Trade Minister Defends Controversial $50M Loan to Jah Oil
By Modou L. Badjie
The Gambia’s Trade Minister has launched a vigorous defense of the government’s decision to award a $50 million loan facility to Jah Oil company, dismissing charges of lack of transparency in the controversial deal.
Addressing journalists in Banjul on Monday, Baboucarr Ousmaila Joof provided a justification for why Jah Oil Company was selected by authorities to receive the substantial funds from the Arab Bank for Economic Development in Africa (BADEA).
The minister’s remarks come amid widespread public criticism over the opaque process through which Jah Oil, a relatively new player in the commodity import business, emerged as the beneficiary of the lucrative $50 million loan meant to support trade in the West African nation.
Joof stated that the $50 million facility was negotiated by the Gambian government to support commodity trading in the country, especially for imports from Arab nations. However, finding a suitable large-scale business entity to unlock the funds proved challenging for most of the country’s major importers.
“The importers were invited again and again and were supposed to tell the ministry their position about the $50 million,” the minister explained. “But the general view around the table was that the conditions were difficult and they could not afford it.”
Only Jah Oil Company, a relatively new player in Gambia’s import trade sector, came forward expressing its ability to meet BADEA’s criteria for accessing the loan.
One key condition was that the borrower must purchase goods exclusively from countries that are members of BADEA, excluding major import origins like Brazil and India for many of Gambia’s established commodity traders.
Minister Joof clarified that the $50 million loan was “not generally meant for rice and sugar only”, contrary to some reports, but rather for a broader range of commodities required in the Gambian market.
“BADEA set criteria that anybody wanting to access the loan must meet and we invited all our team of importers and informed them about the availability of the facility,” he told reporters. “We also explained all the criteria to them, and they were given time to go and brainstorm and come back.”
Other terms attached to the loan include repayment in US dollars and limiting imports strictly to Arab and African nations. Importantly, the Gambian government has facilitated the deal with zero interest charges.
The minister’s rebuttal come as the decision to grant the substantial $50 million loan to Jah Oil drew criticism from some quarters over perceived lack of transparency and fairness in the selection process.
With Jah Oil being a relatively new entrant in Gambia’s major import trade circles, questions have been raised over whether more established commodity firms were given a fair opportunity to access the BADEA loan facility.