The Gambia Trade Gateway
The Gambia has made great strides forward in consolidating
its credentials as a trade and industry-oriented nation. It
is moving fast towards becoming an incentive-laden market
economy with very attractive indices that should successfully
lure substantial foreign direct investments. The strategic
location and socio-political stability has long established
the country as a safe, secure and attractive place to do business,
concretising which the country has designed a unique ‘Trade
Gateway Project’ expected to establish it as the most
conducive marketing springboard into West Africa.
The Trade Gateway Project is aimed at establishing free zones
at sites around the seaport, airport and other strategic locations
around the capital city, Banjul, and designed to operate within
a tax and duty-free environment with fiscal and other incentives
accorded to investors. Numerous activities are covered in
the initiative, which is billed for formal inauguration by
January 2001. They include manufacturing, processing, packaging,
transhipment and distribution of goods. Other facilities within
the zone will allow warehousing and storage; breaking bulk;
sorting, cleaning and grading, labelling and repackaging;
simple processing and assembly; marketing; reshipment; mail
order; freight forwarding and teleport activities. The incentives
are unique to The Gambia; tax exemptions on profit and dividends.
Free repatriation of profits in a free foreign exchange market;
exemption form customs duty, sales taxes and turnover tax,
reduced port handling charges for goods destined for re-export
and access to the local market. The government has also provided
a broad list of priority investments, which would enjoy wider
incentives, such as free allocation of land, and about 3 years
tax holiday.
Though the local market is small, the feasibility of the
Trade Gateway Project is reinforced by The Gambia’s membership
of World Trade Organisation (WTO); its proximity to European
and American markets and membership of the Economic Community
of West African States, ECOWAS, which accords it the privilege
of selling direct and unhindered to the entire West Africa
sub-region of 270 million people and annual trade turnover
of US$ 200bn. Free trade and bilateral agreements between
The Gambia and other countries both at the public and private
sector levels will also ensure that the dream of becoming
a regional marketing rub is fulfilled. Examples of such agreements
include the recent memoranda of understanding signed between
the government of The Gambia, Senegal and Guinea Bissau, which
would effectively break down all barriers to cross-border
trade. Another is the agreement between The Gambia Ports Authority
and the Taichung Ports Authority of Taiwan, which is aimed
at creating a strong link of partnership between the two ports.
Evergreen Lines of Taiwan, the world’s second largest
fleet, also has a bilateral understanding with the GPA, if
and when it materialises, The Gambia could become the second
country in the whole of Africa covered by Evergreen. This
should enhance and improve export movement to all parts of
Asia and create a superb window for African goods in that
part of the world.
The legal system is also very stable and in tandem with standards
all over the world. There is a constitutional guarantee protecting
investments against nationalization and expropriation, Gambia’s
membership and subscription to the regulations of the Multilateral
Investment Guarantee Agency (MIGA) (www.miga.org), which essentially
upholds the protection of investments against non-commercial
losses and deference to international arbitration, is itself
a guarantee. A commercial court, resourced by personnel trained
by international standards and supervised by the World Bank
will ensure amicable settlements of commercial disputes.
Local business people have strong links with Africa and adequately
understand the region’s business intricacies, all of
which makes a Gambian partner or agent a particularly viable
ally. Mustapha Njie, CEO of TAF Construction Limited, is one
such. With vast experience as an Executive member of the sub-regional
West African Enterprise Network (WAEN) and member of a larger
continental grouping, he understands the logic of partnership.
"We must be and we are open to joint venture offers.
Whatever we do, we can do better with a partner and with more
human, material and financial resources," he remarks.
The workforce is flexible, creative and motivated. Relative
low labour costs combined with a high level of productivity
represent another attraction. There are a good number of expatriate
professionals in the country giving investors an ample room
for choice. With a strong cultural background and a hospitable
environment, it won’t take long before investors come
to see the country as a home away from home, a true haven
for investments.
Drawing the point home, Musa Hassan Sillah, Secretary of
State for Trade, Industry and Employment said, "I would
urge the private sector and foreign investors to exploit the
great potential of our competitive advantages, the government
is committed and will maintain its commitment to industrial
and economic growth".
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