GAMBIA: An Introduction to General Business Law

Doing Business in the Gambia 

The Gambia is one of the smallest countries in West Africa with a population of 2.7 million. The Gambia is ranked 174 out of 191 countries by the UN Human Development Index.

The Gambia’s National Development Plan for 2024 focuses on creating a sustainable, inclusive and resilient growth, prioritising a resilient private sector, enhancing human capital investments and strengthening transparency and accountability in governance.

The Gambia is a great country to invest in. It is one of the most politically stable countries in West Africa and has a visible presence of foreign investors.

The Government is committed to attracting foreign direct investment (FDI) and encouraging local investment by providing incentives to investors who qualify for Special Investment Certificate in order to promote manufacturing and development in The Gambia. This includes income tax holidays for investors who wish to participate in the priority sectors for a period of five years and priority regions for a period of eight  years.

The Gross Domestic Product (GDP) has been on a steady incline over the last two years and is projected to average at 5.4% in 2024 and 2025 by the World Bank.

Current Economic Conditions 

There is a current projected rise in economic growth in the Gambia which has been driven by increased activity across many sectors. The agriculture, transportation, tourism and Information and communication sectors have all seen significant activity since the COVID-19 Pandemic. The increase in private and public sector investment supported by the inflow of overseas remittances are also expected to drive the economic growth in The Gambia.

Although the Country is registering economic growth, the fiscal deficit has remained high and as a result there have been increases in utility tariffs by 18.3 percent approved by the Public Utilities and regulatory Commission, and an increase in custom and excise taxes in order for the country to pay off its deficit. In addition inflation due to the Global Pandemic and the Russia Ukraine Conflict has somewhat caused the erosion of the purchasing power of the Gambia people.

Nonetheless, The Gambia has made great strides in developing the infrastructure of the country. The OIC project was set up with the aim to construct a 22 km road stretching from the Airport Junction to Banjul highway, in addition to 20 new roads that will include drainage, streetlights and pathways. Further, there has been continuous increases to the National power grid in the urban areas.

Trends and Developments 

The Gambia has also seen an increase in mergers and acquisitions especially in the Banking sector with the value of these transactions projected to increase in 2024. The Banking sector in the Gambia has become highly competitive and there has been an increase in the microfinance sector and it is rapidly expanding.

In recent years, the firm has successfully conducted or advised in substantial numbers of the major sales and acquisitions in The Gambia, including foreign/ international companies and investors.

The firm acts as a Trademark and Patent Attorney in The Gambia, Sierra Leone and Liberia, for principals all over the world, including partner law firms that routinely instruct the firm on behalf of their clients on IP.

The Gambia legal system is a tripartite system which includes Common Law, Customary Law and Shariah Law, with the latter two only being applicable to Gambian citizens and/or Muslims.

The firm’s expertise covers all aspects of technology agreements, market entry, collaborative contracts, procurement contracts, investment and management licensing and so on and so forth. The firm has advised and assisted regional and international IT and telecommunication companies on investment and acquisition, policy, law and regulation.

Hurdles Affecting Clients and How They Can Be Overcome

Litigation, although the most common practice area in the jurisdiction is unfortunately a very protracted process.

A positive step has been taken in this direction with the enactment of the Alternative Dispute Resolution (ADR) Rules. Although already a part of the Court, the new rules aim to get all litigants to attempt alternative solutions out of court in order to accelerate the pace at which litigation and disputes are resolved.