Gamtel/Gamcel Restructuring: D6.7 Billion Investment Proposed Amid Staff Redundancies and Data Price Cuts

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The Gambia's Minister for Communications and Digital Economy, Hon. Lamin Jabbi

By Fatou Dahaba

The Gambia’s Minister for Communications and Digital Economy, Hon. Lamin Jabbi, has updated the National Assembly on the government’s ambitious restructuring of state-owned telecommunications firms Gamtel and Gamcel, announcing negotiations for a massive D6.7 billion investment while addressing significant staff layoffs and a sharp decline in mobile data prices driven by renewed competition.

In his address, Minister Jabbi revealed that the government is in advanced talks with local bidder Y-Cell, which was selected as the preferred partner for Gamcel’s majority stake following a competitive evaluation process. Y-Cell has proposed injecting D6.7 billion to modernize the operator’s infrastructure, with the government retaining 20% ownership and the investor acquiring 80%. An initial direct payment could yield up to D800 million for the state, with the balance used to fund network upgrades.

For Gamtel, the plan involves a public-private partnership with Ciceroid Limited under a build-operate-transfer model to revitalize fixed-line and broadband services. Meanwhile, local firms Y-Cell and DK Telecoms were shortlisted for Gamcel, but Y-Cell’s bid stood out following technical and financial reviews. The Cabinet has approved negotiations, with final contracts pending.

The restructuring includes a social plan to mitigate job losses. The fourth phase, completed in June 2025, compensated 486 employees for a total of D210.6 million, including D32.8 million in six-month notice payments. A second phase for 155 more staff has D29 million allocated, with disbursement scheduled for the end of December. Overall, about 700 employees from the combined workforce of 1,007 face redundancy, with only about 350 retained. To ease transitions, a dedicated grievance office has been set up at Gamtel’s Serekunda Exchange, and a committee is engaging affected workers.

Minister Jabbi assured lawmakers that valuations were handled transparently by a multi-stakeholder committee comprising the ministries of Finance and Justice, the Office of the President, and company representatives. He also addressed government arrears exceeding D200 million owed to the firms by ministries and agencies, pledging full settlement.

Shifting to consumer benefits, the minister highlighted plummeting mobile data prices, crediting the revival of Comium (now under Munti Mobile). Before 2022, data cost an average of $5.86 per GB—44% above the global average—due to limited broadband, unreliable power, and low infrastructure investment by operators such as Gamcel and the former Comium.

Comium’s aggressive “Diya Promo” low-tariff strategy compelled rivals to slash rates, boosting 4G LTE adoption and broadband capacity. By 2025, Comium had surged to 800,000 active users, capturing second place in data traffic. Market shares: Africell at 62.82%, QCell at 31.46%, Gamcel at 3.2%, and Comium at 2.51%.

The Public Utilities Regulatory Authority (PURA) is finalizing a cost-of-service study to set scientific pricing with ceilings and floors. A high-level committee, comprising the ministry, PURA, the Competition Commission, and the Attorney General’s Chambers, has submitted recommendations to the President to ensure fair play and prevent predatory tactics by dominant players.

“This ensures healthy competition while safeguarding consumers,” Jabbi stated, emphasizing ongoing monitoring.

The reforms aim to position The Gambia as a digital economy hub, with widespread 4G/5G deployment making the internet more accessible for households and businesses.

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