• China lends Nigeria Dollars 2bn in exchange for oil talks. • Ft com site : China oils Nigeria talks with loan

investment. In December 2000, Niger qualified for enhanced debt relief under the International Monetary Fund (IMF) program for Highly Indebted Poor Countries (HIPC) and concluded an agreement with the Fund on a Poverty Reduction and Growth Facility (PRGF). In January 2001, Niger reached its decision point and subsequently reached its completion point in 2004. The debt relief provided under the enhanced HIPC initiative significantly reduces Niger's annual debt service obligations, freeing about $40 million per year over the coming years for expenditures on basic health care, primary education, HIV/AIDS prevention, rural infrastructure, and other programs geared at poverty reduction. Debt service as a percent of government revenue was slashed from nearly 44% in 1999 to 10.9% in 2003 and will average 4.3% during 2010-2019. The debt relief cut debt service as a percentage of export revenue from more than 23% to 8.4% in 2003, and decreases it to about 5% in later years. In 2005, the IMF canceled all of Niger's debts to it (approximately $111 million) incurred before January 2005. In 2006, the African Development Fund canceled $193 million in debt for Niger. Furthermore, the World Bank announced that approximately $745 million in debt relief for Niger would be phased in over the next 37 years.
In its effort to consolidate macroeconomic stability under the PRGF, the government is also taking action to reduce corruption, and as the result of a participatory process encompassing civil society, has devised a Poverty Reduction Strategy Plan that focuses on improving health, primary education, rural infrastructure, agricultural production, environmental protection, and judicial reform. In late 2006, Niger qualified for the Millennium Challenge Corporation's (MCC) Threshold Program. Niger will focus its MCC efforts on promoting girls' education, fighting corruption, and improving the business environment.
Under the auspices of the World Bank, the government launched a major privatization effort in 1998 to divest itself of monopolies in water, power, and telecommunications and to transfer other public enterprises to private sector management. In 2001 Niger successfully privatized its telecommunications monopoly; however, the privatization of other industries has stalled. The privatization of the state-owned electric utility (NIGELEC) and the national oil distribution company (SONIDEP) are on hold indefinitely.
Foreign Aid
The most important donors in Niger are France, the European Union, the World Bank, the IMF, and UN agencies-UNDP, UNICEF, FAO, WFP, and UNFPA. Other donors include the United States, Belgium, Germany, Switzerland, Japan, China, Italy, Libya, Egypt, Morocco, Iran, Denmark, Canada, and Saudi Arabia. While the U.S. Agency for International Development (USAID) does not have a Mission in Niger, the United States is a major donor, contributing on average $30 million each year to Niger's development. In early 2008 Niger concluded an agreement for a $23 million Millennium Challenge Account threshold program. Niger is a key participant in the Trans-Saharan Counter-Terrorism program. Niger also benefits from the largest non-emergency PL 480 food assistance program in West Africa. Foreign aid represents 8.3% of Niger's GDP and over 40% of government revenues.
DEFENSE
The Niger Armed Forces total 12,000 personnel with approximately 3,700 gendarmes, 300 air force, and 8,000 army personnel. The air force has four transport aircraft. The armed forces include general staff and battalion task force organizations consisting of two paratroop units, four light armored units, and nine motorized infantry units located in Tahoua, Agadez, Dirkou, Zinder, Nguigmi, N'Gourti, and Madewela. In 1991, Niger sent a 400-man military contingent to join the American-led allied forces against Iraq during the Gulf War. Niger provides a battalion of peace-keeping forces to the UN Mission in Cote d'Ivoire.
Niger's defense budget is modest, accounting for about 1.6% of government expenditures. France provides the largest share of military assistance to Niger. Approximately 18 French military advisers are in Niger. Many Nigerien military personnel receive training in France, and the Nigerien Armed Forces are equipped mainly with materiel either given by or purchased in France. Morocco, Algeria, China, and Libya are also providing military assistance. A small U.S. foreign military assistance program was initiated in 1983. A U.S. Defense Attaché office opened in June 1985 and assumed Security Assistance Office responsibilities in 1987. The office closed in 1996 following a coup d'état. The U.S. Defense Attaché office reopened in July 2000. The United States provided transportation and logistical assistance to Nigerien troops deployed to Cote d'Ivoire in 2003.
Additionally, the U.S. provided initial equipment training on vehicles and communications gear to a company of Nigerien soldiers as part of the Department of State Pan-Sahel Initiative. Military to military cooperation continues via the Trans Saharan Counter-Terrorism Partnership and other initiatives. EUCOM contributes funds for humanitarian assistance construction throughout the country. In 2007, a congressional waiver was granted which allows the Niger military to participate in the International Military Education and Training (IMET) program, managed by the Defense Attache Office. This program funded $170,000 in training in 2007.
FOREIGN RELATIONS
Niger pursues a moderate foreign policy and maintains friendly relations with the West and the Islamic world as well as nonaligned countries. It belongs to the United Nations and its main specialized agencies and in 1980-81 served on the UN Security Council. Niger maintains a special relationship with France and enjoys close relations with its West African neighbors. It is a charter member of the African Union and the West African Monetary Union and also belongs to the Niger River and Lake Chad Basin Commissions, the Economic Community of West African States, the Nonaligned Movement, and the Organization of the Islamic Conference.
U.S.-NIGERIEN RELATIONS
U.S. relations with Niger have generally been close and friendly since Niger attained independence. Although USAID does not have a Mission in Niger, $30 million in annual official aid is administered through American and local non-governmental organizations with programs addressing food security, health, local governance, youth training, girls' education, corruption control, and improving the business environment. The U.S. Peace Corps program in Niger started in 1962. It currently has about 130 volunteers in country and celebrated its 45th anniversary in Niger in September 2007.
Principal U.S. Officials
Ambassador-Bernadette M. Allen
Deputy Chief of Mission-Donald Koran
Defense Attaché-Lieutenant Colonel Marie Kokotajlo
Joint Management Officer-Don D. Curtis
Economic/Commercial/Consular Officer-Richard M. Roberts
Public Affairs Officer-Stephen J. Posivak
Peace Corps Director-Mary Abrams
USAID Country Program Manager-Mark Wentling
The U.S. Embassy in Niger is located on the Avenue des Ambassades. The telephone numbers for the embassy are [phone]-61 through 65, and the fax number is [phone]-67. The mailing address is B.P. 11201, Niamey.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov , where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov . For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml .
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. [phone].
HTS anms 080331-1459242 J-Sharma
Document INDFED0020080331e431000md

STATE DEPARTMENT ISSUES BACKGROUND NOTE ON GAMBIA
3,562 words

1 March 2008

US Fed News

INDFED

English

© Copyright 2008. HT Media Limited. All rights reserved.
WASHINGTON, March 1 - The U.S. Department of State's Bureau of Intelligence and Research Electronic Affairs Publication Office issued the following Background Note:
PROFILE
OFFICIAL NAME:
Republic of The Gambia
GEOGRAPHY
Area: 11,300 sq. km. (4,361 sq. mi.); less than half the size of Maryland.
Cities: Capital-Banjul (pop. 34,828 excluding suburbs; 2003 census provisional).
Terrain: Flood plain of the Gambia River flanked by low hills.
Climate: Tropical; hot rainy season (June to November); cooler, dry season (November to May).
PEOPLE
Nationality: Noun and adjective-Gambian(s).
Population (2006): 1.5 million.
Annual growth rate (2003 census): 2.8%.
Ethnic groups (2003 census): Mandinka 42%, Fula 18%, Wolof 16%, Jola 10%, Sarahule 9%, Serere 7.8%, Krio/Aku Marabout 1.8%, Manjago 0.8%, Bambara 0.7%, other Gambians 1.2%, no declaration 0.3%.
Non-Gambians 12.9% of the population.
Religions: Muslim 90%, Christian 9%, other 1%.
Languages: English (official), Mandinka, Wolof, Fula, Jola, Sarahule, other indigenous languages.
Education: Years compulsory-up to age eight. Attendance-69% primary, 35% secondary. Adult literacy-37.8%.
Health: Life expectancy-57 yrs (2005 est.). Infant mortality rate (2005)-97/1,000. Access to safe drinking water (2004)-urban 95%, rural 77%.
Work force (400,000): Agriculture-70%; industry, commerce, services-24%; government-6%.
GOVERNMENT
Type: Republic.
Independence: February 18, 1965.
Constitution: January 16, 1997.
Branches: Executive, legislative, and judicial.
Subdivisions: Capital and six divisions.
Political parties: Alliance for Patriotic Reorientation and Construction (APRC), United Democratic Party (UDP), National Reconciliation Party (NRP), National Convention Party (NCP), Peoples Democratic Organization for Independence and Socialism (PDOIS), National Democratic Action Movement (NDAM), and the Gambia Party for Democracy and Progress (GPDP).
ECONOMY
GDP (2006): $511.4 million.
Annual growth rate (2006): 6.5%.
Per capita income (2006): $356.
Natural resources: Seismic studies indicate the possible presence of oil and gas offshore.
Services: 56% of GDP, 2006.
Agriculture (29.8% of GDP, 2006): Products-peanuts, rice, millet, sorghum, fish, palm kernels, vegetables, livestock, forestry.
Industry (10.9% of GDP, 2006): Types-peanut products, construction, telecommunications, brewing, soft drinks, agricultural machinery assembly, woodworking, metal working, clothing.
Trade: (2004 est.): Principal exports-$123.3 million: 13% groundnut products, 4.2% fish and fish preparations, and 82.1% re-exports. Major markets-India 37.6%, U.K. 19.4%, France 5.8%, and Thailand 3.9%. Principal imports-$207.2 million including food and beverages, manufactures, machinery and transport equipment, and minerals and fuel. Major suppliers-China, Senegal, Brazil, U.K., and Netherlands.
Official Development Assistance (ODA) received from all sources (2001): $50.9 million.
U.S. economic aid received (FY 2007): $88,000 in grassroots projects and assistance to democracy and human rights programs.
PEOPLE AND HISTORY
A wide variety of ethnic groups live in The Gambia with a minimum of intertribal friction, each preserving its own language and traditions. The Mandinka tribe is the largest, followed by the Fula, Wolof, Jola, and Sarahule. Approximately 3,500 non-Africans live in The Gambia, including Europeans and families of Lebanese origin.
Muslims constitute more than 90% of the population. Christians of different denominations account for most of the remainder. Gambians officially observe the holidays of both religions and practice religious tolerance.
More than 63% of Gambians live in rural villages (1993 census), although more and more young people come to the capital in search of work and education. Provisional figures from the 2003 census show that the gap between the urban and rural populations is narrowing as more areas are declared urban. While urban migration, development projects, and modernization are bringing more Gambians into contact with Western habits and values, the traditional emphasis on the extended family, as well as indigenous forms of dress and celebration, remain integral parts of everyday life.
The Gambia was once part of the Ghana Empire and the Songhai Empire. The first written accounts of the region come from records of Arab traders in the 9th and 10th centuries A.D. Arab traders established the trans-Saharan trade route for slaves, gold, and ivory. In the 15th century, the Portuguese took over this trade using maritime routes. At that time, The Gambia was part of the Kingdom of Mali.
In 1588, the claimant to the Portuguese throne, Antonio, Prior of Crato, sold exclusive trade rights on The Gambia River to English merchants; this grant was confirmed by letters patent from Queen Elizabeth I. In 1618, King James I granted a charter to a British company for trade with The Gambia and the Gold Coast (now Ghana).
During the late 17th century and throughout the 18th, England and France struggled continuously for political and commercial supremacy in the regions of the Senegal and Gambia Rivers. The 1783 Treaty of Versailles gave Great Britain possession of The Gambia, but the French retained a tiny enclave at Albreda on the north bank of the river, which was ceded to the United Kingdom in 1857.
As many as 3 million slaves may have been taken from the region during the three centuries that the transatlantic slave trade operated. It is not known how many slaves were taken by Arab traders prior to and simultaneous with the transatlantic slave trade. Most of those taken were sold to Europeans by other Africans; some were prisoners of intertribal wars; some were sold because of unpaid debts, while others were kidnapped. Slaves were initially sent to Europe to work as servants until the market for labor expanded in the West Indies and North America in the 18th century. In 1807, slave trading was abolished throughout the British Empire, and the British tried unsuccessfully to end the slave traffic in The Gambia. They established the military post of Bathurst (now Banjul) in 1816. In the ensuing years, Banjul was at times under the jurisdiction of the British governor general in Sierra Leone. In 1888, The Gambia became a separate colonial entity.
An 1889 agreement with France established the present boundaries, and The Gambia became a British Crown Colony, divided for administrative purposes into the colony (city of Banjul and the surrounding area) and the protectorate (remainder of the territory). The Gambia received its own executive and legislative councils in 1901 and gradually progressed toward self-government. A 1906 ordinance abolished slavery.
During World War II, Gambian troops fought with the Allies in Burma. Banjul served as an air stop for the U.S. Army Air Corps and a port of call for Allied naval convoys. U.S. President Franklin D. Roosevelt stopped overnight in Banjul en route to and from the Casablanca Conference in 1943, marking the first visit to the African Continent by an American president while in office.
After World War II, the pace of constitutional reform quickened. Following general elections in 1962, full internal self-government was granted in 1963. The Gambia achieved independence on February 18, 1965, as a constitutional monarchy within the British Commonwealth. Shortly thereafter, the government proposed conversion from a monarchy to a republic with an elected president replacing the British monarch as chief of state. The proposal failed to receive the two-thirds majority required to amend the constitution, but the results won widespread attention abroad as testimony to The Gambia's observance of secret balloting, honest elections, and civil rights and liberties. On April 24, 1970, The Gambia became a republic following a referendum.
Until a military coup in July 1994, The Gambia was led by President Sir Dawda Kairaba Jawara, who was re-elected five times. The relative stability of the Jawara era was first broken by a violent, unsuccessful coup attempt in 1981. The coup was led by Kukoi Samba Sanyang, who, on two occasions, had unsuccessfully sought election to parliament. After a week of violence which left several hundred dead, President Jawara, in London when the attack began, appealed to Senegal for help. Senegalese troops defeated the rebel force.
In the aftermath of the attempted coup, Senegal and The Gambia signed the 1982 Treaty of Confederation. The result, the Senegambia Confederation, aimed eventually to combine the armed forces of the two nations and to unify economies and currencies. The Gambia withdrew from the confederation in 1989.
In July 1994, the Armed Forces Provisional Ruling Council (AFPRC) seized power in a military coup d'etat, deposing the government of Sir Dawda Jawara. Lieutenant Yahya A.J.J. Jammeh, chairman of the AFPRC, became head of state.
The AFPRC announced a transition plan for return to democratic civilian government. The Provisional Independent Electoral Commission (PIEC) was established in 1996 to conduct national elections. The transition process included the compilation of a new electoral register, adoption of a new constitution by referendum in August 1996, and presidential and legislative elections in September 1996 and January 1997, respectively. Foreign observers did not deem these elections free and fair. Retired Col. Yahya A.J.J. Jammeh was sworn into office as President of the Republic of The Gambia in November 1996. The PIEC was transformed to the Independent Electoral Commission (IEC) in 1997 and became responsible for registration of voters and conduct of elections and referenda.
In late 2001 and early 2002, The Gambia completed a full cycle of presidential, legislative, and local elections, which foreign observers deemed free, fair, and transparent, albeit with some shortcomings. President Yahya Jammeh, who was re-elected, took the oath of office again on December 21, 2001. The APRC maintained its strong majority in the National Assembly, particularly after the main opposition United Democratic Party (UDP) boycotted the legislative elections. President Jammeh was re-elected for a third five-year term on September 22, 2006 with 67% of the vote. The UDP received 27% of the vote, and instead of boycotting future elections, vowed to take part in the 2007 National Assembly elections. In the January 2007 parliamentary elections the ruling Alliance for Patriotic Reorientation and Construction (APRC) won 42 of the available 48 elected seats.
GOVERNMENT
The 1970 constitution, which divided the government into independent executive, legislative, and judicial branches, was suspended after the 1994 military coup. As part of the transition process, the AFPRC established the Constitution Review Commission (CRC) through decree in March 1995. In accordance with the timetable for the transition to a democratically elected government, the commission drafted a new constitution for The Gambia, which approved by referendum in August 1996. The constitution provides for a strong presidential government, a unicameral legislature, an independent judiciary, and the protection of human rights.
Local government in The Gambia varies. The capital city, Banjul and the much larger Kanifing Municipality have elected town and municipal councils. Five rural divisions exist, each with a council containing a majority of elected members. Each council has its own treasury and is responsible for local government services. Tribal chiefs retain traditional powers authorized by customary law in some instances.
Principal Government Officials
President-Yahya Abdulaziz Jemus Junkung Jammeh
Vice President-Isatou Njie-Saidy
Ambassador-designate to the United States-Tamsir Jallow
UN Representative-Omar Touray
The Gambia maintains an embassy at 1156 15th Street, NW, Suite 905, Washington, DC 20005. Tel. [phone]. Its UN mission is located at 820 2nd Avenue, Suite 900-C, New York, NY 10017. Tel. [phone].
DEFENSE
The Gambian national army numbers about 1,900. The army consists of infantry battalions, the national guard, and the navy, all under the authority of the Department of State for Defense (a ministerial portfolio held by President Jammeh). Prior to the 1994 coup, the Gambian army received technical assistance and training from the United States, United Kingdom, People's Republic of China, Nigeria, and Turkey. With the withdrawal of most of this aid, the army has received renewed assistance from Turkey and new assistance from Libya and others. The Gambia allowed its military training arrangement with Libya to expire in 2002.
Members of the Gambian military participated in ECOMOG, the West African force deployed during the Liberian civil war beginning in 1990. Gambian forces have subsequently participated in several other peacekeeping operations, including, inter alia, Bosnia, Kosovo, Democratic Republic of the Congo, Sierra Leone, Eritrea, and East Timor. The Gambia contributed 150 troops to Liberia in 2003 as part of the ECOMIL contingent. In 2004, The Gambia contributed a 196-man contingent to the UN Peacekeeping Mission in Darfur, Sudan. Responsibilities for internal security and law enforcement rest with the Gambian police under the Inspector General of Police and the Secretary of State for the Interior.
POLITICAL CONDITIONS
Before the coup d'état in July 1994, The Gambia was one of the oldest existing multi-party democracies in Africa. It had conducted freely contested elections every 5 years since independence. After the military coup, politicians from deposed President Jawara's People's Progressive Party (PPP) and other senior government officials were banned from participating in politics until July 2001.
The People's Progressive Party (PPP), headed by former president Jawara, had dominated Gambian politics for nearly 30 years. After spearheading the movement toward complete independence from Britain, the PPP was voted into power and was never seriously challenged by any opposition party. The last elections under the PPP regime were held in April 1992.
Following the coup in July 1994, a presidential election took place in September 1996, in which retired Col. Yahya A.J.J. Jammeh won 56% of the vote. The legislative elections held in January 1997 were dominated by the APRC, which captured 33 out of 45 seats. In July 2001, the ban on Jawara-era political parties and politicians was lifted. Four registered opposition parties participated in the October 18, 2001, presidential election, which the incumbent, President Yahya Jammeh, won with almost 53% of the votes. The APRC maintained its strong majority in the National Assembly in legislative elections held in January 2002, particularly after the main opposition United Democratic Party (UDP) boycotted the legislative elections.
President Jammeh won the September 2006 elections with 67% of the vote while the opposition alliance won a total of 27%. In the January 2007 parliamentary elections, Jammeh's APRC won 42 of the available 48 seats. While both the September and January elections were declared credible, several sources have reported increased oversight of journalists in the preceding months. A failed coup in March 2006 had a major effect on The Gambia's political climate. Since then President Jammeh has taken far-reaching steps to maintain power.
ECONOMY
The Gambia has a liberal, market-based economy characterized by traditional subsistence agriculture, a historic reliance on groundnuts (peanuts) for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry.
Agriculture accounts for roughly 30% of gross domestic product (GDP) and employs about 80% of the labor force. Within agriculture, peanut production accounts for 6.9% of GDP, other crops 8.3%, livestock 5.3%, fishing 1.8%, and forestry 0.5%. Industry accounts for approximately 14% of GDP and services approximately 54%. The limited amount of manufacturing is primarily agriculturally based (e.g., peanut processing, bakeries, a brewery, and a tannery). Other manufacturing activities include soap, soft drinks, and clothing.
Previously, the U.K. and other EU countries constituted The Gambia's major domestic export markets. However, in recent years India, Thailand, and China have gained increasing proportions of Gambian exports. The African sub-region, including Senegal, Guinea-Bissau, and Ghana are also important trade partners. China and Brazil have become important source countries for Gambian imports. The U.K., other EU countries, and Senegal also command a large share of Gambian imports.
FOREIGN RELATIONS
The Gambia followed a formal policy of nonalignment throughout most of former President Jawara's tenure. It maintained close relations with the United Kingdom, Senegal, and other African countries. The July 1994 coup strained The Gambia's relationship with Western powers, particularly the United States, which until 2002 suspended most non-humanitarian assistance in accordance with Section 508 of the Foreign Assistance Act. Since 1995, President Jammeh has established diplomatic relations with several additional countries, including Libya, Taiwan and Cuba.
The Gambia plays an active role in international affairs, especially West African and Islamic affairs, although its representation abroad is limited. As a member of the Economic Community of West African States (ECOWAS), The Gambia has played an active role in that organization's efforts to resolve the civil wars in Liberia and Sierra Leone and contributed troops to the community's ceasefire monitoring group (ECOMOG) in 1990 and (ECOMIL) in 2003. It also has sought to mediate disputes in nearby Guinea-Bissau and the neighboring Casamance region of Senegal. The Government of The Gambia believes Senegal was complicit in the March 2006 failed coup attempt. This has put increasing strains on relations between The Gambia and its neighbor. The subsequent worsening of the human rights situation has placed increasing strains of U.S.-Gambia relations.
U.S.-GAMBIAN RELATIONS
U.S. policy seeks to build improved relations with The Gambia on the basis of historical ties, mutual respect, democratic rule, human rights, and adherence to UN resolutions on counter-terrorism, conflict diamonds, and other forms of trafficking. Following The Gambia's successful presidential and legislative elections in October 2001 and January 2002, respectively, the U.S. Government determined that a democratically elected government had assumed office and thus lifted the sanctions it had imposed against The Gambia in accordance with Section 508 of the Foreign Assistance Act as a result of the 1994 coup. U.S. assistance supports democracy, human rights, girls' education, and the fight against HIV/AIDS. In addition, the Peace Corps maintains a large program with about 100 volunteers engaged in the environment, public health, and education sectors, mainly at the village level.
Relations with the U.S. have not been improved significantly due to the human rights and freedom of press shortcomings, which resulted in the suspension of The Gambia's compact with the Millennium Challenge Corporation (MCC) in June 2006. The Gambia became eligible for preferential trade benefits under the African Growth and Opportunity Act (AGOA) on January 1, 2003.
Principal U.S. Officials
Ambassador-Barry Wells
Deputy Chief of Mission-Brian Bachman
Peace Corps Country Director-Michael McConnell
The U.S. Embassy in The Gambia is situated in Fajara on Kairaba Avenue, formerly known as Pipeline Road. Tel: [220] 4392856; fax [220] 4392475). The Peace Corps office also is on Kairaba Avenue near the embassy. (Tel. [220] 4392466). The international mailing address for the embassy is American Embassy, PMB 19, Kairaba Avenue, Banjul, The Gambia.
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Country Specific Information, Travel Alerts, and Travel Warnings. Country Specific Information exists for all countries and includes information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Travel Alerts are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.
For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov , where the current Worldwide Caution, Travel Alerts, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov . For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml .
The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.
Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.
The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.
Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at: http://wwwn.cdc.gov/travel/default.aspx give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. [phone].
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Document INDFED0020080331e431000m9

Features

Nigeria: the sub-Saharan locomotive gathers steam

2,361 words

1 March 2008

Trade Finance

TRAFIN

English

Copyright 2008 Euromoney Institutional Investor PLC
Speaking at this year's Annual International Trade Finance ICC banking seminar, Clive Carpenter, vice-chairman at Britain's Nigeria Business Council, asked the audience not to "judge a book by its cover" when reviewing Nigeria.
However, the opportunities for business look increasingly rosy in the country. Investor's nerves were calmed when the presidential election tribunal voted unanimously in February to uphold the result of April's election removing a dangerous distraction for president Yar'Adua. The decision allows the president, and his administration, to focus their efforts in promoting their 20/20 programme. The programme aims that by 2020 Nigeria will become one of the 20 leading economies in the world increasing the size of its economy between $800 billion and $900 billion.
Such optimism is not necessarily misplaced. The number of privatizations and the successful consolidation of the Nigerian banking sector have not only enabled Nigeria to record significant economic growth but also allowed it to achieve regional prominence. As one banker comments: "Nigeria is the locomotive for the sub-Saharan train."
Bank consolidation
The completion of the banking consolidation has been a major economic driver in Nigeria. In mid-2004, the Central Bank of Nigeria demanded that all deposit banks had to raise their minimum capital base from about $15 million to $192 million by the end of 2005. The move forced banks to merge or else lose their licenses. The effect was to winnow the number of banks from 89 to 25. Conservative estimates suggest that in the process of meeting the new capital requirements, banks raised the equivalent of about $3 billion from domestic capital markets and attracted $652 million of FDI into the Nigerian banking sector. However, these figures ignore the latest rash of IPOS, and the continued growth of the local banking sector.
Non-oil sectorOil and gas still make up 95% of Nigeria's exports. Nigeria' agricultural sector is still grossly underfunded and contains enormous potential. The non-oil sector has been growing rapidly at roughly 10% according to March's estimates by the Central Bank.The success of the telecom and power privatizations has been a powerful step forward for the country but more investment needs to occur in the power sector. Strong political will and large opportunities exist for investors and exporters in Nigeria. It is the strength of the local banks and the competition between foreign exporters that will help best exploit those chances.


Banks are still approaching the international market as they have had the option to increase their mandatory level from N25 billion to $1 billion. Several banks, including Zenith Bank and Guaranty Trust Bank, have already crossed this line and sought foreign investors and counterparts. A few others, such as Fidelity Bank, are in the market offering share options. One of the largest acquisitions was made by South Africa's Standard Bank, which went into partnership with IBTC Nigeria and acquired 51% of shareholders equity in the bank in September.
Crucially the benefits of this consolidation process are only just emerging. Banks are integrating with each other, streamlining all their processes, and successfully harmonising their credit chains and the IT systems. Praise for the reform has been universal and there have been significant changes in the way the banks operate. The increased access of local currency has been a huge boost for both the telecoms and the power sector – areas that has already attracted significant trade and export finance interest.
Opportunities for export credit
ECAs have been particularly aggressive in Nigeria none more so than the Export-Import bank of the United States (US Ex-Im). The success of the bank consolidation and the election caused US Ex-Im in mid October to upgrade its cover policies in Nigeria. The bank is now open for medium-term (one-to-five years) and long-term (up to 10 years) financing in the public sector and will be open for long-term financing in the private sector. The move shows willingness for the bank to work with the private sector and is a reaction to the fact that many of the large privatizations now require ECA financing for expansion.
What marks US Ex-Im out from other ECAs is a new scheme introduced last year where the bank has pre-approved over $450 million limits to 17 Nigerian banks. The US Ex-Im banking facility enables Nigerian banks to provide guarantees to their customers so that they can approve the transaction in a very short turn around.
The facility is geared at expediting the process of short-term and medium-term insurance and guarantee transactions. Under the programme, US Ex-Im can insure short-term transactions involving US exports of consumer goods, raw materials, spare parts, commodities, and small capital equipment with a repayment term of 180 days. Transactions involving the export of capital equipment or services may be covered under US Ex-Im's medium-term insurance or guarantees, with the possibility of repayment tenors of up to five years.
Citi closes ECA-backed aircraft lease facilityPrecision Air, the Tanzanian private airline, has closed a $129 million structured lease facility for five ATR 72-500 and 2 ATR 42-500 turbo props. Citigroup is the mandated lead arranger, lender, security trustee and facility agent for the two-tranche facility.The first tranche, a $114 million finance lease facility, funded by Citigroup, is 95% supported by European export credit agencies Coface and Sace. The second tranche, a $15 million subordinated debt facility, is provided by the Finnish Fund for Industrial Cooperation (FinnFund), who also brought in European Financing Partners to provide 100% of the purchase price.The first aircraft was delivered on February, with the remaining six to be delivered between 2008 and 2010. The aircraft are being purchased to renew and modernise the airline's current turboprop fleet.The deal is innovative because not only did Citigroup arrange 100% financing, but is the first 12-year financing under the new aircraft sector understanding (ASU) for ATR aircraft. With the aircraft being delivered between 2008 and 2010, the lender's commitment is over 15 years.Munawar Noorani, Citi's managing director, global aviation, says the deal was a ringing endorsement of the airline's business model. "The fact that Citi has been able to arrange 100% financing for these turboprops is a reflection of financiers' confidence in the high yield growth model of Precision Air and growing appreciation of ATRs product offerings," he says.For Precision Air, the new aircraft is ideally suited for the African terrain. "The performance of the -500s in hot and high environments will allow us to optimise our operating costs and will successfully contribute to the expansion of our network," says chairman Michael Shirima.ATRs are well adapted to the extreme weather conditions of Africa and operate in some 20 countries. Stephane Mayer, ATR CEO says the deal confirmed the growth of regional networks across the continent.In a further sign of cooperation between the airline and manufacturer, ATR and Precision Air have signed an educational programme aimed at training Tanzanian students in aeronautical maintenance engineering.Precision Air, based in Arusha, is Tanzania's leading airline and was established in 1993. Since 2003, 49% of the airline has been owned by Kenya Airways.
The facility protects US jobs, as per the bank's remit, but what is different is that it doesn't operate on a case-by-case basis. Where before a Nigerian bank might approach US Ex-Im with a specific transaction, the banks have been given a limit, initially for $450 million, which is likely to increase during the course of next year. US Ex-Im have done this to try and persuade the banks that they now have a cheap form of financing that is both available and committed. Each bank has been allocated a certain proportion, and the facility acts as a marketing tool to try and push the banks to tell their customers they can get financing if they go through a US supplier. As a marketing tool it has been very successful.
As Richard Hodder, director sub-Saharan Africa project and export finance from HSBC, explains: "During the course of 2007, HSBC has concluded five transactions in Nigeria in the $15 million-$20 million range with the support of US Ex-Im and other ECAs. The loans have either been provided directly to a Nigerian bank, which then on-lends the funds to its clients importing goods from overseas, or provided directly to a Nigerian importer under a guarantee from a Nigerian bank. The availability of the ECA insurance policy or guarantee allows us to lend US dollar funds to the banks at competitive rates and, as a result, ECA financing is increasingly being viewed as a cheap source of liquidity for the Nigerian banks."
Elsewhere Sinosure is active in the telecoms market and Euler Hermes and Atradius have also been busy across a range of sectors. As one banker puts it: "banks are trying to get: whatever they can get their hands on."
Chinese involvement
At a meeting in October US Ex-Im officials admitted that China's growing commercial presence in Africa, and the low participation by US companies in the region, presented a critical challenge to US commercial interests. US Ex-Im has introduced the latest financing structures to remain competitive in the region. James Lambright, US Ex-Im chairman and president, noted that China-Africa trade was growing much faster than US-Africa trade. In 2006, China-Africa trade totalled $56 billion while US-Africa trade totalled $100 billion, of which $80 billion were African sales to the US. In five years, total trade between China and Africa is expected to reach $100 billion.
As Trade Finance goes to press Industrial and Commercial Bank of China (ICBC), China's largest bank, has expressed interest to partner with Oceanic Bank and develop its export and trade finance department. In November China Development Bank (CDB) announced it had entered a partnership with Nigeria's United Bank for Africa (UBA), one of Nigeria's biggest banks. The deal was designed specifically to expand the Chinese bank's ability to finance infrastructure projects in Africa. Tony Elumelu, UBA's chief executive, claimed that the deal would; "provide us [with] an almost infinite amount of capital to execute projects." He added: "They will invest in any credit that we recommend." Under the partnership arrangement CDB have not bought any equity in UBA.