THE Gambia Country Presentation on Competitiveness strategies
For Small States
Presented by
Abdoulie Hydara
Senior Manager-Investment Promotion and Facilitation
Gambia Investment and Export Promotion Agency
(GIEPA)
May 2011-Malta
Presentation Outline
1. Country Profile
2.Macro-economic Situation and current
development strategy
3. Government Policy for Competitiveness
4. Institutional Setup
5. Constraints: Human & Institutional
6. Regional Integration
7. Institutional setup for the promotion of
competitiveness
8. Case study
9.Conclusion
10. Way Forward
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THE GAMBIA- A BRIEF COUNTRY
PROFILE
Location: A small sub-tropical country In West
Africa, between latitudes 13:45W and 16:50W.
Capital: Banjul
Total Area: 11,300 Sq km (4361 Sq. Miles)
Land: 10,000 Sq Km
Population: 1.5 million people
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THE GAMBIA- A BRIEF COUNTRY
PROFILE Cont.
Official language: English
Local Languages: Mandinka, Wollof, Fula, Jola,
Sarahule, Serere, Manjago, Creole
Religion: Muslim 90%, Christian 9%, thers1%
Time Zone: Greenwich Mean Time (GMT)
Climate: Pleasant Sub tropical – Wet Season
(June to October)
Currency: Dalasi
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Selected Economic Indicators
GDP Per Capita: US$450- 2010
GDP growth rate:4.6% - 2010
GDP Composition by Sector(2009):
- Services: 54.3% of GDP (Trade, Tourism
, Transport and Communications, Government and
Business Services
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Selected Economic Indicators Cont.
- Agriculture: 31.5% of GDP, but employs 75% of the
workforce
- Industry: 14.2% (Manufacturing, Construction,
Mining, Utilities)
Inflation Rate: 4.9% (2009), 5% (projection 2010)
Gross Foreign Exchange Reserves:US$178m(2009)
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Selected Economic Indicators Cont.
• The Gambia’s main export product is Groundnut.
The Agricultural Sector still remain the country’s
main export earnings.
• The tourism industry is also the country’s top net
foreign exchange earner, generating as much as all
other exports combined, and a major contributor
to employment and therefore reduced poverty.
• Cash crops such as cashew nuts, sesame, cotton,
fisheries and horticulture are contributors to GDP.
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Macroeconomic Situation and current
Development Strategy
A three year Poverty Reduction and Growth Facility (PRGF)(20072009) was in place with the IMF to maintain macroeconomic
stability and encourage reforms conducive to higher growth and
poverty reduction. As a result,
•Public Expenditure Management has improved drastically since
the introduction of the Integrated Financial Management System
(IFMIS) in 2007. Lots of other African countries are using the
Gambia as Benchmark
•A series of structural reforms were undertaken to improve
effectiveness and efficiency of government services; Civil Service
Reform, Judicial Reforms, Public Financial Management Reforms
(PFM), Reform of the National Statistical System etc.
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Macroeconomic Situation and current
Development Strategy Cont.
Institutions created to implement reforms include:
1. National Road Authority (NRA)
2. Gambia Revenue Authority (GRA)
3. Gambia Bureau of Statistics (GBOs)
4. Central Project Management and Aid
Coordination
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Macroeconomic Situation and current
Development Strategy Cont.
A National Development Strategy; an MGD based PRSP 11,
incorporating Vision 2020 Exists (2007-2011)
Five pillars or areas of intervention namely,
• Create an Enabling Policy Environment to promote growth and
Poverty Reduction.
• Enhance the capacity and output of productive sectors:
Agriculture, Fisheries, Industry, Trade and Tourism, with
emphasis on productive capacities of the poor and vulnerable
populations.
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Macroeconomic Situation and current
Development Strategy Cont.
•Improve coverage of the basic social services
and social protection needs of the poor and
vulnerable.
• Enhance governance systems and build the
capacity of local communities and Civil Society
Organizations (CSOs) to play an active role in
economic growth and poverty reduction.
• Mainstreaming poverty related cross-cutting
issues into poverty reduction.
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The Gambia Growth and Competitiveness
Project (GCP)
The
objective of the Growth and Competitiveness Project is to
improve the investment climate and strengthen the
competitiveness of key sectors of the economy.
There are three components to the project:
The first component being improving the business environment.
This component will improve the business environment through
business registration and tax administration reforms,
establishment of a collateral registry and support for investment
promotion and facilitation.
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The second component is the strengthening
economic clusters.
This component will strengthen economic clusters through a
competitiveness program that will support horticulture
development, a quality assurance program for the groundnuts
sector, Micro, Small, and Medium Enterprise (MSME) business
growth and access to finance as well as tourism promotion and
marketing and skills development.
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Finally,
The third component
implementation.
is
the
project
This component provides support for project
implementation
through establishment and
operation of a project coordination unit under the
Ministry of Finance and Economic Affairs
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Please allow me to dilate on
the
establishment
and
support
for
investment
promotion and facilitation.
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THE GAMBIA INVESTMENT AND EXPORT
PROMOTION AGENCY (GIEPA)
The Gambia Investment & Export Promotion
Agency (GIEPA) is the national agency
responsible for Promoting and Facilitating
Private Sector Investment, Business and
Export Development, As well as support to
MSMEs. GIEPA offers array of services
including the following:
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•
Investment Generation
•Administer
packages
and
advise
on
incentive
• Provide information on investment
opportunities in The Gambia; and
• Support companies planning to expand or
diversify operations.
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Investment Facilitation
• Provide all business-related information to
potential and current investors;
• Work with stakeholders to facilitate
investments;
• Help identify joint venture partners;
• Serve as the link between investors and national
authorities affecting business operations; and
• Help businesses obtain licenses, land,
clearances, etc. for business operations.
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Business and Export Development
Services
• facilitating Public-Private Sector Dialogue
for business and export development
objectives.
• Promoting business development initiatives
through consultative engagements of the
private sector.
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WHY INVEST IN THE GAMBIA
Efficient Seaport &
Airport Facilities
Attractive Investment
Incentives
Liberalized Market
Economy
WHY THE GAMBIA?
Proximity & Access
to Major International
Markets
Stable and
Peaceful Country
Easy to Do
Business
Strong Public
Private Sector
Partnership
Abundant & Low Cost
Workforce
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PRIORITY SECTORS FOR
INVESTMENT
Agriculture
Fisheries
Tourism
Information, Communication & Technology
Manufacturing
Energy
Mining
River and Air Transport
Health & Veterinary Services
Skills Development
Forestry
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Investment Incentives
There is an attractive investment and export
incentive scheme for new projects as well
as expansion projects.
You can find relevant information in the
GIEPA Act. 2010
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• The
global economic crisis that led to recession in most develop
has an impact on the Gambian economy.
• The sharp decline in global economic activities led to decline of
exports and remittances, manufacturing of production, wholesale
and retail trade, transport, telecom and tourism.
• The Gambia during the past decades serve as a regional entrepot.
Almost 80% of the Gambian merchandise export consists of reexports to the sub-region. The imported goods destined for reexport pays the normal import duties. However, re-export has
declined due to combination of factors:
a) Harmonization of import and sales taxes in the region.
a)
The improved port and customs operations in Senegal and
other neighboring countries.
•
Despite having received extensive debt relief in2007, The
Gambia still faces a heavy debt burden.
As of end 2009, external debt stood at 34% of GDP, while total
public sector debt was 54% of GDP, reflecting substantial and
costly domestic borrowing.
More over, domestic debt consists almost entirely of short –
term T-bills, which poses high roll-over risks.
•
•
Institutional setup and Government Policy
• Gambia has a dedicated policy for the promotion of
•
•
•
•
competitiveness.
The draft legislation was prepared ratified by the National
Assembly.
The implementation will facilitate a conducive
environment for the undertaking of economic activities
and contribute to a rise in living standards for Gambians.
Competition stimulates business operators to look for
more innovative and efficient ways of satisfying the needs
of the consumers.
It is also encourage to note that the Gambian business
community fully support
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The Gambia Trade Integration
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Regional Collaboration and Competitiveness Issues
• The Gambia has an investment policy, comprising of important
pillars as follows:
a) Liberal, free market economic environment with appropriate
political and social policy and program framework;
b) Constitutionally obliged to encourage, promote and protect
beneficial investment as the enabler of socioeconomic change
and progress;
c) Full integration into the wider global economic through her
membership of and adherence to charters and principles of
Economic Community of West African States, World Trade
Organization, Multilateral Investment Guarantee Agency (MIGA),
African Development Bank, The World Bank Group, ACP-EU
Convention, Islamic Development Bank and host of bilateral
trade agreements among others.
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Case study-The Gambia
Summary
Developed a competitiveness strategy for The Gambia under ongoingpolicy advocacy and reforms to encourage private sector-led growth
under a thematic cluster-based development process to accelerate
job-creation among SMEs in the immediate term.
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Purpose
Developed a competitiveness strategy that
provides sustainable jobs and investments by
identifying The Gambia unique, inherent and
possible economic potential. Provide groundwork
for inward investment , Business and Export
Development in the country.
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Action Points
1. Benchmarking The Gambia against regional competitors for
inward investment and exports.
2. Applied a competitiveness strategy to identify at least three
industries with prospects for greatest investment and employment
creation.
3. Prepared cluster development strategies through public private
partnership and design a frame work approach for cross-donor
coordination.
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Expected Results
The results are expected to compliment Governments efforts in
promoting regional economic integration through trade.
Strategy will be used by international donors and civil societies to
provide local firm and industry assistance.
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• Competition
stimulates business operators to look for more
innovative and efficient way of satisfying the needs of consumers
(Customer Driven Approach)
• It is encouraging to note that The Gambian business community
fully supports the adoption of the competition law and the
establishment of The Gambia Competition Commission
• The competition law has given confidence to those wishing to
invest in The Gambia by helping to provide a more predictable
business environment.
• The
Social Partners e.g Government, business community,
Workers, civil societies should endeavour to work together to
promote competitiveness.
• In the Gambia, the government set up Indigenous Business
Advisory Services (IBAS) an Institution under the Ministry
of Trade that develop a reinforced and integrated package of
assistance to small enterprises, is now earmarked to be part
of GIEPA.
• These
enterprises has limited size of the domestic market, low
technical skills etc. IBAS should be fully capacitize and given
support to engage the social partners to promote
competitiveness and overcome these constraints.
•partners should work to increase in manufacturing output that
will facilitate the realization of the long term objectives, imply
constant efforts at improving technology, industrial structure
and promoting industrial relations.
THANK YOU!!
For more information, Please contact;
The Chief Executive Officer
The Gambia Investment and Export
Promotion Agency
Email: info@giepa.gm
Website: www.giepa.gm
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