THE Gambia Country Presentation on Competitiveness strategies For Small States
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1 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
2 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 2
3 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 3
4 4
5 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 5
6 Selected Economic Indicators GDP Per Capita: US$ GDP growth rate:4.6% GDP Composition by Sector(2009): - Services: 54.3% of GDP (Trade, Tourism, Transport and Communications, Government and Business Services 6
7 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) 7
8 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. 8
9 Macroeconomic Situation and current Development Strategy A three year Poverty Reduction and Growth Facility (PRGF)( ) 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 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. 9
10 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 10
11 Macroeconomic Situation and current Development Strategy Cont. A National Development Strategy; an MGD based PRSP 11, incorporating Vision 2020 Exists ( ) 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. 11
12 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. 12
13 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. 13
14 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. 14
15 Finally, The third component is the project implementation. This component provides support for project implementation through establishment and operation of a project coordination unit under the Ministry of Finance and Economic Affairs 15
16 Please allow me to dilate on the establishment and support for investment promotion and facilitation. 16
17 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: 17
18 Investment Generation Administer and advise on incentive packages Provide information on investment opportunities in The Gambia; and Support companies planning to expand or diversify operations. 18
19 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. 19
20 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. 20
21 WHY INVEST IN THE GAMBIA Efficient Seaport & Airport Facilities Attractive Investment Incentives Proximity & Access to Major International Markets Liberalized Market Economy WHY THE GAMBIA? Stable and Peaceful Country Easy to Do Business Strong Public Private Sector Partnership Abundant & Low Cost Workforce 21
22 PRIORITY SECTORS FOR INVESTMENT Agriculture Fisheries Tourism Information, Communication & Technology Manufacturing Energy Mining River and Air Transport Health & Veterinary Services Skills Development Forestry 22
23 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
24 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:
25 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.
26 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 26
27 The Gambia Trade Integration 27
28 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. 28
29 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. 29
30 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. 30
31 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. 31
32 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. 32
33 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.
34 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.
35 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.
36 THANK YOU!!
37 For more information, Please contact; The Chief Executive Officer The Gambia Investment and Export Promotion Agency Website: 37
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