US AMBASSADOR SEE POSSITIVE TRENDS IN GAMBIA
(By Foday Camara of The Gambia Daily)

US Ambassador Jackson McDonald says in the short time (ten months) since he
arrived in the country, he has “witnessed positive trends in the political
and economic arena that should enhance the investment potential of The
Gambia.”

He opened the one-day US-Gambia Business Forum, held on Tuesday 24
September at the Kairaba Beach Hotel, organized jointly by America’s
Corporate Council on Africa and Sahel Investment Management International
of The Gambia.

The Corporate Council on Africa’s West Africa International Business
Linkages programme (WAIBL), which sponsored the forum, is a USAID-funded
initiative aimed at increasing commercial partnerships between businesses
in The US and West Africa.

Nearly 50 Gambian companies and government agencies turned out to establish
ties and build partnerships with American companies and financial
institutions at the forum.

When Stephen Hayes President of the Corporate Council on Africa – America’s
foremost business association focusing on trade and investment in Africa –
and Abdoulie Touray managing director of Sahel Management International
informed of plans to organize a business forum in The Gambia, he welcomed
the idea.’

RE-ENGAGEMENT

Ambassador McDonald went on to brief his audience, as follows: “On March 5,
2002, the US government lifted longstanding restrictions on bilateral
assistance to The Gambia. After the extra-constitutional change of
government in 1994, the US government suspended much of its bilateral
assistance, as required by US law, specifically Section 508 of the Foreign
Assistance Act.

Then The Gambia held Presidential Elections in October 2002 and Legislative
Elections in January 2002, which observers deemed generally free and fair,
despite some shortcomings.

These successful elections allowed the President of the United States to
report to Congress that a democratically elected government had assumed
office in The Gambia. That brought an end to the sanctions, opening the
door to renewed bilateral assistance effective March 5, 2002. In fact this
conference is one of the first manifestations of our re-engagement.

The lifting of the sanctions allowed the Corporate Council on Africa to
bring the US government-funded programme here to The Gambia.”

While for budgetary reasons USAID is unlikely to reopen an office here,
USAID activities continue to grow, he said.

“The US-Gambian Business Forum is just one example of the ways our two
countries are benefiting from the re-establishment of normal relations.”

The business Forum, he explained, is not primarily a manifestation of US-
Gambia government-to-government relations. “Most importantly, it is a
private sector initiative. It is the single largest demonstration of US
investor interest in The Gambia since 1994.”

“More and more American businesses are looking toward Africa, and I hope
they will recognize the potential benefits of investing in The Gambia,
given its long, well-established liberal economic tradition.

For decades, The Gambia’s government has espoused a liberal economic
tradition. The Gambia boasts a well established free-market tradition, with
a firm commitment to private-sector participation in all sectors of the
economy.”

“The authorities here recognize the potential of the private sector as an
engine of growth and thus maintain very few formal restrictions on private-
sector investment.

Indeed, The Gambia government – on its own and working with the World Bank
and IMF, the US government and other partners – has taken many steps to
improve the investment climate and create opportunities for business people
like you.”

CREDIT RATING

Just this month, he announced, The Gambia became the second country in sub-
Saharan Africa to take advantage of a US government initiative that
encourages African States to obtain a sovereign credit rating in order to
increase transparency and attract foreign direct investment.

An international rating firm, Fitch Ratings, conducted its review last
month and is now preparing The Gambia’s first sovereign credit rating. The
US Department of State is funding the rating process here and in over a
dozen other African countries, he revealed.

“Although the rating has not yet been published, The Gambia government’s
enthusiastic participation in this undertaking demonstrates its commitment
to doing whatever it takes to put The Gambia on a more competitive footing
with regard to foreign investment.

The sovereign credit rating will allow outsiders to compare The Gambia to
other destinations and continue to monitor its progress through an
independent, objective process.”

AGOA

The government of The Gambia has also been working hard to toward
qualifying for the Africa Growth and Opportunity Act, or AGOA. AGOA is a
recent US initiative to provide incentives for foreign companies to invest
in eligible countries in Africa. To be eligible, a country must satisfy a
list of requirements clearly set forth in the law, McDonald explained.

“The first annual eligibility review was in November 2001, when The Gambia
had just completed its presidential election. The country was still in a
period of transition, and the US government had not yet lifted section 508
sanctions. Even so, The Gambia came close to qualifying for AGOA, with room
for improvement in a few key areas.

“We are hopeful that the re-establishment of a democratically-elected
government; the end of section 508 sanctions; continued progress toward
respect for the democratic freedoms, the rule of law, and human dignity;
and positive developments in the market economy will help The Gambia
qualify this year or in the near future.”

TRADE GATEWAY
He continued: “The Gambia is fully committed to attracting and facilitating
investment, and that commitment extends throughout the entire community.
For example, you have heard about the World Bank Trade Gateway project,
which will create export zones at Banjul’s seaport and international
airport.

You have also heard about the Gambia Investment Promotion and Free Zone
Agency and its efforts to create a ‘one-stop shop’ for investors in the
Gambia.

Another welcome development that will facilitate international business is
the introduction of Foreign Currency Accounts, or FCAs. Once the central
Bank promulgated the regulatory framework, Standard Chartered Bank became
the first financial institution to offer FCAs in The Gambia. Other banks
have now followed suit. Available since February, FCAs now allow Gambians
and foreign business people to maintain accounts in US dollars, Euros and
Pound Sterling, ensuring more efficient, flexible and convenient
transactions…”

“In admiring the government and business community’s active efforts to
support and promote business and investment, it is important not to
overlook the underlying fundamental characteristics that make The Gambia a
solid potential partner for American trade and investment.”

“The lively tourist trade takes advantage of many aspects of The Gambia
that will also appeal to investors. One of the best airports in the sub-
region brings tourists to enjoy the mild, sunny dry season and the lush
green of the wet season. While European tourists come for the beaches,
Americans tend to take advantage of our cultural ties to The Gambia, taking
in the Root tour and local flavour.

Historically, The Gambia was a traditional West African trading post, with
foreign businessmen coming here from all over Africa and Europe. Today, the
country maintains its tradition of low import duties, minimal
administrative procedures, and a flexible exchange rate with few exchange
controls. The seaport, like the airport, remains among the best in the sub-
region.

The Gambia is an English speaking country, a fact, which obviously
facilitates contacts between Gambian, and America businesses. One of the
westernmost points on the continent, The Gambia is about as close as you
can get to America and still remain in Africa.

And, thanks to an open skies agreement concluded with the US in the year
2000, The Gambia has direct flights to the US from Banjul’s Yundum
International Airport.”

STABLE AND PREDICTABLE

“Socially and politically, The Gambia lives up to its tourism slogan, ‘Your
Haven in Africa’. A small Christian minority lives in harmony here with the
tolerant Muslim majority. South Asians, Lebanese, Mauritanians, Senegalese,
and Gambians of at least five different ethnic groups co-exist peacefully
here.

In a gesture of national reconciliation, President Jammeh invited former
President Sir Dawda Jawara to return home in December 2001, an invitation
which the former President accepted and took advantage of last June.

Like in all countries, The Gambia’s political and social climate has tense
periods and calm periods, but it is generally one of the most stable and
predictable in the sub-region.

Another indicator of The Gambia’s reliability as an investment partner is
its performance as a regional partner within West Africa. The Gambia
strongly supports regional stability and economic co-operation. It is
active in the Economic Community of West African States or ECOWAS, and
hosts one of the five ECOWAS observatories.

Recently, The Gambia joined with Nigeria, Ghana, Guinea, Liberia, and
Sierra Leone to consider the possibility of a common currency. As of May
2002, The Gambia was the only one of those countries to meet the economic
targets established by this embryonic monetary union.

Last, it might surprise you that one of The Gambia’s greatest assets is its
size. Contrary to conventional wisdom, I think you will find that being in
the smallest country on the continent of Africa represents some unique
advantages: Gambians will warmly welcome you and remember you personally in
future. A relatively small investment in time, effort, and money will go a
long way to benefit you, your Gambian partners, and US-Gambian business
relations.

It is relatively easy to build partnerships and monitor your investments in
this community, which lacks the crime, turmoil, and insecurity of many
larger countries in the region.

Although a small country, The Gambia has large untapped potential for trade
and investment, including in the areas of infrastructure and
transportation, which are the focus of this Business Forum. Thank you all.”

There you have it, ladies and gentlemen.

Have a good day, Gassa.


--
There is a time in the life of every problem when it is big enough to see,
yet small enough to solve (Mike Leavitt)

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