systematic technical difficulties. In fact, all operators failures. Moreover, for the SIXP to be fully leveraged by that are GSC shareholders appear to have excess operators, the GoTG/PURA should adopt regulations capacity on ACE and hence don’t need to use the SIXP. mandating its use. However, multiple stakeholders have highlighted that BOX 2: Lessons from Kenya and Nigeria’s Internet Exchange Point Growth Examples of well-managed, trusted by local stakeholders and widely used IXPs include those established in Kenya and Nigeria. The growth of the IXPs in each country was exponential, as were the cost savings from exchanging traffic locally rather than using expensive international transit. In Kenya, KIXP grew from carrying a peak traffic of 1 Gbps in 2012 to 19 Gbps in 2020, with cost savings quadrupling to US $6 million per year. In Nigeria, IXPN grew from carrying just 300 Mbps to peak traffic of 125 Gbps in 2020, and the cost savings increased forty times to US $40 million per year. Getting to this point meant following a systematic path of stakeholder relationship building and infrastructure development. The IXPs transformed into multisite with at least one node in carrier- neutral data centers, while maintaining their roles in developing and sustaining trust and collaboration among their members. Each IXP also dropped mandatory peering requirements to encourage new members to join and make selective peering agreements. As a result, all large international content providers added at least one edge cache in the country, and many also added a point of presence (PoP). The respective governments also played a role by developing the Internet sectors and adopting data- protection policies, thereby reinforcing an environment of trust and welcoming further local-content hosting. Sources: Internet Society, 2020. Anchoring the African Internet Ecosystem: Lessons from Kenya and Nigeria’s Internet Exchange Point Growth by Kende, M. Available at: https://www.internetsociety.org/wp-content/uploads/2020/06/Anchoring-the-African-Internet-Ecosystem-Les- sons-from-Kenya-and-Nigeria.pdf 61 Cache, being a type of repository or a storage depot, is a hardware or software component that stores data so that future requests for that data can be served faster. In other words, it is a reserved storage location that collects temporary data to help websites, browsers and apps load faster. 49 Under the auspices of MOICI, the GoTG has recently and providing a set of cybersecurity solutions. The data constructed a Tier-3 data center for storing center is yet to be systematically used by all public government data but its usage appears limited. The entities, as some of the back-up systems required data center, built on a loan from the Exim Bank and for its functioning have not yet been put in place, managed by Gamtel (with capital and operational with MOICI currently seeking additional financing for expenses covered by the country’s national budget), associated procurement. The GoTG at this stage is not was mainly intended to improve the government’s partnering with any private sector entity in managing delivery of electronic services by hosting online portals the center and/or offering shared systems. TABLE 7: Summary of Key Middle Mile Challenges MIDDLE MILE INDICATORS VALUE CHALLENGE POTENTIAL REMEDY Population within 25km reach of a 100%* Expensive access to and unreliable • Increase private participation in the fiber node quality of the ECOWAN national national backbone and effectively backbone (while NBN continues to be ensure non-discriminatory open under the exclusive use by Gamtel), access to it; Km backbone fiber per million 578 km* with most MNOs continuing to use less • Explore excess fiber optic capacity of inhabitants efficient microwave technology for RAN NAWEC’s infrastructure site backhaul outside of major urban • Consider allowing operators to choose areas. • from prequalified contractors relating to civil works for ECOWAN IXP 1 (pres- Insufficient international capacity of Attract additional investment into the • Facebook cache ent) the IXP (barely enough to keep Face- SIXP through private participation. • Google cache book and Google caches up to date). Note: *date from Hamilton Research, 2020. Last Mile owned Africell, Comium and QCell62. Africell is by far the largest mobile service provider with over 60 Competition & Market Structure percent of market share in terms of subscribers (Table 8). There are signs of possible market consolidation, The Gambia has a relatively competitive telecom as Gamcel is underperforming and Comium is facing market. There is one fixed line operator (state-owned financial challenges. As of January 2021, there are also Gamtel) and four MNOs with GSM licenses – state- five licensed ISPs in the market (on top of four MNOs), owned Gamcel (Gamtel’s subsidiary) and privately- including Unique Solutions, Netpage, InSIST Net, DK 62 Africell, a subsidiary of the Lebanon-based Lintel Group, operates mobile networks in The Gambia (launched service in 2001), Democratic Republic of Congo, Sierra Leone, and Uganda. Comium is a fully owned subsidiary of a Lebanese-owned and Luxembourg based telecom company, Comium Group, founded by former LibanCell shareholders and operating in The Gambia (licensed in August 2006 and launched in May 2007), Cote d’Ivoire, Liberia, Sierra Leone, among other countries. QCell is a subsidiary of QuantumNet Group founded by the Gambian entrepreneur Muhammed Jah and privately owned (licensed in August 2008 and launched in July 2009). 50 The Gambia Digital Economy Diagnostic Telecom and Leap GM. Another ISP, XOOM, was licensed in 2019. However, amid delays the license transfer by PURA and subsequently entered arrangements arrangement is yet to be approved by MOICI. with Orange to sell its shares and transfer the license TABLE 8: Retail Mobile Broadband Market in The Gambia ACTIVE SIM MARKET 4G SIM 3G SIM GPRS63 SIM TOTAL DATA SHARE OF OPERATOR CARDS SHARE CARD CARDS S CARDS CARDS SIM CARDS DATA USERS* AFRICELL 1,591,509 60.6% 42,130 610,774 566,860 1,219,764 76.6% QCELL 710,751 27.0% 37,049 255,211 48,486 340,746 47.9% COMIUM 185,968 7.1% N/A N/A 82,357 82,357 44.3% GAMCEL 139,572 5.3% N/A 103,867 N/A 103,867 74.4% TOTAL 2,627,800 100% 79,179 969,852 697,703 1,746,734 66.5% SIM CARDS SHARE 4.5% 55.5% 39.9% Sources: PURA, 2020 (Q1); *Note: Share of data users = total data SIM cards / active SIM cards. Broadband Access & Usage country, against the background of 1.8 million active data sim cards. Broadband 3G+ covers 88 percent of Despite recent progress, mobile broadband the population but 63.5 percent of those covered do experiences a persistent usage gap, whilst access to not appear to be using broadband services, the second fixed broadband remains meagre. In line with broader highest level among benchmarked countries (Table 9). African trends, the broadband market in The Gambia This usage gap highlights the existence of underlying is overwhelmingly mobile, with fixed broadband factors other than coverage hindering people from penetration remaining at very low levels – 0.19 per using internet, such as broadband affordability, quality, 100 inhabitants (ITU, 2020), well below the global content relevance and security (on the supply side) as average of 13.664. Mobile penetration is high, with the well as literacy and digital skills (on the demand side). country ranking 7th on the continent in terms of mobile Indeed, the 2020 Network Readiness Index ranked The tele- density. At the same time, while the number of Gambia 122nd out of 134 countries in terms of online active sim cards per 100 inhabitants has reached 136 content, which includes mobile app development sub- (ITU, Dec 2020), only 66.5 percent of them use data indicator, where the country ranks 120th, reflecting (PURA, Q1 2021). In fact, GSMA estimates that there the scope to improve local content, app development are only 580,000 unique internet subscribers in the and hosting options65. 63 GPRS, General Packet Radio Service, is the result of the evolution of 2G GSM to provide packet switched data at rates of up to a maximum of 172 kbps. It was developed to enable data to be handled and provided a stepping stone on the path to 3G, which is why it is sometimes referred to as 2.5G. 64 Broadband Commission, 2019. Connecting Africa To Broadband: Strategy for Doubling Connectivity by 2021 and Reaching Universal Access by 2030. 65 Portulans Institute, 2020. The Network Readiness Index 2020: Accelerating Digital Transformation in Post-COVID Global Economy. Available at: https://networkreadinessindex.org/wp-content/up- loads/2020/11/NRI-2020-V8_28-11-2020.pdf. 51 TABLE 9: Mobile Internet Usage and Coverage Gaps in The Gambia and Selected Peers UNIQUE MOBILE USAGE GAP 3G POPULATION (covered by a mobile broadband network but INTERNET POPULATION COUNTRIES COVERAGE (%) don’t subscribe to mobile internet services) SUBSCRIBERS (million) (million) million % THE GAMBIA 0.58 2.3 88 1.5 63.5 Structural Peers GUINEA 2.8 12.8 75 6.7 52.8 GUINEA-BISSAU 0.4 1.9 90 1.3 69.2 TOGO 2.0 8.1 66 3.4 41.7 Aspirational Peers SENEGAL 4.1 12.6 90 7.3 57.6 RWANDA 5.6 16.3 95 9.8 60.4 UGANDA 12.1 44.3 85 25.5 57.7 Sources: GSMA Q4 2020; WDI 2020 for population (2019 data); GSMA Mobile Connectivity Index 2019 for 3G coverage. Importantly, there is a distinct gender dimension The uptake of 4G remains particularly low. LTE or 4G in the usage gap. According to the 2016/2018 was launched in 2017 by QCell and in 2018 by Africell. Afrobarometer surveys, 44 percent of women versus 52 Moreover, one of the ISPs is currently rolling out its percent of men report regular internet use66. While this 4G network with hopes to have it operational by end 8 p.p. gap is smaller than in Kenya and Senegal (with 2021. Nonetheless, only 4.5 percent of active data SIM 11 and 12 p.p. divergence, respectively), it is still bigger subscriptions use this technology, even though by now than that registered in Uganda and Guinea (7 and 6 Africell covers 66 percent of the population68 with a p.p., respectively). This digital divide between men and 4G signal (Map 3). While the availability and prices of women is symptomatic of a broader gender gap, as internet capable handsets reportedly can’t fully explain highlighted by The Gambia’s low rank in the 2021 Global such low 4G adoption as uncostly handsets appear to Gender Gap Index, where the country scores particularly be available on the market, the 2020 GSMA State of dismally on educational attainment (135th globally) Mobile Internet Connectivity Report notes that the and economic participation (116th globally). Indeed, affordability of broadband-capable phones generally women account for only 22.5 percent of professional remains a challenge for the poorest segments of society and technical workers and exhibit a 41 percent literacy despite falling prices. According to the 2016/2018 rate (versus 77.5 and 61.8 percent registered for these Afrobarometer surveys, only 56 percent of men and two indicators for men, respectively)67. 44 percent of women in The Gambia report having a 66 Afrobarometer, 2019. Africa’s Digital Gender Divide May Be Widening, Afrobarometer Survey Finds. News Release of 4 November 2019. Available at: https://afrobarometer.org/sites/default/files/ press-release//ab_r7_pr3_africas_digital_gender_divide_may_be_widening.pdf. 67 World Economic Forum (2021). Global Gender Gap Report. Available at: http://www3.weforum.org/docs/WEF_GGGR_2021.pdf. 68 Banjul – 100 percent; Basse – 45 percent; Brikama – 89 percent; Janjanbureh – 15 percent; Kanifing – 100 percent; Kerewan – 37 percent; Kuntaur – 5 percent; Mansa Konko – 37 percent. 52 The Gambia Digital Economy Diagnostic mobile phone with internet access. Interestingly, as power (as close to 50 percent of the population lives in many as 74 percent of female respondents report poverty, as measured by the national poverty line) as using the phone, owned by somebody else, versus only well as the above-mentioned insufficient local content 26 percent of men69, raising issues of women’s agency. and digital illiteracy. This may be compounded by trust Overall, in The Gambia, the low adoption of 4G services issues between operators and consumers, with the is likely largely linked to low data use and device latter having a perception of their data usage being affordability, compounded by a weak purchasing overestimated70. MAP 3: Africell’s 4G Population Coverage Source: RIS Radio Propagation Model Based on Africell’s Network, 2021. In this context, a follow-up analysis would be future consumption needs, would be an important next warranted to shed more light on the usage gap. A step to inform decisions as to what kind of technology detailed demand analysis, including of the type of mix (fiber, wifi, satellite, etc.) could best satisfy demand broadband customers, their spread/concentration and its projected growth. across the country and their current and estimated 69 Afrobarometer Online Data Analysis Tool. Available at: https://afrobarometer.org/online-data-analysis/analyse-online. 70 PURA, 2019. Annual Report. 53 TABLE 10: Analysis of Broadband Supply in The Gambia QUALITY OF WHOLESALE MARKET STRUCTURE CAPACITY SERVICE (QOS) PRICES Urban Fiber De facto monopoly (due to Sufficient Reasonable Reasonable Backhauling the moratorium) Poor: Frame-rate loss Currently too high Rural Fiber De facto monopoly (partly due to multiple fiber Over capacity compared to alternative Backhauling due to the moratorium); cuts and frequent microwave backhauling further analysis is war- power outages ranted to better under- stand the impact of duplication in a small Alternative route Prone to disruptions International terrestrial market of The Gambia required in case of dis- due to fiber cuts and Currently too high connectivity to Senegal ruptions power outages Fixed end user access Monopoly due to the Rollout slow N/A (FTTX and wireless moratorium Source: Authors’ analysis. Affordability & Quality Such prohibitively high prices remain out of reach for an average consumer, leaving The Gambia with the Mobile broadband is excessively expensive and slow 159th rank out of 179 countries in the 2019 ITU’s low in The Gambia, acting as a major barrier to internet consumption mobile-data-and-voice affordability uptake for productive use. In Africa, 32 countries ranking72. Moreover, the quality of connections is are cheaper for a usage of 300 MB per month, while persistently poor, with the average speed of mobile as many as 40 counties offer cheaper rates for 20 broadband much lower than the rest of the continent. GB per month (Table 11). Gambians need to spend an Indeed, 44 African countries have faster average excessive 47 percent of their average monthly gross download speeds. This is corroborated by Ookla that national income (GNI) to consume 20 GB, and even 300 ranks The Gambia 165th out of 174 countries in the MB per month (10 MB per day) is above the 2 percent 2020 Global Speed-test Index73. This is likely caused by affordability target set by the International Broadband the high share (nearly 40 percent) of GPRS data users. Commission71. Prices for mobile broadband are 2 to In this context, PURA is planning to upgrade its quality 3 times higher in The Gambia than in Senegal that of service (QoS) system and capabilities to publish generally outperforms its enclaved neighbor across the actual rather than advertised speeds and ensure the entire digital infrastructure value chain (Table 12). adherence to quality by operators. 71 Broadband Commission, 2020. Target 2: Affordability. Available at: https://www.broadbandcommission.org/Pages/targets/Target-2.aspx. 72 ITU, 2019. Measuring Digital Development: ICT Price Trends 2019. Available at: https://www.itu.int/en/ITU-D/Statistics/Documents/publications/prices2019/ITU_ICTpriceTrends_2019.pdf. 73 Ookla, 2020. Global Speeds (as of June 2020). Available at: https://www.speedtest.net/global-index. 54 The Gambia Digital Economy Diagnostic TABLE 11: Summary of Key Last Mile Challenges AFRICAN LAST MILE INDICATORS VALUE CHALLENGE POTENTIAL REMEDY RANK Price of USD 1.60 33 300MB High costs of inputs (including data use per % GNI per capita Making national backhaul 2.6% 31 electricity), limited economies month* per month competitive is likely to increase of scale as compared to larger last mile competition and drive Price of USD 28.98 41 countries, limited infrastruc- down prices; 20GB data ture sharing, exacerbated by use per % GNI per capita poor quality / cost ratio in the Affordability per month 47% 39 context of an effective Gamtel’s Attracting private investments month* into Gamcel’s assets could monopoly on the national back- USD 1.80 9 provide another impetus to bone, translate into prohibitive boost competition and improve Price of 1GB consumer prices, contributing affordability. data use per to slow broadband adoption and % GNI per capita month* 1.5 16 low usage per month SIM per 100 inhabitants** 136 7 N/A Not needed Lifting the fiber roll-out Adoption Fixed broadband per 100 inhabi- The moratorium slows the moratorium; Stimulating 0.19 31 tants** rollout infrastructure sharing, including with NAWEC. 3G Population Coverage** 88% 19 N/A N/A 4G Population Coverage** 66% N/A N/A N/A Supporting PURA to monitor the Poor QoS offered by 3G / 4G QoS and set minimum Infrastructure operators in view of the limited download speeds for 3G/4G; Average Mobile download speed scale of RAN for backhauling 1.6 45 (Mbps)*** versus fiber; the low average Lowering prices through download speed could also be a competition and reconsidering result of GRPS and 3G data use. ICT sector-specific taxes. Source: *RIS based on the prices of the largest operator in Q4 2020; **ITU Dec 2020 (value and rank based on 2019 data); *** Worldwide Broad- band Speed League 2020. 55 TABLE 12: The Gambia Vis-a-Vis Senegal: Benchmarking First-to-Last Mile Indicators INDICATOR THE GAMBIA SENEGAL DIFFERENCE SOURCE Used International Bandwidth in Mbps Telegeography 129.50 194.8 -34% per 10,000 population 2020 First Mile Sub-marine cable access 1 4 -75% PURA Hamilton Population within 25km reach of a fiber node 100% 86.5% 16% Research, 2020 Middle Mile Km backbone fiber per million inhabitants 578 732 -21% 100 MB 0.77 1.8 -57% 500 MB 2.55 1.8 42% Affordability 1 GB 4.14 1.8 130% (cheapest offer RIS, Q4 2020 available in 2 GB 8.00 1.8 345% country) 5 GB 12.42 3.6 245% 10 GB 21.11 7.2 193% Last Mile 20 GB 28.98 8.91 225% SIM per 100 inhabitants 136 109.7 24% Adoption ITU, Dec 2020 Fixed broadband per (values based 0.19 0.93 -79% 100 inhabitants on 2018-2019 data) 3G Population Coverage 88% 92.2% -5% RIS and GSMA, Infrastructure 4G Population Coverage 66% 75% -12% Q3 2020 Average Mobile download cable.co.uk 1.60 5.93 -73% speed (Mbps) Oct 2020 56 The Gambia Digital Economy Diagnostic Invisible Mile: Sector Policies and • Accessible, high-speed, and reliable broadband Regulations networks, supporting the broadband target of 5 Mbps for all subscribers and users74; Sector Governance • Increasing broadband coverage to more than 90 percent of the population by 2024, including all The Gambian telecommunications sector is under the local government districts; responsibility of MOICI charged with sectoral strategy • A realistic governance structure for the delivery of and policy elaboration. The sector operates under the the broadband strategy, including a collaborative Gambia ICT for Development (ICT4D) Policy Statement delivery framework and no less than 80 percent 2018–2028, validated in December 2016 and revised in digital literacy within the government workforce December 2018. In March 2020, based on a thorough • Conducive environment for local content and review of ICT4D 2018–2028 provisions in relation to applications creation, as well as ensuring digital broadband, MOICI presented a Broadband Policy and literacy for no less than 95 percent of school a Broadband Strategic Plan 2020–2024 (in essence an students. implementation roadmap), which includes (inter alia) the following ambitious objectives for the country: 74 More specifically, 75 percent of homes having affordable access to fixed or mobile download/upload speeds of 5Mbps-plus by end-2022 (increasing to over 90 percent by end-2024); all public institutions (including schools, hospitals and government buildings) having affordable access to 5Mbps-plus services by end-2024. 57 TABLE 13: Key Policies, Regulations and Legislations Related to ICT/Digital Infrastructure in The Gambia YEAR NAME OF POLICY AND LEGISLATIONS 2001 The Gambia Public Utilities Regulatory Authority Act – establishment of the regulator 2007 Competition Act 2009 Information and Communications Act (IC Act) - to be succeeded by a new IC Act under development 2010 The Gambia E-Government Implementation Strategy and Action Plan 2010 Enforcement Regulations 2010 Tariff Approval Guidelines 2012 Registration of Telephone Subscribers Regulations 2013 Gambia Universal Access and Service Policy - succeeded by the 2020 National Broadband Policy 2014 Consumer Protection Act 2016 Broadband and Demand Simulation Study for The Gambia - succeeded by the 2020 study 2016 Gambia National Cybersecurity Strategy - succeeded by National Cybersecurity Policy & Strategy 2020-2024 2016 National Information and Communication Infrastructure policy (NICI II) Policy Statement and Action Plan (2017- 2025) - succeeded by the ICT4D Policy Statement 2018-2028 2017 The Gambia ICT for Development (ICT4D) Policy Statement 2018-2028 2017 National Numbering Plan Regulations 2019 Wireless Telegraphy (Regulatory Charges for Communication Facilities and Services) Regulations 2019 The Gambia Information & Communication Technology Agency (GICTA) Act 2019 2019 Per Second Billing Determination No 0001 2020 The Gambia Broadband Policy 2020 and National Broadband Strategic Plan 2020-2024 2020 Gambia E-Government Strategic Plan 2020-2024 2020 Data Protection and Privacy Policy and Strategy - no Act / law yet adopted 2021 (exp.) National Cybersecurity Policy and Strategy 2020-2024 2021 (exp.) Cybercrime Bill 2021 (exp.) National Data Protection and Privacy Bill 2021 (exp.) Government Cloud Policy and Strategy 2021 (exp.) Critical Information Infrastructure Protection (CIIP) Policy Framework 2021 (exp.) Universal Access and Service Policy 2020 2021 (exp.) Domestication of the ECOWAS Regulations on Free Roaming The GoTG has scope to further enhance its regulate the activities of telecommunications providers telecom regulatory environment and institutional and other public utilities. PURA remains largely an arrangements, particularly by strengthening the role advisory body, and both its board of governors and the of the regulator as a neutral referee to ensure a level managing director are appointed by the President on playing field in the sector. The telecommunications the recommendation of the Minister of Finance and sector is regulated under the Public Utilities Regulatory Economic Affairs, in effect undermining the body’s Authority Act 2001, which established PURA to independence75. Moreover, while PURA’s line ministry is 58 The Gambia Digital Economy Diagnostic MOFEA, it receives policy guidance from MOICI, with key with all sector players and provides for an effective decisions on the telecommunications sector ultimately separation of policies from regulations in order for concentrated at the level of the Minister of Information PURA to more effectively play its role of a neutral sector and Communication Infrastructure. For example, it is referee and withstand political interests. Moreover, MOICI that is responsible for issuing telecom licenses in the context, wherein PURA’s decisions, activity and taking final decisions on spectrum use, thus reports, and operators’ licenses are not published on playing an active role in shaping the market structure the regulator’s website, further strengthening the of the ICT sector. This, subject to policy objectives regulator’s accountability (through the publication of set by MOICI, should be the prerogative of PURA in pertinent legal documents and market observatory line with good international practice that separates online) would also be warranted. ICT policy from ICT regulation through independent regulators that are well positioned to mitigate political These weaknesses are reflected in The Gambia’s capture and state interference. Indeed, the joint ITU- low position in key international regulatory indices. World Bank Digital Regulations Handbook states, “in According the 2019 ITU Regulatory Tracker, The Gambia traditional, converged, and digital regulatory settings, is among 17 countries in SSA, where telecom regulations an independent regulator is crucial to promoting are considered to have evolved to Generation 3 that objective, well-reasoned, and predictable decision- support investment, innovation, and access77 (Figure making”76, in turn critical for thriving competition and 1, upper panel). However, regulatory regime cluster78 sector development. Another example of a market- continues to be the country’s lowest marked composite distorting interference is the 2018 moratorium on indicator in the Tracker (scoring 16 in The Gambia fiber rollout issued by MOICI against the advice of versus 19 in Rwanda, 21 in Togo, 22 in Uganda, and 26 in PURA and in direct contradiction with the licensing Senegal). This is corroborated by the Regulatory Watch regime and the national regulation. More specifically, Initiative (RWI)79 benchmarking, where the country’s the moratorium contradicts section 9b of the 2009 IC attainment levels are particularly low in the regulatory Act (“fostering transparency and non-discrimination governance category (that captures the ability of the and protecting effective competition”) and its section regulator to make independent decisions)80 — the 9f (“promoting open network provision and effective lowest among selected structural and aspirational competition among licensees”). Amid repeated calls for peers and third lowest among 27 analyzed countries reform, the GoTG has initiated the process of revising (Figure 1, middle panel). Improving these regulatory and updating the IC and PURA Acts. It is important to aspects would be important to enhance the sector’s ensure this process is based on public consultations performance (Figure 1, lower panel). 75 Freedom House (2019). The Gambia: Freedom on the Net 2019 Country Report. Available at: https://freedomhouse.org/country/gambia/freedom-net/2019#footnote2_p9dagor. 76 ITU and World Bank (2020). Digital Regulation Handbook. Available at: https://www.itu.int/en/myitu/Publications/2020/08/31/09/09/Digital-Regulation-Handbook. 77 Based on the scores in the ITU’s ICT Regulatory Tracker, countries have been grouped into “generations” of regulations reflecting the maturity of their regulatory framework. Generation 1: Regulated public monopolies / Command and control approach; Generation 2 Opening markets/Partial liberalization and privatization across the layers; Generation 3: Enabling investment, innovation and access with a dual focus on stimulating competition in service and content delivery, and consumer protection; Generation 4: Integrated regulation, led by economic and social goals; Generation 5: Collaborative regulation based on inclusive dialogue and harmonized approached across sectors. ITU (2019). The State of Broadband: Broadband as a Foundation for Sustainable Development. Available at: https://www. itu.int/dms_pub/itu-s/opb/pol/S-POL-BROADBAND.20-2019-PDF-E.pdf. 78 ITU’s regulatory regime cluster consists of 15 indicators, including scores for the licensing regime, QoS monitoring, interconnection prices, infrastructure sharing permitted and mandated, permission for secondary spectrum trading, VoIP usage, etc. 79 The RWI Initiative, led by the World Bank and built on the conclusions of the 2016 World Development Report on Digital Dividends, focuses on the analog complements of the digital transformation, aim- ing to help countries optimize their regulatory frameworks. Phase 2 analyzed issues in five domains (licensing, fair markets, international access, spectrum management, regulatory governance) across 27 countries in ECOWAS, East Africa and MENA. The country’s profile presented is based on the RWI “attainment level”, which measures the extent to which the best practice has been achieved in a particular regulatory domain. 80 RWI regulatory governance cluster looks at the questions of the national regulator’s independence (based on the procedure for nominating Board members), financing, transparency, and Universal Service Fund provisions. 59 FIGURE 1: ICT Regulation Benchmarking in The Gambia and Selected Peers, ITU & RWI Over the past decade, The Gambia has transitioned to the Third Generation ICT regulations; however it continues to lag behind some of the key aspirational and structural peers Evolution of Generations of ICT Regulations ICT Regulatory Tracker Score, ITU, 2019 in SSA, ITU, 2007-2019 (100=best score) GENERATION 1 GENERATION 2 GENERATION 3 GENERATION 4 SENEGAL 91 RWANDA 86.3 SIERRA COTE THE TOGO GUINEA LEONE D’IVOIRE GAMBIA RWANDA UGANDA 86 2007 UGANDA SENEGAL ETHIOPIA GUINEA- BISSAU GHANA 80 ETHIOPIA SIERRA LEONE UGANDA TOGO 75.7 GUINEA TOGO SENEGAL 2019 GUINEA- COTE RWANDA THE GAMBIA 73.7 BISSAU D’IVOIRE THE GAMBIA GUINEA 68.3 GUINEA-BISSAU 46 0 10 20 30 40 50 60 70 80 90 100 This is corroborated by the Gambia’s attainment level in RWI, particularly low in regulatory governance domain Average across 27 analyzed countries 89 89 88 78 71 67 61 61 62 62 56 56 56 58 50 50 54 54 50 46 42 46 46 45 38 38 42 38 42 33 LICENCING FAIR INTERNATIONAL SPECTRUM REGULATORY TOTAL RWI REGIME MARKETS GATEWAYS MANAGEMENT GOVERNANCE ATTAINMENT THE GAMBIA GUINEA-BISSAU TOGO SENEGAL RWANDA Addressing these weaknesses would be important, as stronger regulatory environment for ICT is associated with stronger sector performance 80% COTE CABO D’IVOIRE KENYA VERDE NIGERIA BENIN TUNISIA TANZANIA RWI ATTAINMENT LEVEL RWANDA UGANDA MOROCCO GHANA 60% SENEGAL JORDAN BURKINA FASO EGYPT LIBERIA THE GAMBIA NIGER TOGO ALGERIA MALI GUINEA GUINEA-BISSAU LEBANON 40% IRAQ SIERRA LEONE EASTERN AFRICA M-MENA ECOWAS PALESTINE 20% 0,2 0,4 0,6 0,8 1,0 ICT STATUS The ICT status is made up of a compound of 10 ICT indicators related to penetration, usage pricing and competition Source: ITU (2019), ICT Regulatory Tracker – top panel; World Bank (2021), RWI Phase 2 – middle and lower panel 60 The Gambia Digital Economy Diagnostic Significant Market Power (SMP) Regulation other installations in the property”. Despite these provisions, infrastructure sharing doesn’t appear to be Despite the existence of the market analysis widely practiced. In this context, compounded by the mechanism provided by the 2009 IC Act, it seems small market size of The Gambia, it appears critical that a full regulatory framework has not yet been fully to ensure open and non-discriminatory access to the implemented. In view of reported lingering challenges state-financed and managed wholesale backhaul of accessing ACE by younger and smaller ISPs that infrastructure (as is already the case with ECOWAN are not GSC members, it is important to continue but not with NBN), while concomitantly providing emphasizing open and fair access to the international additional incentives for infrastructure sharing capacity and ensuring open and transparent terms among operators, based on economic efficiency. This and conditions of access to the national backbone. could help players, particularly smaller ones, to avoid Cognizant of this, PURA intends to conduct a new set unnecessary infrastructure duplication and associated of SMP analysis, taking into consideration the evolving costs. Indeed, as noted by the ITU, “infrastructure market structure (i.e. pending consolidation in the sharing contributes to improved competition and mobile segment, increase in number of ISPs requiring increased economies of scale, which, in turn, accelerate open access to international capacity, etc.). affordable access for digital transformation”82. Moreover, this practice gears investment towards Infrastructure Sharing, Spectrum Management and underserved areas, product innovation, and improved Licensing Regime customer service, as demonstrated by multiple examples around the world83. In addition, it would While infrastructure sharing, critical for a small be worthwhile to explore possibilities of harnessing country like The Gambia to improve broadband existing utility infrastructure, particularly that of affordability and uptake, is available as a potential NAWEC. There is limited information on the extent to tool to enhance fair competition, it could be more which such opportunities have been explored, but one effectively stimulated or enforced through incentive- ISP has indicated that, despite sending a request letter based holistic regulation. Section 38 of the 2009 IC to NAWEC, the utility company has refused to give Act stipulates that “licensees shall promote among permission to access its infrastructure based on safety themselves the conclusion of agreements aimed at issues. In this context, further analysis (similar to the sharing property or facilities, either installed or to be ongoing feasibility study for marketing the excess fiber installed”. There is also a clause stating that in case optic capacity on the OMVG84) is recommended to see of absent “viable alternatives to the installation of whether NAWEC has any excess fiber optic that could new infrastructure <…>81, the Authority may, following be monetized, based on global best practice. This would a consultation period of interested parties, determine present opportunities for operators to lower the cost of the sharing of facilities, including ducts, masts and network deployment, speeding its development. 81 Due to environmental protection, public health, public security, cultural heritage, country planning and town and country landscapes preservation, without prejudice to the powers of local authorities, as per section 38 (2) of the 2009 IC Act. Available at: http://www.pura.gm/wp-content/uploads/2018/01/IC-Info-Comms-Act-2009.pdf. 82 ITU, 2018. All About Infrastructure Sharing. Available at: https://www.itu.int/en/ITU-D/Regulatory-Market/Documents/Infrastructure_portal/All_About_InfrastructureSharing_2018.pdf. 83 Booz Allen Hamilton, 2009. Telecom Infrastructure Sharing: Regulatory Enablers and Economic Benefits. Available at: https://web.archive.org/web/20090824043657/http://www.boozallen.com/media/ file/Telecom_Infrastructure_Sharing.pdf. 84 The study is ongoing to assess how excess fiber capacity to be installed through the OMVG interconnection project could be monetized. Findings are expected by mid-2021. 61 BOX 3: Evaluating Options for Achieving Universal Access in The Gambia Emerging evidence suggests that instead of progressing through cellular generations sequentially, it might be more cost-efficient to ‘leapfrog’ to providing 4G or 5G connectivity in underserved areas. The analysis conducted for the purposes of this report to estimate social cost of providing universal broadband access in The Gambia based on different technologies (factoring both private sector investments and public subsidies) demonstrates that as more spectrally efficient technologies become available, the cost per bit provided decreases, as fewer sites are required for newer generations relative to older ones (e.g. 5G relative to 3G). Moreover, the model evidences that the cost of deploying fiber is much higher than that of a wireless backhaul, making the latter a more cost-effective way for reaching universal broadband coverage. An important caveat, however, is that to benefit from this more advanced connectivity, users would need to have 4G- or 5G-enabled smartphones, the affordability of which remains a significant adoption barrier. Infrastructure sharing has a very large impact on the cost of delivery, especially in helping to serve hard to reach areas. Average savings from different infrastructure sharing arrangements85 are estimated as follows (using 4G with a wireless backhaul as the common deployment strategy): • Passive infrastructure sharing: 36% for 10 Mbps and 31% for 5 Mbps; • Active infrastructure sharing: 62% for 10 Mbps and 59% for 5 Mbps; • Shared Rural Network (SRN): 62% for 10 Mbps and 59% for 5 Mbps; The caveat to these aforementioned strategies is that they could end up compromising the level of market-based infrastructure competition between MNOs, which is well documented to provide beneficial effects. The aim of the SRN is thus to try to balance out these benefits by retaining market-based infrastructure competition in urban areas, while reducing the deployment costs in rural areas. 85 Under a passive infrastructure sharing multiple MNOs use the same site compound, tower and backhaul connection (thus non-electronic components). With active infrastructure sharing, a Multi-Op- erator Radio Access Network (MORAN) is introduced, where the active electronic radio equipment is shared simultaneously along with the passive infrastructure assets. Finally, as both passive and active sharing strategies are nationally homogenous in their level of sharing across urban and rural markets, a Shared Rural Network (SRN) focuses on deploying an actively shared MORAN, but only in rural areas, where deployment is generally more challenging. 62 The Gambia Digital Economy Diagnostic SOCIAL COST OF UNIVERSAL BROADBAND BY TECHNOLOGY Reported for all scenarios and capacity per user targets Low (2% Adoption Growth) Baseline (4% Adoption Growth) High (6% Adoption Growth) 5G (W) 0.19 0.23 0.29 0.79 1.23 1.88 -20 Mbps Per User 4G (W) 3G (W) 2.01 2.97 4.08 5G (F) 1.34 1.43 1.5 4G (F) 2.24 2.79 3.59 3G (F) 3.74 4.88 6.21 5G (W) 0.14 0.16 0.2 4G (W) 0.33 -10 Mbps Per User 0.5 0.81 3G (W) 1 1.43 2.08 5G (F) 1.05 1.09 1.29 4G (F) 1.66 1.85 2.27 3G (F) 2.54 3.08 3.83 5G (W) 0.12 0.12 0.14 4G (W) 0.2 0.26 0.35 -5 Mbps Per User 3G (W) 0.47 0.69 1 5G (F) 0.99 0.97 0.98 4G (F) 1.28 1.41 1.61 3G (F) 1.9 2.17 2.59 0 2 4 6 0 2 4 6 0 2 4 6 Social Cost (Billions $USD) Private Cost ($USD) Government Cost ($USD) Note: Scenarios are based on different cellphone and smartphone adoption growth rates (2%, 4%, and 6%). Moreover, three capacity per user targets are used - 5 Mbps (set by the Gambia Broadband Policy 2020-2024), 10 Mbps (considered by the UN Broadband Commission for the universal target), and 20 Mbps based on mean speeds available for the busiest hour of the day. Source: Edward Oughton, 2021. Quantified Universal Broadband Investment by Country: Country Assessment for The Gambia. 63 The Gambia’s spectrum management and licensing thus pave the way for service and technology neutral regime is generally solid; however, weaknesses exist, licenses that would increase competition in the fixed, and recently launched IC Act revision provides an fixed-wireless, and mobile end-user access markets88. opportunity to address them. The radio frequency It would also allow ISPs to provide voice services. spectrum is a scarce national resource that should be utilized in an efficient and effective manner to realize Taxes & Parafiscal Fees the national spectrum mission and policy objectives. As mentioned above, frequencies in The Gambia ICT sector specific taxes and parafiscal fees are are allocated/approved by MOICI and managed by considered by the operators as a stumbling block to PURA, notably through the Gambia National Table investment and broadband adoption. Many African of Frequency Allocations. The 2009 IC Act refers to governments, including GoTG, are increasingly levying “Spectrum Guidelines”, which appear to be a “high sector-specific taxes on consumers of mobile services level” explanation of the main objectives of PURA and devices and on mobile operators. As underscored when assigning frequencies without providing specific by the 2021 World Bank Africa Pulse report, if these details on the assignment proceedings and criteria86. taxes are not adequately designed, they can hamper The recently launched revision of the IC Act offers the growth of services among citizens, limiting an opportunity to provide more clarity on frequency social and economic benefits associated with digital assignment and strengthen PURA’s mandate in technologies89. The VAT rate for the ICT sector in The spectrum allocation and management. Importantly, Gambia is 15 percent with an additional 5-percent this process could be used to consider 2G/3G spectrum excise duty, amounting to a total of 20 percent in lieu reallocation and spectrum re-framing as part of the of the 15 percent applied to other sectors. In terms of digital switch-over process87, as well as to lay the customs, the GoTG levies 10 percent on the imports of groundwork for future 5G rollout. As for the licensing mobile telephones, base stations, and communication regime, there appear to be some inaccuracies or even apparatus, with these duties perceived as a barrier contradictions in the PURA Act or between the PURA to investment in networks, particularly in rural and Act and its Guidelines. Moreover, the regime provides remote areas90. There is also a national education and for technological neutrality, but in view of consumer technical training levy, imposed by the 2005 National protection there is a need to obtain prior approval Education Levy Act, in the amount of 0.75 percent from PURA to deploy new technologies. While this on annual gross revenue (turnover) with a maximum ensures that new technologies deployed conform with limit of GMD100,000 per year. In addition, a new regulatory requirements, it might not be conducive to sports levy (amounting to (i) US$0.02 per minute a fast-paced sectoral development. A new IC Act could on all international incoming calls, and (ii) GMD 0.50 86 World Bank (2021c). Regulatory Watch Initiative Phase 2. Thorough Legal, Regulatory and Competitive Analyses of Issues Related to Licensing, OTTs, International Gateways, Spectrum Management and Regulatory Governance (forthcoming). 87 In 2006, African countries agreed to participate in a digital switchover process to transition from analog to digital terrestrial broadcasting, intended to free up spectrum in the ultra-high frequency (UHF) bands, as per ITU, 2006. Digital Broadcasting Set to Transform Communication Landscape. 88 By creating technology-neutral spectrum licenses, operators are at liberty to adapt and upgrade to new technologies without having to apply for special permission or even applying for a new license. Across the region, there is a general trend towards technology neutral licenses. 89 World Bank, 2021. Africa Pulse. Covid-19 and the Future of Work in Africa: Emerging Trends in Digital Technology Adoption. Available at: https://openknowledge.worldbank.org/bitstream/han- dle/10986/35342/9781464817144.pdf?sequence=10&isAllowed=y. 90 World Bank, 2021. Taxes and Parafiscal Fees of the Telecom Sector in Africa (forthcoming). 64 The Gambia Digital Economy Diagnostic per minute on all local calls or 1 percent on airtime simplicity, might be warranted to support the sector’s purchase) was introduced in 2019, effective from June continued growth, while allowing more people to gain 10, 2019, to support youth and sports’ development. access to broadband. This reform could be beneficial, Moreover, municipal rates are collected per base despite the tightening fiscal space and the telecom station in some localities, hampering the deployment of industry being perceived as an effective channel for new infrastructure, particularly in rural areas. Overall, tax collection, given its high degree of formality. In consultations with MNOs and ISPs underscored that carrying it, the GoTG would need to consider the trade- the mobile tax burden, which is relatively heavy in off between taxing the sector and providing incentives The Gambia compared to its peers (Figure 2), acts and subsidies in unviable locations to achieve universal as one of the constraints to lower consumer prices, access. As demonstrated in Rwanda, due to network hence hindering the overall digital development in the externalities of connecting to mobile phone networks, country. In this context, a deliberate and strategic the social welfare cost of taxing the telecom sector may reform of telecom sector taxes and fees, in line with be as much as three times the fiscal revenue raised91. best-practice tax principles of efficiency, fairness and FIGURE 2: Mobile Taxes in The Gambia and Selected Peers 100 90 80 70 60 50 40 30 20 10 0 ia bi a in go C n a al ya re na a ca r ia ge r n To DR oo an d g n oi a nd an m Be er ne Ke Iv Gh a ga s nz Ni Ga m w Se d’ Ug e Ca R te ad a Ta Th Co M Source: World Bank, 2021e (forthcoming). 91 Björkegren, D., 2019. Competition in Network Industries: Evidence from the Rwandan Mobile Phone Network (SSRN Scholarly Paper No. ID 3527028). Social Science Research Network, Rochester, NY. Available at: https://doi.org/10.2139/ssrn.3527028. 65 Universal Service between the contributions gathered and the funds actually disbursed (more than a third of studied USFs Despite being legally provided for, a universal service haven’t disbursed anything and none have disbursed policy has not been effectively implemented in The everything)92. This is corroborated by 2018 ITU report Gambia, with the revision of the 2009 IC Act offering that found that only 21 per cent of the money collected an excellent opportunity to reexamine the situation has been disbursed by USFs in eleven least developed and develop most suitable implementation modalities. African countries. Pockets of successes do exist. For Articles 112, 116 and 117 of the 2009 IC Act include example, in Lesotho USF has been effectively used to provisions related to “ensuring the implementation establish and support an IXP, while in Uganda, almost of universal access or service”, including by means of all public secondary schools have been provided with establishing a Universal Service Fund (USF), organizing Internet access using USF funding93. Another option competitive minimum subsidy auctions or designing for is a so called “pay or play” mechanism, wherein public access projects. However, none of these policymakers give operators an option to either serve provisions have been de facto implemented. There seem unprofitable locations (i.e.“play”) or provide resources to have been a consensus that in The Gambia with a to create traditional tenders for others to serve such very small territory, where 94 percent of population locations (i.e. “pay”), as they usually do in most USFs. lives within 10 km from a fiber node, and an already very Besides creating incentives for the private sector heavy fiscal burden on the telecom sector, getting the to serve remote zones (probably those closer to the market structure right would be critical before taxing market efficiency gap), this approach – considered the sector more. While a USF mechanism (generally more flexible and agile and implemented in a range of financed by obligatory contributions from telecom countries, as per Box 4 below – has an additional benefit operators) has been widespread in closing broadband in terms of reducing the time when resources with high access gaps in underserved areas around the world, opportunity costs are kept idle by the government94. emerging evidence suggests its mixed performance In this context, it would be important to reexamine due to, inter alia, disbursement challenges and misuse different options for achieving universal service of funds, particularly widespread in the contexts of objectives in The Gambia, and the process of updating weak administrative capacity. The 2014 GSMA study the 2009 IC Act (supported by the WB-financed Fiscal examined USF performance in 23 SSA countries and Management Development Project - P166695) offers a documented “significant deficiencies in fund structures, good opportunity for this. management and operations”, highlighting the gap 92 GSMA, 2014. Sub-Saharan Africa – Universal Service Fund Study. Prepared for GSMA by Ladcomm Corporation. 93 ITU, 2018. ICTs, LDCs, and the SDGs: Achieving Universal and Affordable Internet in Least Developed Countries. Thematic Report. 94 World Bank, 2010. Options to Increase Access to Telecommunications Services in Rural and Low-Income Areas. Working Paper No 178 by Muente-Kunigami, A. and Navas-Sabater, J. 66 The Gambia Digital Economy Diagnostic BOX 4: Universal Service Policy in Morocco The ‘pay or play’ mechanism adopted in Morocco is one of a few examples of an attempt to motivate operators to identify, help plan and ultimately deliver the facilities and/or broadband services to underserved areas. Since 2004, MNOs in Morocco can either carry out activities to comply with universal service obligations provided for in their licenses (i.e. “play”) or free themselves from them by paying the related contribution (in the amount of 2 percent of their annual turnover) into a special allocation account of the USF (i.e. “pay”). Operators who carry out universal service programs (to extend network coverage in underserved areas), validated in accordance with the terms set by regulator, for the amount exceeding their annual contribution to the USF may then receive the difference between the amount spent and the amount for which they are liable. Likewise, in the event of incom- plete performance of the universal service program, operators have to pay the remaining difference to the USF and can be subject to a fine. In practice this mechanism adopted in Morocco stimulated existing operators to deploy networks that they would not have otherwise deployed if they had not been compensated by a reduction in their contribution to the USF (“play” mechanism). According to the regulator, nearly 11,000 out of 14,000 localities eligible for mobile broadband coverage under the universal service policy and the National Broadband Plan have been connected by the operators by 2021. Since its inception, the USF in Morocco has financed multiple projects that not only allowed to improve broad- band connectivity in the country but contributed to broader digital transformation of the public sector. More specifically, Moroccan USF financed projects to connect certain localities to internet by satellite links; create community access centers, facilitating the access of young people to ICT; dematerialize the process of issuing birth certificates and modernize and progressively computerize of civil registration; strengthen emergency call services; promote the use of electronic signatures; etc. Nevertheless, the Fund still has significant undisbursed balances, although the mobilization and utilization of funds has significantly accelerated since 2016. In fact, the Fund’s income and expenditure recorded an average annual increase of 8.5 percent and 132.1 percent respec- tively for the period 2016-2018. State-owned Assets NBN and Gamtel’s legacy fiber, which competes with microwave and rival overbuilds in the The GoTG’s existing supply-side telecom investments wholesale backhaul transmission facilities and services are extensive and intertwined. However, a market market; assessment has identified four distinct supply-side markets, in which the GoTG has separate or separable • Gamtel’s core retail fixed voice and data business units. They are as follows. business (99 percent owned by GoTG directly and 1 percent through the Gambia Ports Authority), which • Wholesale national fiber infrastructure (100 competes against MNOs and ISPs in the retail fixed percent owned by GoTG), comprising ECOWAN, market; 67 • Gamcel’s core retail mobile voice and data the-top (OTT) services, such as Whatsapp, Skype, business (100 percent owned by GoTG though Gamtel), Zoom and others. The company would require an which competes against MNOs in the retail mobile estimated US$15–20 million to upgrade its mobile market; and network to catch up with other MNOs. As for Gamtel, its • GSC’s wholesale international bandwidth shareholders’ equity rose despite collapsing revenues business (19 percent stake of GoTG; 20 percent stake of over 2016–2018 (analysis of Gamtel’s audited financial Gamtel and 10 percent stake of Gamcel, i.e., 49 percent statements is provided in Annex 3). This is mostly due total public ownership), which comprises a cooperative to a rapid increase in receivables, although it is not of most facilities-based operators in the market. clear how much of that is recoverable. Overall, the restructuring and privatization of Gamtel and Gamcel As in many othercountries, andtothe acknowledgement is likely to require additional public funds, given the of the GoTG, the strategy of empowering state- likelihood that their financial positions have worsened owned enterprises (SOEs) on the supply side of since 2018. However, the longer it is postponed, the telecommunications has not born expected fruit, but more expensive it is going to be — both for the GoTG long-lasting reform effort is yet to materialize in a and the entire economy -- especially in the context of concrete resolution. The reform of the supply-side servicing sizeable telecom-related loans, amounting to public sector telecom investments, including Gamtel 3.6 percent of GDP95. and Gamcel, has been on the GoTG’s agenda since the 1990s. After experiencing financial problems, Gamtel Recognizing this, the GoTG has taken important was partially privatized in 2007 through the sale by the steps to continue liberalizing the market and reform GoTG of a 50 percent equity interest to the Spectrum its supply-side market participation, but progress Group, which entered into a contract to manage has been slow. The GoTG has taken a decision to Gamtel. In 2008, the GoTG announced plans to sell an withdraw from the supply-side retail telecom markets 80 percent stake in Gamcel but no transaction was and restructure its supply-side wholesale market concluded, while the partial privatization of Gamtel was investments to shift some of its financial burdens and reversed, with GoTG repurchasing the shares sold to risks to the private sector. To this end, in August 2019, Spectrum and deciding not to renew the management the Cabinet endorsed the establishment of an SPV to agreement. Subsequently, both Gamtel and Gamcel ring-fence the wholesale network currently managed have consistently underperformed in an increasingly by Gamtel and incorporated it in April 2021 (as the competitive telecom market. Today, both enterprises Gambia Fiber Optic Company Limited) to ensure future continue to present fiscal risks and are reportedly in private participation in the ownership and management precarious financial positions, right behind NAWEC in of the wholesale fiber optic assets. Furthermore, the terms of financial losses incurred since 2010. Gamcel GoTG decided to recruit transaction advisors (a team didn’t make a profit over 2012–2018, for which audited of legal, financial and technical experts) to conduct financial statements are available. Its shareholders’ the due diligence and assess investors’ interest in equity has been negative since 2014, reaching GMD554 ECOWAN as well as in Gamtel’s/Gamcel’s assets (i.e., million in 2018 (Table 14). Its main source of revenue, carry out a market test). However, the process has which used to accrue from the international voice registered delays and might not be completed before gateway, has shrunk drastically over the years for the presidential elections due in December 2021 that various reasons, including the increasing use of over- might further defer this difficult reform. 95 The debt servicing schedules will require on average 0.3 percent of GDP each year during 2018–2038 68 The Gambia Digital Economy Diagnostic TABLE 14: Gamcel Audited Financial Statements 2012 2013 2014 2015 2016 2017 2018 Revenue (GMD million) 683 702 613 492 407 387 399 Net after tax profit (GMD million) -167 -244 -151 -108 -70 -132 -69 Assets (GMD million) 800 680 530 466 620 546 463 Liabilities (GMD million) 527 650 650 702 881 1,032 1,016 Shareholder Equity (GMD million) 274 30 -200 -237 -262 -486 -554 Return on Equity (ROE), (%) -61% -814% 76% 46% 27% 27% 12% Asset Turnover (#) 0.85 1.03 1.16 1.06 0.66 0.71 0.86 Profit Margin (%) -24% -35% -25% -22% -17% -34% -17% Sources: PURA. Cybersecurity & Data Protection standards (for example, Cybercrime Bill aligned with Council of Europe’s Budapest Convention) and promptly Important regulatory and legal provisions adopted / enacted, important regulatory gaps remain related to cybersecurity and data protection are unaddressed. They were evidenced by WDR 2021 Data currently under approval; their prompt adoption Regulation Diagnostic that looked at key enablers and effective implementation would be critical to and safeguards of data use across 80 countries98 and ensure an enabling environment for the broader found significant room for improvement in The Gambia adoption of digital solutions. According to the 2019 (Figure 3). In the meantime, The Gambia is in the process Cybersecurity Capacity Review96, the country’s of executing the 2010 ECOWAS Supplementary Act A/ cybersecurity capacity is relatively weak and in need SA.1/01/10 on Personal Data Protection that requires of strengthening measures. This is particularly critical each ECOWAS member state to establish a Data in light of the COVID-19 pandemic, throughout which Protection Authority entrusted with the mission of cybercriminals and state-sponsored actors have been ensuring that personal data is processed in compliance successfully targeting critical digital infrastructure with the provisions of the Act. The Gambia has yet to globally. Important initiatives have been launched or transpose this law domestically and to establish a Data are ongoing in The Gambia. For example, the national Protection Authority. In addition, the need for Open Computer Security Incident Response Team (CSIRT)97 Data Legislation and Online Child Protection Policy/ has been established and is operational, while key Legislation has been voiced by various stakeholders regulatory and legal provisions are pending approval/ in the ICT sector. The successful adoption and enactment, including Cybersecurity Policy and implementation of all these provisions would be critical Strategy 2020–2024 (expected to be approved by for protecting digital infrastructure and ensuring mid-2021), Cybercrime Bill (expected to be enacted by the adoption of digital public platforms, including mid-2021) and Data Protection and Privacy Bill (under those critical for social protection transfers, as well validation). Without these important regulatory and as for a wider and safer use of digital technologies by legislative measures designed in line with international enterprises and people. 96 The review was conducted at the request of MOICI by the Global Cyber Security Capacity Centre in collaboration with the WB based on the cybersecurity maturity model (CMM). Final Report is available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3658442. 97 CSIRT is a term that refers to an entity uniting IT experts that provides services and support surrounding the prevention, management and coordination of potential cybersecurity-related emergencies. It is sometimes used interchangeably with the historic term “computer emergency response team” (CERT). 98 The WDR21 Data Regulation Diagnostic conducts a detailed assessment of domestic laws, regulations, and administrative requirements focusing on two pillars: Data Enablers and Data Safeguards. Enablers include e-commerce/transactions, public intent data and private intent data; Safeguards include personal data, non-personal data, cybersecurity, and cybercrime as well as cross-border data transactions/flows. Each dimension comprises questions designed to determine if a country has adopted certain good regulatory practices. Responses are scored and averaged under each dimension to provide an overview of how a country performs in the corresponding regulatory and legal dimension. 69 FIGURE 3: Data Regulation Diagnostic Across Selected SSA Countries Countries’ average scores on the pillars of enablers and safeguards 100 90 Enablers Safeguards 80 70 60 50 40 30 20 10 0 i ia s li r l er ia so na ya ia ire da in da ria go ica ne w iu Ma sca bon gola roon ega bia DRC Fa ha en zan ’Ivo an Ben gan ibe To Afr Leo ala hiop rit a Ni g a G K an d au a G A m Se Gam n e n in Rw U L t h rra M Et ag r k T t e u e M a d Ca e Bu Co So Si M Th Sources: WDR2021. TABLE 15: Summary of Key Invisible Mile Challenges AREA CHALLENGE POTENTIAL REMEDY ICT sector Licensing is the responsibility of MOICI, which limits Effectively separating ICT policy from sector regulation by governance PURA’s ability to shape the market structure and strengthening PURA’s independence and accountability. establish and maintain fair competition. Infrastruc- The 2009 IC Act encourages, but doesn’t mandate Adopting and enforcing effective infrastructure sharing ture sharing infrastructure sharing, and there is no specific holistic regulation. legislation/regulation, covering all aspects/types of infrastructure sharing. Market The regulatory framework for the market analysis Conducting a new set of market analysis and publishing its Analysis mechanism has not been fully implemented. The market decision; reenforcing open access principles to broadband analysis conducted in 2016 needs to be updated and infrastructure, ensuring timely publication of reference adequate SMP obligations for international access need access offers, etc. to be considered for dominant operators. Licenses Licenses are not service neutral. Introducing service and technology neutral licenses, which can reduce bureaucratic burden and increase competition. 70 The Gambia Digital Economy Diagnostic License fees Fees are not service neutral, constraining investment: Reconsidering annual license fee, as PURA is financed by • Mobile – GMD 40 million the 1.5-percent regulatory fee. • Fixed-wireless – GMD 20 million • MVNO – GMD 10 million • VAS – GDM 450,000 • Fixed-line – GMD 2.25 million • International Data Gateway – GMD 450,000 • International Voice Gateway – GMD 1.25 million Regulatory Regulatory fees are up to 1.5 percent of operators’ annual Not needed. fees turnover (determined each year based on PURA’s budget needs but not exceeding 1.5 percent). ICT sector • 15 percent VAT Reviewing ICT sector specific taxes (including potentially specific • 5 percent excise duty removing the sports levy considering indirect bearing on taxes • 1 percent airtime sports levy (for youth & sports the sector) with the objective of leveraging ICT sector as a development) growth engine for the economy. • 0.75 percent (on annual gross revenue) national education and technical training levy • 10 percent import customs duty on mobile tele- phones, base stations, communication apparatus Termination Voice and SMS termination is GMD 0.50 (equivalent to Not needed. rates USD 0.0097). Universal Articles 112, 116 and 117 of the 2009 IC Act have universal Reexamining the situation and effectively implementing service service provisions (including those related to the USF), most suitable modalities for achieving universal service policy which, however, have never been implemented. (already ongoing with the IC Act revision process). Spectrum Spectrum allocation seems effectively managed ac- Further strengthening and optimizing in the process of cording to MNOs and ISPs; however, further clarity on revising the IC Act. frequency spectrum assignment and strengthening PURA’s mandate in its allocation and management are warranted . Cyber According to PURA, National Cybersecurity Policy and Ensuring effective implementation of mentioned legisla- Security Strategy 2020-2024 will be adopted in 2021; GmCSIRT tions and regulations. has been established and is operational; a Data Protec- tion Bill is being formulated, while Cybercrime Bill is to be adopted in 2021. 71 Recommendations The Gambia has all the ingredients for a flourishing (among telecom operators and ISPs) as well as across ICT sector; however, the broadband market continues sectors (including by exploring the availability of excess to be significantly constrained by several factors, fiber optic capacity of the NAWEC’s infrastructure including unresolved issues of state-owned supply- and the feasibility of its monetization) to improve side telecom assets, especially the national backbone access and affordability. Utilizing NAWEC assets to infrastructure, its poor management and high access densify last mile fiber infrastructure should be made costs. a priority. Moreover, a “dig once” policy, relying on real time information of the existing infrastructure (digital The GoTG could consider the following infrastructure maps), guidelines for rapid deployment recommendations to improve digital infrastructure and a coordinated method of accessing right of way provision across the country in the short, medium should be considered. and long-term. Recommendations are classified by the level of priority: (i) quick-wins (or “low hanging fruit”) - R 1.3 [High Priority] Ensure adequate and cost- for actions that can be delivered quickly / short-term efficient international redundancy. This is critical with immediate tangible results; (ii) high-priority - for in view of increasing frequency of ACE damages, critical recommendations that can’t be relegated and combined with the expensive backup route to Senegal could be adopted within a short to medium timeframe; being susceptible to systematic fiber cuts and power and (iii) long-term – for actions spanning a wider failures. The solution could include either ensuring timeframe that focus on consolidating results. access to the second submarine cable with a separate landing station, or supporting an alternative, ideally R 1.1 [Quick Win] Lift the moratorium on the fiber private sector owned/operated terrestrial fiber link to rollout in alignment with the IC Act and existing the border with Senegal. As the next step, it would be licensing regime. This is not only critical to increase important to conduct detailed feasibility studies and a market predictability for existing and future investors, cost-benefit analysis to evaluate various options and including those potentially interested in state-owned undertake investment in the most suitable and cost- assets, but also essential to decrease national backbone effective solutions. It would also be important to ensure access prices, improve the quality of service and boost an open and fair access regime in the international 4G investment that requires fiber backhauling to bandwidth capacity market (especially for smaller provide reasonable speeds to end users. ISPs, which are not GSC members), thus bringing the country in full compliance with the regional ECOWAS R 1.2 [Quick Win] Incentivize and enforce active directive (C-REG-06-06-12) stipulating conditions for and passive infrastructure sharing through holistic accessing landing stations for international submarine regulatory measures. The lack of a coordinated approach fiber optic cables. to infrastructure buildout, in the absence of a “dig once” policy and effective and holistic infrastructure sharing R 1.4 [High Priority] Through increased private regulation, can lead to the unnecessary duplication of participation, complete the wholesale network assets and increased costs, particularly burdensome management reform and leverage state-owned digital for smaller market players. Regulation should include infrastructure assets in a more strategic way. In line infrastructure sharing provisions within the sector with its commitment to hand over the management 72 The Gambia Digital Economy Diagnostic of ECOWAN and NBN to a qualified private operator Strategy 2020–2024 and Cybercrime Bill and Data in the context of restructuring its supply-side telecom Protection and Privacy Bill, as well as the Critical holdings99, the GoTG should reinvigorate efforts to Information Infrastructure Protection (CIIP) Policy attract private investment by divesting its state- Framework. It is also important to establish the Data owned assets and companies (Gamtel and Gamcel), Protection Authority and develop comprehensive Open while ensuring non-discriminatory open access to Data Legislation and an Online Child Protection Policy/ the national backbone. Broadband price reductions Legislation. should then be a natural product of effective market competition. R 1.8 [High Priority] Introduce service and technology neutral licenses that would increase competition in R 1.5 [High Priority] Strengthen sector governance fixed, fixed-wireless, and mobile access markets and to withstand potential political capture by further would allow ISPs to provide international voice services, separating ICT policy from ICT regulations and while reducing the bureaucratic burden. reinforcing the independence and accountability of R 1.9 [Long-term] Review sector-specific fees and taxes. PURA. Effectively separating ICT policy, under the An assessment of the overall fiscal burden across main prerogative of MOICI from ICT sector regulation sectors of the economy in The Gambia is warranted, under the responsibility of PURA through a review of with view of recommending potential adjustments that institutional arrangements, could be reflected in the would more evenly distribute the burden. Based on the new IC Act under elaboration. More specifically, PURA results of this assessment, the GoTG could consider should be responsible for issuing telecom licenses and rationalizing sector specific taxes (including VAT) and taking final decisions on spectrum use, thus playing parafiscal fees (including the sports levy) in line with an active role in shaping the market structure of international best practices. the ICT sector. In addition, it is warranted to further strengthen the regulator’s accountability by ensuring R 1.10 [Long-term] Mobilize investment into SIXP, the timely publication online of all PURA’s decisions, strengthen local expertise for its management, and activity reports, operators’ licenses, reference offers as adopt a regulation to mandate its use. well as the market observatory. Finally, spurring the adoption and use of broadband R 1.6 [Long-term] Conduct a new set of market analysis services will also require significant efforts to drive that defines markets that may require regulatory demand and build digital skills. Specific interventions consideration, identifies operators with significant should be designed to promote the use of services market power, and formulates regulatory remedies to that are attractive to potential consumers, such address market failure. as e-Government services, digital payments, and social media. Likewise, it is important to invest in the R 1.7 [High Priority] Accelerate the adoption and development of digital skills needed to use technology ensure the effective implementation of cybersecurity efficiently, targeting especially those parts of the and data protection legislation. It is important to population with less formal education. These will be ensure the adoption (planned in 2021) and effective elaborated in more detail in the forthcoming chapters implementation of the Cybersecurity Policy and of this report. 99 As expressed in the Letter of Intent sent by the Minister of Finance and Economic Affairs and the Governor of the Central Bank of the Gambia to the Managing Director of IMF on 18 June 2018. 73 74 Photo credit – Alhagie Manka The Gambia Digital Economy Diagnostic DIGITAL PUBLIC PLATFORMS Importance This chapter covers digital public platforms offered sector representatives as well) to administrative and by the government and public institutions that have public services; and, ultimately, encourage the growth the potential to transform the way people, the public of a digital marketplace. Beyond service delivery, sector and civil society interact with each other. digital public platforms provide new channels for public Digital platforms developed for the public sector and as engagement, feedback, and information sharing, a public good can connect people and things as well as including the use of CivicTech tools that can increase facilitate digital transactions, including the exchange civil engagement, transparency and accountability of of information, goods, and services. Digital public the government. platforms leverage shared services and follow a “whole- of-government” approach to digital transformation. The growth of the digital economy and increasing This approach, also referred to as “GovTech”, has reliance on digital platforms have the potential to the potential to revolutionize governments’ internal address fragility issues but can also exacerbate the processes and government-to-government (G2G), marginalization and exclusion of vulnerable population government-to-people (G2P) and government-to- groups. The World Bank’s Strategy for Fragility, Conflict businesses (G2B) services that build on interoperable and Violence 2020–2025 highlights the powerful systems. These platforms are heavily dependent on impact of digital technologies and platforms in fragile ID systems, trust services and data exchange, with settings, such as The Gambia’s, as they strengthen their shared repositories to increase transparency local and national public services, promote private and reduce leakage and fraud by ensuring that public investment, and help civil society build community services reach their intended beneficiaries or suppliers. networks. Given the significant role connectivity can play in reducing socio-economic exclusion and The objective of enhancing such platforms is to enable polarization, developing an enabling environment the GoTG to increase the efficiency and effectiveness and promoting the growth of digital platforms (while of core government functions and services; reduce ensuring equitable benefits to vulnerable groups) could the unnecessary duplication of systems; combat play an important role in helping the country address fraud and corruption by increasing the security and many of its fragility drivers, including corruption, traceability of transactions; facilitate the access of inequality and youth marginalization. non-state actors (not only individuals but private 75 Diagnostic Findings: Current State of Digital Public Platforms Policy Underpinnings • E-Government Strategy 2021–2024 In line with the high-level NPD vision, a new ICT policy • ICT4D Policy Statement 2018–2028 was developed that articulates strategic objectives • Information and Communications Act 2009 pertaining to public digital platforms, a high priority • Universal Access and Service Policy 2020. for the GoTG. The Gambia ICT for Development (ICT4D) Policy Statement 2018–2028 fully recognizes the Importantly, in terms of the legal and regulatory country’s digital transformation aspirations. The main framework, there are currently no laws that regulate purpose of the policy is to reinforce the GoTG’s priorities the activity of users with respect to electronic set in the NDP, particularly the fifth objective to “Make documents and their exchange between different The Gambia a Digital Nation and create a modern entities. While the 2009 IC Act considers electronic information society” by harnessing the benefits of ICT in records, these provisions could be reinforced. In this all economic sectors. ICT4D is a clear government-wide context, a Law on Government Electronic Registers IT policy and MOICI has the mandate to implement and would be useful to unify the criteria and requirements enforce it. Strengthened e-government is considered for all state registers. Such a law would provide central, as it can help the GoTG achieve its high-level the legal framework for the establishment and national targets: maintenance of electronic registers, data exchange and an interoperability framework. The exchange of (i) revenue generation of 20 percent of GDP; (ii) at least data would be based on the principle of “once only” 80 percent of financial transactions (budget execution and a unique identification number to exclude the and payments) captured within the Integrated duplication of personally identifiable data in all state Financial Management Information System (IFMIS); (iii) registers. Moreover, the current legal and regulatory at least 75 percent of citizens and residents registered framework does not have provisions that establish the in the National Biometric ID database; and (iv) an need and obligation to safeguard information and have e-procurement system linked to IFMIS and deployed business continuity procedures in place for institutional by 50 MDAs. The objectives cover connectivity for systems and processes. government, citizen-based services, and the use of ICT for inclusion and skills development, while underscoring transparency and good public sector Digital Identification & Trust Services governance through the expanded application of digital technologies. Key elements of the policy environment Amid persistently low birth registration statistics, for digital public platforms are as follows (for the full efforts are ongoing to improve and digitalize civil list of pertinent policies and regulations refer to Table registration. A functioning civil registration and vital 12 in Chapter 1): statistics (CRVS) system ensures the registration 76 The Gambia Digital Economy Diagnostic of all critical life events, including births, marriages, series of national ID cards over the past decade. The and deaths, promoting efficient government planning latest, launched in 2018 as The Gambia Biometric and the more effective use of resources. Since a birth Identification System (GAMBIS), provides a card with certificate may be required for the issuance of a formal a biometric chip and is mandatory for all persons over ID for accessing public health, education and social 18. The card contains a picture, thumbprints, encoded protection services, financial services, and voting, it is chip, name, address, signature, and the National essential that all Gambians have a birth certificate and Identification Number (NIN), a unique, 11-digit number, are registered in the CRVS to realize their rights and matched with the cardholder’s thumbprint, that must access to services. The Registrar of Births and Deaths be provided during various transactions with public within the Ministry of Health is responsible for birth and and private organizations. The rollout of the latest death registration in The Gambia. According to UNICEF, national ID card is managed by the Gambia Immigration birth registration has slightly improved in the country Department under the Ministry of the Interior and is in recent years, increasing from 53 percent in 2010 undertaken in partnership with a private company. The to 58 percent in 2018 (MICS 2010 & 2018), but still implementation had some delays amid concerns about leaving 42 percent of children under five without birth cards’ high cost (initially D450 (equivalent to US$ 10) certificates (MICS 2018)100. The centralized system of but now D850 (or US$ 17) for residents of The Gambia birth registration and the distance from the registrar’s and ECOWAS) as well as substantial and burdensome office, as well as costly and time-consuming processes, documentation requirements that may prevent full are some of the barriers. In an effort to decentralize the coverage. Other common ID cards have included a process and involve reproductive and child services, the biometric voter registration system or Voter’s ID GoTG began requiring health professionals to function card, issued widely prior to the presidential election as civil registrars on top of their usual work. Moreover, in December 2016, and a Tax ID number. However, the the records of births, deaths, and marriages, which systems have been fragmented and non-interoperable, for a long time were documented in large paper books, impeding access to basic services. Their roll-out has have recently been digitalized and are now merged, been conducted without any legislation pertaining to with support from the World Bank-financed Gambia personal data protection or dedicated data protection Essential Health Services Strengthening Project agency. (P173287), with MyChild immunization records into an electronic government-wide CRVS system, enabling an The need for the nationwide vaccination against effective authentication of an individual’s identity. COVID-19 provides an opportunity for a mass registration in the eCRVS system. Following a mass Inthe domain ofidentification, successive governments communication and sensitization campaign, each have tried to address service-delivery issues by vaccination center will have two distinct booths/areas, designing ad hoc functional identity credentials or one for electronic registration process and another by launching various enrolment campaigns but have for the actual vaccination. The records will be linked been challenged technically and financially to achieve to the information from other ID sources already in universal coverage objectives. The Gambia has had a the eCRVS and cross-checked with the census-based 100 UNICEF Global Database, 2020. Percentage of Children Under Five Whose Birth Are Registered (based on Multiple Indicator Cluster Survey (MICS) 2018 in the Gambia). Available at: https://data.unicef. org/topic/child-protection/birth-registration/. 77 Social Registry, whose data is under collection in 2021. privacy legal regime. Importantly, since there are no For people under the age of 18, a NIN will be assigned to public or private providers in the country for digital their birth record; for those above 18, an existing NIN certificates, e-signatures are difficult to obtain for will be attached to their birth record or, if none exists, an individual. There are no plans in the current ICT4D a new NIN will be generated. Civil Registrars will review strategy to put in place digital authentication and the electronic birth registration records and approve e-signature capability in the country. Likewise, mobile birth certificates to be printed with the assigned NIN ID solutions are neither available nor planned. for people born in The Gambia. The certificates will be then handed over to individuals when they go for their second vaccine dose. Digital Systems in Social Protection Despite these promising initiatives, the legal and A fully digitalized Social Registry, containing socio- institutional framework for identification in The economic data on households as a common gateway Gambia remains incomplete, while the Public Key for household assessment for eligibility in social Infrastructure (PKI) to underpin trust services and programs, is under development in The Gambia. provide digital certification services is absent. The effort is led by the National Social Protection Fundamentally, the legal and institutional framework Secretariat under the Office of the Vice President, should guarantee data protection, individual with support from the World Bank and GoTG-funded privacy, non-discrimination and inclusion. There is Social Safety Net Project (P167260).101 The Social legislation requiring birth registration, including the Registry can facilitate service delivery by allowing African Charter on the Rights and Welfare of the service providers to identify potential beneficiaries Child (Children’s Charter) and the Births, Deaths and directly from the database, without having to undergo Marriages Registration Act (1990). Furthermore, a a lengthy beneficiary assessment process. In addition, Data Protection and Privacy Policy was endorsed the information on beneficiaries already enrolled and by The Gambian Cabinet in February 2020 and a receiving benefits is also captured in the Social Registry, Personal Data Protection and Privacy Bill has been thus ensuring a more coherent and equitable provision drafted with the intention that it be tabled with the of services. These features of the digital platform can National Assembly in 2021. A law is only as strong ensure cost-efficiency and ease of service delivery. The as its enforcement and the ownership of different ID GBOS is currently collecting data for the Social Registry initiatives currently lies with different government across 36 of the 43 districts in The Gambia102, following departments (birth registration and CRVS with the a census approach103. It collects more socio-economic Ministry of Health, ID issuance with the Ministry household data than many other surveys since this of Interior), with no specialized central agency to information can be used to target and prioritize oversee identification initiatives. The establishment programs for those that need them most. Nonetheless of a Data Protection Supervisory Authority would be this raises personal data protection and privacy an important bulwark for a new data protection and concerns that should be addressed by the pending 101 An additional Technical Assistance task (P174410) funded by the State and Peacebuilding Fund. 102 The data collection effort is intended to be completed within the first quarter of 2021 and the Social Registry should become operational in the second quarter of 2021. 103 Unlike other big surveys, such as the Integrated Household Survey, Multi-Indicator Cluster Survey (MICS) or the Demographic and Health Survey, the Social Registry takes a census approach, since it is important that each household and individual is known and provided services in future. 78 The Gambia Digital Economy Diagnostic data protection legislation. Moreover, the World Food created internal monopolies that seek to protect Program (WFP) is supporting the development of Data themselves from outside interference and fight to Sharing Protocols that would govern the use of Social safeguard and strengthen their position within the Registry data by any service provider hoping to use the State. This siloed organization is incompatible with data for prioritization of programs. the idea of a government-wide platform that relies on a solid interoperability framework to move from A key challenge of the Social Registry is keeping vertical structures, relatively impervious to each the information updated. Large-scale, census-type other, to a horizontal, networked, and collaborative surveys are expensive to undertake but there is organization with reliable, transparent data exchange currently no network of welfare offices at the local between systems. To address these challenges, MOICI level in The Gambia that would allow for a continuous is finalizing the set-up and implementation of the process of updating. Therefore, from the outset, it national data center with the aim of hosting all the was planned that the Social Registry be linked to the critical government platforms over time. In addition, a eCRVS, developed by the Ministry of Health, such that Cloud Strategy is under elaboration to help guide the basic information on household composition can be transition to the new infrastructure. In this process it updated, when births and deaths are registered. An is important to consider using a hybrid cloud104 model update request can be filed by households when their to ensure cloud-based functionalities and higher-level circumstances change. Overall, though another survey data security at much lower costs. sweep will be needed in about five years. Interoperability & Shared Systems The performance of the public sector in mainstreaming online services and back-office systems has been uneven. More specifically, the proliferation of systems implemented in a compartmentalized manner has 104 The hybrid cloud is a combination of an internal private Government cloud with public cloud solutions offered by external providers of commercial cloud services, such as Amazon Web Service, Microsoft Azure, Google Cloud Platform, IMB Cloud, etc. (or eligible internal cloud providers, if such exist). Following private sector examples, governments around the world are adopting the Hybrid Cloud model to store, process and interact with protected, extremely sensitive, or regulated data on a Private Government Cloud, while continuing to leverage cloud-based functionalities and resources from Public Cloud services. The Hybrid Cloud does not refer to a single cloud with public and private features, but rather represents a technological symbiosis of the two approaches, aimed to create a reliable, easily available, and protected virtual environment, which can be scaled up quickly and flexibly at the government’s demand at a much lower cost. 79 BOX 5: Singapore Government’s Transition to Hybrid Cloud model As an early adopter of technology, Singapore faced a need to revamp its legacy IT infrastructure to leverage the benefits of advanced technologies. Such legacy systems limit economies of scale, interoperability, and agility in a new data-driven age. There was a need to leverage the benefits of the cloud technology and to transform the way applications and services are development, ensuring that instead of every agency building their own bespoke systems, technologies are re-used to achieve greater interoperability and agility. In this context, the Government of Singapore decided to move to the public cloud, adopting in June 2018 a commercial Cloud-First Policy, in accordance to which all new unclassified systems were required to be hosted on the public cloud by default. The Government announced a five-year plan to migrate most of its IT systems from its on-premise government data center to the public cloud to speed up the delivery and improve the quality of services for citizens and businesses. One of the key benefits of the cloud is its ability to connect government agencies to a wider ecosystem of partners, including users and developers. MDAs can thus tap into commercial cloud solutions to incorporate advanced functionalities into their digital services instead of trying to reinvent the wheel, thus lowering costs and improving service delivery. Application testing and deployment can also be automated and done in real-time, which is especially useful and critical during and post-COVID-19. Leveraging the cloud capabilities and services of public cloud systems helped the Government develop applications and services for citizens more quickly and in a more scalable way. Adopting the Cloud Policy was supported by a user-friendly guide for the Classification of Government Data. A smooth transition to the cloud was made possible partly by a shift in approach to how the Government classified its data. The Government found that at least 70-80 percent of all the data had negligible national security implications. Henceforth, through an easy to use guide for agencies, more than 150 systems classified as “restricted” and below were moved to the public cloud. This also allowed agencies to utilize cloud-native security services to enhance security, while achieving higher resiliency through cloud-native auto-scaling capabilities. In 2020, the Government announced over US$650 million of contracts earmarked to double the number of systems on the public cloud. Agencies can also refer to a Government Commercial Cloud implementation playbook for guidelines and best practices on how to migrate, develop and implement applications on the cloud. Since then multiple government services migrated to the public cloud. One key example is Singapore’s inland revenue system, which supports tax administration and revenue collection service. By moving to the public cloud, the system enabled taxpayers to complete their tax obligations, from assessment to payment, in a single sitting. Other systems slated to move to the public cloud are Infocomm Media Development Authority’s Integrated Regulatory Info System (IRIS) and PUB’s smart water meter initiative. The latter is expected to be rolled out in 2021, marking the country’s first smart water meter system that will be able to capture household water usage readings wirelessly and push information to households on water-saving measures via a customer portal. 80 The Gambia Digital Economy Diagnostic Data registers maintained and kept by the various entities. As there is no open-source policy or guidance public administrations in The Gambia are neither available at a government level, there is no clarity on mapped nor listed exhaustively. There are several the number/percentage of government services and administrative and functional registers maintained solutions that have been developed using open source. within the GoTG. These include the population register, The technological choices are not regulated, and each the pension register, the payroll database, the electoral entity can use the technology they want. register, the business register, and various other registers that are in the process of being created (cash The current legal and regulatory framework does transfers, health insurance, etc.). As a result, the user not include provisions establishing the principles of is obliged to provide personal data and information “single entry” and “re-use of public information”. An on several occasions to various public entities that entity providing services should be capable of receiving sometimes already have this information. Ideally, the information needed for the provision of services government entities in possession of documents, data or (without the participation of the user) through access information needed for the provision of administrative to the information systems or databases of the other services should be required by law to provide or make entities providing administrative services using the available, free of charge, all data, documents or interoperability system. The “one time only” principle information to other services that request it. is an e-Government concept that aims at ensuring that citizens, institutions and businesses must The problems related to the lack of interoperability provide certain basic information to authorities and of public sector platforms are not recalled in administrations once and only once. The main objective existing e-Government policy documents. There is no of the principle is to reduce the administrative burden interoperability framework for data exchange between on users and businesses by reorganizing internal public public platforms in The Gambia. The GoTG ensures sector procedures. It assumes that collecting and data exchange between different digital government storing information is more costly and burdensome platforms by building individual interfaces on an ad than sharing information already collected. The lack hoc basis. In the same vein, there is no interoperability of an interoperability framework means that most across government agencies at central, regional, or administrative units capture and maintain their own local levels. The lack of related policy and regulations; basic user data. The multiplication of these registers a low level of interaction and coordination between necessarily leads to a multiplication and thus public administrations and users especially with degradation of the quality of the data, which results in respect to the provision of electronic services and a loss of its intrinsic value. access to open data; and the lack of means for appropriate identification and authentication of users A pre-requisite for the establishment of an in their interactions with public authorities are among e-Government is the development of a National the most cited underlying causes of this situation. Data Governance Strategy. The interoperability The recent implementation of the IFMIS, and the need platform should use the NIN allocated by the GAMBIS to integrate it with other public finance systems, to facilitate data exchange between different national has shown the urgent need for the GoTG to define registers and databases. A framework will be needed and set up an interoperability system based on open for classifying data and information by sensitivity standards that will enable the secure exchange of data to determine the level of protection required and the between public administrations and physical and legal access control policy to be implemented. 81 Government Back-Office in place in all government entities. The GAMTAXNET Systems (G2G) is being replaced with a state-of-the-art Integrated Tax Management System (ITAS) at the GRA where the Digitizing government services boosts the digital ASYCUDA++ system is being upgraded to an ASYCUDA economy. This assertion is based on efficiency gains web version to be rolled out to all custom offices. derived from public sector automation and its spillover The new ITAS system will provide e-services, such as effects to the private sector, and the economic growth e-filing, e-declaration and e-payments, to bring the tax associated with the development of local private administration closer to taxpayers. sector digital platforms. The Government’s back-office systems are expanding in functionality, thanks to The GoTG is also planning to digitize public procurement increased investments by the GoTG and its development procedures. With support from the World Bank- partners. Ensuring that the GoTG leverages all the financed Fiscal Management Development Project benefits of these public platforms, however, requires (P166695), the GoTG is developing plans to modernize several critical prerequisites: public sector ICT skills, and automate its public procurement system. The sufficient resources earmarked for recurrent costs Directorate of Public Procurement (DPP) has developed (such as licenses and systems’ maintenance), and a data management portal to display and track the digital infrastructure and interconnectivity. Several procurement and concessions plans of all MDAs, as digital public platforms in The Gambia have been well as all active procurement contracts awarded to designed, implemented, operated, and maintained suppliers to boost transparency, accountability, and by internal IT staff within the relevant ministry competition. The DPP, in collaboration with the World department or agency. Nevertheless, major challenges Bank, is developing a roadmap to design and implement with the understaffing and underfunding of public IT an integrated, e-procurement system that will support functions persist. the online publication of tenders, the solicitation of bids and the enhancement of vendor registration. Capital Despite these challenges, the implementation of expenses for the development and implementation digital public platforms has made some progress in of this platform are covered mainly by development The Gambia. Several initiatives have been launched partners (World Bank and African Development Bank), to digitize some administrative procedures and many while day-to-day operating expenses are supported other procedures are in the process of being digitized. through the national budget. It is important to note The Accountant General’s Office is finalizing the that there are no mechanisms yet in place to regularly implementation and rollout of IFMIS. This system monitor and evaluate the level of usage or the quality supports the budget preparation and execution, of service of such digital back-office systems. accounting and financial analysis, payroll and pensions calculations, and other payments using electronic fund Digital Service Delivery transfers (ETF). The Office of the Prime Minister is also (G2B And G2C) implementing a human resources system as part of the IFMIS platform to better manage the civil service. In The GoTG has a limited but increasing presence online. addition to this platform, a government-wide Electronic Many MDAs are now operating websites; however, they Records Management System has been implemented are often down and/or provide outdated information. at the National Records Service Office and will be put Most of these websites are characterized by a one- 82 The Gambia Digital Economy Diagnostic way information flow. None appear to integrate the • Monitoring and evaluation functionality, ensuring functionality of interactive/transactional requests for the adequate quality control of e-services provision. services or the online provision of services (except for the e-filing of taxes, mentioned above). The unique format From a G2C perspective, the search for instruments for all government websites developed by MOICI is not that promote transparent governance is a constant used uniformly as its PMO has had trouble coordinating effort to update procedures. Digitization does not and harmonizing the GoTG’s web presence. Added to mean automation of existing procedures and processes this, there is no official repository of The Gambia’s but a real reengineering of existing processes and, laws, complicating citizens’ ability to hold officials sometimes, the optimization of them. Moreover, accountable; challenge or contest wrongful actions by change of political paradigms and implementation of officials; or protect their rights, assets and access to new strategies are critical. A limited coordination of basic state services and benefits. the activities supported by donors and development partners in the sector seems to have complicated MOICI has set up a National Portal that centralizes the GoTG’s reform efforts. Requests for collaboration all digitized public services, which has scope to be and support from partners have been sporadic and further enhanced. At this stage, the portal is merely uncoordinated, increasing the fragmentation and descriptive, providing information on procedures to be complexity of implementation. followed for a given service. According to the concept of e-service development, services are provided in The procedure and modalities for the provision of accordance with a web-based e-Government model. public services are not defined by an administrative The “interaction” level of the conceptual model should services law. As previously indicated, there is no be based on a single National Portal for administrative specific law governing the provision of administrative services, including the integrated platforms of all services. Most public services are provided to the users executive bodies and local authorities that operate in a centralized manner. This applies to such common and interact according to unified requirements. The services as the preparation of civil registration “interaction” level should ensure the implementation documents, requiring the applicant to visit in person the of a “Single Window” principle and the use of a single responsible registrar, where the birth declaration was electronic reference entity box and unified electronic made, in order to obtain a birth certificate, for example. identification, authentication, and registration This is also true for the criminal record extract. systems. The portal should provide: • A single point of entry, that is access to all electronic Civictech & Transparency services from a single location • A harmonized human-machine interface in the Civictech has not yet taken hold in The Gambia. While form of unified and harmonized graphical charters the National ICT Policy flags citizen participation as for the provision of electronic services key, GoTG has taken limited steps to date to ensure • Traceability of all activities by demonstrating a broader consultation and more inclusive decision complete history of a specific user’s interactions making through digital platforms. As of now, the • Help and support tools for users, offering the GoTG does not have a published policy on open data possibility of automated planning/reminders of the based on international best practices nor does it have need for administrative services; and an adopted international data standard (including 83 metadata standards). Its efforts to operate an open provided with adequate human and financial resources data initiative covering the collection, storage and to effectively and efficiently oversee the design and sharing of publicly available information are embryonic. implementation of public platforms within the GoTG. In fact, no clear and specific processes are in place across government agencies to undertake these Many other public stakeholders are involved in shaping data tasks in a standardized and readable/reusable and implementing the digital agenda; however, teams manner. In addition, there is no clarity on which agency remain understaffed and underfunded. Some of oversees open data and whether it has the appropriate the MDAs that play an important role in the digital mandate needed for enforcement. No digital platforms transformation initiatives of the GoTG are MOICI, are therefore available either for citizens to voice MOFEA, the Ministry of Interior, PURA, gmCSIRT and grievances or for the government to address them. IT/ICT units in other line ministries. Most of these agencies don’t have a CIO, CTO or permanent official positions dedicated to data management. IT/digital Institutions transformation teams within MDAs are still embryonic. A few full-time staff are employed for the development A newly established, albeit not yet operational, or management of digital public platforms and shared Gambia ICT Agency has a potential to play a services, either centrally or across government leadership role in intersectoral coordination on the agencies. Fiscal funds used for developing or managing digital agenda, which is currently lacking. The agency, digital public platforms and shared services are established by the ICT Agency Act adopted in 2019, allocated on a yearly basis within each entity’s budget. is meant to play a leading and facilitating role in the However, these resources are far from sufficient digital transformation agenda of the GoTG with a very and most investments continue to be donor funded. broad and ambitious mandate. Some of its functions Moreover, there is no cost recovery/charge back stipulated by the Act include accelerating The Gambia’s mechanism used by the lead agency to re-coup the transition to a sustainable e-government environment; costs of the development of shared services. There are, ensuring high standards of digital public services; however, plans to implement such a mechanism in the promoting standardization in the planning, acquisition, future. implementation and delivery of ICT equipment and services used by the government; supporting ICT skills in GoTG and among civil servants are rather cooperation, coordination and rationalization of weak. The GoTG does not appear to have plans to digital public initiatives; promoting local content and support the development of fit-for-purpose ICT skills, applications development; facilitating and encouraging including specialized IT skills and general IT skills among innovation and entrepreneurship; etc. The agency is civil servants. Ad hoc trainings are organized whenever meant to be governed by the Board that would include a platform is being deployed. Against this background. a Director from MOICI and a Permanent Secretary from critical skills in domains such as cybersecurity, IT MOFEA, as well as three private sector representatives, project management and IT governance remain very with the chairperson appointed by the President and scarce. Moreover, existing GoTG’s procurement policies meetings held each quarter. However, this Agency and regulations do not incorporate specific provisions has never been implemented and renewed concerted to favor local ICT firms and SMEs and most of the efforts (including funding) are required to ensure its platforms implemented are commercially available off- operationalization. Moreover, the Agency should be the-shelf (COTS). Because of this, the GoTG does not 84 The Gambia Digital Economy Diagnostic own the source code of its systems, even when this international standards and best practice. The GoTG is impacts its ability to conduct maintenance and/or generating a wealth of financial data from its existing contract services freely and competitively for upgrade. platforms (IFMIS, GAMTAXNET, ASYCUDAA, etc.) but is not using digital analytics tools to regularly analyze Moreover, weak digital literacy and skills among data and use it for policymaking, governance, and general population contribute to low usage rates of private sector development. There are no common data exiting digital platforms. There are many intertwined frameworks/data sharing protocols in place yet and reasons for the low uptake of the country’s existing data is not hosted centrally, with each MDA keeping digital platforms and public services but the two most its own data within their databases. Data back up and important factors appear to be insufficient ICT literacy disaster recovery arrangements are not centralized. among the population on the demand side and the absence of a holistic, whole-of-government change Public data are considered a collective resource of management plan aimed at promoting the uptake of which no administration can claim ownership. The the e-Government agenda on the supply side. Such a GoTG, similar to governments elsewhere, has long been plan could start by building a shared understanding, a producer and consumer of data for its own needs and among users and public servants, of the need for reform those of the society. The governance of data is therefore and include regular, well-designed communication of paramount importance in the context of a series of campaigns and capacity building activities. transformations: (i) transformation in the nature of the data produced or held by the administration; (ii) transformation in the tools and methods for processing Data Management, Sharing & Secure these data; and (iii) transformation of the actions and Access strategies developed based on these new data and methods. Existing legislation remains silent on the A comprehensive vision and policy regarding the implementation of the principles of “single reuse” and management of the data infrastructure is yet to be the “reuse of public information”. In other words, an developed. As mentioned above, a Data Protection and entity providing administrative services receives the Privacy Policy was endorsed by The Gambian Cabinet information necessary for service provision (without a in February 2020 and a Personal Data Protection user’s participation) through access to the information and Privacy Bill has been drafted and is expected to systems or databases of other entities or through be adopted in 2021. A bill on Freedom of Access to technical interoperability. A policy aiming at concrete, Information is also pending enactment. However, the secure interoperability, while respecting informational policy framework for data security, data archiving and self-determination, is necessary. digital preservation (collection, storage, processing, analyzing, archiving, and destroying data) is not The optimal use of data produced by administrations, available yet, although it is well embedded in the bill. and of modern technologies, such as Data Analytics, Similarly, policies or standards for data quality, is essential to enhance effectiveness and efficiency in including its provenance, accuracy, timeliness, and the public sector. According to the OECD DGT principles, completeness, as well as policy on the ownership to take full advantage of information produced by and licensing of government data, are missing. In the public sector, governments should make better this context, the processes of data archiving and use of data analysis tools and technologies (Business preservation currently used do not conform to Intelligence and Data Science) to better understand 85 the needs of citizens. To this end, data governance training for civil servants to help anticipate new needs arrangements (structures and processes) should ensure and trends. Advanced data-based culture requires a the responsible and consistent use of data that benefit sustainable model of data production and free access citizens and build public trust. The use of data and the and reuse across government. The free exchange of resulting analysis should be integrated throughout information between registers via the interoperability the public policy cycle. The new ICT Agency should platform can significantly improve the provision of play a central role in the data governance structures, data, while data collected through government portals processes and practices, and promote a culture of data can promote the engagement of civil society and the analysis and its use in the public sector. Such practices private sector in policy development. and culture should be developed through comprehensive BOX 6: E-Government Success of Singapore Singapore is widely considered as one of the global leaders in GovTech. In Singapore, the Government Technology Agency (GovTech Singapore) is responsible for the implementation of national digital government strategies and services using a whole-of-government approach. In 2014, Singapore launched the Smart Nation initiative, of which digital government is an integral part. The Smart Nation website presents the details of strategic national projects, including Core Operations Development Environment and eXchange (CODEX), National Digital Identity (NDI), Smart Nation Sensor Platform, e-Payments, etc. In 2018, the Government Data Office was established, and the Digital Government Blueprint was developed to better leverage data, harness new technologies, and drive broader efforts to build a digital economy and digital society. The city-state has a one-stop-shop government portal (Gov.sg) that provides access to specialized portals for e-services, open data, e-participation, and public procurement. The government has also created digital platforms for citizens to plan and monitor their social security savings or report issues with government services. Singapore is using predictive systems and services in health sector, tax administration, business registry, smart city applications and more. Another example of leveraging advanced technologies is Open Certs, which is a blockchain- based platform offering an easy and reliable way to issue and validate academic certificates that are tamper-resistant. Constraints to Digital Platforms GoTG, there is a need to reinvigorate efforts to foster Development an enabling environment for The Gambia’s digital transformation. Lack of leadership and coordination To conclude, the enabling environment — particularly has contributed to a landscape wherein public digital the legal framework, interoperability framework, platforms are limited in number, developed mainly in capacity, and change management — is a major silos and are most often present in the pockets of strong obstacle to the development of digital platforms in leadership, budgets, and skills. The key constraints to The Gambia. Despite a strong commitment from the digital platforms development are summarized below. 86 The Gambia Digital Economy Diagnostic • Underdeveloped policy and legal framework separately, mostly without utilizing standardization for digital platforms: As mentioned above, several protocols or considering linkages with external significant legislative gaps are to be filled. platforms. • Absent digital government operational action plan to guide the policymaking and complex • Overall, The Gambia is not yet able to leverage institutional arrangements: There are no clear shared services to deliver platforms across MDAs. institutional and operational roles and mandates, nor While MOICI manages the existing government network is there a comprehensive plan to allocate resources and and aims to centralize the hosting of government IT capacities across government entities. MOICI, which systems and data, at present many MDAs operate acts de facto as the lead agency for e-government, their own infrastructure and data centers. The central is often unable to provide strategic guidance across data center is not fully operational (under migration) multiple institutions with different needs and priorities, and there are no service-level agreements in place to and coordination between MOICI and other MDAs is ensure operational efficiency. Yet MDA-specific data deemed weak. In view of this, I it is envisioned that centers are not designed to ensure data security, data the Gambia ICT Agency would take a leadership role in archiving and digital preservation, increasing the risks coordinating e-Government agenda. to government’s digital data. • Absence of a coherent change management • In this context, The Gambia is left with a strategy to support the uptake of digital services, dismal 181st rank in the 2020 UN e-Government coupled with limited ICT skills needed to support Development Index (EDGI). The Gambia’s composite them. By-and-large, these competencies are not score is well behind SSA leaders such as Mauritius and present or are extremely difficult to attract and retain South Africa (ranking 63rd and 78th, respectively) but in the public sector. Government capacity is viewed as also behind most of the peers, such as Ghana, Togo, insufficient, resulting in overreliance upon international and Senegal (Figure 4). technical expertise. • Absent national interoperability framework to support The Gambia’s digital platforms data/ information exchange. As discussed above, numerous platforms are housed in different MDAs and developed 87 FIGURE 4: E-Government Development Index (EDGI) for The Gambia and Selected Peers EDGI Ranks Across Comparator Countries Gambia’s EDGI Score and Distance to Frontier (leader) GHANA 101 World Leader (Denmark) 0.9758 RWANDA 130 UGANDA 137 SSA Leader (Mauritius) 0.7196 TOGO 147 SENEGAL West Africa Leader (Ghana) 0.596 150 THE GAMBIA 181 Global average: 0.6 The Gambia 0.263 GUINEA 183 GUINEA-BISSAU 186 0 0.2 0.4 0.6 0.8 1 Recommendations While there are multiple reasons why the development R 2.2 [Long Term] Facilitate strategic and coordinated of digital platforms in The Gambia is characterized leadership for digital platforms. The GoTG could benefit by nascency and disjointedness, critical constraints from pursuing a whole-of-government approach to appear to be linked to the gaps in the current enabling digitizing its public sector. This would require reviewing environment, which the recommendations below seek the current IT governance mechanisms to harmonize to address. procurement practices; improving the efficiency in design, rollout and maintenance of related policies; R 2.1 [High Priority] Improve efficiency and and facilitating the identification of use cases from interoperability of core government operations and which best practices can be applied to other platforms. trust services. Developing and implementing an The newly enacted Gambia ICT Agency could be interoperability framework at the inter-ministerial level given the authority to oversee the development and is pre-requisite to digitizing government processes and implementation of the ICT4D National Policy. The services. The adoption of an Enterprise Architecture agency would need to be adequately funded, staffed, would allow the use of common IT standards and have strong leadership and the degree of political interoperability would, therefore, be enforced. empowerment needed to carry out its mandate. Incentives would need to be in place to encourage compliance with these standards. 88 The Gambia Digital Economy Diagnostic R 2.3 [High Priority] Expand the accessibility, quality, citizen feedback mechanisms within all public digital and functionality of existing digital public service platforms to improve public service delivery and assist delivery platforms, with the focus on the e-ID. The in soliciting feedback from citizens and businesses. The national ID system is not sufficiently inclusive to be GoTG should formulate a comprehensive and targeted a true foundational ID system. A lack of inclusiveness CivicTech strategy, focusing on developing dedicated impedes the ability of the ID system to link different platforms for citizens to engage with the state beyond functional databases together. For a foundational ID mere information sharing and social media. Ideally, system to truly unlock the digital economy, it must be the GoTG should aim to implement a government-wide inclusive and enable all functional registries relying on Citizen Relationship Management system (CRM) for it to become subsets of the foundational registry. With case management and complaints handling, develop the interoperability platform in place, the GoTG can citizen engagement mechanisms for selected services, start developing other platforms built on the national and make key public information and data easily ID system and develop an Action Plan for integrating accessible in an open data standard format, etc. digital signatures into key public and services and providing capacity building for their future users. R 2.6 [Long Term] Strengthen the capacity of public Adopting a Cabinet resolution to implement this plan institutions for evidence-based policy making, would be required. leveraging the use of Big Data. The GoTG will benefit from the introduction of new technologies and the R 2.4 [High Priority] Improve access to and quality scaling up innovations in the collection, management of public services through increasing access points, and dissemination of disaggregated data to guide transactional e-services, implementing life journey/ policies that seek to promote welfare and inclusion. scenarios, data exchange and interoperability. With Adopting a policy framework for big data based on the constraints in connectivity, the GoTG could data governance principles to regulate the use of new implement citizen service centers (service kiosks) or technologies for the collection, management and the one-stop shops that would provide access to e-service dissemination of disaggregated data is necessary. platforms in remote areas. These service centers can Improving the targeting of government services to also play a critical role in capacity building for citizen vulnerable groups and geographic areas by better centered service ethos and change management. Along defining the use of new sources of data for policymaking with this, the GoTG should create a comprehensive is also warranted. This could be achieved by setting up communications strategy to boost an uptake of technical committees for the quality review of such digitized services. models. R 2.5 [Long term] Increase citizen/government interaction and civic participation through CivicTech to enhance transparency and accountability of public services. This would imply developing robust 89 90 Photo credit – Alhagie Manka The Gambia Digital Economy Diagnostic DIGITAL FINANCIAL SERVICES Importance Digital Financial Services (DFS) play a critical role in costs, limited competition, as well as the demand-side the development and growth of the digital economy. barriers, including volatile and small incomes for the These are financial services that rely on digital poor, lack of ID, trust and formality and geographical technologies for their delivery and use by consumers.105 barriers108. DFS can provide individuals and households, DFS encompass a broad range of financial products particularly those without access to traditional and services, including payments, remittances, financial services, with convenient and affordable savings, credit, insurance, and investments, delivered channels to submit and receive payments as well as using a mobile phone or other digital technology. DFS to save and borrow. Leveraging DFS, firms can more include established instruments (for example, debit easily transact with their customers and suppliers as and credit cards) offered primarily by banks, as well well as build digital credit histories and seek financing. as new solutions built on cloud computing, digital Governments can use DFS to increase efficiency and platforms, and distributed ledger technologies (DLT), accountability in various payment streams, including spanning mobile payments, crypto-assets, and peer- for the disbursement of social transfers and the receipt to-peer (P2P) applications106. Digital financial inclusion of tax payments. promotes efficient interconnection among participants in economic activities107. Shifting cash into digital For The Gambia, DFS provide a significant opportunity accounts for government payments, remittances, to broaden access to affordable financial services. micro, small and medium enterprise (MSME) payments, Almost 70 percent of the Gambian population is and agricultural value-chain payments can enable excluded from the financial sector109 given several broad-based participation in digital economy. factors that, separately and together, impede financial inclusion. They include: (i) structural factors110, such as Powered by digital technologies, DFS have a high poverty prevalence (almost half the population lives significant potential to lower costs and increase in absolute poverty), insufficient physical connectivity financial inclusion, while enabling significant (both roads and ferry services), and weak literacy; as productivity gains across the economy. Characterized well as (ii) financial sector specific deficiencies and by low marginal costs and greater transparency, barriers on both the supply and demand sides, such DFS can respond to both the supply-side barriers to as high operating costs, limited outreach of financial access to financial services, such as high operating institutions, and low levels of financial literacy. Financial 105 Pazarbasioglu, C., A. Garcia Mora, M. Uttamchandani, H. Natarajan, E. Feyen, and M. Saal. 2020. “Digital Financial Services.” http://pubdocs.worldbank.org/en/230281588169110691/Digital-Financial-Services.pdf 106 Agur, I., S. Martinez Peria, and C. Rochon. 2020. “Digital Financial Services and the Pandemic: Opportunities and Risks for Emerging and Developing Economies.”, IMF Research: Special Series on COVID-19. 107 Dara, N. R. 2018. “The Global Digital Financial Service: A Critical Review to Achieve for Digital Economy in Emerging Markets.” International Research Journal of Human Resources and Social Sciences, 5(1): 141-163. 108 Pazarbasioglu, et al. (2020), op cit. 109 Finscope Consumer Survey Gambia 2019. 110 World Bank. 2019. “Systematic Country Diagnostics for the Republic of The Gambia: Overcoming a No Growth Legacy”. © World Bank 91 Services Providers (FSPs) can leverage DFS to offer distancing, allowing governments to disburse funds basic financial services at greater convenience, scale, to those in need quickly and effectively, while helping and lower cost than traditional financial services. As households and firms rapidly access online payments such, DFS can be more accessible for currently unserved and financing. As such, interest in accelerating the and underserved population segments, for instance development and use of DFS has intensified in The those in rural areas, lower income households, as well Gambia, like in many other countries. as MSMEs. Basic DFS (notably mobile money services) are already delivering significant financial inclusion Boosting DFS growth is well aligned with The benefits in SSA, where the share of adults with a mobile Gambia’s development objectives. The 2018-2021 money account grew by 9 p. p. between 2014 and 2017 NDP identified the financial sector as one of the main compared to a modest growth of 4 p. p. for those with a drivers for transforming country into a middle-income financial institution account111. Further, with 93 percent economy. Importantly, the NDP highlighted improving of Gambian households owning a mobile phone, mobile access to finance as a key component of the strategic based financial solutions could help to overcome some priority related to private sector development, of the barriers that unbanked adults say prevent them specifically “to make the private sector the engine of from accessing financial services, e.g., large distance growth, job creation and transformation”. In addition, to the nearest FSP or high cost of services. the development of DFS has the potential to accelerate the achievement of WBG engagement support The COVID-19 pandemic and ensuing public emergency objectives identified in the upcoming 2021 – 2026 containment requirements have highlighted the Country Partnership Framework (CPF) with a focus on importance of DFS. These services facilitate social increasing access to finance and supporting MSMEs. BOX 7: DFS and Climate Change Adaption Climate change concerns are growing in The Gambia. The 2019 World Bank Systematic Country Diagnostic of The Gambia highlighted the problematic of increased extreme weather events and climate change. Key economic activities, such as agriculture, fishing, and tourism, are all challenged by these weather changes. Agricultural output varies widely as reduced annual rainfall has increased the frequency of droughts and contributed to depleted soil quality. Coastal degradation and erosion have a detrimental impact on natural tourism assets (such as beaches and wildlife habitats) and have resulted in increased salinity in the Gambia River’s estuary, affecting fishing and rice production. DFS offers opportunities to manage these climate risks. Using digital micro-insurance, small holder farmers can protect themselves against crop or livestock losses, while digital micro-credit can be used to ensure sufficient capital to obtain climate-smart agricultural inputs and tools. For instance, ACRE Africa has partnered with MNOs to deliver their insurance products in Kenya, Tanzania, and Rwanda. As another example, digital microloan schemes in Kenya, such as Agri-Wallet offered by Rabo Foundation and Kilimo Booster by Grameen foundation and a local microfinance institution (Musoni Kenya), have found success in targeting small holder farmers. 111 Demirgüç-Kunt, A., L. Klapper, D. Singer, S. Ansar, and J. Hess. 2018. “The Global Findex Database 2017: Measuring Financial Inclusion and the Fintech Revolution”. Washington, DC: World Bank. doi:10.1596/978-1-4648-1259-0. The Gambia Digital Economy Diagnostic Diagnostic Findings: Current State of DFS The Gambia has one of the lowest levels of access formal financial services, respectively. The breakdown to formal financial services in SSA. According to the of the access indicator shows that access to formal 2019 FinScope Survey, only 19 percent of Gambian financial services is much lower for those in rural areas adults are formally served by the financial sector (13 percent versus 24 percent in urban areas), women (Figure 5). This is much lower than comparison peer (15 percent versus 23 percent of men) and youth, aged countries such as Togo, Benin and Burkina Faso which between 15 and 35 years (14 percent versus 27 percent report 45, 43, and 40 percent of adults with access to of those older than 35). Further, among the adults who formal financial services, respectively. Gambia’s access use formal financial service providers, a very low share indicator also significantly lags behind aspirational uses more sophisticated formal financial services, such peers, such as Rwanda, Uganda, and Ghana that as credit (2 percent), savings (3 percent), and insurance report 77, 53, and 41 percent of adults with access to (0.5 percent). 93 FIGURE 5: Share of Adults with Access to Financial Services in The Gambia and Selected Peers Gambia 2019 Togo 2016 Rwanda 2020 Uganda 2018 Ghana 2010 Burkina Faso 2016 Benin 2018 Banked Other Formal (Non-Bank) Informal only Excluded Gambia Access Indicators by Location, Gender and Age MALE 8% 15% 3% 74% FEMALE 2% 13% 19% 66% YOUTH 2% 12% 9% 77% SENIORS 10% 17% 16% 57% 8% 2% 11% 16% 12% URBAN RURAL 12% 64% 75% Sources: WB FinScope Surveys, 2016-2020. 94 The Gambia Digital Economy Diagnostic Compared to comparator countries, The Gambia has local shopkeepers and money lenders. More Gambian many adults that are financially excluded. Almost 70 women (19 percent) rely on informal financial channels percent of Gambian adults do not use financial services compared to the overall adult population. As a result, and products from formal and informal services, much women (34 percent) tend to be more financially included larger than comparison and aspirational peer countries than men (26 percent). These indicators highlight that (Figure 5). The share of Gambian adults excluded from formal financial services have scope to expand and the financial sector is more pronounced for those in rural grow by better targeting women, youth and those areas (75 percent) and for youth (77 percent). Meanwhile living in rural areas. DFS offer opportunities to address about 12 percent of adults use financial products and obstacles that these underserved population groups services from informal financial mechanisms that face in accessing formal finance. are not regulated, for instance osusus112, teklas113 , BOX 8: Overview of the Financial Sector in The Gambia The formal financial sector is dominated by the banking sector, which accounts for about 84 percent of total financial sector assets and is the main form of financial intermediation in the country. The rest of the financial sector is comprised of other deposit-taking financial institutions, other financial corporations, MNOs providing mobile money services, and other financial service providers (FSPs): • Banks: There are 12 commercial banks (including 1 Islamic Bank), most privately owned. Although all banks are domestically incorporated, eight are foreign subsidiaries of mainly Nigerian, but also of Togolese and UK origin. • Other deposit-taking financial institutions include 3 deposit taking finance companies (FCs) that mostly use a microfinance business model, 54 credit unions (CUs), and 10 active Village Savings and Credit Associations (VISACAs) • Other financial corporations: include 4 pension funds (which have the second largest share of financial sector assets) are administered by the state-owned Social Security and Housing Financing Corporation (SSHFC) and 12 insurance companies. There is no capital market. • MNOs: Q-cell and Africell are the only MNOs licensed to provide mobile money services. • Other FSPs: include 118 foreign exchange (FX) bureaus (many offering money transfers and remittances services) and a multitude of money transfer operators. Digital payments are yet to become a large part of the higher costs. The lack of awareness of electronic Gambian economy that remains predominantly cash payments as well as the lack of knowledge of different based. Some corporates use electronic direct credit to electronic payments channels was largely the reason make their payments, but most use cheques despite provided by firms for not using electronic payments. 112 Osusus are communal thrift associations into which members contribute a set sum of money each week that is then allocated to one person. This is then repeated until each member collects. 113 Teklas are more formal collective savings associations, where participants save towards a common agenda. Unlike osusus, teklas do not allocate money to one individual. 95 Most card payments (for example, debit or credit cards) current regulatory regime, paying out international are made by tourists. Only three banks in The Gambia remittances through mobile wallets is not permitted. provide debit cards (VISA or Mastercard) that can be used for digital payments while all other banks only Currently, mobile money usage remains very low provide debit cards for ATM withdrawals. All these cards compared to peer countries. Mobile money is provided are provided at a fee in The Gambia. Digital payments by two operators, QMoney and AfriMoney that of utility bills, schools and some merchant payments launched in 2016, a much later start than in many are available through internet banking, mobile phones, peer countries. Mobile money penetration is very low, ATMs, and other devices, but usage remains low, though with only 2 percent of adults using these services in it is growing in urban areas. As highlighted by the 2019 The Gambia, much lower than among peer countries FinScope survey, only 5 percent of Gambian adults use (Figure 6). Data on transactions is limited, as it has only banks and only 3 percent use microfinance institutions recently started to be collected. As of 2019, the value of (which are mostly finance companies). As a result, only mobile money transactions as a share of GDP was 0.06 a small number of Gambians are able to receive wages percent, significantly lagging key comparators as well or salaries through financial accounts. Even fewer as medians for SSA and low-income countries (LICs). receive their earnings through mobile money. Similarly, However, these transactions are growing fast, likely the receipt of remittances digitally (through accounts due to the COVID-19 containment measures, which with formal financial institutions) remains low but has still mandate social distancing. Total transactions, as grown significantly during the COVID-19 pandemic as measured by deposits and withdrawals from mobile informal channels were affected by boarder closures money wallets, increased by 66 percent year-on-year and social distancing measures. However, under the in September 2020, according to IMF data. FIGURE 6: Mobile Money Indicators in The Gambia and Selected Peers Share of Adults Using Mobile Money Value of Mobile Money Transactions (% of GDP), 2019* 61 GAMBIA 0.06 56 NIGERIA 1.5 LIBERIA 2.7 24 SENEGAL 35 GHANA 74.3 2 LIC MEDIAN 25.8 TOGO RWANDA UGANDA GAMBIA 2016 2020 2018 SSA MEDIAN 23.7 2019 Source: IMF Financial Access Survey, 2020. Source: FinScope Surveys, 2016-2020. *Data for Ghana and Nigeria is as of 2018. 96 The Gambia Digital Economy Diagnostic Mobile money products are primarily first-generation as a priority, particularly for programs, such as social transactional products, including cash-in-cash-out, protection, with outreach to the most vulnerable bills payments, person-to-person (P2P) domestic population groups. Efforts to have a comprehensive and transfers, airtime, merchant payments (very low) government-wide program to digitalize payments and and some bulk payments. Several banks are working other processes, for instance developing an electronic on bilateral agreements with one of the mobile money government portal are yet to materialize. However, operators to increase account-to-mobile money some line ministries have taken it upon themselves to account interoperability. However, only one bank digitize their payments and receipts as well as their currently offers “bank-to-wallet” services primarily procedures. because it is owned by the same group that owns one of the MNOs. Enabling Environment for DFS The penetration of other DFS is also limited. Except Regulation and Policy Environment for mobile money, there is limited or no data available on other DFS in The Gambia, particularly more The Central Bank of the Gambia (CBG) has a broad sophisticated services, such as digital credit, savings, mandate to regulate and supervise the financial sector, investment or insurance as well as more innovative including financial aspects of mobile money. The main digital instruments114. Information from meetings with legislation governing the regulatory and supervisory key financial services providers noted that most of framework of The Gambia falls under four main Acts: these other DFS are non-existent. The few available are the CBG Act (revised in 2018), the Banking Act of 2009, either in the pilot form (diaspora P2P applications) or the Insurance Act of 2003, and the Non-Bank Financial have low usage (mobile and internet banking). Institutions (NBFIs) Act of 2016. DFS provided by licensed financial institutions are authorized and Government payments are still in the process of being supervised by the Financial Supervision Department digitized. Meetings with the Accountant General’s for banks and the Microfinance Department for NFBIs. office revealed that about 90 percent or more of Mobile money products and other electronic money government payroll is paid via financial accounts, with (e-money) products are authorized and supervised by a small portion of staff receiving payments through the Financial Supervision Department in accordance QMoney. Other payments, including pensions and with the “Regulation for the Provision of Mobile social payments115, are effectuated primarily in cash. Money Services” enacted in 2011. This regulation also Meanwhile, the bulk of government collections are stipulates that mobile network operators and other made in cash and cheques at public administrative/pay electronic money issuers need to obtain a license offices, including tax obligations. Given the high costs from the CBG to conduct mobile money and other and inefficiencies (including leakages) of using cash, digital payment services. In addition, this regulation the GoTG has highlighted the digitalization of payments specifies that the supervision and regulation of these 114 It should be noted that commonly used, globally comparable financial inclusion surveys have not been compiled for the Gambia, e.g., the World Bank Financial Inclusion Database/Global Findex or are missing key financial inclusion indicators for the Gambia, e.g. the IMF Financial Access Survey. 115 The Nafa Program of Cash Transfers and Social and Behavioral Change is supported by an ongoing World Bank project to support 15,000 extreme poor rural households with cash transfers delivered to women over a period of 18 months to smooth consumption. During project preparation, surveys were conducted to determine whether cash transfers could be distributed using mobile money. The over- whelming finding was that cash transfer beneficiaries preferred to receive cash in hand as opposed to using digital channels. 97 activities lies with the CBG and not with the utilities this information in-person at an authorized branch or regulator (PURA). There is however a Memorandum of headquarters of financial institutions. Mobile money Understanding (MOU) between the CBG and PURA that and other e-money operations are required to comply guides information sharing and allows for joint onsite with these KYC requirements. The CBG has worked with supervision examinations of MNOs. the MNOs to develop a KYC Lite framework to reduce the due diligence burden on basic transactional account The current legal and regulatory framework holders. The issuance of this directive has been delayed adequately covers traditional financial services, but by pending agreements over transactions limits that it does not appear to sufficiently support innovative will be applied to “lite” accounts in comparison to “full” developments in financial services, for instance accounts. fintechs. The Banking Act and NBFI Act cover basic transactional DFS offered by banks and NBFIs, while Gaps in the consumer protection and empowerment the mobile money regulation covers basic transaction framework impact building confidence and trust in accounts offered by MNOs. While the regulations innovative financial services, such as DFS. There is are clear for licensing and operating mobile money a consumer protection framework in place governed services, it is not clear that other electronic money by the 2014 Consumer Protection Act. This legislation (e-money) issuers can rely on the same regulations established the Gambia Competition and Consumer to establish themselves. For instance, a few money Protection Commission (GCCPC) as the agency with transfer operators (MTOs) have expressed interest in oversight over consumer protection and empowerment obtaining e-money issuer licenses, but they have yet issues. However, the law’s provisions are generic and received a greenlight from the CBG. As such, despite lack the specific requirements needed for the financial the demand and the need for more competition in this sector and FSPs, i.e., the lack of a market conduct sector, e-money issuers (except for MNOs) are yet to framework. In addition, the GCCPC lacks the technical begin operations in the country. The authorization capacity to fully oversee sector-specific issues while and supervision of fintechs also remains unclear. weak enforcement capacity undermines its authority. Recommendations from the ongoing reviews of the As four regulatory agencies117 have a purview over Banking Act and NBFI Act are expected to address the Gambian FSPs, it is unclear which regulatory agency gaps related to DFS. Reviews of the payment system has jurisdiction over consumer protection issues regulation and the mobile money regulation is required related to the areas that each agency oversees. The to ensure adequate coverage of more innovative DFS CBG has signed a MOU with GCCPC and the Financial as well as to facilitate their development. Intelligence Unit (FIU) to share information and to conduct joint examinations with FIU. However, de facto, The development and growth of DFS also depends on there is limited coordination between these agencies the rollout of less stringent “Know Your Customer” which complicates the policy environment as well as (KYC)116 requirements. Current KYC requirements are the handling and resolution of these matters. MOUs detailed and typically require customers to provide are needed between all these entities to ensure the 116 These requirements require financial institutions to collect detailed due diligence information on their customers as part of the broader effort to enforce Anti-Money Laundering (AML) policies. 117 In addition to the CBG, the PURA has a role in the financial sector through its oversight over MNOs that provide mobile money services. The Financial Intelligence Unit (FIU) handles all anti-money laun- dering and counter terrorism financing (AML/CFT) efforts within the financial sector. Lastly, the GCCPC is tasked with all consumer protection issues, including those in the financial sector. 98 The Gambia Digital Economy Diagnostic necessary collaboration to address these issues. Lastly, digital, e.g., the development of a mobile app, a digital complementary frameworks on cybersecurity need to payment platform for SMEs, and is actively working be developed while the data protection framework is to develop its “bank-to-wallet” services. Three other not sufficiently robust to build confidence in DFS. The banks have developed mobile apps for users with smart CBG is in the process of developing a comprehensive phone and 2 banks have launched USSD codes to offer cybersecurity framework, with support from the mobile banking including payments, for those without IMF regarding cybersecurity supervision of financial smartphones or a data/internet connection. institutions. NBFIs: These institutions are the main driver of At the policy level, the CBG is working on developing formal financial inclusion in The Gambia and can play a national financial inclusion strategy (NFIS). This a critical role in the growth of DFS. According to the strategy will provide a comprehensive and coherent FinScope survey, formal NBFIs are the most utilized approach to addressing the country’s financial inclusion form of formal FSPs, serving 14 percent of Gambian agenda. In addition, previous financial inclusion adults. It should also be noted that Reliance Finance, interventions have been ad-hoc and fragmented, with the largest finance company, is also larger than most no clear targets and mechanisms to track progress as small banks with a loan portfolio of more than US $4 a result little progress has been made. Further, there million. In addition, these NBFIS tend to be the only is a lack of comprehensive data and diagnostics to financial institutions with presence in rural areas, either inform the efficient formulation and implementation through physical or mobile branches. As a result, these of policies to improve financial inclusion. Through the entities are critical to increasing access to financial NFIS development process, the CBG was able to work services for unserved and/or underserved segments of with development partners to conduct the FinScope the population. survey in 2019, which was the first effort to collect comprehensive data on financial inclusion. Additional MNOs: Afrimoney and Qmoney are essential for steps in the NFIS preparation process will also yield developing mobile payments. As the current providers more detailed data points regarding the underlying of mobile money, many FSPs need to work with these factors inhibiting the expansion of financial inclusion. MNOs to increase their mobile payments footprint or even develop this footprint. Going forward, both MNOs have placed growth of mobile money at the heart Role of the Different Actors in Provision of their expansion strategies, growing their agent of DFS networks, broadening their services offerings namely international remittances, and increasing merchant Banks: As the primary providers of financial services payments, and pursuing integrations with FSPs. in The Gambia, banks have started to invest more heavily in digital channels, but more needs to be Fintechs: The fintech sector remains underdeveloped done. All banks have developed a strategy to deliver with most of the operations in the start-up or pilot services using their web platforms, but only half have phase. There are several fintechs that have emerged developed or have plans to increase their outreach via through various entrepreneurship programs and other mobile devices or other digital channels. Ecobank is the services supporting start-ups. However, these entities pioneer bank in this area with a deliberate strategy have yet to grow and demonstrate disruptor potential to transition from traditional service provision to in the financial sector. Low levels of innovation keep the 99 costs of DFS high, while subduing the uptake of these Electronic payments acceptance infrastructure is services and competition, contributing to continued limited and is affected by connectivity constraints. over-reliance on traditional banking delivery channels. ATM coverage compares well against peer countries The absence of explicit provisions in the current with about 8.2 ATMs per 100,000 adults in 2019, higher regulations in support of such developments or a than Senegal (6.1) and Liberia (3.7). However, most fintech strategy delays licensing and authorization, as ATM transactions are cash-out, although electronic regulators seek clarity and certainty. The lack of venture payments from ATMs to utilities and a few other capital, a dedicated fintech hub, and limited locally merchants are growing. As of June 2019, there are only based funds supporting innovative entrepreneurs also about 135 point-of-service (POS) terminals installed restricts the growth of fintechs. in merchants for accepting card payments around the country, with most of them concentrated in the Banjul Payment infrastructure: The Gambian payments area (primarily those frequented by tourists). The fees system is comprised of essential building blocks to linked to POS devices as well as their cost are perceived facilitate DFS, however this infrastructure is yet to be high and prohibitive by merchants. Connectivity to realize its full potential. The payments system issues further exacerbate the usage of the limited consists of the following: (i) an Automated Clearing acceptance infrastructure and further discourage House (ACH) that clears cheques and direct credits of uptake of card payments. Only one bank and one MNO 100,000 GMD or less; (ii) a Real Time Gross Settlement have deployed light electronic payments infrastructure (RTGS) system that clears direct credits larger than (i.e. QR codes), which is lower cost and easier to use 100,000 GMD; and (iii) a national card switch that than traditional POS terminals. clears locally issued debit/credit card transactions. At present, most transactions are cleared by the ACH Credit infrastructure is in place, although these given the high prevalence of cheques. Meanwhile, the systems are not fully operational. The CBG set up national switch does not process Visa/Mastercard a Credit Reference Bureau (CRB) in 2008 and is transactions that represent the largest volume of card accessible by all banks. All reporting to the bureau is transactions in the country. Lastly, The Gambia does based on the Tax Identification Number (TIN) and both not participate in a regional cross border payment positive and negative information is reported. The system that can play a key role in reducing the cost of Security Interests in Moveable Property Act of 2014 cross-border transactions and remittances. The West paved the way for the establishment of a centralized African Monetary Zone (WAMZ) is working to develop notice based collateral registry. This law provides for a regional system with support from the African the use of moveable property as security for credit and Development Bank (AfDB). In addition, the CBG working other obligations. It has also put in place an electronic with the African Export-Import Bank (Afrieximbank) to system for the registration of securities created over join the Pan-African Payment and Settlement System movable property. Both systems suffer from issues (PAPSS).118 caused by manual (rather than automated) updating/ uploading of the data, lack of capacity to fully attend them, and the need for upgrades. 118 PAPSS is a centralized payment and settlement infrastructure for intra-African trade and commerce payments. This project aims to facilitate payments as well as formalize some of the unrecorded trade due to prevalence of informal cross-border trade in Africa. It will also provide an alternative to current high-cost and lengthy correspondent banking relationships needed for trade payments and other cross border economic activities. 100 The Gambia Digital Economy Diagnostic Remittances providers, and limited innovation in service delivery (end-to-end digital remittance services are very limited The Gambia is one of the top recipients of particularly on the receiving end in The Gambia). As international remittances in SSA. As a share of mentioned, earlier remittances via mobile money are GDP, international remittances to the Gambia are not allowed by the current regulatory regime. ranked the third highest in SSA, at 15.5 percent in 2019119 and 14.9 percent in 2020120. According to the Remittance trends during the COVID-19 pandemicwere 2019 FinScope survey, most adults are net receivers unusual. As widely expected, given public emergency of remittances, with 85 percent receiving international containment measures that heavily restricted remittances and 82 percent sending remittances movements and adversely impacted employment, domestically. Remittances are a critical component remittances declined by 4 percent as a share of of household incomes and are also channeled into GDP121. This is further confirmed by the WB household economic activities, particularly in the construction survey conducted between March and August 2020 sector. which found that about 85 percent of households reported a decline in international remittances. Despite a large network of FSPs in the remittances However, Balance of Payments (BOP) data seemed to space, the cost of remittances remains relatively contradict this finding by reaching record highs of US high given low overall volumes, limited competition $588 million in 2020, a sharp increase of 78 percent between providers, and limited innovation in service from 2019. The leading rationale for this conundrum delivery. Remittance providers in the Gambia include is that BOP data only captures formal remittances Banks, NBFIs, forex bureaus, MTOs, which together while other measures of remittances include informal create a large provider network with good coverage of remittances. So, during the pandemic, the Gambian much of the country. Most remittances are received as diaspora seems to have increasingly relied on formal cash payouts from physical outlets/agents of service channels to send remittances, while avenues for providers. Only 1 or 2 providers offer mobile money as informal remittances were impacted by border closures an alternative method of remittance receipt. The cost and other movement restriction. If this switch to using of sending US $200 in remittances through traditional formal channels to remit is sustained post-COVID, then channels (for example, through banks) is on average 12 transaction volumes in formal remittance corridors percent and about 10 percent on average through non- to The Gambia will increase and should help to drive bank services such as MTOs and forex bureaus. These remittance costs lower. costs are higher than the average 8.5 percent cost for SSA (as of Q3 2020). Relatively high remittance Remittances are the main driver of financial inclusion, costs is explained by a number of issues, including which presents a lever that can be used to not only low volume of transactions (although remittances are enable broader inclusion within the population, but high as a share of GDP, volumes are small compared also drive access and usage of DFS. The FinScope survey to other countries in SSA), the proliferation of informal finds that remittances are the service or product most remittance channels, limited competition amongst used by those that are financially included, specifically 119 Ratha D., S. De, E. J. Kim, S. Plaza, G. Seshan, and N. D. Yameogo. 2020. “Migration and Development Brief 32: COVID-19 Crisis through a Migration Lens.” KNOMAD-World Bank, Washington, DC. 120 Ibid. 121 Ibid. 101 47 percent of financially included adults. This indicates financial sector. Not all the relevant government that most adults seek financial services in The Gambia ministries (primarily Ministry of Finance) and regulatory to receive or send remittances. Therefore, developing agencies (CBG, PURA, GCCPC, FIU) have a formal or improving remittance services, particularly in collaborative framework to facilitate cooperative using digital technology, can play an important role in efforts needed to address issues in the financial sector. initiatives to enhance financial inclusion. As mentioned earlier, there are MOUs between some but not all the entities that enable some collaboration. Constraints to Digital Financial Services Increased engagement between other key stakeholders, Development both private and public sector, is also needed to ensure clear understanding of financial sector issues. Legal, Policy, and Regulatory Constraints Lack of a comprehensive strategy to align, sequence, 1The current framework focuses on mobile money and and incentivize the multiple efforts needed to provides insufficient support for other DFS despite develop and grow DFS. The NFIS under preparation their benefits. The fintech sector, in particular, needs has a pillar that focuses on financial innovation guidance even though it is at a nascent stage. (developing inclusive products and services), including DFS. Finalizing this strategy and ensuring its quick Gaps and weaknesses in the current policy, legal, and adoption will go a long way to providing the necessary regulatory framework constrain the development and policy focus and a clear roadmap to coordinate DFS growth of DFS. This includes missing guidelines on the development initiatives. KYC “Lite” framework and e-money issuance as well as legislation on electronic signature, among others. The Product and Market Level Constraints consumer protection and empowerment regime needs significant strengthening, including complementary Lack of awareness of financial services keeps the frameworks on data protection and cybersecurity to adoption and usage of available DFS low. The main build confidence and trust in DFS. barriers to using mobile money are related to lack of information and education on the service, with about High reliance on cash for government-to-person (G2P) 43 percent of adults citing these reasons in the 2019 transfers (except for wages) limits the usage of DFS. FinScope survey (Figure 7). A recent randomized study The public sector can play a key role in promoting on mobile money in The Gambia also found evidence digital payments, and G2P disbursements can be a that low adoption and usage of these services is strong driver for the rapid adoption of DFS. linked to a lack of information on the platform at large122. The UNCDF women’s economic empowerment Limited collaboration between the government and report found that there was a gender gap regarding regulatory agencies that have a role to play in the awareness and understanding of DFS123. Meanwhile 122 Cruces, G., H. Jawara, A. Touray, F. Singhateh. 2020. “Information, Price, and Barriers to Adoption and Usage of Mobile Money Evidence from a Field Experiment in the Gambia” Partnership for Economic Policy Working Paper No. 2020-17, Available at SSRN: https://ssrn.com/abstract=3673541 123 UNCDF, 2019. PoWER assessment of Women’s Economic Empowerment in The Gambia. Financed by EU. Available at: https://www.uncdf.org/article/5043/power-assessment-of-womens-econom- ic-empowerment-in-the-gambia. 102 The Gambia Digital Economy Diagnostic another UNCDF study focused on youth found that indicated a need for financial education, with many most young Gambians were aware of mobile money, looking to develop their financial literacy. Currently, but most did not use it given the lack of knowledge there is no national financial literacy program and or skills to use the service124. Moreover, low financial financial literacy/ education is not part of the primary literacy and education further subdue demand – 99 or secondary school curriculum. percent of adults surveyed by the FinScope survey 124 UNCDF, 2017. Demand-side Research for Youth Financial Services in the Gambia. Available at: https://www.uncdf.org/download/file/127/6608/demand-side-research-for-youth-financial-services-de- cember-2017-vfpdf. 103 FIGURE 7: Awareness of Financial Services in The Gambia Main barriers to using mobile money* Do not have enough information about it 35 Do not have money to send of receive 25 Have not though about it 18 Not educated (cannot use it) 8 Cannot afford the costs of mobile money 6 Not interested in mobile money 6 It is complicated 5 Does not meet my needs 3 Do not have a sim card 2 Do not trust telecom companies 2 * out of 98 percent of adults who do not use mobile money Type of financial education desired 69 67 57 45 36 35 34 30 How to How to How to How to What Advantages/ How to How to save invest budget obtain a financial disadvantages, choose use loan products terms and financial financial are conditions products products available of financial products Sources: FinScope Survey, 2019. 104 The Gambia Digital Economy Diagnostic Low literacy and education levels further exacerbate The digital payments ecosystem is at a very nascent issues of awareness and complicate DFS promotion stage. Few establishments accept mobile money or initiatives as well as effort to build digital financial electronic payments, most are in the tourist sector literacy. The most recently available data shows and catering to international tourists. Although the that the adult literacy rate is about 51 percent in The main utility accepts digital payments (including Gambia, which is lagging average levels in SSA and low- mobile money), there is a perception that these forms income countries globally, about 64 and 59 percent of payment are rather costly, compared to cash, as respectively during the same period125. Education levels merchant fees are typically passed onto consumers are also low within the adult population with 77 percent which increases the cost of goods and services. On with primary school education or less126. the supply side, merchants lack financial education and (incorrectly) consider cash to be free. Moreover, Lack of trust in DFS affects uptake. As customers as mentioned earlier, the fees linked to accepting DFS often experience technical and network issues while are perceived to be high, while the cost of POS devices using regular mobile phone and internet services, they disincentivizes merchants. In addition, accepting digital expect these issues to affect DFS. According to the payments in store is time-consuming and potentially UNCDF Youth study 2017, only one out of the 90 study confusing and it creates a paper trail with unwanted participants opened a mobile money account because tax implications. she felt the money was safer from theft. In addition, issues with mobile money agents (detailed below) Agents are a key component of the DFS ecosystem resulted in poor customer experience with mobile and weaknesses in the current network affect money services, impacting critical word-of-mouth DFS adoption and usage. While regulated financial marketing. institutions are permitted to practice agent banking in accordance with the relevant regulations, the High costs associated with DFS usage also limit reach of these agent networks continues to be adoption. Only 6 percent of those not using mobile limited and constrained by exclusivity arrangements. money found it to be costly (Figure 7). Although fees Unfortunately, there is limited data available on agent on mobile money services are not excessive, they can networks of financial institutions. Meanwhile, as of be high for users127. For instance, cash-out fees with 2019, there are 50 active mobile money agent outlets Qmoney range from 6 GMD for 10-25 GMD cash-outs per 100,000 adults - about half of the registered to 450 GMD for 22501-25000 GMD cash-outs. For number (Figure 8). This translates to about 65 active individuals living in extreme poverty (about 48 percent mobile money agent outlets per 1000km2 (also about of the population), cash-out fees can amount to about 4 half of the registered number). Both these indicators percent of their monthly income. While there are no fees highlight that The Gambia rates poorly when compared associated with person-to-person (P2P) transactions, to peer countries as well as SSA and LIC medians. most people opt to cash-out their mobile money as the The low number of active agents in Gambia is mostly economy is primarily cash-based. Meanwhile, efforts to driven by low usage/uptake as well as limited MNO increase DFS awareness and its benefits also increased investment to ensure a well-functioning broad network. awareness of the relatively high fees associated with As mentioned earlier, the MNOs have now prioritized mobile money services, which in turn affected usage128. developing and growing these networks as part of their 125 WDI. The most recently available data for the Gambia is from 2015. Peer benchmarks for 2015 were used for comparison. 126 FinScope Survey 2019. 127 Cruces, et al. (2020), op. cit. 128 Ibid. 105 growth strategy. In addition to outreach limitations, service (for example, airtime top up inconsistencies), mobile money agents in The Gambia also suffer from particularly in rural locations. liquidity management challenges and poor consumer FIGURE 8: Mobile Money Agent Networks in The Gambia and Selected Peers Mobile Money Agent Outlets Per 100,000 Adults, 2019* Active 2,135 Registered 1,982 926 973 450 505 405 331 249 287 102 50 THE GAMBIA LIBERIA SENEGAL GHANA SSA MEDIAN LIC MEDIAN Mobile Money Agent Outlets Per 1,000 Km2, 2019* 1,743 Active Registered 959 794 448 223 133 137 128 135 65 76 70 THE GAMBIA LIBERIA SENEGAL GHANA SSA MEDIAN LIC MEDIAN Source: IMF Financial Access Survey, 2020. *Data for Ghana and Nigeria is as of 2018 106 The Gambia Digital Economy Diagnostic Low capacity to develop DFS impedes growth of the Using the national switch facilitates this process and, sector. Low levels of digital skills (see chapter on digital at present, interoperability between banks is available, skills for the Gambian context) limits the ability to not i.e., payments between banks are facilitated. However, only develop these products and services, but also use non-bank FSPs (including mobile money providers) these products. In addition, there is limited data on the do not have agreements with the payment systems demand side (for example, market surveillance services infrastructure to enable similar interoperability or surveys) to help drive innovation on the supply side. arrangements. Full interoperability would also help to increase the volume of transactions flowing through Infrastructure Constraints the payment systems infrastructure. Low transaction volumes processed by the current Limitations in the credit infrastructure functionality payment infrastructure keep transaction costs undermines the enabling facility of these systems high. The number of transactions processed by the in the financial sector. Well-functioning credit payments systems is much lower than its potential infrastructure enable efficient and effective access for a number of factors, predominantly: (i) the inability to finance, financial stability, and socially responsible to process Visa/Mastercard transactions; (ii) high economic growth through credit reporting, secured reliance on cheque payments for large amounts; and transactions and collateral registries, and insolvency (iii) direct access to payments systems only available and debt resolution. Deficiencies in this infrastructure to banks while all other FSPs have to make third-party in The Gambia (namely, poor quality credit information, arrangements with banks to gain access to these a weak insolvency regime, outdated database systems, systems. Low transactions volumes result in a higher low capacity, etc.) result in higher end-consumer cost per transaction, which increases costs for end- costs for financial services and limits incentives for users, namely consumers. Third-party arrangements innovation. that non-bank FSPs make it even more costly to access these systems. Weak enabling infrastructure (electricity, internet, and mobile networks) reduce the attractiveness of The lack of full interoperability across all FSPs and DFS and impact consumer trust and confidence. Good products creates inefficiencies and significantly internet connectivity, mobile phone and data networks affects DFS penetration. Interoperability arrangements in addition to a reliable and adequate electricity supply enable the movement of money through different FSPs. are necessary conditions for the development and Currently, interoperability is available for FSPs that growth of DFS. As discussed in the digital infrastructure have agreed to this functionality through bilateral chapter, issues related to internet access, regular agreements. Full interoperability would require all FSPs technical and network issues with mobile phone to have agreements with each other for all relevant services, and an erratic electricity supply in the Gambia products which is rather cumbersome and inefficient. hinders the development, adoption and use of DFS. 107 Recommendations Although enabling conditions exist for the development and tools needed to address DFS related issues. There of DFS and its ecosystem in The Gambia, the adoption is also a need to clarify the oversight parameters of and increased usage of DFS requires a strengthened regulators supervising players in the financial sector legal and regulatory framework, improved and (specifically CBG, PURA, FIU, GCCPC) and to strengthen expanded digital infrastructure and platforms, and the cooperative framework amongst these institutions increased engagement of key stakeholders, both through Memorandums of Understanding (MOUs). private and public, in the promotion of DFS. The There is also scope to improve collaboration between recommendations provided below are the priority regulators and other key MDAs, including MOFEA. actions needed to ensure the acceleration of DFS This would benefit both the regulated entities and development and usage. the regulators, prevent regulatory arbitrage, promote information sharing and remove any impediments to timely information sharing. Regulation and Policy R 3.4 [High Priority] Enact a government directive R 3.1 [Quick Win] Adopt already drafted regulations that harmonizes and prioritizes digitization efforts, and guidelines that support DFS development, particularly government payments and collections. including “Know Your Customer” (KYC) Lite Framework Such a decree would increase electronic transactions and clarify licensing as well as operation guidelines for by digitizing G2P payments (pensions, social services, e-money wallet providers. grants, etc.) and collection (taxes, licensing fees, etc.), while reducing the reliance on cash and decreasing R 3.2 [Quick Win] Finalize and adopt the NFIS that associated costs. Government agencies handling these can help to boost DFS by harmonizing all current transfers should be able to open transaction accounts initiatives and pilots, while providing a clear roadmap for their beneficiaries or require them to open these that development partners can support. The strategy accounts to facilitate these transactions, which would should be anchored in the initiatives to ‘drive access’ to have a significant impact on financial inclusion. In financial services to make DFS uptake a priority. addition, this would increase the volume of electronic transactions and provide incentives for investments R 3.3 [High Priority] Strengthen the supervisory and in the infrastructure and networks needed to better oversight capacity of the CBG and foster cooperation automate payments and collections. In other countries, amongst regulators and other relevant government such as Malawi, the government also developed a entities. Financial innovation increases challenges for digitization roadmap, which provides a comprehensive supervisory agencies to react with appropriate policies and explicit timeline for key initiatives as well as and regulatory measures to preserve financial stability elaborates on monitoring and evaluation mechanism. and minimize risks arising from these developments. Thorough assessments of all potential government The CBG could benefit from capacity building to ensure payment flows should be conducted to help shape the the development of adequate technical knowledge design of such a roadmap. 108 The Gambia Digital Economy Diagnostic R 3.5 [High Priority] Ensure that the upcoming NDP Infrastructure includes a clear roadmap for DFS to highlight its development as a priority. It is particularly important R 3.7 [Quick Win] Boost electronic transactions volume to underscore the role of DFS in increasing financial by increasing the number of entities using the payment inclusion as well as its impact on economic growth and infrastructure and adopting policies to incentivize poverty reduction. electronic payments. These include the following: (i) ensuring that non-bank FSPs (especially large NBFIs) R 3.6 [Long-term] Establish a legal and regulatory have direct access to the payments infrastructure; (ii) environment that is conducive to the development enabling the national switch to be used for government of diverse DFS. This includes addressing all gaps payment collections; and (iii) lowering the value and weaknesses in the current framework (such as threshold of cheques that can be cleared through the legal certainty about digital contracting, enabling ACH and would encourage more transactions to occur reporting to authorities through digital channels - in the direct electronic credit form. Regtech, API usage) as well as ensuring a framework that supports fintech development. The adoption of a R 3.8 [High Priority] Upgrade payments systems fintech strategy prior to regulation typically helps to infrastructure (notably GAMSWITCH) and achieve define priorities and better sequence legislation – this full interoperability across all FSPs and current has been the approach used widely by many countries. products, particularly between digital wallets and Thorough diagnostics of the current framework and bank accounts, which could boost DFS uptake and use. the fintech sector are necessary to guide these efforts. Ensure that the payments systems infrastructure can The CBG should work to incorporate fintech activities process all electronic transactions (including mobile (for example, blockchain, crowdfunding, digital credit, money and other DFS) within Gambia to lower costs peer-to-peer lending, digital scoring, etc.) into their and increase speed of processing, particularly Visa/ current legal and regulatory framework (Banking Act, Mastercard transactions that are currently processed CBG Act, NBFI Act, etc.) in a flexible manner. A “test and internationally. Agent interoperability should also be learn” approach would be best suited given a nascent enhanced through measures that support the provision state of DFS development in The Gambia. It is equally of multiple services, competition amongst providers important to develop cybersecurity guidelines for DFS and wider choice for customers. as well as reinforce the consumer protection framework, as has been done in Kenya. Moreover, to underpin R 3.9 [High Priority] Enhance the functionality of strengthening and improving payment systems, the current credit infrastructure to improve its usage, CBG should consider developing a payment systems efficiency, and effectiveness. This will require law. The Anti-Money Laundering/Counter Financing of strengthening the capacity at the moveable collateral Terrorism (AML/CFT) Law should be revised to include registry and the CRB, automating data reporting and the simplified “KYC” requirements for DFS account collection mechanisms, broadening data collection openings. The authorities should also closely monitor efforts to non-bank FSPs (and, in the case of the CRB, potential risks and implement appropriate rulemaking to the main utility), enforcing participation mandates in the sphere of data management (storage, protection, (especially data reporting and data consultation during and usage) and financial consumer protection. credit risk assessments), and integrating the National 109 ID. These efforts serve to increase and improve the given to merchants to stimulate the acceptance of quality of financial information, which can accelerate digital payments. In addition, more cost-effective POS the development of second-generation DFS (namely terminals could be considered to help lower costs faced digital credit products) and reduce the cost of delivery. by merchants, while subsidized solar or mobile devices can be considered to address internet connectivity and electricity issues. Meanwhile a tariff grid that is more R 3.10 [Long-term] Ensure full modernization of acceptable to merchants should be developed. The payment systems infrastructure to support a broader CBG and GAMSWITCH can work together to address agenda for interoperability, going beyond agents this issue. In Ghana, for instance, the Central Bank’s – including interoperability of all digital payments payment systems entity (GhIPSS) was instrumental through all accounts. in selecting and developing a supporting structure to roll out MPOS devices to drive the acceptance of digital payments. The aim is to convert most daily Market Level Support transactions from cash into digital payments to develop a mature digital economy. This reduces the reliance on R 3.11 [High Priority] Develop a National Financial cash and allows money to circulate digitally, which in Literacy Program to address issues related to the turn reduces costs, risks and delays associated with lack of awareness and financial education. After physical cash (and the demand for DFS cash-out that all, financial capability is an enabler for adults to may cause agent liquidity issues). meaningfully engage with financial institutions, particularly new and innovative products like DFS. R 3.14 [Long-term] Explore options for regional This program should endeavor to cover the following collaboration to address scale-up difficulties. Given the areas: consumer empowerment, consumer protection, small size of the population in Gambia, many financial financial knowledge and encouraging good financial innovations like DFS can be difficult to execute given behavior and practices. The program should initially limited economies of scale. Where possible, regional focus on the general populace through the radio and collaboration may provide scale-up opportunities other mass media initiatives, then this information especially for regional banks that need to navigate could be incorporated into to school curricula. different currencies and regulations. Other potential regional collaboration options could include regional R 3.12 [High Priority] Encourage partnership projects e-platforms for the exchange/sale of repossessed between DFS providers and developers to facilitate collateral among lenders, with the aim to increase the the development of DFS and ancillary services. This efficiency of movable collateral execution and hence its could be achieved by setting up an innovation forum perceived value. dedicated to DFS development. R 3.13 [Long-term] Promote the development of a large merchant acceptance network of DFS for payments in-store. Consumer education incentives need to be 110 The Gambia Digital Economy Diagnostic Photo credit – Alhagie Manka 111 Photo credit – Alhagie Manka DIGITAL BUSINESSES Importance Digital businesses129 can play an important role in technologies (such as mobile money to pay suppliers unlocking opportunities for economic growth, job and receive customer payments), and digital creation and social inclusion in The Gambia. Digital management solutions (accounting and inventory transformation offers an opportunity for The Gambia’s control/point-of-sale software), as highlighted in close to 90,000 MSMEs130 to use technology to improve the 2021 Africa Pulse Report132. Overall, digital productivity, including by optimizing core operations, businesses offer employment opportunities for The creating new business models, adding value to Gambia’s fast-growing young population and can customer experience, trading goods and services contribute to improving the competitiveness of key globally131. Prior to COVID-19, formal and informal economic sectors133, as highlighted in the Youth and firms in SSA that adopted digital technologies were Trade Roadmap for The Gambia 2018-2022, such as likely to have higher levels of productivity, output, agriculture (for example, monitoring crops, animals, profits, employment, and wages. More specifically, and soil quality134) and tourism (increasing the visibility employment and labor productivity have been higher of local tourism firms135). in firms that use smartphones, digital transaction 129 For the purposes of this report and in accordance with DE4A 2.0 guidelines, digital businesses are comprises of two main categories – digital start-ups (early-stage ventures that create new / innova- tive digital solutions or business models as part of their core products or services) and established digital firms (platform-based and data-driven firms that have passed the initial start-up stage, having acquired suppliers, contractors, and consumers). 130 UNCTAD, 2017. Formulating National Entrepreneurship Policy. Available at: https://unctad.org/system/files/official-document/diae2017d1_en.pdf 131 Deloitte, 2019. Reimagining the Role of Technology; by Kark, K., Briggs, B., and Tweardy, J. Available at: https://www2.deloitte.com/us/en/insights/focus/cio-insider-business-insights/reimagin- ing-role-of-technology-business-strategies.html 132 World Bank, 2021. Africa Pulse. Covid-19 and the Future of Work in Africa: Emerging Trends in Digital Technology Adoption. Available at: https://openknowledge.worldbank.org/bitstream/han- dle/10986/35342/9781464817144.pdf?sequence=10&isAllowed=y. 133 World Bank, 2019. The Gambia: Policies for Private Sector–Led Growth — Achieving Sustainable and Inclusive Growth (unpublished). 134 OECD, 2014. Addressing Tax Challenges of the Digital Economy. Chapter on The Digital Economy, New Business Models and Key Features. OECD, Paris. Available at: https://doi. org/10.1787/9789264218789-7-en. 135 OECD, 2020. OECD Tourism Trends and Policies 2020. OECD, Paris. Available at: https://doi.org/10.1787/6b47b985-en. 112 The Gambia Digital Economy Diagnostic Diagnostic Findings: Current State of Digital Businesses Albeit still at a nascent stage, The Gambia’s thus representing promising emerging areas of growth digital businesses ecosystem is demonstrating for digital businesses. The entrepreneurs behind these an encouraging growth potential. Not surprising digital ventures are typically young men (below the given its size and fragility, The Gambia’s digital age of 40), as women lead only 4 out of 40 start-ups. business ecosystem136 is relatively small compared Some of these start-ups have benefitted from the local to aspirational peers, such as Senegal, Rwanda, and support ecosystem that now counts 12 hubs (including Uganda. However, it has been growing in recent years, incubators and accelerators) and four tech hubs and with several innovative digital firms emerging boosted co-working spaces140 (see Figure 11) as well as market by promising support initiatives. According to the linkage initiatives, such as Seedtstars events and The database of the Information Technology Association Gambian Community Innovation Fund (for further of The Gambia (ITAG)137 and The Gambia Tech Start- details see Annex 6). up Directory, compiled by the EU-funded and ITC- implemented Youth Empowerment project (YEP)138, the In line with urbanization trends, digital businesses digital businesses ecosystem in The Gambia comprises in The Gambia are primarily concentrated in main slightly over 60 enterprises, out of which 40 can be urban areas. Although the digital ecosystem has considered start-ups (see Annexes 4 and 6 for further shown significant growth in recent years, it remains details). These digital start-ups are relatively young mostly clustered in big cities, such as Banjul and (the oldest established in 2011), and only a handful Serrekunda (albeit some programs do have regional are generating revenue, with over a half considered to representations). This is hardly surprising in the be at the ideation or validation stage139. Most of them context, where 62 percent of the Gambian population are focused on delivering business-to-customer (B2C) live in urban areas (well above the SSA average), driven digital products and services and are predominantly by food insecurity, limited economic opportunities and clustered in retail & commerce, media & advertising underdeveloped or unreliable infrastructure in rural and fintech, with these three sectors accounting for zones (particularly electricity and digital connectivity). more than 50 percent of analyzed tech start-ups and As elaborated in Chapter 1, in a country with over two 136 Such ecosystems usually encompass support organizations (such as incubators, accelerators, innovation hubs and co-working spaces), early stage financing, human capital as well as policy and regulatory environment. According to OECD, “an entrepreneurship ecosystem is constituted by a set of interconnected entrepreneurial actors, organizations, institutions, and processes that formally and informally coalesce to connect, mediate, and govern the performance” within a local context. OECD, 2013. Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship. 137 Established in 2004 under the Gambia Companies Act, ITAG is an industry consortium of ICT professionals in the country and among the diaspora, whose aim is to collaborate and support the develop- ment of the ICT ecosystem in The Gambia. ITAG’s membership database includes roughly 80-90 percent of all ICT companies in The Gambia. 138 ITC, 2020. Gambian Tech Start-up Directory 2020. Available at: https://nyc.gm/wp-content/uploads/2020/04/Gambian-Tech-Startups-Directory.pdf; ITC, 2021. Gambia Tech Start-up Directory 2020-2021. Important to note that the Directory covers only those tech start-ups that were supported by YEP, representing, according to ITC, around 30-40 percent of all digital start-ups in the country. 139 According to the definition adopted by the ITC and applied in its Directory, ideation category includes start-ups that are engaged in product or service ideation, market research, and prototyping of a minimum viable product (MVP); validation or entrepreneurship category consists of enterprises with confirmed MVP, but no or little revenues; while the growth category comprises firms that already generate revenues and are expanding. 140 All based in Greater Banjul area, although some, such as NEDI, SIG, and GYIN, have satellite offices. 113 million – mostly young – people, only one third of the and with less understood and trusted digital business population uses broadband services, with affordability models, continues to present a significant roadblock to and quality of service remaining key usage barriers. scale and grow. Second, weak digital skills (including Such low adoption and penetration rates amid advanced programming and software development persistent digital infrastructure constraints, more skills) and digital literacy and awareness among pronounced in rural areas, hinder opportunities for broader population are important constraining factors digital businesses to expand their customer or supplier both on the supply and the demand side of digital base and conduct online transactions. As an example, products and services. Finally, low adoption of DFS Tesitoo, which is an online marketplace for agricultural and absence of payment gateways stifle opportunities products, connecting farmers and farmer associations for online transactions. As illustrated in Chapter 3 and directly to consumers through an app and a web-based underscored by multiple digital start-ups interviewed platform, estimates that in the absence of connectivity during the elaboration of this report, payments or smartphones around 40 percent of its suppliers infrastructure in the Gambia is underdeveloped, and continue to rely on voice calls to list their produce the economy remains largely cash-based, lacking the and interact with the company. These interactions capacity to efficiently process mobile and interbank and onboarding process are sometimes facilitated by retail payments as well as international transactions141. Tesitoo agents that the company deploys to go the Against this background, several young and innovative field. enterprises have broken through the hard soil of constraints, making progress in solving local problems. Despite the hurdles to operate digital businesses in For instance, fintech start-ups, such as Kuringo, The Gambia, some promising digital start-ups have Baluwo, PingMoney, and Karlilu, have recently emerged emerged, addressing local needs with innovative and got further boosted by the COVID-19 pandemic to solutions. Several factors, beyond underlying offer solutions for international remittances transfers connectivity constraints and broader doing-business or business transactions, enabling Gambians living environment, are holding back the growth and in the diaspora to send money or purchase products expansion of digital companies in the country. First, and services for family members back home – often access to finance, especially for firms at early stage unbanked individuals living in rural areas. 141 World Bank, 2019. The Gambia: Policies for Private Sector–Led Growth—Achieving Sustainable and Inclusive Growth. Internal document. World Bank, Washington, DC. © World Bank. 114 The Gambia Digital Economy Diagnostic BOX 9: Facilitating Remittance Transfers and Driving Inclusion Across The Gambia and West Africa Fintech company Baluwo has chosen The Gambia as a launchpad for scaling its international operations, experiencing rapid growth over the past three years. Founded by a Spanish serial entrepreneur with a focus on software development, Baluwo was established in 2016, launching its first pilot operations in The Gambia in 2017 and expanding to 13 other West African countries in the following years, including Cote d’Ivoire, Ghana, Nigeria, and Senegal. The smiling coast was chosen as the company’s testing ground due to its small size (conducive to piloting business activities), entrepreneurial culture and sizeable diaspora abroad, including in Spain. Since the start of its operations, the company has experienced rapid growth in customers and transactions (further boosted by COVID-19 pandemic), growing from 241 orders in December 2017 to 115,366 orders in December 2020, counting over 2 million transactions in total over the past three years. Despite its presence in larger economies, such as Nigeria and Mali, The Gambia continues to be the biggest country for Baluwo both in terms of the customer base and the volume of transactions. While technology is at the core of the company’s cash-to-goods business model, it also relies on physical presence and partnerships with small local shops, mostly in rural areas, as well as on simple SMS technology to reach the illiterate and the unconnected. Baluwo’s digital solution replaces the concept of remittances being sent under a cash-to-cash model, providing an opportunity for the diaspora – through an app or a web page – to initiate cash-to-goods transactions. The platform integrates real-time money transfer operators (MTO) in developed countries with local stores, utility companies and forex bureaus in African countries, where beneficiaries reside. As a result, transfer originators can purchase basic products and services with either cash at physical MTOs’ points of presence or with debit/credit card payments effectuated through the app/web. The latter (transactions initiated online) account for only 15 percent of total Baluwo’s orders, however their share is growing rapidly. In fact, from February to March 2020 digital orders multiplied by a factor of three due to COVID-related lockdowns. Once the payment is received, the platform sends an SMS with a PIN to the beneficiary back home, who can then collect the goods (including mobile top-ups / data packages, food, electricity payments and construction materials) from a specific store out of a big network (for example, in The Gambia Baluwo works with more than 250 shops), while the storekeeper collects his/her money from a local forex bureau. The selection of SMS technology and PINs is not accidental and is meant to cater to illiterate people without internet connectivity. Orders for The Gambia continue to account for the bulk of Baluwo’s operations. The Gambian customers/senders come predominantly from Europe (Italy, Germany, Spain and the UK) and the US. Up to date, more than 133,851 beneficiaries were served by the company in The Gambian market. The top orders purchased by Gambian customers are mobile top-ups, data packages, food and construction materials. The size per order varies based on the product/service purchased. For construction products, for instance, the average purchase is 216 euros, while it is 66 and 4 euros for food and air data, respectively. 115 Some of the hurdles the company faces in the country relate to connectivity, IT skills availability, and regulatory uncertainty. Expanded broadband coverage and uptake, which are currently alarmingly low in The Gambia, as well as interoperability of mobile money platforms could significantly boost the use of solutions, such as Baluwo’s, helping to reduce the reliance on physical presence and cash transactions. Moreover, there is a critical need for programmers and advanced IT skills among Gambian professionals. Gambian fintechs often have to outsource programming work to IT specialists in India, while it could easily be done at home. Moreover, partnering with utility companies has proved to be difficult, time-consuming and constrained by bureaucratic red tape. Source: DE4A interview program and proprietary Baluwo materials An important recently launched Google + Code the COVID-19 pandemic. Effectively scaling up this initiative can help address some of the underlying initiative and rolling it out across the entire country constraints for digital retail business development, would be important to ensure its broad-based benefits. unlocking e-commerce potential in The Gambia. The lack of a formal addressing system is widely cited by The following section zooms on some of the critical e-commerce companies in SSA as a critical constraint, constraints to digital businesses in The Gambia, significantly raising the costs and reducing the including policy, regulatory and institutional reliability of last-mile deliveries. The Gambia, where environment, access to finance, support structures only few streets have formal names, is no exception. and human capital. To resolve this issue, MOICI and Banjul City Council in partnership with Google (Google + Code solution) have Policy, Regulatory and Institutional launched a pilot to assign a unique digital ID / short Environment code to all properties in the capital, thus revitalizing the service of deliveries of mails and packages. The Despite ongoing efforts to boost entrepreneurship code is a substitute to a street address and can in The Gambia, the implementation of policies has easily and accurately direct people to the right place fallen short, with no policy explicitly targeting using Google Maps. By allowing to create a reliable or promoting digital entrepreneurship. Since the and accessible customer database, the solution can adoption of Vision 2020, the regulatory framework help increase the efficiency of delivery of services for has placed entrepreneurship at the center of a long- businesses and the GoTG alike, making utility services, term strategy for a more inclusive and sustainable such as garbage collection and electricity delivery private-sector-led growth in The Gambia. In fact, the bills, much more effective and efficient. Moreover, NDP gives a priority to programs supporting high- the plus codes addresses could be easily shared with skilled and entrepreneurial young Gambians. Moreover, emergency services to rapidly reach the location of any as part of the operationalization of the National emergency cases, which has become critical during Entrepreneurship Policy (NEP) adopted in 2016, and 116 The Gambia Digital Economy Diagnostic in cooperation with UNCTAD, the GoTG developed difficulties are further compounded by limited budgets the National Entrepreneurship Strategy Framework allocated for entrepreneurship programs within the in 2017, soon to be updated142. Although the Gambia GoTG, with most resources coming from donors. The Investment and Export Promotion Agency (GIEPA) is the Empretec program, funded by UNCTAD and led by GIEPA, main implementing agency for the NEP, with support and EU-funded YEP are among a few donor-funded and supervision from the Ministry of Trade, Industry, initiatives put in place to support entrepreneurship and Regional Integration, and Employment (MOTIE), have activities specifically targeting tech companies coordination with other stakeholders, including the and start-ups. private sector, has been limited. Implementation TABLE 16: Main Entrepreneurship Policies in The Gambia POLICY YEAR Vision 1996 National Employment Policy and Strategies and Action Plan 2010 (NEP/NEAP) 2010 The Gambia’s Trade Policy 2011 Program for Accelerated Growth and Employment 2012-2015 (PAGE) 2012 National Strategy for Microfinance Development (NSMD) in the Gambia 2013 National Policy, Micro, Small and Medium Enterprise Sector 2014-2018 2014 National Entrepreneurship Promotion Strategy (NEPS) 2014-2018 2014 Private Sector Development Strategy 2015-2019 2015 National Entrepreneurship Policy 2016-2020 2016 National MSME’s Policy 2018 National Development Plan (NDP) 2018–2021 2018 Gambian entrepreneurs, including in the digital remains an expensive and lengthy process: it costs domain, continue to face a weak business regulatory 49.5 percent of income per capita (16,650 GMD or environment, particularly high costs of starting a around US $325), way above most regional peers, and business and burdensome taxation. According to takes on average 8 days. At present, one-stop-shop the 2020 Doing Business Report, The Gambia ranks computerized registries for entrepreneurs are only 155th out of 190 economies (Figure 9), with starting a available in Banjul and Kanifing municipalities and are business and paying taxes being the country’s lowest not accessible online (physical presence is still required scoring indicators. Starting a business in The Gambia at Single Window Business Registration Offices at 142 UNCTAD, 2017. Formulating the National Entrepreneurship Policy. UNCTAD, Geneva, Available at: https://unctad.org/system/files/official-document/diae2017d1_en.pdf. 117 the Ministry of Justice in Banjul or Kanifing Municipal per year, and spend 326 hours processing accounts143. Council). In terms of taxation, The Gambia continues Compared with peers, the country has one of the to score below the regional average, as firms have to highest number of payments per year alongside Togo comply with 14 different taxes, make 49 payments and Senegal (Table 17). FIGURE 9: Doing Business Ranking, The Gambia and Selected Peers, 2020 RWANDA 38 TOGO 97 UGANDA 116 SENEGAL 123 MAURITANIA 152 THE GAMBIA 155 GUINEA 156 GUINEA BISSAU 174 LIBERIA 175 Source: World Bank Doing Business Report, 2020. 143 World Bank, 2020. Doing Business 2020: Comparing Business Regulation in 190 Economies - Economy Profile of Gambia, The (English). World Bank, Washington, DC. © World Bank. Available at: http://documents.worldbank.org/curated/en/804041574860589616/Doing-Business-2020-Comparing-Business-Regulation-in-190-Economies-Econ- omy-Profile-of-Gambia-The. 118 The Gambia Digital Economy Diagnostic TABLE 17: Doing Business in The Gambia and Selected Peers: Starting a Business and Paying Taxes STARTING A BUSINESS PAYING TAXES TIME % OF INCOME PAYMENTS TIME (HOURS TAXES PER (DAYS) PER CAPITA (# PER YEAR) PER YEAR) YEAR (#) THE GAMBIA 8 49.5 49 326 14 STRUCTURAL PEERS GUINEA 15 33.8 33 400 13 GUINEA-BISSAU 8 88.8 46 218 11 LIBERIA 18 6.3 33 140 9 TOGO 2.5 8.1 49 159 15 AVERAGE 10,3 37.3 42 248.6 12.4 ASPIRATIONAL PEERS UGANDA 24 40.5 31 195 9 RWANDA 4 0 9 91 11 SENEGAL 6 22.6 53 41.6 12 MAURITANIA 6 15.8 33 270 15 AVERAGE 10 19.7 32 149.4 12 Source: World Bank Doing Business Report, 2020 The regulatory framework related to digital businesses 1, this legislation in The Gambia is fragmented and displays specific weaknesses and gaps. As mentioned incomplete. in Chapter 1, a necessary prerequisite of a vibrant and trust-based digital economy is cybersecurity, • Intellectual property rights (IPR) are covered protecting both consumers and businesses in the by the 2007 Intellectual Property Act and the Trade online space. Under a cyberlaw, countries can adopt Act; and the country is part of both Paris Convention the following legislation: (i) data protection and privacy for the Protection of Industrial Property and the Berne law; (ii) consumer protection law; (iii) cybercrime law, Convention for the Protection of Literacy and Artistic and (iv) e-transaction law. As elaborated in Chapter works. However, the IPR protection legal structure 119 remains weak due to the lack of experts in the country Access to Finance and the lack of reported IPR crimes144. Access to finance remains a key constraint for • E-signature and e-transaction are covered Gambian firms, however promising initiatives by the 2009 IC Act (currently under revision) that emerge to address this gap. Domestic credit to the follows the UNCITRAL Model Law on Electronic private sector accounts for only 6.7 percent of the Commerce (1996) and the UNCITRAL Model Law on country’s GDP147 versus SSA average of 44.3 percent. Electronic Signatures (2001) as well as EU Directive For early-stage entrepreneurs, high interest rates 99/93/EC; however e-signature provisions cannot and collateral requirements required by local banks be considered technologically neutral, as they give hinder the possibility of obtaining finance. In the different and preferential legal treatment to certain current ecosystem, there are a few investors, including electronic signature technologies, specifically public private microfinance companies, such as SIG Loans, key cryptographic techniques and their administration Supersonicz and Reliance, that can offer small loans by third party certification providers145; to young start-ups as well as some donor-supported funds and programs, such as EU-funded Tekki-Fii • Consumer and supplier protection is overseen Mini-Grant scheme for grassroot entrepreneurs rolled by the Gambia Competition and Consumer Protection out in collaboration with the National Association of Commission (GCCPC) under the 2014 Consumer Cooperative Credit Unions of The Gambia (NACCUG), Protection Act, the 2007 Competition Act and some having supported over 700 small businesses to- provisions of the 2009 IC Act; date, or YEP’s mini-loan scheme. Other examples include Gambia Entrepreneurship Fund and Women • Pertinent data protection and privacy policies Entrepreneurship Fund, initiated by the Ministry of and regulations (as mentioned in previous chapters), Gender, Children and Social Welfare, albeit not yet are still in draft form; in the meantime, these issues operational148 (see Annex 7 for further details). However, are covered under Article 23 of the Constitution146 that a lot of entrepreneurs continue to rely on own / private grants individuals the right for privacy, including in capital (e.g., Kuringo), fund-raise through crowdfunding communications, but doesn’t cover sharing personal campaigns hosted internationally (e.g., Baluwo and information with third parties without notice or Tesitoo) or apply for donor-funded programs (e.g., consent of consumers; PingMoney). Against this background, a promising initiative has been spearheaded by ITC, that through • The Cybercrime Bill is also pending adoption; in YEP supported the launch in 2020 of the Gambia its absence electronic evidence cannot be submitted Angel Investor149 Network (GAIN), uniting 14 investors, to courts, cybercrime cannot be sanctioned, while ICT including two from the diaspora. GAIN is a non-profit users remain unprotected. organization that for now continues to receive technical 144 US State Department, 2020. Investment Climate Statements in The Gambia. Available at: https://www.state.gov/reports/2020-investment-climate-statements/gambia/. 145 UNCTAD, 2015. Review of E-commerce Legislation Harmonization in ECOWAS. Available at: https://unctad.org/system/files/official-document/dtlstict2015d2_en.pdf. 146 Ibid. 147 World Development Indicators; based on 2018 data. 148 The Government also aims to launch the Youth Development fund 149 Angel investors are high net worth individuals who can help entrepreneurs acquire industry knowledge and access to global networks. 120 The Gambia Digital Economy Diagnostic and financial support from YEP, but hopes to become a 50-percent matching grant from ITC). To increase self-sufficient and sustainable by 2022, when the the pool of investable companies, the network has program is due to close. So far, despite organizing five launched an Investment Readiness Program (de facto pitching events with 17 participating start-ups, GAIN’s an acceleration program), currently hosting 23 start- investment portfolio includes only one non-digital ups and providing them with trainings on financial business that received a mix of equity and convertible accounting, business planning and mentorship150. debt financing in the amount of US $16,000 (including FIGURE 10: Top Ten Business Environment Constraints in The Gambia 60 53 The Gambia 2018 50 Sub-Sharan Africa 40 % of Firms 30 21 20 7 5 5 4 10 2 2 1 1 0 Access to Electricity Taxe Political Access Practices Crime, Transpor- Inadequa- Customs finance rates instability to land of the theft and tation tely and Trade informal disorder educated Regulations sector workforce Source: Enterprise Surveys, The Gambia 2018 Country Profile. Overall, very few funding channels are available and to be able to comply with the requirements of financial tailored to the needs of digital entrepreneurs. The support structures, i.e., be investable. In fact, according access to funding by digital start-ups is constrained to 2018 GLFS, half of the workers in The Gambia are self- by a combination of intertwined demand and supply employed and only 3.6 percent of those self-employed factors. On the one hand, Gambian businesses, similar report having registered their business with the GCCI. to their counterparts across SSA and other developing This brings the pool of digital enterprises in an already economies, demonstrate a weak state of maturity and very small market to a very low number, resulting in an formalization. Many of them are registered as sole- absent deal flow for investors. As an example, in 2020 proprietorship and very few have formalized / audited the UNCDF launched an EU-funded crowdfunding accounts and proper / streamlined governance models platform under the “Jobs, Skills and Finance (JSF) 150 The program lasts 6-12 months and is structured around three phases: (1) trainings on financial accounting and business planning; (2) trainings on preparing financial projections and a pitching deck; (3) mentorship from one of GAIN’s angels to provide practical support and get the enterprise used to having shareholders. Start-ups get filtered through the process based on their deliverables and engage- ment. The first cohort onboarded in 2020 included 41 applicants, 33 of which went through phase (1), and 23 went through phase (2); phase (3) is currently launching (April 2021). The final goal is to have at least five investment-worthy projects / start-ups by end 2021. 121 for Youth and Women in The Gambia Program” with specific private equity (PE) and VC provisions, legal the aim to raise up to US$ 840,000 to assist 8,000 and regulatory ambiguity can act as a deterrent for small businesses151. However, only those businesses investors. Although it is likely to take time to have a capable of presenting financial statements certified tangible impact, it generally pays off to develop an by a public accountant and with market operations of overarching legislation/regulation in the PE / VC space, at least three years can apply for the funding. As for including descriptions of adequate legal structures. bigger and more established digital businesses, the Interesting example of a regulatory framework with challenges reportedly stem from the supply side due to incentives structure is the Single Funds Act in Chile absent venture capital (VC) culture in The Gambia, the that requires fund managers to be registered in the lack of tailored financial products and a small size of country, offering them lower withholding tax rates on available investments, insufficient to cover high costs capital gains and dividends to foreign investors. Finally, of implementing digital technologies. For instance, laws on labor, competition, and corruption contain according to a web design company interviewed for some unclear provisions that can constraint foreign this study, the average cost associated with setting investment154. For example, contract termination an e-commerce platform is over US $34,000, which provisions under the 2007 Labor Act remain ambiguous, is not that easy to find in The Gambia. Although some leaving room for interpretation and often resulting available offerings to entrepreneurs, such as YEP’s in legal disputes to define an acceptable conduct for Mini Grant Scheme (implemented in collaboration with termination. Moreover, albeit the legal framework GIZ and Enabel)152, provide funding with no collateral, regulating traditional anti-competitive practices exists interest rate or repayment requirements, the amount (comprising the 2007 Competition Act, the 2001 PURA, of grants is only 50,000 GMD (equivalent to around US and the 2010 Customs and Excise Act), implementation $980), while the amount sought on average by digital decrees are missing. start-ups is in the range of US $150,000 (as reported by start-ups applying for funding under YEP Tech Support System & Culture Start-up Program - see Annex 5). Despite the growing number of facilities, such as Although the absence of restrictions presents an incubators and co-working spaces available in the opportunity for international investment funds, country, intermediary organizations lack diversity and The Gambia continues to be perceived as a high-risk sometimes capacity to support digital businesses in a environment. Despite a liberalized capital market (with targeted manner. Within a strong digital ecosystem, no legal or regulatory restrictions on foreign investment a variety of events, incubators, accelerators, and co- or on the repatriation capital153), international investors working spaces help digital entrepreneurs create and foreign funds that could potentially cover large linkages and form a community of knowledge exchange. ticket sizes continue to perceive The Gambia as a Incubators for instance support the development risky investment environment and largely overlook it and scaling of early-stage enterprises (from ideation due to its very small size. Moreover, in the absence of to MVP) by reducing the costs associated with 151 UNCDF. 2020. “UNCDF launches a crowdfunding platform for young Gambian entrepreneurs”. Available at: https://www.uncdf.org/article/5728/uncdf-launches-a-crowd-funding-plat- form-for-young-gambian-entrepreneurs 152 YEP. YEP Mini Grant Scheme Description. Available at: https://www.yep.gm/opportunity/mini-grant-scheme 153 UNCTAD. 2017. “Investment Policy Review – The Gambia”. UNCTAD. Geneva. 154 As elaborated by UNCTAD. 2017. “Investment Policy Review – The Gambia”. UNCTAD. Geneva. For example, 122 The Gambia Digital Economy Diagnostic business registration and connecting entrepreneurs to provided in Annex 7). This limits the support available resources that unleash competitiveness. Accelerators, to digital entrepreneurs outside of the capital, on the other hand, are fundamental for enterprises constraining the potential impact on the overall digital aiming to reach growth stage and obtain funding to business ecosystem. Furthermore, according to the scale155. In the case of The Gambia, a few incubators entrepreneurs interviewed for this study, incubation and accelerators have been implemented by a small and acceleration programs in The Gambia do not offer number of stakeholders, concentrated in the cities of robust fundraising opportunities and mentorship to Banjul and Serrekunda (Figure 11 with further details start-ups at the scale phase. FIGURE 11: Incubators, Accelerators and Other Capacity Development Providers in The Gambia GROWTH MATURE IDEATION START-UPS EARLY STAGE LATER STAGE START-UPS BUSINESSES YEP Africa Leadership Gambia Empretec Gambia The Woman Boss INCUBATORS, ACCELERATORS National Entrepreneurship Development Initiative (NEDI) AND OTHER CAPACITY National Council for Arts and Culture (NCAC) DEVELOPMENT Start-up incubator Gambia (SIG) PROVIDERS University of the Gambia Bidging Gaps Management Devel- Global Youth Innovation Network Gambia opment Institute Chapter (GYIN Gambia) Buzz Women Gambia Gambia Chamber of Commerce and Industry (GCCI) INDUSTRY ASSOCIATIONS, Gambia Youth Chamber of Commerce (GYCC) Gambia Invesment and Export Promotion Agency (GIEPA) CHAMBERS AND TRADE Gambia Women’s Chamber of Commerce (GWCC) PROMOTION ASSERT - Association of Small Scale Enter- ORGANISATIONS prises in Responsible Tourism ITAG JikkoLabs Gambia CO-WORKING The Disruptive Lab SPACES Impact Hub Banjul Tech Hub Source: ITC, 2019 155 ITC, 2019. The Entrepreneurship Ecosystem in The Gambia. 123 There is a need to further cultivate a vibrant aspirational peers, such as Senegal, Rwanda and startup ecosystem by promoting connectedness Ghana (Figure 12). Of the 14 GEI sub-scores, start-up and knowledge spillovers, entrepreneurial skills, skills, risk acceptance, and risk capital (referring to the and links to domestic and international investors. availability of capital from individual and institutional Successful startup environments are characterized by investors) are the lowest scoring categories, indicating strong interlinkages between private sector players that the general risk appetite and acceptance are not and the government, frequent knowledge-sharing and as favorable in The Gambia as in other countries. The networking events, and a culture of support between Government can play a proactive role in this area, in successful startup founders, new entrepreneurs, and close collaboration with the private sector. Given the domestic and international investors. This vibrancy nascent stage of the ecosystem, the focus should is mostly lacking in The Gambia. The 2019 Global be initially on identifying key subsectors that have Entrepreneurship Index (GEI), a global perception- highest growth potential, accelerating opportunities based ranking of entrepreneurship ecosystems, ranks by attracting talent and create linkages to top startup The Gambia 113th out of 137 economies, behind ecosystems to learn from their policy environment. FIGURE 12: Global Entrepreneurship Index, The Gambia and Selected Peers, 2019 2020 Global Enterpreneurship Index The Gambia’s GEI Sub-Scores (1 = best) Networking 0.562 GHANA 91 High Growth 0.299 NIGERIA 92 Opportunities Perception 0.293 Competition 0.27 SENEGAL 93 Cultural Support 0.173 Technology Absorption 0.172 RWANDA 95 Opportunity Startup 0.161 THE GAMBIA 113 Human Capital 0.154 Process Innovation 0.12 UGANDA 125 Product Innovation 0.108 Internationalization 0.088 GUINEA 130 Risk Capital 0.065 Risk Acceptance 0.025 Startup Skills 0.021 Source: GEI, 2019156. 156 The Global Entrepreneurship and Development Institute, 2019. Global Entrepreneurship Index. Available at: https://thegedi.org/wp-content/uploads/2021/02/2019_GEI-2019_final_v2.pdf. 124 The Gambia Digital Economy Diagnostic Gender equality within the digital business ecosystem Bana. On top of this come challenges related to the requires special attention. Despite some initiatives perceived lack of useful local content online. However, that specifically support women entrepreneurs (e.g., some start-ups manage to successfully dispel this The Woman Boss, SheTrades Gambia, and WEF), perception. For example, Kuringo fintech platform women continue to be underrepresented among tech created short videos in local languages to facilitate and start-up founders, ICT professionals or software incentivize the use of its application. developers, reflecting a broader trend of lower workforce participation (as nearly 57 percent of women Human Capital are economically inactive compared to 36 percent of men) and weaker educational attainment level (62 Weak digital literacy and digital skills are considered percent of women have no education compared to 49 as significant demand and supply side obstacles by percent of men157). Moreover, a survey conducted by the digital businesses. As access to devices improves UNCDF in 2019 in The Gambia, revealed that women and internet usage grows, interviewed entrepreneurs have lower awareness and understanding of certain highlighted that there is a critical need to strengthen digital concepts and services, such as DFS. According currently weak basic digital education and awareness to the study, 51 percent of the surveyed women were to enable people to take advantage of digital services. unaware of what mobile money accounts are (versus There is also a scarcity of local ICT professionals, in 37 percent of men) and almost 20 percent admitted terms of both digital and managerial skills for two main to not having the right skills to use them (versus 17 underlying reasons. First, there is a lack of programs percent of men)158. offering trainings in advanced ICT skills with those that are offered not fully aligned with market needs, Overall, the Gambians are still on the way to become as comprehensively covered in Chapter 5 on Digital “digitally ready”. Despite the above-mentioned Skills. Second, highly skilled specialists often emigrate challenges related to the overall digital infrastructure in search of better opportunities abroad. Indeed, 65 (electricity, internet, and payment gateway systems), percent of tertiary education graduates in The Gambia regulatory environment and support organizations, end up emigrating159. As a result, digital start-ups digital entrepreneurs in The Gambia face another in the country largely have to rely on outsourcing or challenge related to the level of digital adoption by hiring software engineers from abroad to develop and local customers. Driven by customers’ preference to manage their digital platforms. Notwithstanding, some use cash, attend physical markets and have personal publicly funded initiates are starting to emerge in the interactions, Gambian digital entrepreneurs often find it ecosystem with promising tech programs for digital difficult to compete with brick-and-mortar companies skills development. In 2019, under YEP Tech Start-up and markets. For instance, agritech digital start-up Program, 336 individuals were trained in tech related Tesitoo, shared its struggle to integrate farmers into skills (including entrepreneurs, online freelancers, their platform, due to their preference to work face-to- traditional IT companies, and any young Gambians face with traditional intermediary buyers called Bana interested in developing digital skills). The Freelancer 157 UNCDF, 2019. Power assessment of women’s economic empowerment in The Gambia. Available at: https://www.uncdf.org/article/5043/power-assessment-of-womens-economic-empower- ment-in-the-gambia 158 Ibid. 159 World Bank, 2020. Systematic Country Diagnostics for the Republic of The Gambia: Overcoming a No-Growth Legacy. World Bank, Washington, DC. © World Bank. Available at: http://documents1. worldbank.org/curated/en/782131589568063735/pdf/The-Gambia-Systematic-Country-Diagnostic.pdf. 125 Digitalization Campaign run by the same program, also there are no officially reported numbers. Based on offers trainings in developing digital skills (with other anecdotal evidence acquired during the program of examples provided in Chapter 5). interviews, the number of users of digital platforms and services seems to be increasing, however follow- Markets up data collection is necessary to confirm that. In this context, it would be warranted to conduct a firm-level Adoption of digital technologies amongst businesses adoption of technology survey and analysis, similar in The Gambia remains comparatively low, and there to the one recently conducted by the WB in Senegal, is a need for a more detailed and updated data in Brazil and Vietnam160. The study could explain the main this domain. The latest WEF’s firm-level technology sources of variation in technology adoption across absorption values (2016) show that the average growth sectors, regions, and within firms and show how these rate of adopting new technologies by businesses variations are associated with productivity levels. in The Gambia decreased by 0.18 percent between These indicators could then be compared with results 2012 to 2016. Compared to aspirational countries, observed in other countries and used as important such as Senegal and Rwanda, it is observable that contributions to designing evidence-based policies Gambian firms lag in adopting new technologies as to help stimulate the adoption of technologies by part of their business processes (Figure 13). With enterprises, including informal ones. respect to revenues generated by digital businesses, FIGURE 13: Firm–Level Technology Absorption Index, The Gambia and Selected Peers 5.50 Senegal 5 Rwanda The Gambia 4.50 Mauritania 4 Uganda Liberia Guinea 2012 2013 2014 2015 2016 Source: WEF, 2012-2016. Global Information Technology Reports; Firm-Level Technology Absorption Index 1-7 (7=Best). 160 World Bank (2021). Inclusive Digital Senegal; by Dutz, M., Castelan, C., Cruz, M. (forthcoming). 126 The Gambia Digital Economy Diagnostic In the context of a small domestic market, Gambian Paytm is an Indian electronic payment and ecommerce digital businesses need to strengthen their linkages platform that offers sellers a marketplace, where they to regional and international markets to successfully can establish their “shop”, instead of just listing their scale. Global value chains are worldwide known for goods. With a license from the Indian Government assisting companies to develop productive capacity, to operate as a payment bank, the platform also obtain human capital and raise income by trading developed a payment gateway and digital wallet that across borders161. Particularly for a very small country, enables users to purchase any goods or services through such as The Gambia, increasing intra-regional trade and the platform or any other website outside of India162. linkages with other countries can provide new business Finally, digital entrepreneurs in The Gambia are lacking opportunities for local entrepreneurs, expanding their international networks and sufficient knowledge on access to customers, innovation, workforce with market expansion. The latter could be further explored different skill sets and additional sources of capital. by the GoTG through business linkages programs. The To facilitate this, the GoTG can introduce policies to first step would be then to carefully assess the potential attract and retain talent in the local digital economy, to expand cross-border e-commerce and study best including through resident permits and provisions practice global policies to stimulate it. specifically targeting brain-drain. Importantly, The Gambia could serve as an effective testbed to pilot The Gambia has several prerequisites to position solutions that could be then introduced in other itself as a business processes outsourcing hub. geographies, as demonstrated by Baluwo’s example Considering the advantages offered by the country, and confirmed by other entrepreneurs, who attested to including English-speaking population; same time zone the value of “failing quickly, failing cheaper” to iterate, with the UK and minimal difference with key European innovate and improve business models and operations markets; and relatively low unit labour costs, The before expanding abroad. However, the main roadblock Gambia has a potential to develop a BPO model for for The Gambian digital businesses eager to enter its digital economy. While for this to success it would international markets, remains the lack of a functional be critical to address pending digital connectivity payment gateway systems. In this regard, the GoTG gaps and constraints, it could be warranted to further could consider unleashing the potential of cross explore these opportunities jointly with the Gambian border e-commerce through a regulatory framework Investment and Export Promotion Agency that has an facilitating cross-border payments. For instance, the explicit mandate to promote the BPO sector. Recommendations Fully unlocking the potential of digital businesses in The enablers of the digital economy – infrastructure, skills, Gambia requires important reforms and investments and payment systems. Amid incremental steps taken to address binding constraints in key foundational to support digital entrepreneurship, the GoTG should 161 UNCTAD, 2017. Regional integration creates opportunities for SME’s and women. UNCTAD, Geneva. Available at: https://unctad.org/news/regional-integration-creates-opportunities-smes-and-women. 162 World Bank. 2020. Unleashing E-commerce for South Asian Integration; by Kathuria, S, Grover,A., Perego, V. M. E., Mattoo, A., Banerjee, P. . World Bank Group, Washington DC. Available at: https:// openknowledge.worldbank.org/bitstream/handle/10986/32718/9781464815195.pdf?sequence=4&isAllowed=y 127 accelerate measures across other pillars of the digital innovation. A Start-up Act could help facilitate, economy to enable the growth of digital businesses, including by attracting foreign investors, the creation particularly: (i) improve broadband access and and growth of innovative local businesses. The affordability (see Chapter 1 on Digital Infrastructure); Act could include policies intended to increase the (ii) support the roll-out of payment systems and incentives for young aspiring digital entrepreneurs by, financial inclusion (see Chapter 3 on DFS); and (iii) for example: (i) fast-tracking registration licenses for integrate digital and entrepreneurial skills training in digital start-ups; (ii) covering patent licenses costs; (iii) schools and other education institutions (see Chapter 5 offering tax breaks for the first few years; (iv) covering on Digital Skills). Additionally, the GoTG could consider costs associated with bank account fees, for a specific the following measures. period; etc. GCCI is already looking closely into this topic, including by hosting debate on Start-up Acts at R 4.1 [Quick Win] Scale up the “Digital Addressing the 2021 National Start-up Forum. Solution” (Google + Code) beyond the capital city of Banjul. To unlock its full potential, continuous efforts R 4.4 [High Priority] Expand funding opportunities and additional investments are required to ensure the for digital businesses. In the short-term, given the nationwide roll-out of this important digital addressing nascent stage of the ecosystem, the focus could be initiative, which at the pilot phase is currently targeting on creating programs alongside financial institutions 4,000 addresses in Banjul. for the provision of pre-seed financing in the form of interest-free loans. In these efforts, the GoTG could R 4.2 [High Priority] Continue reforming legal and share risks with lenders, allowing entrepreneurs to regulatory environment, with a focus on facilitating explore business ideas, build prototypes, and start digital businesses operations. Beyond developing operations. The GoTG could also implement regulations specific laws and regulations in the domain of that allow for alternative collateral options to e-payments / e-transactions, the GoTG could also expand lending opportunities for entrepreneurs (e.g., consider strengthening the enforcement of the group lending schemes, guarantees, track record of Consumer Protection Act and the Intellectual Property repayment performance, moveable assets). Moreover, Rights Act and developing currently missing online it is important to attract more angel and PE / VC consumer protection provisions. In doing so, policy- investors to further expand funding opportunities for and lawmakers may benefit from trainings on digital early-stage digital ventures. Adopting an overarching business models and best practice cases. The UNCTAD legislation/regulation in the PE / VC domain, including e-Commerce and Law Reform program, which delivers descriptions of adequate legal structures, would be an trainings on “Legal aspects of e-commerce”, could important step. Moreover, following a regional trend163, assist in building the required capacity. the GoTG could collaborate with local business angels (including through GAIN) and the private sector, to R 4.3 [High Priority] Consider adopting a Start-up create a program to provide digital businesses with Act or similarly designed incentive-based regulations, financial and non-financial support. The program could following examples of other countries (Senegal, follow the same methodology as the Industry Matching Togo, Tunisia – among others) to promote and boost Fund created in 2019 by the Technology Innovation 163 Across the continent, different networks are being set up (e.g., Togo, Senegal, and South Africa where the Technology Innovation Agency (TIA) signed an agreement with Angels networks Dazzle Angels and Jozi Angels to co-invest in early-stage start-ups). 128 The Gambia Digital Economy Diagnostic Agency in South Africa, based on a blended finance and designing policies and programs to stimulate model and a risk sharing mechanism as an instrument it further, including through awareness campaigns. to attract co-investments. As mentioned in the Chapter, it is be warranted to conduct a firm-level adoption of technology survey to R 4.5 [High Priority] Strengthen the capacity of existing better understand the variation in technology adoption support organizations to provide tailor-made services across sectors, regions, and within firms and show to entrepreneurs as well as enabling large private sector how these variations are associated with productivity companies and the diaspora to support local ventures. levels. These indicators could then be compared Given a relatively solid presence of entrepreneurship with results observed in other countries and used as support programs and organizations compared to a important contributions to designing evidence-based limited number of success digital business stories, policies to help stimulate the adoption of technologies the GoTG could focus on institutions with the highest by enterprises, including informal ones. An important potential to propel digital entrepreneurs. For instance, element in this would be building awareness among the GoTG could consider assisting support organizations traditional firms on the potential value of integrating by financing initiatives that foster digital technology digital solutions and tools in their business models and adoption. The selection of the financed programs / or internal processes. could be based on organizational assessments that identify metrics for improvement. The GoTG could R 4.7 [Long-term] Consider boosting equity funding also encourage and incentivize large companies to for digital businesses in The Gambia through a VC tax support entrepreneurs through internships, coaching, incentive regime. The incentive regime could allow tax or provision of facilities. Finally, the GoTG could play a deductions for investors, who subscribe for shares in more active role in connecting local entrepreneurs to the venture capital companies. South Africa represents a diaspora, including by leveraging the newly established success story164 in the provision of such incentives. In Gambia Diaspora Directorate (GDD) within the Ministry 2015, the government introduced a new VC amendment of Foreign Affairs (through regular networking events), under the Income Tax Act that increased the total thereby facilitating the access of local start-ups to asset limit for qualifying investee companies as well international markets, funding, and mentoring. To as applied tax deductions to VC investors. As a result continue strengthening the partnerships developed at of this initiative, in 2018, the country registered an such events and/or incentivize new linkages between increase of 165 new VC corporations with over a R3.4 digital ecosystem stakeholders, the GoTG could consider billion investment commitment (equivalent to around the establishment of a dedicated online platform. The US $240 million)165. implementation of such mechanism can build on the experience of the Innovation and Entrepreneurship R.4.8 [Long-term] Facilitate re-risking early-stage Lab platform launched by the AfDB in several African investment to enable the diaspora to invest in countries. digital enterprises at home. The GoTG could consider implementing diaspora bonds or “patriotic discount” R 4.6 [High Priority] Enhance technology adoption with lower interest rates than sovereign bonds – an by enterprises by collecting data on its current level inexpensive way that government can use to raise funds 164 World Bank. 2019. Digital Economy for Africa (DE4A) Country Diagnostic of South Africa. World Bank, Washington, DC. © World Bank. 165 South African Revenue Services, 2019. List of Approved Venture Capital Companies 129 for digital enterprises and even for other development R.4.9 [Long term] Develop and implement the vision of projects in the country. Successful examples of such making The Gambia a hub for software developers. The policies come from Israel and India. For instance, since first step would be to conduct a comprehensive analysis the inception of this policy, Israel has been able to raise of The Gambia’s competitive advantages vis-à-vis more than US$25 billion from its diaspora166. The GoTG current global and regional competitors in the same would need to carefully design this policy, including by field (e.g., India, Poland, Tunisia, etc.). Then the GoTG accounting for the fact that some countries, such as could consider creating specific programs targeting the the US, hosting a large share of the Gambian diaspora, development of skills to meet software development require costly, lengthy and burdensome registration needs of various digital firms. This could include a blend procedures to access a retail investor base (registration of technical knowledge and communication skills. with the Securities and Exchange Commission in case of the US)167. 166 Berkeley. 2015. “Diaspora Bonds”. Available at: https://mdp.berkeley.edu/diaspora-bonds/ 167 Ketkar,S, Ratha,D. 2010. “Diaspora bonds: tapping the diaspora during difficult times”. Journal of International Commerce, Economics and Policy 130 The Gambia Digital Economy Diagnostic Photo credit – Alhagie Manka 131 Photo credit – Alhagie Manka DIGITAL SKILLS Importance As highlighted throughout the report, digital skills livelihoods, and wellbeing. It is equally important represent an essential building block of the digital for securing employment as well as for engaging as economy, critical to maximizing the uptake, impact citizens, individuals, and consumers. Approximately and benefits stemming from greater access to 65 percent of positions recruited by African companies connectivity and technology. Digital skills represent a now require basic digital skills171, and this has likely continuum from basic to intermediate to advanced and grown following the onset of COVID-19, during which highly specialized skills and can also be distinguished teleworking has become a norm. Digital skills can help according to functional needs: for citizen engagements, bridge the digital divide, bringing more people online for a wide range of occupations that use digital and empowering individuals to utilize digital tools and technologies, and for ICT professionals168. Basic digital services in a personal and professional capacity. A literacy – the ability to access, manage, understand, digitally skilled individual is likewise critical to creating integrate, communicate, evaluate, and create the consumer base for new digital products and information safely and appropriately through digital services created by local entrepreneurs. technologies169, 170 – is essential for modern learning, 168 World Bank, 2021. Digital Skills: The Why, the What, and the How. Methodological Guidebook v. 2.0. 169 Law, N., D. Woo, J. de la Torre, and G. Wong. 2018. A Global Framework of Reference on Digital Literacy Skills for Indicator 4.4. 2. Information Paper No. 51. Montreal: UNESCO Institute for Statistics. 170 Carretero, S., Vuorikari, R., and Punie, Y. 2017. The Digital Competence Framework for Citizens. Publications Office of the European Union. 171 IFC, 2020. Digital Skills in Sub-Saharan Africa: Spotlight on Ghana. Available at: https://www.ifc.org/wps/wcm/connect/ed6362b3-aa34-42ac-ae9f-c739904951b1/Digital+Skills_Final_WEB_5-7-19. pdf?MOD=AJPERES. 132 The Gambia Digital Economy Diagnostic BOX 10: Digital Skills Pyramid Digital skills exist on a spectrum from basic to advanced levels of complexity (based on various frameworks from UNESCO and EU): • Basic digital skills refer to basic functional skills that enable a safe use of digital devices and online and software applications (including word processing, spreadsheets, Internet searches, etc.) and are widely considered a critical component of a new set of literacy skills in the digital era (jointly with traditional reading, writing, and numeracy skills); • Intermediate digital skills refer to skills for more complex work or self-guided functions, such as digital marketing, desktop publishing, etc., however they are not generally specific to ICT professions and are relevant for a wide range of non-ICT occupations; • Advanced digital skills refer to more sophisticated digital skills of ICT professionals, focusing on the ability to design, develop, and maintain digital tools, carrying out tasks such as web design, programming, coding, and managing ICT systems; • E-business skills (or e-leadership skills), defined as a mix of more complex digital and entrepreneurial skills (including abilities to apply, create, and invent new business models, products, and services using digital technologies). Thus, digital competencies represent an individual’s ability to use his or her knowledge, skills and attitudes in relation to the three spheres of technological, social and cognitive competencies to use new or existing ICTs: (a) analyze, select, and critically evaluate digital information; (b) solve problems; (c) develop a collaborative knowledge base while engaging in organizational practices. Diagnostic Findings: Current State of Digital Skills Policy Environment (particularly Table 11 in Chapter 1) – focus on ICT. The NDP lists several goals to enhance The Gambia as a The GoTG recognizes the importance of strengthening digital nation, which demands a technologically literate digital literacy and skills but is yet to develop a population. In response, a range of various sectoral comprehensive national digital skills strategy. The policies supporting these strategic objectives and introduction of a new government in The Gambia in referring to digital skills as a critical enabling factor 2016 resulted in a range of important policy revisions, have been developed. They include (but are not limited several of which – as outlined in previous chapters to) the Education Sector Strategic Plan (2016-2030), National Employment Policy and Implementation Plan 133 (2019-2024), the Technical and Vocational Education ICT capacity, and digital skills development, which are and Training (TVET) Roadmap (2020-2024), as well not yet mirrored in the curriculum or detailed sector as a range of ICT strategies and policies, such as the strategic planning. These policy objectives include ICT4D (2018-2028), and Cybersecurity Policy (2020- introducing ICT and coding in grade four, digitizing 2024). However, no document yet provides a coherent school curriculum, developing a national education and comprehensive strategy or actionable framework ICT policy, providing access to ICT resources and to advance digital skills. The main function of such a facilities in schools, enhancing distance learning framework (based on the examples of the e-Education programs at the tertiary level, enhancing the role of Framework of Botswana or National Digital Skills educational broadcasting services, and strengthening Framework adopted in Rwanda and under elaboration pre-vocational and vocational courses. At the same in Cabo Verde), could be to identify digital competences time, MoBSE and MoHERST are jointly reforming The required at each level of education and for general Gambia College of Education that is the core institution citizens as well as digital skills necessary for different responsible for training lower basic schoolteachers. occupations. In its absence, digital skills initiatives in This reform, which includes substantial revisions to The Gambia remain fractured and ad-hoc in nature, teacher training curriculum, technical assistance, ranging from pilot interventions within the Ministry and some support for technology upgrades, presents of Basic and Secondary Education (MoBSE) to some an opportunity to launch far reaching digital skills limited TVET and university programs, and including advancements, including, for example, ensuring a variety of smaller scale trainings offered by various digital skills competences are embedded in teachers’ private and non-profit organizations. While these education. It also offers possibilities to increase initiatives hold promise, appropriate infrastructure, teachers’ exposure to computer science and to various and maintenance support as well as alignment with the technology tools that can be leveraged in classroom national curriculum framework and a broader vision for teaching. Such trainings could both enhance teaching national skills development would be vital to evaluate, digital skills and allow for a more prepared workforce prioritize and scale such efforts. Related policies related to support distance and blended learning. to ICT integration into the education curriculum; creation, quality assurance, and accreditation of online courses; private sector provision of digital skills While these reforms could support introduction of trainings; and online program management are also basic digital skills into the primary and secondary largely absent. levels of education, the lack of a comprehensive and progressive digital skills framework, covering Although an overall strategic framework for digital intermediate and advanced skills provided at skills does not yet exist, key curricular reforms at upper levels of education, could act as a hindrance. basic and secondary levels are ongoing and it would The TVET Roadmap (2020-2024) underscores the be critical to leverage them. With support from the enhanced relevance of digital skills at the TVET level WB and UNESCO, MoBSE is currently reforming the and the importance of provision of online learning curriculum framework for Grades 1-9. This opens a as a sub-objective. Nonetheless, there is no well- window of opportunity to explicitly integrate basic defined strategy or framework for the development of digital skills as well as computer science, particularly intermediate and advanced digital skills within TVET at the upper basic levels (grades 6 and above) into the centers, higher education institutions (HEIs), and other school curriculum. The work can explicitly build upon public and private providers of digital skills trainings. the existing set of policy objectives aimed at enhancing 134 The Gambia Digital Economy Diagnostic school173, and the results of the most recent Early Grade Digital Skills Supply Reading Assessment (EGRA) in The Gambia completed in 2016 show that on average in grades 1-3, students In the context of weak human capital and insufficient answer only one out of five reading comprehension basic foundational skills, The Gambia is facing questions correctly. The analysis of older groups significant challenges to ensure the development of reveals significant disparities based on socioeconomic digitally competent workforce with adequate digital background, with the proportion of youth not in skills. Digital competences, apart from the most basic education, employment, or training (NEET) differing (such as using a mobile phone for voice calls or simple significantly between urban and rural areas. According messages) cannot be developed without foundational to the GBOS, a NEET rate in Banjul is just 1 percent, literacy and numeracy skills, which are deemed weak compared to 43 percent in Brikama174 - an area in direct in The Gambia. While expected years of schooling are proximity to the capital with the highest concentration 9.5, factoring in what children actually learn (learning- of the country’s poor175. Overall, deficits in educational adjusted years of schooling172) decreases this value to attainment and the quality of education contribute to 5.4 years. This gap is more prominent for boys than around 35 percent of multidimensional poverty in The for girls, and wider than the gaps observed in key Gambia176. In this context, more than 60 percent of the comparators (Figure 14). Regional data demonstrate Gambian workforce remains without formal schooling, that 80 percent of 10-year-olds cannot read and and 46 percent of it continues to be employed by the understand a simple text by the end of primary informal sector. FIGURE 14: Learning-Adjusted Expected Years of Schooling in The Gambia and Selected Peers, 2020 9.5 9.7 7 6.9 7.3 6.8 6 Years 5.4 4.8 4.6 4.3 3.9 THE GAMBIA GUINEA TOGO RWANDA SENEGAL UGANDA Expected years of school Learning adjustment years of schools Source: World Bank, Human Capital Index, 2020. 172 Learning-adjusted years of schooling are calculated by multiplying the estimates of expected years of School by the ratio of most recent Harmonized Test Score to 625, where 625 corresponds to advancement attainment on the TIMSS (Trends in International Mathematics and Science Study) test, as per World Bank, 2018. Learning-Adjusted Years of Schooling: Defining a New Macro Measure of Education. Background Paper to the 2019 World Development Report. Policy Research Working Paper 8591. Washington D.C.: World Bank Group. Available at: http://documents.worldbank.org/curated/ en/243261538075151093/pdf/WPS8591.pdf. 173 World Bank, 2020. Human Capital Index. Available at: https://www.worldbank.org/en/publication/human-capital#Index 174 The Gambia Bureau of Statistics, 2019. Statistical Yearbook. Available at: https://www.gbosdata.org/downloads 175 World Bank, 2020. Poverty and Equity Brief. Available at: https://databank.worldbank.org/data/download/poverty/987B9C90-CB9F-4D93-AE8C-750588BF00QA/SM2020/Global_POVEQ_GMB.pdf 176 UNDP, 2020. Human Development Report Country Notes. Available at: http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/GMB.pdf 135 Against this background, digital literacy and skills secondary schools, around 40 percent of upper remain underdeveloped with persistent gender basic education schools, and 22 percent of lower disparities. As demonstrated by data from the basic education schools are equipped with computer UNICEF-supported Multiple Indicator Cluster Surveys laboratories, although these estimates appear overly (MICS) 2017-2019, only 10 percent of adolescent optimistic, with exact data unavailable178. In 2015, boys and 6 percent of adolescent girls (aged 15-18 UNESCO reported a computer-to-child ratio of 277:1 years) in The Gambia are considered having ICT skills. for primary school learners in The Gambia, 66:1 in Adolescents who are not equipped with these skills will lower secondary, and 37:1 in upper secondary schools. have difficulties navigating online learning platforms At that time, The Gambia only included ICT education and are at risk of not being able to fully leverage in upper secondary schools, 40 percent of which were online services as adults. It is vital to close these skill reported to have no internet access179. To address some gaps, including the digital gender divide, particularly of these issues, MoBSE contracted GAMTEL in 2014- given the importance of remote learning during the 2016 to provide fiber connections to all regional offices COVID-19 pandemic. Importantly, while the prevalence and establish videoconferencing amongst the regions, of ICT skills is normally higher among adolescents but the delivered bandwidth was lower than expected who attend school than among those who do not, the and the service contract was in the end aborted180. association between ICT skills and school attendance Challenges with connectivity also extend to higher is weaker for girls than for boys. In The Gambia, 15 education, with bandwidth needs per 1,000 students percent of in-school adolescent boys have ICT skills expected to increase 100-fold by 2030. compared to 2 percent for those out-of-school (a 13 p. p. difference), while for adolescent girls the figure is 8 The lack of infrastructure made the pivot for basic percent for those in-school versus 2 percent for those and secondary schools to online learning during the out-of-school (a 6 p. p. difference). The data suggest COVID-19 related school closures, all but impossible, that ICT skills are facilitated by schooling, but there while at the higher education level there were some may be gender-related barriers that prevent adolescent limited successes to transition to online learning. girls from developing these skills to the same extent as For basic and secondary levels, the GoTG was able boys177. to provide alternative education through radio and television programming but learning through mobile Many primary and secondary schools are still or computer-based applications was not found to be struggling to provide learners with electricity, possible given the absence of reliable internet and the internet connectivity and necessary equipment. lack of access to devices. Figure 15 shows the extent Only 38 percent of lower basic education schools, of educational activities households engaged in during 55 percent of upper basic education schools, and 60 school closures. Activities requiring active interaction percent of senior secondary schools have electricity. with digital devices were engaged with the least. MoBSE reports that almost 60 percent of all senior 177 UNICEF, 2020. COVID-19 and Education: The Digital Gender Divide among Adolescents in Sub-Saharan Africa. Available at: https://blogs.unicef.org/evidence-for-action/covid-19-and-education-the-dig- ital-gender-divide-among-adolescents-in-sub-saharan-africa/. 178 MoBSE, 2020 http://www.edugambia.gm/data-area/publications/year-book-2020.html 170 UNESCO, 2015. ICT in Education in Sub-Saharan Africa: A Comparative Analysis of Basic E-readiness in Schools. Available at: http://uis.unesco.org/sites/default/files/documents/information-and-com- munication-technology-ict-in-education-in-sub-saharan-africa-2015-en.pdf 180 Notably, this effort has been restarted under the World Bank financed Education Sector Support Program Project Additional Financing (P173332) approved on June 10, 2021, which aims to outfit all regional offices with video conferencing facilities to help facilitate sector coordination. 136 The Gambia Digital Economy Diagnostic FIGURE 15: Types of Educational Activities Conducted Since School Closures in The Gambia, 2020 (% of respondents) Practiced educational activities 46 Watched classroom instruction via TV 25 Listened to classroom instruction via radio 13 Watched educational TV programs 11 Completed other printed assignments 9 Completed printed assignments 5 Completed online assignments 3 Used mobile learning apps 2 Completed other online assisgnments 1 Watched lessons pre-recorded 1 Participated in virtual classroom 1 Source: WB, GBOS and State and Peace-building Fund (SPF), 2020 High Frequency Surveys. To address some of these issues at the basic and became known as e-Learning teacher training courses, secondary education levels, in tandem with launching introduced in 2009. The aim was to develop e-learning radio and television programs during school closures, resource centers equipped with solar panels and the MoBSE worked to develop the iLearn Gambia computer labs that could benefit teachers at the cluster platform. This online platform is meant to serve as level and accelerate professional learning, however at a repository for any open-source lessons developed the time full connectivity and adequate bandwidth during school closures and beyond and is currently for the centers was found to be cost prohibitive to populated with available content. It also includes closed scale up the program. As such, the effectiveness of user groups, which began as early as 2012, to allow for such initiatives depends critically on reliable internet content sharing amongst teachers, trying to develop connectivity, adequate access of teacher to devices, the most effective ways to reach students unable to and capacity building on digital content management attend classes. Importantly, since 2019 headteachers and development, all of which represent significant in all public schools have been provided with email current gaps and require coordinated and sustained addresses based on the edugambia.gm domain, cross-sectoral engagement. representing another critical step towards a more robust and technologically enabled training system. At the same time, promising advances in the The GoTG could leverage these developments beyond Education Management Information System (EMIS) the pandemic by expanding the iLearn platform, while and data use have been recently achieved, laying capitalizing on the ongoing in-service teacher training the groundwork for digitally enabled data collection reform to build a learning management system and skills development. For example, the use of smart (LMS) to serve teachers. This effort should build on devices by school heads to share teacher attendance the lessons learned from earlier investments in what data has been institutionalized for several years now. 137 In addition, significant efforts have been made to move of teacher deployment. By tapping into the information towards a system, in which all students have unique of the closed mobile user groups, teachers can use SMS IDs, allowing for better targeting and monitoring to to learn about school postings instead of undertaking support retention and services provision. The student a cumbersome travel to regional offices at the start ID data system was piloted in 200 schools in 2019 and of each academic year which used to be the custom is now rolled out to all schools181. In parallel, MoBSE before. All these efforts represent critical steps and MoHERST are working to link individual student towards building a more solid environment to support admission records and birth registration records to digital skills initiatives and it would be important to integrate data across ministries. Finally, a digitally build on the lessons-learnt when designing future enabled approach is pursued to improve the efficiency interventions. BOX 11: Piloting Progressive Science Initiative and Progressive Math Initiative (PSI-PMI) In 2012, the WB piloted the PSI-PMI model in 24 upper basic and senior secondary schools in The Gambia – the first country in SSA to implement the program. The initiative provided computers for teachers, customized software, and relevant textbooks. Student-centered environments were promoted through interactive teaching and learning methods, group discussions, Interactive White Board Software (IWB), and a hand-held student polling device. The initiative aimed to alter the way science and mathematics subjects are traditionally taught. Enhanced digital literacy was not considered a central objective, but the model itself necessitated improved digital literacy skills amid both teachers and students. Evaluations show that the PSI-PMI program has significantly improved student performance – up to 9 p.p. in mathematics, 4 p.p. in English, and 15 p.p. (a threefold increase) among students obtaining credit in both mathematics and English (a criterion for college admission in The Gambia). This suggests that technology and the student-centered approach has influenced the efficacy of the overall learning. The PSI-PMI program is now scaled with an additional 48 senior secondary schools currently being equipped, bringing the total number of beneficiary schools to 72. While MoBSE aims to expand the program to all public upper basic and senior secondary schools in the country, challenges that need to be addressed include timely maintenance of equipment, access to reliable electricity and internet, physical classroom environments that are more conducive to participatory learning, and better alignment with the official school curriculum. Beyond The Gambia, Gambian trainers have trained Ministries of Education in Nigeria, Niger, and Rwanda to deliver the same program. Source: Blimpo, M., Gajigo, O., Owusu, S., Tomita, R., Xu, Y. 2020. Technology in the Classroom and Learning in Secondary Schools. 181 These efforts are supported through the Education Sector Support Program Project (P162890), financed jointly by the World Bank and the Global Partnership for Education. 138 The Gambia Digital Economy Diagnostic In addition to school, the home environment can be For example, curricular reviews to align existing a critical space for developing and practicing digital computer science degrees with industry expectations skills, however, gender gaps permeate there too. could be a starting point, and there is an appetite for In all countries covered by UNICEF MICS analysis, a more entrepreneurial TVET and higher education both adolescent girls’ and boys’ ICT skills are greater model that promotes and facilitates opportunities for among individuals who have computers at home. In The self-employment, innovation, and technology-based Gambia, 42 percent of adolescent boys and 36 percent businesses. In The Gambia, the broader role of TVET of adolescent girls report having a computer at home and higher education in digital skills development of and using it at least once over the week. Clearly, the post-secondary institutions is further undermined by presence of a computer in the home doesn’t erase the lack of necessary digital infrastructure and trained the digital gender divide. Among households with TVET and higher education instructors to adequately computers in The Gambia, girls have lower levels of ICT teach both ICT specific courses, as well as incorporate skills than boys. Gender norms that limit girls’ use of new technologies into teaching and learning across digital technologies may contribute to this gap. Parental a diverse set of topics, such as for example, agro- restrictions are among the most common barriers processing, fisheries, tourism, business management, to digital access for children, and in The Gambia like and creative industries. in many other countries, concerns about girls’ online safety and the fear that girls will become exposed to Of the existing TVET Institutions, 48 offer ICT skills content that goes against their community’s values, training, ranging from novice to advanced levels. mean girls are discouraged from using the internet182. Approximately 3,000 students of different ages and stages in their careers are trained annually in ICT user TVET and higher education institutions, even those skills, particularly use of Microsoft Office, modeled that do not explicitly focus on ICT specific programs after the International Computer Driving License or degrees, can (and should) play an important (ICDL)183. Although the National Accreditation and role in digital skills development, particularly in Quality Assurance Authority (NAQAA) has an IT User providing intermediate level skills. This is reflected in Skills Curriculum standardized for all institutions, few the significant role technology plays in teaching and TVET institutions implement it184. At the same time, learning, and the impact TVET and HEIs have on digital at least eight TVET institutions offer international adaptation, as it relates to specific technical fields (e.g., professional courses, including CISCO networking, web staying informed on how digital technology influences applications, and others, producing between 600 and different sectors of employment and ensuring students 1,200 graduates annually. are versed and literate in these new technologies). However, there is a need to more strategically align There are significant gender and urban/rural divide in TVET and higher education training and degrees with access to digital skills training in TVET. A survey of 25 market needs, including in areas of digital technology. TVET institutions report an approximately 30 percent 182 UNICEF, 2020. COVID-19 and Education: The Digital Gender Divide among Adolescents in Sub-Saharan Africa. Available at: https://blogs.unicef.org/evidence-for-action/covid-19-and-educa- tion-the-digital-gender-divide-among-adolescents-in-sub-saharan-africa/. 183 The ICDL comprises several modules, including computer essentials (file management, security and wellbeing, desktop and icons, etc.), word processing, spreadsheets, presentations, working with databases, online essentials, etc. 184 Interview with NAQAA, conducted as part of DE4A data collection. 139 increase in enrollments over the past five years. and information systems are not at the appropriate Women represent 36 percent of the ICT workforce level to support growth in other sectors. Further, lack and approximately 40 percent of ICT students, many of integration of computer science into tracks that of whom are encouraged by equity incentives, such as train teachers (at both primary and secondary levels), discounted tuition fee structures or scholarships185. means that computer science is not making its way According to the same survey, in terms of quality, half into senior secondary schools and universities. Moving of TVET graduates is qualified as ‘poorly prepared’, forward, MOICI intends to develop an innovation whereas they represent 56 percent of the employees in hub at the University of The Gambia, which aims to the ICT sector. The main occupations that companies expand opportunities for students, draw scholars and find hard to fill include software and multimedia researchers, and encourage collaborations with the developers and analysts, database specialists, ICT private sector. Another initiative in higher education network administrators and hardware professionals, is the conversion of the Gambia Technical Training telecommunication engineers, content technicians, Institute (GTTI) into a university of engineering that is etc. TVET institutions provide limited to no courses aimed to foster innovation and contribute to specialized to pursue these occupations. The low education level digital skills development. GTTI is supported through provided by TVET institutions appears to be one of the the WB-financed Africa Centers of Excellence (ACE) primary sources of the skills gap in the ICT sector186. Project that is assisting the GoTG in developing an Emerging Center of Excellence in Science, Technology, In addition, two universities offer degree-level Engineering and Entrepreneurship187. courses in ICT. The American University of West Africa launched a Computer Science program in 2014 and Importantly, current connectivity gaps in the has since graduated 26 students, nine of whom are Gambian HEIs highlight the need to invest in the female. The program has a strong practical component National Research and Education Network (NREN), with fully equipped computer labs for student use, which is critical to allow interconnecting universities and a six-months internship integrated in the third- and boosting research and development. Broadband year curriculum. At the University of The Gambia, the connectivity is central to the HEIs’ mission of teaching, School of Information Technology and Communication, research and community outreach. In the absence of established in 2010, offers two bachelor’s degree NREN, as well as minimum standards for connectivity, programs - in computer science and in information the Gambian HEIs appear to be lagging far behind systems. As of 2021, the School only has one full- the rest of the world in terms of both availability time staff member who holds a doctoral qualification and quality of broadband connectivity, which has with most faculty members being part time lecturers. presented a major setback to higher education during To date, the School counts 269 graduates: 181 in the COVID-19 pandemic. While further investigation is computer science and 88 in information systems. warranted, leveraging a model built by the WB for the Collectively, 23 percent of graduates are women. Feasibility Study to Connect All African Universities to This suggests that qualifications in computer science High-Speed Internet, the Gambian HEIs are estimated 185 ITC, 2018. Youth and Trade Roadmap of The Gambia. Available at: https://www.yep.gm/tool/youth-and-trade-roadmap 186 Ibid. 187 Supported Emerging ACE institutions receive funding to strengthen, through partnerships, their undergraduate and postgraduate programs (with a focus on master’s level) that will help their students develop the skills necessary to address national development challenges. 140 The Gambia Digital Economy Diagnostic to currently collectively need 14 Gbps of international example, Insist Global (a sister company of the InsistNet bandwidth (based on a bandwidth need of 0.2 Gbps per ISP) established in 2016 an Insist Academy to provide 1,000 students and an estimated student population specialized ICT competence training for individuals and of 13,674 in 2021188). In 2025, the projected total organizations. bandwidth needs will increase to 35 Gbps, while in 2030 they will rise further to 443 Gbps189. Meeting this Digital Skills Demand expanding demand will require significant investments to roll out NREN as well as policy and regulatory reform The ICT sector in The Gambia is small but growing. to improve access to and the quality of the national Only 1.5 percent (around 2,500) of employed backbone (as elaborated in Chapter 1). Given the small Gambians work in the ICT sector. More than half of size of The Gambia, it would be also critical to ensure ICT companies are owned by youth, with recent years interconnection to the West and Central African witnessing a further increase in digital SMEs192. As Research and Education Network (WACREN) to take mentioned in Chapter 4, the country has a small, but advantage of knowledge exchange at the regional level. growing ICT start-up ecosystem, working closely with technology hubs and incubators, such as Jokkolabs and In this context, most ICT companies resort to on-the- Disruptive Lab, among others. The ITAG, with support job trainings, with half using online training courses from YEP, MOICI, and NAQAA is playing a leading role or relying on external expertise. Less than half of ICT in attempting to standardize ICT trainings and quality companies employ interns, facili-tate mentorships, standards to develop the local ICT ecosystem. As or promote trainings of their employees at vocational part of these efforts with the support from YEP, the schools or universities190. At the same time, several NAQAA has trained local ICT assessors to monitor and organizations aimed at providing support for evaluate TVET centers offering ICT courses. Moreover, entrepreneurs also offer or facilitate access to a range of as part of the ICT ecosystem development, efforts digital skills courses, and work to fill some critical gaps to raise awareness about employment opportunities in digital skills provision. For example, Jokkolabs Banjul in the ICT sector have been foregrounded through offers courses on computer literacy and information the first Gambian ICT Expo, hosted by ITAG in 2020, technol¬ogy, software applications, web authoring, IT as well as awareness campaigns led by the Internet support, multimedia, etc. as well as a diploma course Society of the Gambia (ISOC). Future promising in computer science, and business management191. The initiatives might include formalizing regulations for Woman Boss, an organization aimed at empowering a gig-economy, or flexible employment, which has women and girls in entrepreneurship, leadership, been an area of growth in the sub-region but remains and innovation, offers training opportunities to nascent in The Gambia. Such alternative employment female entrepreneurs, while the Girls/Women in Tech options could enhance more inclusive job creation and Series offers computer coding courses for women in promote career development The first step could be collaboration with The Disruptive Lab. Some private to deepen an understanding of the specific challenges sector companies also offer targeted trainings – for and opportunities that youth in The Gambia face in 188 The estimates are based on student population of three universities and eight TVETs identified in The Gambia, as opposed to actual bandwidth delivered to these institutions. 189 World Bank, 2021. Feasibility Study to Connect All African Universities to High-Speed Internet (forthcoming). 190 ITC, 2018. Promoting SME Competitiveness in The Gambia. Available at: https://www.intracen.org/uploadedFiles/intracenorg/Content/Publications/brochure_ITC-Gambia%2010_web.pdf 191 ITC, 2018. Youth and Trade Roadmap of The Gambia. 192 Ibid. 141 accessing and benefitting from work opportunities adopt the systems and services needed for a thriving through digital platforms. digital economy. Overall, weak digital skills are one of the key binding Important data gaps exist and addressing them constraints for the digital economy development would be important to further elucidate the current in The Gambia, as evidenced in all four preceding situation of digital skills development in the country. Chapters. For example, limited digital skills in the For example, anecdotal evidence has been emerging public sector, particularly among senior government (based on discussions with MoBSE) on expanding officials, have emerged as a key constraint to support community-driven initiatives in education / digital the development and implementation of digital public skills trainings that complement government efforts platforms. Similarly, insufficient skills in the domains of at school level. It is warranted to explore this further to the development of hardware and software solutions, see how these initiatives could be best supported and digital financial products and services and other inputs scaled up. Moreover, another underexplored question of digital businesses, including e-commerce platforms, relates to digital skills trainings for illiterate adults and act as a critical stifling factor for broad-based digital informal MSMEs, which could have significant impact transformation of the Gambian economy. This points in The Gambia in view of its sizeable informal sector, to the need for more digitally literate citizenry as well and which requires additional / follow-up analysis. as digitally savvy public sector workers to build and Recommendations The GoTG has scope to leverage important policy R 5.1 [Quick win] Leverage a small, but vibrant youth directives that position ICT as a central component / MSMEs support ecosystem as well as private sector of the country’s socioeconomic growth, and a vibrant partnerships, and the diaspora to expand digital skills ecosystem of support for young people interested training offerings. The private sector is generally well- in the digital domain. However, the absence of positioned to provide affordable, accessible, market- standardized measures to determine the state relevant, and inclusive options for individuals of all and development of digital skills, and the lack of a ages to gain digital skills that will enable them to formal digital skills development plan integrated in function and succeed in an increasingly digital world. the education curriculum are acting as roadblocks. In The Gambia, private sector companies, including In addition, the over-emphasis on lower-level digital MSMEs, in collaboration with ITAG and NAQAA and qualifications offered by TVET institutions, and a support from multiple donors, have already established general lack of opportunities to develop more advanced an ecosystem, offering a range of programs and digital competencies, compounded by critical courses in digital skills. Further partnerships between infrastructure challenges and high data costs are some enterprises, TVET and HEIs, other training providers, of main factors impeding the Gambians to fully engage and hubs could help expand training opportunities, in the digital economy and reap digital dividends. In this such as apprenticeships or work-integrated learning context, key recommendations include the following: (WIL) initiatives, rapid skill bootcamps (based on the Andela’s example), community development programs, 142 The Gambia Digital Economy Diagnostic or ICT links with key sectors, such as agriculture and reliable internet connectivity, as defined by minimum tourism, while potentially lowering course fees. More broadband standards. At the primary and secondary broadly, systematic private sector engagement in the levels, this will require significant investments and provision of digital skills could be leveraged further. cross-sectoral collaboration to ensure electricity and Over the past few years, several partnerships between internet access. At the post-secondary level, investing education institutions and the public sector, on the one in NREN and its interconnection with WACREN to side, and major technology providers (e.g., Microsoft, enable broadband access for all education institutions Facebook, Coursera, AWS and Code.org), on the other and boost knowledge exchange and information flows side, have come into play on the continent and could be between them on the regional level will be important. of potential interest in The Gambia. Furthermore, the For HEIs and TVET institutions, minimum connectivity diaspora represents a potential pool of resources that standards to set norms for connection speeds by size could be further leveraged in The Gambia to support of institution constitute an important first step. digital skills development not only through investment but also through technical expertise and know-how. R 5.4 [High Priority] Develop a comprehensive national digital skills framework, covering the full continuum R 5.2 [Quick win] Include ICT competencies in the of education levels and grounded in a solid analysis/ ongoing Gambia College of Education, and Basic understanding of market needs and prospects. Education Curriculum reforms. This is a clear A comprehensive plan or strategy to implement opportunity to ensure that basic digital skills are digital skills development across the education built into the primary and secondary curriculum, and continuum needs to be developed, in alignment that all teachers in lower basic schools are equipped with NDP, Education Sector Plan, TVET Roadmap, with minimum digital competencies and pedagogical and ICT-related policies and strategies. This should knowledge to support integration of technology into include a well-defined approach to developing basic, classrooms. As MoBSE is simultaneously reforming in- intermediate, and advanced digital literacy skills, service teacher training and the overall professional accompanied by ambitious, yet feasible targets. While development pathway for teachers, it is also an uncertain due to The Gambia’s fragility, this process opportune time to explore options for developing a should be underpinned by a multi-stakeholder process learner management system (LMS) for educators. to forecast medium-term demand for digital skills in different sectors. R 5.3 [High Priority] Tackle critical connectivity challenges in education institutions. While national R 5.5 [High Priority] Enhance the breadth and quality policy documents are candid about the need to address of TVET offerings in the digital domain. While many infrastructure challenges, momentum is needed from TVET institutions offer ICT trainings, these courses the GoTG and other relevant stakeholders to ensure focus mainly on basic IT skills, and are not aligned with that (i) all primary and secondary schools have NAQAA standards. The narrow offering prevents the electricity and internet, having access to appropriate growing demand for certain professional qualifications, maintenance support; and (ii) TVET and HEIs have such as graphic design or multimedia production, from 143 being met. Moreover, available software and website higher than TVET graduates, there are very few options development courses are deemed by the private sector for those who wish to pursue a formal degree in ICT and to be of poor quality. Recent efforts of NAQAA in no options for those who wish to pursue a postgraduate collaboration with ITAG and others to boost ICT skills qualification in ICT. It is important to invest in expanding might provide an appropriate platform to raise concerns current higher education offerings and strengthening about the quality and relevance of qualifications and highly specialized degrees. Developing partnerships find solutions to better align labor market supply with with other institutions, including on the regional level, the ICT sector demand. could further widen Gambian students’ opportunities. R 5.6 [High Priority] Expand options for Gambians to obtain tertiary degree-level qualifications in ICT. While employers rate the quality of university ICT graduates 144 The Gambia Digital Economy Diagnostic 145 Photo credit – Alhagie Manka CONCLUSION Cross-Cutting Issues and A Way Forward The development of the digital economy represents an Some critical cross-cutting areas have been identified opportunity for The Gambia to address its fragility, through the analysis, addressing which would enable while spurring inclusive growth, job creation and The Gambia to strengthen its ability to deal with innovation. The GoTG is cognizant of the importance various digital economy constraints. of digital technologies and aspires to accelerate digital transformation of its public sector and the entire Improving strategic institutional coordination: While economy, “making The Gambia a digital nation” (as The Gambia is making strides towards rolling out stated in the NDP). its digital vision, a whole-of-government approach is necessary to bring together various public However, much remains to be accomplished to allow constituencies, simplify governance architecture and The Gambia to keep pace with the regional and strengthen strategic oversight. At the institutional global trend and fully leverage the potential of digital level, the broad digital economy sector is currently technologies to accelerate inclusive socioeconomic characterized by a complex governance fabric, in which growth. Achieving the GoTG’s ambitions will require the multiplicity and instability of decision centers, as investments to address critical bottlenecks in well as the lack of clarity over roles and responsibilities international connectivity, reinvigoration of the of various institutions, result in initiatives that lack wholesale network reform effort to boost competition, shared vision, strategic steering, or day-to-day attract private sector investments and improve advancement. Many key objectives set by existing broadband affordability and uptake, while strengthening strategies and policies remain far from being achieved, independent of political capture sectoral regulations. including enhanced access to broadband, boosted use Continuous efforts are also needed to develop user- of ICT to increase efficiencies across all socioeconomic centric interoperable digital public platforms, creating sectors or improved digital literacy. This points to an enabling environment for a stronger uptake of DFS, underlying issue related to overambitious strategy adequate support to entrepreneurs, and fostering of design and / or weak political buy-in. It also signals the digital literacy and skills. Moreover, the GoTG should lack of effective institutional coordination or access to proceed with important policy and regulatory reforms, resources adequate to support implementation. some of which may take significant political will to overcome institutional inertia and vested interests. 146 The Gambia Digital Economy Diagnostic Enhancing regional integration, the importance of government cloud strategy as well as critical which is hard to overestimate for a small country, information infrastructure protection (CIIP) policy like The Gambia, with a narrow domestic market, framework have been pending approval since 2020. fully enclaved by Senegal. This integration can take Moreover, the relevant bills on cybercrime and on the several forms, be it by fully implementing the electronic national data protection and privacy were drafted in communications framework of the West African 2019-2020 but have not yet been passed into law and Economic and Monetary Union (WAEMU) and ECOWAS are pending Cabinet / Parliament approval. Adopting rules and regulations (the domestication of the ECOWAS and effectively implementing these legislations, as regulations on free roaming expected in 2021 is a step underscored by the 2021 World Development Report in the right direction); exploring regional spectrum on Data for Better Lives will have ripple effects across auctions for broadband connectivity; leveraging other digital economy, including for the use of digital systems neighbouring entrepreneurship ecosystems to promote in social protection, e-ID, e-commerce, shaping an access to additional incubation/acceleration support enabling environment for a wider and safer adoption of as well as access to finance and markets; ensuring that a digital technologies. a national research and education network (NREN), when it is rolled out to connect major education and In addition to these critical cross-cutting areas, the research institutions in the country, is itself connected paper has set forth a series of recommendations to a regional West Africa REN (WACREN); etc. for each of the five foundational areas of the digital economy and the WB stands ready as a committed Fast-tracking the adoption and implementation partner to support the GoTG in its journey towards of cybersecurity and data protection legislation. digital transformation. Overarching cybersecurity policy and strategy, 147 DIGITAL ECONOMY RECOMMENDATION FOUNDATIONAL AREA QUICK WINS (short-term) Lift the existing moratorium on fiber roll-out in alignment with the IC Act and licensing regime Digital Infrastructure Incentivize and enforce active and passive infrastructure sharing through holistic regulatory mea- sures both within the sector and across sectors Adopt draft regulations and guidelines that support DFS development, including “Know Your Customer” (KYC) Lite Framework, and clarify licensing as well as operation guidelines for e-money wallet providers Finalize and adopt the NFIS DFS Boost electronic transactions volume by increasing the number of entities using the payment infrastructure and adopting policies to incentivize electronic payments Scale up the digital addressing solution (Google + Code) beyond the capital city of Banjul to unlock e-commerce potential Digital Businesses Continue reforming business regulations that enable digital businesses to operate efficiently, including by adopting provisions in e-payments / e-transactions and domain name registration Leverage a small, but vibrant ecosystem of youth start-ups / MSMEs support structures as well as private sector partnerships to expand digital skills trainings Digital Skills Include ICT competencies in the ongoing Gambia College of Education Reform and basic and sec- ondary curriculum revision process HIGH PRIORITY (short-to-medium term) Ensure adequate and cost-efficient international redundancy by acquiring access to the second submarine cable with a separate landing station, while concomitantly supporting an alternative terrestrial fiber link to the border with Senegal Through increased private sector participation, complete the wholesale network management reform to boost the utilization of this critical infrastructure and enable related debt payments, and leverage other state-owned digital infrastructure assets in a more strategic way Strengthen sector governance and institutional arrangements by further separating ICT policy Digital Infrastructure from ICT regulations and reinforcing independence and mandate of PURA Conduct a new set of market analysis that defines markets for regulatory consideration, identifies operators with significant market power and formulates regulatory remedies to address market failures Accelerate adoption and ensure effective implementation of cybersecurity and data protection legislation 148 The Gambia Digital Economy Diagnostic Improve efficiency and interoperability of core government operations and trust services by (i) developing and implementing an interoperability framework at the inter-ministerial level; (ii) adopting an Enterprise Architecture to allow for the use of common IT standards; (iii) introducing appropriate incentives to encourage the compliance with these standards; Facilitate strategic and coordinated leadership for digital platforms Digital Public Platforms Expand accessibility, quality, and functionality of existing digital public service delivery platforms, with the focus on the e-ID Improve access to and quality of public services through increasing access points, transactional e-services, implementing life journey/scenarios, data exchange and interoperability Strengthen the supervisory and oversight capacity of the CBG and foster cooperation amongst regulators and other relevant government entities Enact a government directive that harmonizes and prioritizes digitization efforts, particularly government payments and collections Ensure that the upcoming NDP includes a clear roadmap for DFS to highlight its development as a priority; Upgrade payments systems infrastructure (notably GAMSWITCH) and achieve full interoperability DFS across all FSPs and products, particularly between digital wallets and bank accounts, which could boost DFS uptake and use Enhance the functionality of current credit infrastructure to improve its usage, efficiency, and effectiveness Develop a National Financial Literacy Program to address issues related to the lack of awareness and financial education Consider adopting a Start-up Act or similarly designed incentive-based provisions to promote innovation, implement suitable legal regimes for start-ups and offer stimulus packages Expand funding opportunities for digital businesses, including through (i) the provision of pre-seed financing schemes for digital businesses at early stages of growth, (ii) the development of PE / VC regulations, (iii) the introduction of alternative collateral options for loans, and (iv) the support to Digital Businesses business angel investor networks (risk sharing mechanisms and blended finance model); Strengthen the capacity of existing support organizations to provide tailor-made services to entrepreneurs as well as enabling large private sector companies and the diaspora to support local ventures. 149 Tackle critical connectivity challenges in education institutions at all levels, including by investing at the tertiary level in NREN and connecting it to the regional network (WACREN) Develop a comprehensive national digital skills framework, covering all levels of education and Digital Skills grounded in solid analysis/understanding of market needs and prospects Enhance the breadth and quality of TVET offerings in the digital domain LONG-TERM Introduce service and technology neutral licenses Review sector specific fees and taxes to promote development and technological innovation Digital Infrastructure Mobilize investment into Internet Exchange Point (IXP) and strengthen local expertise for its man- agement Increase citizen/government interaction and civic participation through CivicTech to enhance transparency and accountability of public services Digital Public Platforms Strengthen the capacity of public institutions for evidence-based policy making, leveraging the use of Big Data Establish a legal and regulatory environment conducive to the development of diverse DFS (includ- ing e-signature and fintech) Ensure full modernization of payment systems infrastructure to support a broader agenda for interoperability, going beyond agents DFS Promote the development of a large DFS merchant acceptance network for payments in-store Explore options for regional collaboration to address scale-up difficulties Consider boosting equity funding for digital businesses in The Gambia through a VC tax incentive regime Facilitate re-risking early stage investment to enable the diaspora to invest in digital enterprises Digital Businesses at home (through diaspora bonds or “patriotic discounts”) Develop and implement the vision of making The Gambia a hub for software developers Expand options for Gambians to obtain tertiary degree-level qualifications in ICT Digital Skills 150 The Gambia Digital Economy Diagnostic 151 Photo credit – Alhagie Manka REFERENCES Afrobarometer (2019). 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High-Level Targets of DE4A Initiative ALIGNMENT WITH BASELINE (2017 INTERIM TARGET FINAL TARGET PILLAR GOAL INDICATOR THE WBG AND GLOBAL OR 2018) (2021) (2030) DEVELOPMENT AGENDA Enable every African Individuals using individual, business, the Internet per IDA19 (JET, OVERALL SDG 17.8.1 26.37 (2017) 35 75 and government to 100 inhabitants193 GD, GI) participate in the (by IDA, FCV) Digital Economy “Unique” 1.1 Increase access mobile-broadband SDG 1.4.1 IDA19 to broadband subscriptions per SDG 9.c.1 25 (2018) 32195 67196 (JET, GI) internet 100 inhabitants194 AU 2063 (by IDA, FCV) Average 1.2 Increase quality mobile broadband 2.66Mbps 20Mbps 113Mbps 1. DIGITAL of broadband in- download speed SDG 17.6 197 198 199 INFRA- ternet (Mbit/s) STRUCTURE (by IDA, FCV) Average price of 1GB mobile data 1.3 Increase afford- price per month ability of broadband (% of a country’s 7.77201 2202 internet average monthly GNI per capita) (by IDA, FCV)200 193 ITU/ICT for Development Partnership indicator of “Proportion of people using the internet” (HH7). 194 This is similar to the WB Corporate Indicator “people provided with access to the Internet” and refers to new or improved access through fixed or mobile networks at any location (e.g., home, work, school, Internet cafés, public places). It is calculated for the total population. 195 The target for year 2021 is “doubling from the 2016 actual value of 16”. 196 Same as the target in “Connecting Africa Through Broadband” report by UN Broadband Commission. Universal coverage is defined as 90 percent penetration of the population above 10 (https://www. broadbandcommission.org/Documents/working-groups/DigitalMoonshotforAfrica_Report.pdf)). 197 Given data availability and coverage, the baseline data is based on “mean download speed data in 2019” as per cable.co.uk https://www.cable.co.uk/broadband/speed/worldwide-speed-league/. 198 The interim target changed from the minimum speed of 3Mbps to average speed of 20Mbps (Date: Jan 1, 2021). 199 The final target changed from the minimum speed of 10Mbps to average speed of 113Mbps (Date: Jan 1, 2021). 200 The definition changed from “Mobile broadband basket (prepaid, 500MB) price per month (ITU)” to “Average price of 1GB mobile data price per month (cable.co.uk)” (Date: Feb 11, 2021). 201 With changes to the ITU price basket rules, the data source changed from 2017 ITU price data to 2019 Cable.co.uk data (Date: Feb 11, 2021). 202 Same as the target in “Connecting Africa Through Broadband” report by UN Broadband Commission for Sustainable Development. 158 The Gambia Digital Economy Diagnostic 2.1 Increase avail- Digital Adoption ability and adoption Index (DAI) of secured and (Government IDA19 (GI) 0.41 0.45 0.80 interoperable digital cluster) platforms for public (by IDA, FCV) services 2. DIGITAL PUBLIC PLATFORMS Percent of the 15+ population with an officially 2.2 Increase ID cov- recognized SDG 16.9 66% 70% 100% erage for adults identity credential (a “foundational” ID) Percentage of adults with access to a transaction 3.1 Increase access account (by to digital financial SDG 8.10.2 IDA19 (JET) 41% 50% 90% gender, income services group, education level, urban/rural; and by IDA, FCV) 3. DIGITAL FINANCIAL SERVICES Percentage of adults who made a digital retail 3.2 Increase usage payment in the of digital financial past year (by SDG 10.C.1 27% 50% 90% services gender, income group, education level, urban/rural; and by IDA, FCV) 159 Number of IT startup firms with HQ in Africa graduating from Incubator/Accel- erator programs and/or receiving 4.1 Increase the private funding number of digital SDG 9.3.2 IDA19 (JET) 198 240 600 from Angel, Early start-ups Stage VC, Product Crowdfunding or, Seed round (by size of firm, female vs male owner- 4. DIGITAL ship; and by IDA, BUSINESSES FCV) Number of new digital business model firms, including all stages 4.2 Increase in of digital business- the number of es as long as they platform-based or are platform-based IDA19 (JET) 73 90 220 data-driven firms or using data as a operating in the key input to create country value (by local vs. foreign, founding year, size of firm; and by IDA, FCV) Percentage of lower-second- 5.1 Increase internet ary schools with connectivity in access to internet SDG 4.a.1 35% 55% 100% education for pedagogical institutions purposes (by urban/rural; and by IDA, FCV) DIGITAL SKILLS Proportion of youth and adults 5.2 Increase avail- with advanced ability of digitally IDA19 (JET digital skills SDG 4.4.1 2% 3% 6% competent work- and GI) (by gender, urban/ force rural; and by IDA, FCV) 160 The Gambia Digital Economy Diagnostic Annex 2. Key Indicators on Digital Infrastructure for The Gambia and Selected Benchmarks YEAR THE STRUC- GUINEA- GUINEA TOGO ASPIRA- RWANDA SENEGAL UGANDA SOURCES GAMBIA TURAL BISSAU TIONAL BENCH- BENCH- MARKS MARKS AVERAGE AVERAGE Share of population covered by mobile network signal, % 2G 2019 98 93 95.7 87 97 99 100 98 98 mu (2018) 3G Q4 70 81 93 77 72 95 99 95 90 GSMA 2020 2019 88 54 30 40 91 87 99 92 69.6 mu ACCESS (2018) (2018) 4G Q4 54 45 63 47 26 73 99 75 45 GSMA 2020 2019 7.5 39 21 29 67 74 99 67 57 mu (2018) (2018) IXP per 10m 2020 4.39 0.69 0.00 0.81 1.27 0.56 0.81 0.63 0.23 Packet Clearing House Average Mobile broad- 2020 1. 6 2.89 1.61 3.04 4.03 4.96 3.8 5.93 5.16 Cable. band download speed (2020) co.uk QUALITY (Mbit/s) – Target Mobile broadband 500 Q2 5.01 7.68 11.74 4.65 6.64 3.57 3.39 2.92 4.39 A4AI MB price per month (as 2019 % of an average monthly AFFORDABILITY GNI per capita) Mobile broadband 1 GB Q2 9 13 20 5 13 5 3 3 8 A4AI price per month (as % 2019 of an average monthly GNI per capita) – Target 161 Mobile cellular subscrip- 2018 139.53 84.55 78.99 96.77 77.89 80.19 78.85 104.45 57.27 ITU tions per 100 inhabi- (2018) tants Market penetration, Q4 52 47 43 48 49 49 50 52 45 GSMA unique mobile subscrib- 2020 ers, % Share of population 2017 20 13 4 22 12 25 22 30 24 ITU using internet, % (2018) Share of households 2017 63 13.94 2 13 26 10.03 9 7 11 ITU with internet, % (2018) (2019) (2018) Fixed broadband house- Dec-20 1.9 4.3 4.3 1.1 1.9 4 1.8 9.4 0.9 TeleGe- hold subscriptions, % ography Fixed broadband inter- 2019 0.19 0.16 0.06 0.01 0.39 0.41 0.07 0.93 0.23 ITU net subscriptions per (2018 (2016) 100 inhabitants Fiber to the premises Dec-20 0.03 0.06 0.00 0.00 0.18 0.15 0.11 0.35 0.00 TeleGe- broadband penetration, ography % ADOPTION “Unique” mobile-broad- 2020 27 22 20 17 28 27 24 32 26 WB band subscriptions per analysis 100 inhabitants – based Target on GSMA, UN Percentage smartphone Q4 53 42 39 43 42 34 34 47 22 GSMA connections, % 2020 Percentage basic/fea- Q4 36 53 54 55 50 59 55 44 77 GSMA ture phone connections, 2020 % Cellular M2M connec- Q4 4200 53,536 41866 96041 22700 250,424 144000 154000 453273 GSMA tions 2020 International internet 2017 12576 20,651 36490 8771 16693 7,810 8850 6804 7775 ITU bandwidth per user (2016) International internet 2020 201 42 41 55 31 142 105 232 89 TeleGeo- bandwidth, Mbps per graph 10M population Mobile market concen- Q4 2957 4818 5048 4401 5004 4460 5176 4094 4110 GSMA MARKET COMPETITION tration index (HHI) 2020 Fixed broadband con- 2018 n/a 9023 n/a 10000 8046 6878 3756 10000 n/a TeleGe- centration index (HHI) ography (Top5 Fixed broadband) 162 The Gambia Digital Economy Diagnostic Annex 3. Financial Analysis for Selected Digital Start-ups in The Gambia # NAME YEAR OF STAFF STAGE OWNERSHIP SECTOR B2C/B2B LOCATION ESTA BY GENDER BLISHMENT 1 Baluwo 2016 11-50 Growth M Fintech B2C Spain 2 Terangas 2017 11-50 Growth F Retail & E-commerce B2C Banjul 3 Farm Fresh 2014 6 Growth M AgriTech B2C Banjul 4 Sellox 2019 2 Growth M Retail & E-commerce B2C & B2B Banjul 5 Nesthet clinical services 2017 3 Growth M Health Tech B2C Serrekunda 6 Deka Housing 2015 8 Growth M Retail & E-commerce B2C Serrekunda 7 Lebalma 2017 8 Growth M Fintech B2C Serrekunda 8 Ryde Africa Technologies 2017 5 Growth M Travel & Tourism B2C Serrekunda 9 Smart technologies 2016 48 Growth M EduTech B2C Serrekunda 10 Tesitoo 2015 4 Growth M AgriTech & FoodTech B2C & B2B Serrekunda 11 Jollof Trade 2018 8 Validation M Retail & E-commerce B2C Banjul 12 Kubejara Software 2013 7 Validation M Edutech B2C Banjul 13 Ping Money 2017 3 Growth M Fintech B2C Bakau 14 Taf Taf 2018 4 Validation M Retail & E-commerce B2C - 15 Think Mobile Money 2015 2 Validation M Fintech B2C - 16 AfriBlack 2019 10 Ideation M Retail & E-commerce B2C Serrekunda 17 Afrijula 2019 11-50 Growth M Computer Software B2B Serrekunda 18 Assutech 2011 3 Growth M Computer Software B2B Brufut 19 eDeals 2019 n/a Growth M Retail & E-commerce B2C & B2B Banjul 20 Madani 2016 3 Validation M Computer Software B2B Serrekunda 21 Yobuma 2019 11-50 Validation F Mobility/Transport B2C Banjul 22 Money Farm 2018 4 Growth M AgriTech & FoodTech B2C & B2B Serrekunda 23 Educare 2018 5 Ideation M EduTech B2C Banjul 24 Jangalma 2019 - Ideation F EduTech B2C Serrekunda 25 Faalen Technologies 2016 5 Validation M Media & Advertising B2B Banjul 26 Gamdiary 2018 6 Validation M Fintech B2C & B2B Banjul 27 Juloo 2019 1 Ideation F Fintech B2C Serrekunda 28 Leucocytes 2019 - Ideation - Health Tech B2B - 29 MedPrognosis 2019 - Ideation - Health Tech B2B - 30 EMR Squad 2019 - Ideation - Health Tech B2B - 163 31 Borry Media 2019 3 Ideation M Media & Advertising B2B Banjul 32 K.Apex I.T. Consultancy 2017 3 Ideation M Media & Advertising B2B Banjul 33 Keneba Tech 2018 2 Ideation M Media & Advertising B2C & B2B Banjul 34 Tixibit 2016 3 Validation M Media & Advertising B2B Serrekunda 35 Wonmasport 2016 3 Ideation M Media & Advertising B2C & B2B Banjul 36 Bay’Kat 2018 n/a Growth M Ecommerce marketplace B2B Serrekunda 37 Outboost Media 2020 1 Growth M Media & Advertising B2B Bakau 38 Tecqil 2020 2 Validation F Online Recruitment B2C & B2B Serrekunda 39 AfroGreen 2020 3 Ideation M Retail & E-commerce B2C Sukuta 40 Prognosis 2019 5 Ideation M loT & Big Data B2B Brusubi Source: ITC 2020 & 2021. Gambian Tech Start-up Directory. Youth Empowerment Project . Digital Start-ups by Sector Digital Start-ups by Stage of Development RETAIL & E-COMMERCE 9 MEDIA 7 ADVERTISING 7 FINTECH 6 EDUTECH 4 13 17 HEALTH TECH 4 AGRITECH & FOODTECH 3 COMPUTER SOFTWARE 3 IoT & BIG DATA 1 MOBILITY & TRANSPORT 1 10 ONLINE RECRUITMENT 1 TRAVEL & TOURISM 1 Growth Validation Ideation 164 The Gambia Digital Economy Diagnostic Annex 4. Digital Start-ups in The Gambia (as identified by ITC) FINANCIAL INFORMATION (USD) COMPANY INITIAL CAPITAL CASH SPENT PER MONTH INVESTMENT REQUIRED Deka 20,000 150,000 60,000 Lebalma 20,000 500 100,000 Money Farm 5,000 500 50,000 Tesitoo 7,000 1,000 50,000 Gamdiary 9,000 2,000 21,000 Jollof Trade 400 200 50,000 Kubejara Software 10,000 1,100 40,000 T-Care 1,000 1,000 1,500,000 Ping Money 50,000 4,500 150,000 Taf Taf 500 100 2,000 Nesthet 6,000 400 50,000 Outboost 2,000 500 50,000 Sellox 50,000 1,500 0 Tecqil 500 100 10,000 Tixibit 1,500 400 20,000 Wonma Sport 3,000 150 200,000 AVERAGE 11,619 10,247 147,063 Source: ITC 2020 & 2021. Gambian Tech Start-up Directory. Youth Empowerment Project. 165 Annex 5. ITAG Members from the Private Sector # COMPANY CASH SPENT PER MONTH 1 Comium Privately-owned MNO 2 Africell Privately-owned MNO 3 DT Associates ICT consulting company 4 Gamtel State-owned telecom company 5 Gamcel State-owned MNO 6 Insist Global ISP 7 Lasting Solutions Computer software company 8 Netpage ISP 9 Pristine Consulting Computer software company 10 Qcell Privately-owned MNO 11 Unique Group Information technology & services company 12 Unique Solution ISP 13 African Information Technology Holding Ltd Annex Information technology & services company 14 I- Link Information technology & services company 15 KMF Technologies Information technology & services company 16 Nifty ICT Solution Information technology & services company 17 N-Web Puls Information technology & services company 18 Point Click Information technology & services company 19 QuantumNet Institute of Technology Privately-owned ICT training institute 20 Smart Institute of Technology Privately-owned ICT training institute 21 Universal Business Solutions Engineering services company 22 KMF Technologies Information technology & services company 23 WaveIT Digital Information technology & services company 24 Outboost Media Analytic Information technology & services company 25 Afrodapp - Sellox Ecommerce Platform 26 Alchemy ICT Consulting company 166 The Gambia Digital Economy Diagnostic Annex 6. Digital Business Ecosystem in The Gambia: Select Support Institutions IMPLEMENTING AGENCY/ TARGET CURRENT OFFER TO VISION FUNDING MODEL PROJECT NAME BENEFICIARIES DIGITAL ENTREPRENEURS Training & Skills International Trade Center Provides skills upgrading Gambian young entrepre- *The Andandorr program: Funded by the EU - (ITC) / Youth Empower- trough technical and voca- neurs full training on digital liter- through the Youth Em- ment tional training and promote acy and e-commerce; powerment Project; free Project (YEP) entrepreneurship among *3D printing as an of charge for participants youth through business enhancement of local busi- skills training and support nesses: mentoring on basic programs 3D printing YEP Africa The YEP Africa Learning Entrepreneurs Does not specifically target Donations and own fund Centers offer entrepreneur- digital entrepreneurs ship training; awareness sessions and a service club for young entrepreneurs The Gambia Provides training on com- Everyone Does not specifically target Technical Training Institute puter science, business digital entrepreneurs (GTTI) studies, construction man- agement, etc. Information Aims to boost collaboration Corporates, SMEs, Educa- *Digital packages for Key partners: GoTG, ITC, Association of and develop the Gambian tional institutions, Start- SMEs: online store, YEP Gambia, National The Gambia (ITAG) ICT community ups, IT professionals and facebook advertising, Youth Council (NYC), Seed- students email marketing, product stars and WITSA photography, etc. *Digital payment training program (2 days training) 167 GIEPA Offers training to entrepre- MSMEs Does not specifically target Government funded neurs: from idea genera- digital entrepreneurs tion, strategy formulation and business planning to implementation, fund raising, training and de- velopment, setting up of systems, provide coaching & mentoring, encourage entrepreneurship and innovation, and all other business advisory and sup- port services required by growing MSMEs. Empretec-Gambia is an Entrepreneurs, employers Does not specifically target Government funded integrated capacity building and employees of private digital entrepreneurs program that provide de- firms, civil servants and mand-driven and business farmers development training. Business Development MSMEs Does not specifically target Government funded Services Network - Provides digital entrepreneurs business support services to MSME’s through training, advisory services, mar- keting facilitation, market research and B2B & B2C linkages. National Enterprise Devel- 5-day training in entre- Gambian youth between Does not specifically target Funded by the EU - opment Initiative (NEDI) preneurship and starting 15-35 years old digital entrepreneurs through the Youth Em- a business: i) financial powerment Project; free management; ii) marketing of charge for participants management; iii) b) busi- ness planning and traits to business success Gambia Chamber Collaborates with donor Start-ups Does not specifically target GIZ and ILO of Commerce and agencies, such as GIZ and digital Industry (GCCI) International Labor Organ- entrepreneurs isation (ILO), to support start-ups get access to training programs 168 The Gambia Digital Economy Diagnostic Bridging Gaps Provides training, mentor- Women entrepreneurs Does not specifically target ship, and business advice, digital particularly to wom- entrepreneurs en-owned enterprises Buzz Women Gambia Delivers training in financial Women entrepreneurs Does not specifically target Non profit organisation management, entrepre- digital neurship skills entrepreneurs and leadership skills to low income women The Global Youth Inno- A youth network that spe- Young entrepreneurs, par- Does not specifically target International Fund vation Network Gambia cializes on rural develop- ticularly in rural areas digital for Agricultural Charter ment and focuses on Entre- entrepreneurs Development (IFAD) (GYIN Gambia) preneurship, Agribusiness, Leadership, Communication and Information Technol- ogy, Community Outreach Programs in rural areas Access to Finance National Enterprise Devel- Micro-loans to retail busi- Gambian youth and wom- Does not specifically target NEDI opment nesses, (butchery, fishing en enterprises digital Initiative (NEDI) boats and equipment, entrepreneurs bakery services, tailoring workshops) as well as to restaurants / catering and farms Reliance Credits to SMEs and women SME’s and women entre- Does not specifically target Social Development Fund at slightly preneurs digital (SDF) provides lower interest rates entrepreneurs a credit line SuperSonicz Microfinance services, Micro-clients, such as Does not specifically target SuperSonicz including deposit mobili- small-scale enterprises, digital entrepreneurs zation and the granting of traders and farmers credits to the general public especially those without access to financial services Women It is a project still under Women entrepreneurs Does not specifically target European Union Empowerment Fund design, but will provide ac- digital cess to finance for women entrepreneurs businesses activities in The Gambia 169 ITC / Youth TEKKI FII Grant: provides MSMEs and grassroot Does not specifically target EU funded program with Empowerment financing options for grass- entrepreurs digital technical Project (YEP) root entrepreneurs and entrepreneurs support from GIZ and MSME’s; available products: IMVF (Instituto Marques Mini grant; Agro grant and de Valle Solar grant Flor) Mini loan scheme provides MSMEs Does not specifically target EU funded program with finance options for MSMEs; digital the support of SDF available products: working entrepreneurs capital, equipment and franchises Gambian Angels Investors High growth companies Does not specifically target ITC support Network (Gain): Provides digital network to connect high entrepreneurs growth companies to investors National Agricultural Land The Matching grant is de- Agro-SMEs Does not specifically target Capital Investment Stimu- and Water signed to innovate, develop digital lation Fund Management and build medium term fi- entrepreneurs (CISF) Development nancial services adapted to Project (Nema) women and youth groups and individual-based SMEs Money Farm Gambia’s first Agri-tech Agri-tech companies Helps Agri-tech to acquire N/A crowd funding platform funding linking farmers to investors Support Services The Start-up The first incubator in The Start-ups Also includes digital enter- Incubator Gambia (SIG) Gambia - a non-profit prises organization that aims to empower entrepreneurs by providing co-working space, with cubicles, computers, high-speed internet, print- ing and a fully equipped training room with a capaci- ty of 25 participants The Woman Boss Center for innovation and Women entrepreneurs Computer coding courses, Private sector entrepreneurship targeted partnering with The Dis- sponsorship and for women entrepreneurs ruptive Lab donations 170 The Gambia Digital Economy Diagnostic The Disruptive Lab Co-working space and Tech Start-ups and com- Workspace, network with Funded by PointClick youth technology work- panies angel investors, men- Technologies force development and torship & coaching and innovation hub services, such as finance and accounting Jokkolabs Gambia Professional working space Micro businesses, self-em- It provides a working Privately owned which welcomes entrepre- ployed workers, start-ups, space for digital neurs seeking to develop a writers, designers, and entrepreneurs to network network, meet new contrib- other digital professionals utors, discuss practices and develop professional projects Start-up Grind Banjul Global community Entrepreneurs Privately owned for entrepreneurs powered by Google for Startups, organizing events featuring and connecting successful local founders, innovators, educators and investors Borry Media Advertising services Digital businesses Digital marketing and Privately owned advertising solutions Madani Studios Graphic design, web design, Digital businesses Offer digital solutions to Privately owned branding and digital mar- businesses keting DigiTech Provides assistance to Digital businesses Offer digital solutions to Privately owned companies at any stage businesses of the digital product development cycle: from R&D and building minimal viable product from scratch to scaling Affiliation Technology Website design Digital businesses Offer digital solutions to Privately owned company businesses MOOC West Africa Open All businesses Offers courses in Privately owned Education Platform business studies Gisqo Software Development & Digital businesses Offer digital solutions to Privately owned Digital Marketing company businesses 171 WITH SUPPORT FROM: Administ r d b