The announcement that five state-owned enterprises (SOEs) will remit interim dividends totaling D137 million to the government represents a significant moment in the country’s efforts to reform public institutions and strengthen national finances.
For years, many SOEs have been viewed as a heavy burden on the state, requiring government support while struggling with inefficiencies, weak management systems and financial losses. The reported turnaround from a collective net loss of GMD2.3 billion in 2023 and GMD2.6 billion in 2024 to a consolidated net profit of GMD2.5 billion in 2025 is therefore a development that deserves recognition.
The improved performance of institutions such as the Gambia Civil Aviation Authority, Gambia Ports Authority, Gambia National Petroleum Corporation, Gambia Publishing and Printing Corporation, and Gambia Radio and Television Services suggests that stronger accountability measures can produce tangible results when properly implemented.
The establishment of the State-Owned Enterprises Commission under the SOE Act 2023 appears to have played an important role in improving oversight through performance contracts, monitoring systems and clearer expectations for boards and management teams. These reforms demonstrate that public institutions can become productive contributors rather than permanent consumers of government resources.
However, the reported success should not lead to complacency. A profitable year does not automatically mean that all structural problems within the SOE sector have disappeared. The concerns raised over liquidity challenges, insolvency risks, declining revenues and weak debt recovery systems remain serious issues that require urgent attention.
The fact that some institutions have debtor turnover periods exceeding 100 days highlights weaknesses in revenue collection that can undermine even well-performing organisations. Financial discipline must therefore remain at the centre of SOE management if the current gains are to be sustained.
The energy sector also remains a major test. While improved financial performance at the National Water and Electricity Company could create opportunities for investment, citizens continue to demand reliable and affordable electricity services. Any reform of public enterprises must ultimately be measured by the quality of services delivered to ordinary people.
State-owned enterprises exist not only to generate revenue but also to provide essential services that support national development. Their success should be reflected in efficient transport systems, dependable energy supply, effective communication services and improved public welfare.
The payment of dividends to government should therefore be seen not as the end of the reform process but as evidence that continued reforms can work. Sustained transparency, stronger governance and consistent monitoring will be necessary to prevent a return to past challenges.
The government and SOE managers must now build on this progress. The goal should be a public enterprise sector that is financially responsible, service-oriented and capable of contributing meaningfully to national development rather than depending on public funds.
The current momentum is encouraging, but the real measure of success will be whether these reforms create lasting institutions that serve citizens effectively
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