By Kebba AF Touray
The Management of the National Food Security Processing and Marketing Corporation (NFSPMC), formerly the Gambia Groundnut Corporation (GGC), has recommended a D1.8 billion capital injection to strengthen its operations and position the Corporation as a more competitive and sustainable enterprise.
The proposal was presented on Wednesday, 22nd October 2025, when NFSPMC’s management appeared before the Public Enterprises Committee (PEC) of the National Assembly. The occasion formed part of the PEC’s statutory oversight, which reviews state-owned enterprises’ (SOEs) performance, accountability, and financial transparency.
During the session, PEC members scrutinized NFSPMC’s 2022 Activity Report and Audited Financial Statements. A key topic was the notable change in net cash flow from operating activities, moving from a negative D378 million in 2021 to approximately D1 billion in 2022. Management attributed this shift to a major increase in groundnut purchases during the 2022 trading season—40,000 metric tons compared to only 11,000 metric tons in the previous year.
“The variance in our cash flow is largely attributable to the scale of our operations during the year under review. We purchased nearly four times the quantity bought in the previous season, and that required substantial financing to meet procurement and operational obligations,” management explained to the Committee.
NFSPMC revealed it invested D742 million in receivables, D334 million in inventories, and recorded D10 million in changes in payables—financed predominantly through a facility from AGIB Bank. Management clarified that the negative cash flow reflected investment in groundnut and other commodities, which should result in value creation as proceeds are realized.
To address liquidity challenges and reduce reliance on short-term loans, NFSPMC’s management has prepared a Cabinet Paper recommending the D1.8 billion recapitalization. The measure is intended to enhance the Corporation’s balance sheet, improve liquidity, and reduce high financing costs associated with seasonal borrowing.
Additionally, management highlighted ongoing revenue diversification initiatives, notably the cogeneration power Plant under construction and set for completion in 2026. The plant will enable NFSPMC to generate power from industrial processes, selling surplus electricity to the National Water and Electricity Company (NAWEC). Management anticipates this will create significant new revenue streams and bolster the national energy supply.
On compliance issues, management assured the Committee that audit concerns about borehole drilling and staffing had been resolved, stating, “Borehole projects have been completed, and staffing levels have been strengthened to enhance operational efficiency and internal control.”
In his remarks, PEC Chairperson Hon. Lamin J. Sanneh commended NFSPMC’s management for their cooperation and transparency. He emphasized that the Committee’s oversight aims to support, not penalize, SOEs and acknowledged NFSPMC’s strategic role in ensuring food security and improving rural livelihoods. Hon. Sanneh also cited the positive reforms noted by the State-Owned Enterprises Commission.
At the close of proceedings, the Committee adopted the Corporation’s 2022 Activity Report and Audited Financial Statements, paving the way for submission to the National Assembly.
