Creative financing structure delivers a US$3.5 to Gambia's Health Sector

2009-02-19

The efficiency and effectiveness of primary health care delivery in developing countries is often bogged down by the difficulties health care officials and personnel encounter in reaching people in remote places and people who need these essential services. On other end of the spectrum, millions of people in remote places, both sub-urban and rural also often suffer unnecessarily because of the lack of access to health care facilities and personnel. These problems have endured also partly because financial institutions, mostly commercial banks on the continent and especially here in The Gambia do not seem to relish taking up complex transactions that are often involved in such development financing.

However, these problems may soon be no more in The Gambia, thanks to the intervention of The Gambia's Bank of The Year for 2008, Guaranty Trust Bank. Already associated and well reputed for its leadership and innovativeness in the commercial banking sector, GTBank has created a financing structure that delivered a US$ 3.5 to Gambia's Health Sector. The bank made history as the first commercial bank in The Gambia to finance a national project worth US$3.5 million, designed to strengthen the health care delivery system of The Gambia. The project dubbed 'Transport Asset Management' (TAM) is a program under the auspices of the Riders For Health (RFH) Gambia and funded by Skoll Foundation, USA to the tune of US$3.5 million in a form of term loan of 5 years tenor to RFH. The facility which was availed to RFH six months ago made monies available to RFH for the purchase of 48 ambulances, 12 station wagons, 24 trekking vehicles, 5 support vehicles, and 150 motorcycles to pioneer the Transport Asset Management (TAM) project in The Gambia. After a painstaking and lengthy four-party negotiation which involved; GTBank, Riders For Health Gambia, Riders For Health UK and Skoll Foundation USA, Gambians would now have unlimited access to prompt delivery health care service.

The project is a first of its kind in Africa and will provide the much needed transportation for health personnel to reach out to all communities especially the remote parts of The Gambia who will be delighted by news of this development. The project will also help the government of The Gambia in its drive to attain nation wide Health Care delivery system with less cost compared to a government sponsored transportation system for health personnel.

Under the TAM project, Riders For Health has agreed with the government of The Gambia through the Department of State for Health to manage the Transport fleet for the Department of State for Health. In fulfilling its obligation under the terms of the agreement, RFH secured a loan of UD$3.5 from Guaranty Trust Bank guaranteed by Skull foundation in USA to purchase 91 vehicles (including 48 ambulances) and 150 motor cycles to provide nation wide transportation for health personnel.

Speaking to the press at the inauguration ceremony, the Managing Director of GTBank, Mr. Lekan Sanusi said his bank was proud to be associated with such crucial project by indemnifying the financing structure that provided the money which goes to show GTBank is a force to be reckoned with in terms of financing developmental project . 'It was not an easy process due to the multiple parties involved in the negotiation of the loan but as a bank with a vast experience in such complex transaction, we surpassed all hurdles and made it happened for the Gambian people'. He went on to say that GTBank will continue to finance projects that are critical in the development of The Gambia and its doors are wide open for potential investors. It worth noting that GTBank had over the years executed large ticket transactions in form of loans and advances to corporate institutions in different line of business. I am proud to disclose that GTBank has helped numerous businesses to grow in country.

Coincidentally, both institutions (i.e. GTBank and RFH) started operations in 2002 in The Gambia and since then have continued to contribute to various sectors of national interest. RFH is currently managing the staff buses of GPA, carrying regular maintenance of VSO vehicles as well as in charge of transporting fuel for Galp Energia. It is operating in Nigeria, Zimbabwe, Lesotho, Kenya, UK and The Gambia.

Similarly, GTBank operates in 6 countries, namely Nigeria, The Gambia, Sierra Leone, Liberia, Ghana and UK. Recently, Guaranty Trust Bank (Gambia) obtained the approval of the Visa International in South Africa to be licensed as a ‘Principal' member of the exclusive club of Visa banks and agents. Early February this year, GTBank was crowned 'Bank of The Year for 2008'at the prestigious GCCI Annual Business Award Dinner.

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