Invest ​Gambia

Chairman's 2005 Message...​

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I am delighted to welcome you to Invest Gambia website. I am grateful for the opportunity to help and chair a national development initiative of my beloved country. I am aware and ready to tackle the challenges, we face in our rural businesses and national development initiatives; and in doing so I pay tribute to the contribution of the Government of The Gambia and all companies that make the prosperity of our Country.

 

Today, the international attention that Invest Gambia receives tells us much about the Global Economy in which Gambian businesses operate. My aim is, within short few years; is to work with the Government of The Gambia and Businesses to move the Gambia from Sheltered to Open Economies, from Local to Global Competition, from National to World-Wide Financial Markets, from Location, Raw Materials, Indigenous capital as sources of national Competitive and Comparative advantages, to Skills, Knowledge and Creativity, as what will make a difference for The Gambia.

 

I want to share with you, The Invest Gambia's thinking...not just on the challenges of Stability and Productivity in the Gambian economy but on how the Gambian economy can gain greater benefit from its participation in Regional and Global Market Place...after all it is a global village we living today.

 

The Gambia is doing well, but I will work very closely with the Government of The Gambia, to create a Gambia that, is even more Competitive, more Flexible, with its sights on higher Productivity, Employment and Growth - with modernisation of Labour, Capital and Product markets to bring about sustainable development and deliverance of Vision 2020.

 

In 2001, when I spoke to you on a weekend issue of the Daily Observer, I made it clear about my commitment and contribution to The Gambia's national development. Indeed, I did not fail you, Today, Four years later, I am a Chairman of Invest Gambia. Therefore, I plead to every Gambian Institution, Public and Private Enterprises, National and International financial institutions to cooperate and work with us for a sustainable development.

 

The truth is, today too few of the new Global Opportunities are coming to the Gambia. Too few of Gambia's companies are participating in the Global Market Place, and too few Gambian companies or People are properly equipped in The Gambia to meet the Global Challenges.

 

While I recognise the difficulties Gambian Businesses and Exporters in particular have faced, my intention is to make sure, that more People are in Employment than ever before, and that more and more Gambian Productivity is been exported.

 

But now that we are creating a platform for Gambian Business Growth and Stability inline with internationally recognised best standard practices, we must use this opportunity, to move from the old vicious circle (First Republic) of Low Investment, Low Productivity and a return to stop go; to a new virtuous circle of Investment, Productivity, and Steady Growth (Second Republic). In this regard, I would also like to appeal to International Financial Institutions including IMF and the World Bank to Equitably invest more into the Gambian intitiatives. Sub Saharan Africa (Including The Gambia) share of International Trade is in decline - from 6 per cent in the 1980s to just 2 per cent of World Trade today.

 

While aid that helps the poor (including The Gambia) stands at $50 billion a year, Trade Subsidies that hurts the poor run to more than $300 billion a year.

 

What is more sad is that, European Union spend as much Subsidising Agriculture as the whole income of all the 689 Million People in Sub Saharan Africa put together. If Sub Saharan Africa (Including The Gambia) could regain just an additional 1 percent share of Global Trade, it would earn us a $70 billion more in exports - nearly five times what our region receives in Foreign Aid and Debt Relief.

 

While average Trade Barriers have fallen to 3 per cent, Tariff Peaks can reach as high as 15 per cent, even much higher in Agriculture. The practice of Tariff escalation provides effective Market Barriers for many products of Origin from The Gambia and other African countries. Whilst non-tariff barriers which Restrict Market Entry for Gambia and other African countries include Rules of Origin, Administrative Procedures, Customs Fees, Extra Taxes, Shipment Inspections, even Currency Restrictions.

 

The EU's conditional offer last August to phrase out agricultural export subsidies is a step forward. 

 

But they must do more.

 

Certain principles should drive the next stage of the Doha Round:

 

1. Creating a trading environment which removes the obstacles The Gambia faces in exporting its products of origin

2. Ensuring The Gambia benefits from a rules based system

3. Putting in place a framework of national and regional development and trade strategies for liberalisation

4. Building The Gambia's capacity to trade.

 

Developed countries should accelerate the process of dismantling their barriers; stop discriminating against goods in which The Gambia have a comparative advantage; and stop subsidising their own production and dumping their surpluses so that African producers get a chance to compete. 

 

First, developed nations must maintain momentum for a Multilateral progress and an ambitious, pro-poor outcome to the Doha Development trade round which delivers real market access for African goods in which The Gambia is a forefront nation.

 

The Gambia does not have huge valuable minerals to exploit so agriculture makes up 70 per cent of our national employment and provides up to 30 per cent of Gambia's national income.

 

Second, on their rules of origin requirements mean that goods that should receive preferential access into the EU face a European tariff and it is important to improve Gambia's access to their markets not just in Theory but in Reality. So I also call on Europe, and other developed countries to amend Rules of Origin requirements... the very requirements which instead of Promoting Fair Trade have become a Barrier to Fair Trade, and are now identified, not with Fairness, but Protectionism. Often they involve unaffordable administration costs for The Gambia.

 

Third, regional Economic Partnership Agreements between the EU and ECOWAS (The Gambia included) should be fair and put Development on forefront. The agreements should be designed to deliver real development benefits and permit The Gambia the necessary flexibility for sequenced reform.

 

Because I believe, Bilateral Agreements (EU -Gambia vis-a-vis Gambia-Developed Nations) have not always been in the interests of the Gambia, I call on the EU in its work on Economic Partnership Agreements in the coming months to take a Non-Mercantilist Approach, so that, The Gambia is able to sequence our Trade reform and Participate on Equal Terms in the international economy.

 

Fourth, I call on Developed Countries not only to improve Trading arrangements, but to help The Gambia Build Capacity to Trade. It is not enough to say you're on your own, simply compete, They have to say ‚ We will help you Build the Capacity you need to Trade. Not just opening the door, but helping you Gain the Strength to Coss the Threshold.

 

For too long, enabling countries to trade has been defined narrowly as equipping them with the capacity to negotiate. But what is more important, is equipping them with the Economic and Infrastructure Capacity they need to take advantage of Trading opportunities.

 

Infrastructure is key. Transport costs in The Gambia can sometimes be a bigger burden of the cost of Exporting than Tariffs. Today, upto 12 African countries have less than 10 per cent of their roads paved. With freight and insurance costs representing almost 15 per cent of the total value of Gambian exports, It is difficult for us to be competitive. Yet, Telecommunication costs are such high that calls from the Gambia to the USA, UK and EU are five times the costs of calls from a developed country.

 

So we have to recognise that The Gambia will need additional resources from the richest countries to help us build physical infrastructure - Road, Rail, Electricity, Telecommunications - Institutional Capacity...from Legal and Financial Systems to Basic Property Rights; and, of course, Investment in Human Capital to enable Growth, Investment, Trade...the very suffisticated tools for poverty reduction.

 

We also need to recognise that The Gambia will face significant transitional costs, as we adjust to more Open Trade Patterns. To tackle this issue, the G7 and G8 should ensure that The Gambia is allowed the flexibility to carefully Design and Sequence Trade Reform within our own internal Poverty Reduction Strategies.

 

They should consider additional grant resources to help the Gambia, our people, to Adapt and Reap the Benefits of more open Regional and Global Markets.

 

So we must do all we can, to create the most favourable environment, for investment in the Gambia; and this, is what I am trying to do...Invest Gambia will spearhead and support the need to Provide a Powerful Voice for the Gambia, by Communicating The Gambia's Strengths, Opportunities and Needs and to ensuring that they are clearly Articulated and Fully Understood both within and outside the Gambia. We will simultaneously publish accurate National Economic Reports, Stage Trade Conferences and Exibitions, Fairs and Awards in the Gambia and around The World, 

 

Whilst we attract sustainable FDI, we will continue to make a consistent case for Gambia as a destination of choice.

 

And finally visit Gambia, its a great place to Work, Live and Invest; Thank you

 

H.R.H. Prince Ebrahim - Chairman