As power outages continue to plunge homes and businesses into darkness across The Gambia, a prominent Gambian engineer has stepped forward with a comprehensive plan he believes can finally resolve the country’s chronic electricity crisis.
James Orehmie Monday, who has largely stayed out of public debate in recent years, broke his silence this week with a detailed proposal to overhaul the National Water and Electricity Company (NAWEC).
In a lengthy public statement, Monday described the current situation not as a temporary setback but as a predictable outcome of decades of financial mismanagement, poor governance, and structural weaknesses.
“The Gambia has been in a perpetual energy crisis since the late 1970s,” Monday wrote. He pointed to NAWEC’s dire financial and operational state: over D10 billion in accumulated debt, a D1 billion net loss in the first half of 2024 alone, and a severe supply-demand gap. Currently, available power stands at around 51 megawatts against a peak demand of at least 111 megawatts, creating a shortfall of more than 60 MW that explains the extensive load-shedding.
Monday’s intervention comes amid widespread frustration, amplified recently by a popular comedic skit that highlighted the absurdity of the ongoing blackouts. He emphasized that his contribution is not criticism of the government but a constructive proposal aimed at providing a lasting solution.
The Depth of the Crisis
Drawing on National Audit Office reports, IMF and World Bank assessments, and other public data, Monday outlined both technical and financial dimensions of the problem.
Technically, NAWEC’s generation capacity at the Kotu and Brikama plants, which once totaled about 60 MW, has plummeted to just 11 MW due to maintenance issues and challenges with the operations and maintenance (O&M) contract. The 50 MW Soma solar park provides power only during daylight hours, leaving nighttime peak demand entirely dependent on imports.
NAWEC relies heavily on power purchase agreements with Senegal (up to 50 MW) and Guinea (30 MW), but actual imports rarely exceed 40 MW combined due to regional demand pressures. Without a reliable domestic base load, the utility cannot meet evening demand, resulting in prolonged blackouts.
Financially, the situation is equally dire. NAWEC owes millions to suppliers, including US$19.6 million to the now-terminated Karpowership contract. The government itself owes NAWEC D248 million in unpaid bills. Although tariffs were raised by 37% in 2023 after a nine-year freeze, they remain insufficient to cover costs. At USD 0.24 per kWh—one of the world’s highest tariffs—NAWEC still loses money, largely because it pays suppliers in foreign currencies while earning revenue in dalasi, exposing it to massive exchange rate losses (D796 million in 2024 alone).
The broader economic toll is staggering. Unreliable power costs African economies 1-6% of GDP annually. In The Gambia, system losses amount to roughly 5% of GDP, or about USD 138 million per year. Shortages suppress job creation, damage tourism (20% of GDP), and force businesses to rely on expensive generators.
A Six-Pillar Reform Plan
Monday argues that incremental fixes have failed. He proposes a comprehensive, one-time reset through six interconnected pillars:
Pillar 1: Corporatize NAWEC – Keep the utility state-owned but transform it into a commercially disciplined entity. Separate electricity, water, and sewerage into distinct cost centers, adopt international accounting standards, and mandate cost recovery.
Pillar 2: Ring-fence Legacy Debt – Transfer all accumulated debt to a new Government Bad Debt/Assets Fund, legally severing it from the new NAWEC. The fund would be transparently managed by the Ministry of Finance with quarterly reporting to the National Assembly and a strict prohibition on future liabilities.
Pillar 3: Recapitalize with Equity – Inject D8-9 billion (USD 130-150 million) as equity to cover one full year of operations, maintenance, supplier payments, and initial investments.
Pillar 4: Retain Current Leadership – Reappoint the existing competent management team and board, now empowered by a clean balance sheet.
Pillar 5: Enforce Performance Contracts – Bind leadership to measurable five-year targets, including loss reduction from 25% to 15%, higher collection rates, renewable growth, and full cost recovery within three years. Quarterly public reports would ensure accountability.
Pillar 6: Strengthen the Regulator – Amend the PURA Act to grant real independence, enforcement powers, mandatory disclosures, and the ability to deduct government arrears directly from ministry budgets.
Economic Benefits and Next Steps
Monday presented a strong economic case. A reformed NAWEC could eliminate government subsidies, add 0.5-1.0% to annual GDP growth, boost tourism and manufacturing, improve the investment climate, and unlock suppressed jobs. The World Bank estimates The Gambia needs USD 11 billion in infrastructure investment by 2050—investment that hinges on reliable power.
The D8-9 billion recapitalization cost, he argued, would be recovered within five years through savings and growth dividends.
Addressing public debt concerns, Monday noted that the liabilities already exist as hidden contingent risks. Making them explicit and manageable is responsible governance, not an increase in debt burden. IMF analyses already factor in such SOE risks up to 8.7% of GDP.
For immediate action, Monday urged the government to prepare a comprehensive reform package—including a policy paper, a five-year operational plan, a performance contract, and PURA amendments—for public consultation. This should be followed by a government-led roundtable with the IMF, World Bank, AfDB, EU, and other partners to secure support for implementation within 12 months.
“The energy crisis in The Gambia is solvable,” Monday concluded. “The solutions are not exotic—they have worked in countries like Senegal, South Africa, and Malawi. What is required is political will, a credible plan, and the right partners. I believe we have all three within reach.”
Monday’s proposal has already sparked discussion among stakeholders, offering a potential roadmap as the country grapples with one of its most pressing developmental challenges.
Whether policymakers will embrace this comprehensive reset remains to be seen, but the engineer’s call for action underscores the urgent need for decisive reform.
