VII. PRIVATE SECTOR GROWTH AND DEVELOPMENT

i. Trade

112. The Government, through its liberal trade regime, has established and consolidated trade links with the EU, USA, Asian countries, and the ECOWAS sub-region. The Gambia looks forward to adopting the implementation of Economic Partnership Agreements (EPA) as a strategy to expand its trade links with the EU. To strengthen her negotiating position, the Government, through the assistance of Commonwealth Secretariat and ACP/EU has commissioned two studies to assess the impact of EPAs on the economy of The Gambia. It is hoped that through this partnership, greater technical assistance will be provided to The Gambia to address the supply-side constraints, which affect her ability to expand exports to the EU market.

113. Following the admission of The Gambia to the list of eligible members of the Africa Growth and Opportunity Act (AGOA) last year, a national committee for its implementation has been set up. As previously reported, the main objective of AGOA is to encourage increased trade and investment between the US and Sub-Saharan Africa through the reduction of tariff and non-tariff barriers to trade. The Government is fully committed to exploiting the benefits of AGOA, and this is demonstrated by the series of sensitisation workshops organized by the Government in collaboration with the US Embassy in The Gambia, and UNDP. Our potential, as assessed by the West Africa Trade Hub, lies in seafood products, hand-woven textiles, processed mangoes, horticultural products, cashew and handi-crafts. We urge the private sector businesses to take advantage of these opportunities.

ii. Public Private Partnership

114. In the area of private sector development, Government continues to aim at stimulating growth of the sector, and encouraging increased private sector participation, particularly in industrial production. It is, Government’s conviction that both the public and private sectors share the same objectives of improving the welfare of The Gambian population through the effects of their respective interventions in the efficient utilization and allocation of resources. It is, therefore, important that the public and private sectors maintain collaboration in pursuit of these objectives.

115. It was in the spirit of strengthening this partnership that the Department of State for Trade, Industry and Employment secured funding from the African Capacity Building Foundation (ACBF) to establish the Public, Private Sector and Civil Society Interface Capacity Building Project (GICAP). The objective of the Project is to build capacity for the private sector, civil society and NGOs for effective interface with the public sector.

116. In demonstrating its commitment to the promotion of private investment, especially, in the area of exports, Government, with the support of the International Trade Centre (ITC) in Geneva, has developed an integrated framework designed to promote prospects for exports in the fisheries, horticulture and tourism sub-sectors. To achieve this, plans are far advanced for the development of an Export Development Programme, and it is envisaged that the programme will be completed before the end of the year.

117. Recognising the need to diversify investment promotion, Government, and in collaboration with The Gambia Chamber of Commerce and Industry, organized a trade and investment mission to Atlanta, the United States of America, this year to sensitise Gambians living in the United States about trade and investment opportunities in The Gambia, particularly under AGOA.

118. Also, in order to speedily resolve industrial disputes, the Department of State for Trade, Industry and Employment has recently established two Industrial Tribunals in Banjul and the Kanifing Municipality, and the panellists and chairpersons of both tribunals have already been sworn in. This will ensure fair and speedy dispensation of justice in industrial disputes, which is critical for industrial investment and development.

iii. Small and Medium Scale Enterprise Development

Mr. Speaker,

119. Indigenous Business Advisory Services (IBAS) provides financial and technical assistance to indigenous small and medium scale enterprises. IBAS has received over 1 million Dalasis from the Social Development Fund (SDF) to disburse to 60 women groups. These women groups are currently engaged in horticulture and animal husbandry, and are servicing their loans with monitoring from IBAS. Within the same perspective of enterprise development, IBAS will also finance and guide the forthcoming graduates from institutions, such as the President Award Scheme, Y.M.C.A, and FASE women groups.

iv. Investment in The Gambia

120. The promotion of The Gambia as a stable and lucrative investment destination is well on course, and the Government continues to pursue investment friendly policies. For the past year, The Gambia has attracted a number of Investors in the areas of Agriculture, Tourism, Banking, Processing, Manufacturing and Housing. Seven companies are expected to start operations in 2005, with employment potential of about 1,500 workers.

 

v. Divestiture

121. The pace of implementation of the Government Divesture Programme will now be accelerated in 2005.

122. To bring The Gambia Groundnut Corporation (GGC) to the point of sale, the Gambia Divestiture Agency (GDA) is now securing the services of a Financial Advisor to prepare the relevant sales documentation, and assist the Agency through the sale process. The preparation and audit of accounts, as well as a legal review of the Corporation, and the update of the 2001 Study Reports on the Industrial equipment and facilities, and the River Transport fleet, have been undertaken. The rehabilitation of the GGC barges is continuing and is expected to be complete in January, 2005. The full rehabilitation of the entire barge fleet will enhance overall operational performance, and enhance asset value at divestiture.

123. The Regulation Study, conducted by a Group of Consultants led by the Institute for Public Utilities Regulatory Authority, has now been completed. One outcome of the study is the determination of the need and scope of individual sector studies that are planned for Track I Enterprises. The first is the transport sector review, including, the assessment of options for the divesture of transport sector enterprises (GIA, GCAA, GPA and GPTC). The process of procuring the services of appropriate Consultants for this study has commenced. The study is expected to be complete during 2005.

124. The consultancy for the study of options for the Social Security and Housing Finance Corporation, and funded by the Capacity Building for Economic Management Project (CBEMP), has been undertaken. When finalised, this study will determine the feasibility or otherwise, of opening up the pensions sector to private sector participation, and conditions under which such liberalisation can take place. It will also determine the feasibility and mode of separating housing finance from pension fund administration and management.

125. The tender process for the development of a redundancy and compensation framework for public enterprises has been launched. The study, expected to be concluded in the early part of 2005, will determine ways and means of addressing redundant labour that may result from the divesture of public enterprises.

126. Following the completion of the valuation of the assets of the Gambia Cotton Company Ltd (CAMCOT), the majority shareholder, DAGRIS, with right of first refusal, has been invited for negotiation. These negotiations are currently ongoing.

vi. Regulation

127. The setting up of the Public Utilities Regulatory Authority (PURA) has advanced with the appointment of other key staff and this is to prepare for the operationalisation of the institution by February, 2005. Subsequently, regulated institutions in water, electricity and telecommunication sectors will be charged 1.5% of their turnover as licensing fee to pay towards the operational costs of the PURA. To ensure that operators abide by regulatory guidelines, safeguard standards and protect consumers, certification criteria will be developed for vendors in these areas. Telecom and electricity laws will be enacted to facilitate private sector participation (privatisation) and regulation of these sectors. The PURA will also create a Universal Service Fund to enhance access and expansion of our infrastructure network.

-end.