The Gambia WT/TPR/S/127
Page 31
III. TRADE POLICIES AND PRACTICES BY MEASURE
(1) INTRODUCTION
1. Since 1986, The Gambia has been implementing reforms that have to a certain extent
liberalized its trade regime.  It has dismantled almost all quantitative restrictions to trade.  Import
prohibitions are maintained only on security, environmental, health, and morality grounds, as well as
under international conventions to which it is a party.  In 2000, the 1998 tariff structure with 30 ratesranging from zero to 90% was replaced with six rates running from zero to 18%. The simple average
of applied MFN tariffs fell from 13.6% to 12.7%; the decline was relatively small because, while all
rates that had been in excess of 18% in 1998 were reduced to 18%, the number of zero-duty lines also
declined from 28% of all tariff lines to 16%.  Under the prevailing tariff structure, the maximal rate of
18% is the modal rate, accounting for 56% of all tariff lines at the HS eight-digit level.  In addition, a1.05% processing fee is collected on all imports and a 0.5% ECOWAS levy is applied on imports of
non-ECOWAS origin.  The Gambia still applies the Brussels Definition of Value for customs
purposes.
2. The main internal taxes that apply to imports are the sales tax, and the excise tax.  The latter
applies at varying rates to selected goods, and to imports of fruit juice and soft drinks.  The sales taxapplies to virtually all goods and services, typically at a rate of 10%.  The tax has a discriminatory
effect against imports of food and drink, which are subject to the standard rate, whereas locally
produced food and drink are exempted.  Revenue from taxes and duties on international trade
accounted for 53.4% of total public revenue in 2001.  A 10% export tax is levied on all items, with the
exception of diamonds, which are subject to a rate of 3%;  exports of fish, fish products and
groundnuts, and all exports to the European Union, are exempted.
3. The Gambia provides incentives to promote certain activities and exports, mainly in the form
of exemptions or reductions of customs duties and internal taxes.  The objectives of these incentives
may not be consistent with the overall structure of The Gambia's applied tariffs. The provisions of the
existing customs legislation allow for a wide degree of discretion in the granting of duty exemptions,
which undermines the transparency of the tariff structure, may be conducive to rent-seeking, and
hampers the Government's ambition, evidenced by the passing of investment promotion and free-zone
legislation in 2001, to make its incentives structure more streamlined and transparent.  Total
exemptions amounted to nearly 16% of the value of merchandise imports in 2002;  just 20% of the
total value of exemptions were granted under th e provisions of the Investment Promotion Act.
4. The Gambia implemented a programme of reform and divestiture of state-owned enterprises,
under which 60% of state-owned enterprises were sold between 1986 and 1994.  After a hiatusfollowing the coup in 1994, the Government initia ted, in 2001,  a two-track approach concerning 16
state-owned enterprises:  one track consists of enterprises - mainly utilities – that are in need of
substantial reform, and the privatization of which would require a substantial improvement in
regulatory capacity.  The second track consists of state-owned enterprises that can be divested without
the need for major regulatory or legislative changes.  No substantive progress has been made underthe privatization framework since 2001.  The Government plans to adopt legislation establishing a
competition policy, and to establish a multi-sector regulatory authority to regulate privatized utilities.
5. The Gambia has not enacted any national standards.  Sanitary and phytosanitary standards are
governed through a number of disparate pieces of legislation, complicating enforcement and policy-
making.  The Gambia has no legislation relating to contingency trade remedies.  Legislation regarding
the protection of intellectual property is underdeveloped.  Protection of industrial property is effectedWT/TPR/S/127 Trade Policy Review
Page 32
primarily through The Gambia's membership of the African Regional Industrial Property
Organization.  New legislation concerning government procurement was adopted in 2001.
(2) MEASURES DIRECTLY AFFECTING IMPORTS
(i) Registration and documentation
6. All importers must be registered as businesspeople under the provisions of the Business
Registration Act (Chapter II(4)).  They must also obtain a tax identification number (TIN), issued by
DOSFEA, which must appear on all customs declarations.  According to the authorities, the process
of obtaining a TIN takes no more than 24 hours if all documentation is in order. Importers may, if
they so wish, choose to use forwarding agents. There are at present no regulations governing the
activities of forwarding agents .
7. Documentation requirements have been somewhat simplified through the introduction of a
single administrative document (SAD), to be used for all operations involving customs.  The SAD
replaces the multiple forms required by the Customs and Excise Act of 1955, and is obtained from the
customs administration at a cost of D70.  Importers are required to provide in the SAD a description
of the good imported and its value.  An arrival notice and a bill of lading or airway bill must also be
provided, as well as a written statement in which the supplier declares the invoice to be correct and tocontain a true and full statement of the price paid for the good, and states that no understanding
affecting the price, other than specifically i ndicated on the invoice, was concluded between the
supplier and the importer
8. Goods intended for trans-shipment  and transit require, in additi on to the SAD,  a bill of entry
to be submitted in quintuplicate, which specifies, inter alia , the route to be followed, the nature of the
goods and their mode of conveyance, and a manifest, to be submitted in duplicate.  A bond, equivalent
to the duties payable on the goods in transit, must be deposited with the customs authorities.  Thebond may be recovered when proof is supplied to the authorities (within 30 days, in principle) that the
trans-shipped goods have reached their final de stination outside The Gambia.  A trader may not
undertake a new trans-shipment until the previous one has been completed.
(ii) Customs procedures
9. The Department of State for Finance and Economic Affairs is responsible for customs
administration.  It is expected that from mid 2004, customs administration will be taken over by an
independent revenue authority to be established.  The main customs offices are computerized, using
ASYCUDA (version 2.7).
10. Preshipment inspection, required in 1999 and 2000, is no longer compulsory.  On arrival,
goods are cleared through customs once documentation requirements (see above) have been met.  Theaverage length of time required for clearance is 3-4 hours.   Goods in transit need to be stored in a
warehouse
1; the process of storing needs to be supervised by a customs officer.
11. Customs duties are paid on the c.i.f. value of imports.  The Gambia  uses the Brussels
Definition of Value for valuation purposes.  The Customs Tariff Act defines value as the price
imported goods would fetch on sale in the open market in The Gambia at the time of importation.  Inpractice, the customs authorities systematically compare the value of goods stated in the SAD,
invoice, and packing list, to a computerized list of "indicative" (i.e. reference) values.  The higher of
                                                     
1 For a building or place to be used as a warehouse, the keeper of the warehouse must pay a bond to the
Director-General of Customs, and a licence fee of D300 per annum.The Gambia WT/TPR/S/127
Page 33
the reference value or the declared value is systematically selected.   The implementation of
WTO-consistent valuation methods is among The Gambia's capacity-building needs (Chapter II(6)(i)).
12. Appeals against or complaints about a decision taken by the customs authority is to be made
in the first instance to the Director-General of Customs.  If satisfaction is not obtained, a further
appeal or complaint may be made to the Secretary of State for Finance and Economic Affairs.  The
cases are generally related to the customs value.
13. The Gambia is a member of the World Customs Organization.
(iii) Tariffs, other duties, and charges
14. The Gambia's tariff policy has primarily been the responsibility of the Department of State for
Finance and Economic Affairs (DOSFE A), which is authorized to set and modify tariff rates at any
point in the financial year.  The Department of State for Trade, Industry and Employment also plays arole, albeit secondary, in the setting of tariff  policy (Chapter II(2)).  The Gambia adopted the
Harmonized System in July 1993;  its tariff consists of 5,025 lines at the HS eight-digit level.  All
duties are ad valorem , apart from duties on fuel, which are specific.  There are no seasonal tariffs.
15. Besides customs tariffs, other duties and taxes (a processing fee, the ECOWAS levy, a sales
tax and excise duties) may apply to imports, depending on the case. The share of taxes oninternational trade in total domestic revenue was 53.4% in 2001, compared with 63.4% in fiscal year
1995/96.  If only revenue from customs duties are considered, the respective shares were 38.3% and
41.2%.
(a) MFN tariff structure
16. The Gambia implemented tariff reforms between 1998 and 2000: its tariff structure changed
from 30 bands ranging from 0% to 90%, to six rates running from 0% to 18%.  Rates that had been in
excess of 18% (representing some 49% of tariff lines) were lowered to 18%; at the same time, anumber of zero rates were raised to 10%, with the effect that the number of duty free lines fell from
approximately 28% of all tariff lines to just under 16% (Table III.1).  The simple average tariff rate is
12.7%, down from 13.6% prior to the reforms.  The coefficient of variation of 0.53 indicates a
relatively moderate dispersion. The modal rate of 18% (56% of all tariff lines) is applied to almost all
agricultural and food products, plastics, certain types of rubber products,  leather and leather products,products made of wood pulp and paper (though not books), certain types of textiles (man-made
fabrics, carpets, and woven fabrics), clothing products, footwear, tools made of metal, certain types of
machinery and electrical equipment, motor vehicles, most scientific and medical equipment, clocks
and watches, arms and ammunition, and toys.
Table III.1
Structure of MFN tariffs in The Gambia, 2003
(Per cent)
2003 U.R.
1.  Bound tariff lines (% of all tariff lines) 13.7 13.7
2.  Duty-free tariff lines (% of all tariff lines) 15.5 0.0
3.  Non- ad valorem  tariffs (% of all tariff lines) 0.4 0.0
4.  Tariff quotas (% of all tariff lines) 0.0 0.0
5.  Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 0.4 0.0
6.  Simple average tariff rate 12.7 102.0
Agricultural products (HS01-24) 16.0 110.0
Table III.1 (con'td)WT/TPR/S/127 Trade Policy Review
Page 34
2003 U.R.
Non-agricutural products (HS25-97) 12.2 52.4
Agricultural products (WTO definition)a15.3 103.6
Non-agricultural products (WTO definition)b12.3 58.3
7  Domestic tariff "spikes" (% of all tariff lines)c0.0 0.0
8.  International tariff "spikes" (% of all tariff lines)d55.6 100.0
9.  Overall standard deviation of applied rates 6.7 22.8
10.  "Nuisance" applied rates (% of all tariff lines)e0.0 0.0
a WTO Agreement on Agriculture.
b Exclude petroleum.c Domestic tariff spikes are defined as those exceeding three times the overall simple average applied rate (indicator 6).
d International tariff peaks are defined as those exceeding 15%.
e Nuisance rates are those greater than zero, but less than or equal to 2%.
Source: WTO Secretariat calculations, based on data provided by The Gambian authorities.
17. Nearly a quarter of all tariff lines are subjected to a rate of 10%.  This rate applies to certain
ores and chemicals, wood and most articles of wood, certain textiles (notably wool, cotton, and woven
fabrics of cotton), certain articles of stone, glass and glassware, and almost all base metals and articles
of metal.  The zero rate is applied mainly to inorganic chemicals, certain mineral fuels and bituminous
substances,  fertilizers, most machinery and mechanical appliances.  The rate of 5% applies almostentirely to products that had previously entered duty free, such as live animals, dairy products, certain
minerals, and certain types of metal.
18. Agriculture (ISIC
2, Division 1, Rev. 2) is the most protected sector, with an average tariff rate
of 14.4%.  The sector has the highest proportion of tariff lines subject to the maximum rate of 18%
(Chart III.1), which is applied, inter alia , to meat products, fish and fish products, cereals, vegetables,
fruit, and nuts.  This comparatively high level of protection is attributable in part to the Government's
intention to stimulate domestic agricultural production.  It may also be a source of anti-export bias for
potential downstream producers of processed products.  Mining and quarrying is the least protected
sector, with an average tariff of 7.7%;  the average tariff for manufactures is 12.8%.  The mean tariff
using the WTO definition, is 15.3% for agriculture, and 12.3% for non-agricultural products.
19. The breakdown of tariff lines at the two-digit level reveals the overall pattern of escalation to
be mixed (Chart III.2).  Tariff escalation is negative from the first stage of processing to the second
stage, with a mean tariff of 12.8% for the former and 11.3% for the latter; while escalation from the
second stage of processing to the final stage is positive, the mean tariff passing from 11.3% to 13.6%.
This pattern is broadly reflective of that observed for textiles, wearing apparel and leather; chemicals,
petroleum, coal, rubber and plastics; and other non-metallic mineral products.  Escalation is negative
in paper, printing and publishing, and "other" manufacturing industries; while it is positive for themanufacture of food, beverages, and tobacco; for wood and wood products, and basic metal
industries.  With the exception of these last three groups of activities and setting aside tariff
concessions and other incentives that may be provided, the overall tariff structure is biased against
investment in manufacturing of semi-finished products.  This therefore limits the diversification of
The Gambia's export base.
                                                     
2 International Standard Industrial Classification (ISIC).The Gambia WT/TPR/S/127
Page 35
20. During the Uruguay Round, The Gambia bound tariffs on a limited number of non-
agricultural products. The bound rates range from 30% on passenger service vehicles, to 40% on
diamonds and certain other precious stones, and 80% on private motor vehicles.  Tariffs on all
agricultural products were bound at a ceiling rate of 110%, with the exception of certain products for
which rates were bound at a lower level.  These include certain acylic alcohols (20%), hides and skins(20%), and certain raw fabrics (cotton, silk, flax, and hemp) on which the bound rates vary from 25%
to 40%.  The Gambia did not make any tariff concessions prior to the Uruguay Round.
21. The Gambia's participation in the creation of an ECOWAS customs union is likely to generate
pressure for a further restructuring of its tariff, which would need to be aligned on the common
external tariff negotiated between the members.  This would involve a change in rates, including anincrease in the top rate from 18% to 20%, as well as their coverage.
22. Specific duties applying to petroleum imports are D63 per litre for kerosene, D2.35 per litre
for gasoil, and D4.101 per litre for petrol.15.5
15.9
13.5
9.53.8
2.743.3
8.124.4
25.133.7
9.90.3
0.3
0.0
0.00.1
0.1
0.0
0.755.5
55.6
9.671.4
01020304050607080
All products
Manufacturing
Mining
Agriculture
D u t y  f r e e 5 1 01 41 61 8Chart III.1
MFN tariff distribution by sector (ISIC1 definitions)a, 2003
Number of lines
a
Source:Labels are share by sector. Due to non- ad valorem  duties, they may not sum to 100%.
WTO Secretariat calculations, based on data provided b y The Gambian authorities.WT/TPR/S/127 Trade Policy Review
Page 36
0.05.010.015.020.025.0Chart III.2
Tariff escalation by ISIC 2-digit, 2003
Per cent
Source : WTO Secretariat estimates, based on data provided b y The Gambian authorities.
Raw materials Semi-processed Fully processed
(b) Other duties and taxes
23. A 1.05%  processing fee is applied to all imports, and a 0.5% ECOWAS levy is applied on
imports originating in non-ECOWAS countries.  The fee and the levy apply to the customs value.
24. The main internal tax applying to imported goods is the sales tax, which is imposed on
virtually all goods and services.  The standard rate is 10%, while telecommunication services
provided by GAMTEL are subject to a rate of 15%. The tax is levied on the c.i.f. price of imports plus
customs duties;  it is applied on the sale prices of locally produced goods.  The tax discriminates
against imports of foods and drinks, which are subject to the standard rate, whereas locally produced
food and drink are exempt.  Other exempted goods ar e medicines, butane gas and gas cookers, school
textbooks, feeds for animals, and imported day-old chicks. Some products are exempted depending on
their end use, such as production equipment (other than office equipment, motor vehicles, and electricgenerators), and semi-finished products that are deemed by the authorities to be used to produce non-
industrial processed food or drink, and feed for animals. There exists no procedure to verify that
goods are put to the stated end use.
25. An excise tax applies to selected goods mainly  (according to the authorities) to compensate
for revenue lost through the reduction of tariffs on certain consumption and "luxury goods".  The taxis charged at specific rates for cigarettes (D50 per kg.), spirits (D50 per litre), wine (D25 per litre),
beer (D20 per litre), imported fruit juice and soft drin ks (D5 per litre).  Canned goods are subject to a
rate of 5%.  An environmental tax of D1,000 is applied on second-hand vehicles.
26. The Gambia has bound other duties and charges (on products subject to tariff binding) at
10%.The Gambia WT/TPR/S/127
Page 37
(c) Duty and tax concessions
27. Duty and tax concessions on imports are provided through the Customs and Excise Act (and
corresponding regulations), the Customs Tariff Act, the Investment Promotion Act, and the Free
Zones Act (for concessions offered through the last two instruments, see sections (4)(i) and (3)(v)).
Although the Customs Tariff Act provides for a duty drawback scheme,  no such scheme is at present
implemented.
28. The Customs and Excise Act provides the Secretary of State for Finance and Economic
Affairs considerable discretion in the granting of customs duty exemptions.  The only specific
criterion is that the Secretary of State consider the granting of the exemption to be "just and
equitable".  Applications for exemptions or reductions  are made in the first instance to the Director-
General of Customs.  A direct delivery system is in operation under which goods can be clearedthrough customs, pending the granting of a formal approval.
29. The authorities acknowledge that the value of approved waivers is difficult to track.  Records
for the years 1999-02 suggest that the annual total value of waivers amounted to D188 million,
D239.63 million, D85.3 million, and D349.2 million
3 (equivalent, respectively to 15.3%, 17.01%,
6.2%, and 16.7% of imports).  The habitually high total value of waivers granted, lapses in recordingprocedures, and the degree of discretion available for the granting of customs duty exemptions or
reductions are liable to compromise the transparency and predictability of The Gambia's tariff regime.
Such discretion is also at odds with the Government's attempts to streamline its incentives system, as
evidenced by the adoption of the Investment Promoti on Act.  Furthermore, the direct delivery system
complicates fiscal management, as various difficulties may prevent the recuperation of tariff revenues
owed on goods cleared but for which a waiver was not finally granted.
(d) Tariff preferences
30. The Gambia does not at present grant tariff preferences to any of its trading partners.
(iv) Rules of origin
31. The ECOWAS Treaty provides for rules of origin for tariff preference purposes
(Chapter II(5)(ii)(b) and Chapter III(2)(iii)(d)).  The Gambia does not have any rules of origin for
non-preferential purposes.
(v) Import prohibitions, controls, and licensing
32. Import prohibitions apply to: counterfeit or non-standard coins or currency notes,  indecent
articles and pornography, firearms that are not properly licensed, narcotic drugs, handcuffs, rough or
uncut diamonds, certain types of noxious gases,  and books, newspapers or any other matter
whatsoever which, in the opinion of the Director-General (subject to direction from the Secretary ofState for Finance and Economic Affairs), are deemed seditious, scandalizing or demoralizing.  The
Gambia's application of the Convention on International Trade in Endangered Species of Wild Fauna
and Flora (CITES) has led it to prohibit imports of ivory and articles of ivory, wild animal skins,
including snake skins, and articles made from them, and shells.
33. Licences are required for the importation of:  firearms and ammunition, live birds, and key-
making machines.  Import controls apply to products containing CFCs, which must be screened by the
National Environmental Agency.
                                                     
3 This figure includes roughly D70 million in exemptions granted under the Investment Promotion Act.WT/TPR/S/127 Trade Policy Review
Page 38
(vi) Anti-dumping, countervailing, and safeguard measures
34. As of September 2003, The Gambia does not have legislation on contingency trade remedies,
and has not taken action in this area.
(vii) Standards and other technical requirements
(a) Standards, testing, and certification
35. The Standards and Consumer Protection Bureau (SCPB), which is under the authority of
DOSTIE, is responsible for standardization, legal metrology, and consumer protection.  The SCPB is
entirely financed through government subventions. At present, the only areas that is subject to formal
legislation and enforcement is that of legal metrology and labelling for the purposes of consumer
protection (section (c) below), under the provisions  of the Weights and Measures Act of 1979.  No
domestic standards have been set to date, nor have any international standards been adopteddomestically.  The Gambia has not concluded any mutual recognition agreements.  The authorities
recognize that the lack of domestic standards (aside from SPS standards), impedes their ability to
respond to domestic concerns regarding consumer safety in a predictable manner, and would also
constrain The Gambia’s ability to  develop a competitive export sector based on diversification into
processed products.   A draft Standards and Co nsumer Protection Act is being prepared, aimed
amongst other things at establishing the SCPB as a separate legal entity with the mandate of
developing domestic standards.  Significant capacity-building needs have to be addressed for new
legislation to make a practical difference (Chapter II(6)).
(b) Sanitary and phytosanitary requirements
36. Sanitary and phytosanitary requirements are governed by various pieces of legislation, and
fall under the purview of a number of institutions.  This dispersion has rendered policy-making and
enforcement difficult.
37. Trade in foodstuffs, whether plant or animal, is subject to the provisions of the Public Health
Act of 1990, under which all imports of foodstuffs must be presented to the Department of State for
Health (DOSH) for inspection.  Other agencies, such as the National Nutrition Agency, are also
required to monitor and supervise imports of foodstuffs.  Under the Act, before any foodstuff is
allowed into the country, the whole consignment must  be examined by an official of the DOSH, and a
sample analysed by laboratory.  Laboratory fees  are payable by the importer.  Non-compliance is
subjected to a fine of D5000 and/or a prison sentence of up to six months. The Act does not reflect the
standards set out either in the Codex Alimentarius or by the Organisation Internationale des
Epizooties.
4  Trade in fish and fisheries products is subject to specific regulations under the Fisheries
Act of 1991 and the Fisheries Regulations of 1995, which allow the Director of Fisheries to make thesale of oysters and shellfish conditional on following established procedures for depuration,
purification, and detoxification (Chapter IV(2)(iii)(c)).
38. The issue of chemical and pesticide residues in food products and their impact on human
health is addressed by the Hazardous Chemicals and Pesticides Control and Management Act.  The
act also addresses the importation of chemical products and pesticides generally.  Under the Act, theGovernment is empowered to, inter alia , establish maximal residue limits of pesticides in food
products.
                                                     
4 See FAO (2002).The Gambia WT/TPR/S/127
Page 39
39. New legislation on food imports (a new Food Act), is under preparation, and the creation of a
Food Control Board is envisioned to coordinate the administration and implementation of the act.
Once adopted, the act will address some of the lacunae of the Public Health Act, and reduce the level
of fragmentation in policy-making and implementation in the area.  Imports of foodstuffs will be
subject to certificates from the suppliers certifying that the products respect any standard or code of
practice applicable to them, or, in the absence of such a standard or code, that they respect anyinternational standard laid down under the dire ctive of the Codex Alimentarius Commission.  The
suppliers must also demonstrate that the products would not have contravened the law in the country
of origin.  The food is not to be released to the importer except on the production of an analysis report
certifying that the product satisfies the provisions of the act.  The cost of inspection will be borne by
the importer.
40. Animal health is addressed through the Diseases of Animals Act of 1965 and the Livestock
Act, which  grant veterinary inspectors the power to  inspect animals, to restrict slaughter for the
purpose of preventing diseases, and to ascertain whether animals are suffering from diseases, and if so
what measures should be taken.  Neither of the acts contains provisions relating to quarantine.  Some
provisions of the Diseases of Animals Act, in relation to inspection, overlap with those of the PublicHealth Act, and this lack of clarity hinders enforcement.
41. Phytosanitary matters are addressed primarily by the Plant Importation and Regulation Act of
1936, and the Prevention of Damage by Pests Act of 1962. Under these acts, the Department of State
for Agriculture is mandated to monitor and supervise imports of plants and plant materials. The
Department of State for Agriculture carries out sample tests to verify that the imports are free from
infestation, before issuing a phytosanitary certificate for exports or a  certificate of clearance for
imports, the latter being required to demonstrate that the products being imported are free frominfection and damage, and therefore fit for clearance.  Inspection fees depend on the type and quantity
imported and the type of analysis to be performed;  fees range from D10 to D500 per consignment.  A
further D50 is charged for the issuance of an im port permit. Fumigation of infested consignments is
charged at D100 per tonne.  Fines for non-comp liance vary between D1,000 and D2,000 under the
Plant Importation and Regulation Act, and between £100 and £200 under the Prevention of Damageby Pests Act.
42. A Plant Protection and Phytosanitary Unit is being established to conduct pesticides residue
analysis.  The Government is currently considering a draft Plant Quarantine Act, the provisions of
which would conform to the requirements of the International Plant Protection  Convention (IPPC).
Under the draft act, the Secretary of State for Agriculture has the mandate to require that theimportation of certain plants or plant material be contingent on the provision of a phytosanitary
certificate, issued by the exporting country based on the model of the IPPC.
(c) Marking, labelling, and packaging
43. Food imported in bags and packages must be clearly labelled, indicating, amongst other
things, the name and nature of the product, the list of ingredients, its net weight, the name and addressof the manufacturer, the country of origin, and th e date of production and expiry.  The Hazardous
Chemicals and Pesticides Control and Management Act requires that imported pesticides and
chemicals bear labels providing product information, procedures to be followed for the correct
handling and disposal of the product, and information on the steps to be taken in case of inhalation or
ingestion.
44. Guidelines on the quality control requirements of import and export of food commodities
were drafted in 2002, but have not yet been implemented.  The main objective of the guidelines is toWT/TPR/S/127 Trade Policy Review
Page 40
set out labelling requirements.  In principle, once the guidelines are implemented, no food products
may be imported or exported without a certificate showing conformity.
(viii) Government procurement
45. In a bid to improve the transparency of its pr ocurement regime, and to increase competition
between suppliers of goods and services to the Government, The Gambia adopted a Government
Procurement Act in 2001.  The Act established a Government Procurement Authority (GPA), anautonomous government agency.  Its board, appointed by the President, is mandated to regulate and
monitor all aspects of procurement involving "pro curement organizations" (Departments of State,
government agencies or bodies, statutory bodies, local government authorities, public enterprises, and
any other unit of government).
46. Every procurement organization is required to establish a contracts committee responsible for
approving the invitation to bid, conducting the opening of bids, and submitting recommendations
based on its evaluation of the bid to the Secretary of  State concerned (or the head of the procurement
organization).  The contracts committees are constituted on the basis of guidelines set out by the GPA,
and are required to report on a monthly basis to the GPA, which itself reports to the Cabinet.  The
approval of the GPA is required at every stage of procurement proceedings – including tendering,
request for proposals, award of contracts, and direct procurement - for any contract above a value of
D3,500 for goods and services or D10,000 for works.  The Act allows for a modification of the
application of its procedures in cases where the Secretary of State for Defence, on approval of the
Secretary of State for Finance and Economic Affairs, determines that a procurement is related to
national security or national defence.  The Act also states that where its provisions conflict with the
rules of a donor or a funding agency, and the application of those rules is mandatory pursuant to an
obligation entered into by the Government, the rules of the donor or funding agency will prevail.
47. The Act allows for several different tendering methods.  It requires that, as the norm,
procurement be carried out through open tender proceedings.  Requests for bids are communicated
through the media;  time-frames for responses vary according to the case. Tenders are opened in
public, and the name of each bidder and tender prices submitted are communicated to all present, and
on request to any bidder not present at the opening. Restricted tendering is allowed when the goods,works or services to be procured are only available from a limited number of suppliers known to the
procuring organization, and when the time and cost of considering a large number of bids are
disproportionate to the value of the procurement.   The procuring organization determines whether to
resort to restricted tendering, if the two tests are met. "Two-stage" tendering is allowed when the
procuring organization needs to consider and negotiate various technical and contractual solutionswith bidders before deciding on the final specifications and terms of the bid.  Subject to the approval
of the GPA, single tendering is allowed only if the estimated value of the contract is lower than
D3,500 for goods and services, and 10,000 for works; when only one supplier is technically capable
of fulfilling the contract; in cases of emergency; and when procurement from the same source is
required for reasons of standardization.  Pre-qualification is allowed in the case of contracts for largeand complex works, custom-designed equipment, industrial plants, specialized services, and contracts
to be let under turnkey, and design and building or management contracting.  Pre-qualification may be
used under any of the tendering methods.
48. The Act does not explicitly provide for any preference for local suppliers in awarding a
contract.  It requires bids to be opened to international tendering when the estimated value of the
contract exceeds an amount set by the authorities
5; when the goods, works, or services are not
                                                     
5 The current threshold amount used was not provided by the authorities.The Gambia WT/TPR/S/127
Page 41
available at competitive prices and conditions from at least three suppliers in The Gambia; or when a
supplier was not found by tendering at the national level.
49. Decisions to award contracts are made by the relevant Secretary of State (or the head of the
organization), subject to approval by the Secretary of State for Finance and Economic Affairs.  The
Act provides for an appeals procedure for any bidder who claims to have suffered, or is likely to
suffer, loss or injury due to a breach of duty imposed by the Act on a procuring organization. Prior tothe entry into force of the procurement contract, ap plications for review must be made in the first
instance to the head of the procuring organization, and within ten working days of when the
complaining bidder became aware of the breach or should have become aware of the breach.  The
head of the procuring organization is then required to render a decision within ten working days.  The
complaining bidder has the right to lodge a further appeal with the GPA, within ten days of the
procuring organization's decision.  Applications for review after procurement has come into force are
to be submitted directly to the GPA.  The submission of any application for review has the effect of
suspending procurement proceedings for ten working days (this period can be extended for up to 30
working days on decision of the procuring organization or the GPA), unless the procuring
organization certifies that the public interest requires procurement to proceed.  Remedies available tothe GPA in dealing with complaints are: prohibiting the procuring organization from acting on its
decision; annulling in whole or in part any unautho rized act or decision of a procuring organization;
reversing a decision of the procuring organization, or substituting the GPA's own decision for a
decision taken by the procuring organization; and payment to the complainant of reasonable costs
incurred in participating in the bidding process.
50. The value of procurement contracts awarded in 2002 amounted to €13.3 million.
(ix) Local-content requirements
51. When awarding a certificate of special investment (for incentives purposes) under the
Investment Promotion Act of 2001, one of the factors taken into account by the Gambia Investment
Promotion and  Free Zones Agency (GIPFZA) is the extent to which the applicant would use local
raw materials, supplies, and services (sections (3)(v) and (4)(i)).  However, no formal quantitative
benchmark is used, and investors may still be granted a special certificate of investment if they aredeemed to have satisfied some of the other re quirements set out in the Act (see Chapter II(4)).
(x) Other measures
52. The Gambia does not apply any sanctions apart from those adopted by the United Nations
Security Council. It does not maintain any compulsory reserve stocks.
53. No official countertrade or offsetting arrangements, or agreements designed to influence the
quantity or value of goods and services exported to The Gambia are currently in force.  Likewise, the
authorities are not aware of the existence of such agreements between Gambian and foreign
companies.  The Gambia has not taken any measures for balance-of-payment purposes.
(3) M
EASURES DIRECTLY AFFECTING EXPORTS
(i) Registration and documentation
54. No special registration or documentation procedures exist for exporters, apart from exporters
of precious stones, who require a licence.  There are no surrender requirements in place.WT/TPR/S/127 Trade Policy Review
Page 42
(ii) Export taxes
55. A 10% export duty is levied on all items, except diamonds, which are taxed at 3%;  exports of
fish, fish products, groundnuts and their by-products, and all exports to the European Union are
exempted.
(iii) Export prohibitions and controls
56. Export prohibitions, controls, and limitations are decided by the President. The current list is
identical to the list of prohibited or restricted imports.
(iv) Export subsidies, finance, and assistance
57. The main instruments of export promotion are the Customs and Excise Act (and
corresponding regulations), the Customs Tariff Act, the Investment Promotion Act, and the Free
Zones Act.   Incentives take the form of exemptions or reductions in duties and taxes.
58. Incentives provided under the Investment Promotion Act are described in section 4(i) below.
Under the provisions of the Act, one of the criteri a to be taken into account by GIPFZA in awarding
certificates of special investment is the potential for export earnings.  However, there is no explicit
requirement that a firm export a certain percentage of its production in order to benefit from
incentives.  This is in contrast with the older Development Act of 1988, under which beneficiaries ofincentives were required to export at least 50% of their output.
59. The Government does not provide or participate in export financing.  It does not maintain any
scheme to provide compensation for political risk. The Government provides some financial support
for the participation of Gambian businessmen in trade fairs, by covering the costs of setting up stands
and providing a daily subsistence allowance.  It also plans to organize trade fairs in The Gambia in
collaboration with The Gambia Chamber of Commerce.
(v) Free zones
60. Incentives provided to operators in The Gambia's free zones are those specified by the Free
Zones Act and the related regulations:
− exemption from all taxes and customs duties payable on all imports provided that the
imports are used or to be used exclusively within the zone
6;
− exemption of customs and excise duties and sales tax on goods produced within or
imported into any of the zones, unless the goods are entered for consumption into the
national customs territory;
− exemption of import duties on capital equipment;
− full exemption of corporate tax or income tax for the first ten years from the date of
approval of licence in the case of trading activities in the zones.  Following the tenyear period, the tax is pegged at a rate not exceeding 6% per annum;
− for activities related to tourism, corporate tax or income tax is charged at the rate of
10% for the first 20 years, thereafter at the normal rate;
− full withholding of corporate or income tax on dividends and other payments during
the period of tax holiday;
                                                     
6 Where import duties or sales tax have been paid by a zone investor upon importation of any goods
into the customs territory, no refund shall be allowed me rely because the goods are to be later transferred into
any of the free zones.The Gambia WT/TPR/S/127
Page 43
− exemption from payment of municipal taxes;  and
− zone investors shall also be exempted from payroll tax or other restrictions or
prohibitions on import or export trade, with the exception of trade in firearms,
military or other illegal goods.
61. Free zone enterprises are required to export a substantial proportion of their production;  the
Government is currently using an indicative benchmark of 70%.  The remaining 30% may be sold
within The Gambia's customs territory, in which case it is subject to duties and charges normallyapplicable to imports.
62. As at end 2003, two investors had been granted zone enterprise licences, and one investor had
been granted a zone developer licence.  These enterprises were in the process of commencing
activities.  No exports from the zone have been made to date.  It is estimated that about 1,000 jobs will
be directly created from 20 free-zone firms within five years of the free zone's establishment, and thatanother 3,000 jobs will be created indirectly through linkages with firms operating in the vicinity of
the free zone.  The Government has not to date taken any concrete policy measures to strengthen the
linkages between the free zones and the rest of the Gambian economy.
(4) M
EASURES AFFECTING PRODUCTION AND TRADE
(i) Incentives
63. Under the Investment Promotion Act of 2 001, the following incentives are granted to
investors applying for special investor status (Chapter II(4)):
− exemption from withholding tax and tax on dividends;
− exemption from customs duties on approved capital equipment, machinery,
appliances, furniture and fittings imported for use by the project or business, and onapproved quantities of semi-finished produc ts, spare parts, raw materials, and other
supplies to be used in the production process;
− exemption from sales tax on the above-mentioned imported goods;
− exemption from turnover tax;
− assistance in the allocation of land for the site of the proposed investment;
− accelerated depreciation allowance for the first ten years. Buildings are depreciated
10% annually, while plant and fittings are depreciated 20% annually.  Other facilitieswill be depreciated 20% annually.
64. Amongst the criteria that The Gambia Investment Promotion and Free Zones Agency is
required to take into account in granting incentives are: the capacity of the business underconsideration to contribute to the generation of new earnings or savings of foreign exchange through
increased exports; import substitution;  and the level of local content (materials or services) of the
goods to be produced or of the services to be supplied.
65. The current tariff structure applied by The Gambia makes the twin objectives of the
investment incentives, i.e. promoting the use of local primary products and promoting processed
exports, mutually incompatible in industries where tariff escalation is negative.  Indeed, in these
industries, the highest level of tariff protection conferred on raw materials introduces an anti-exportbias for processed products, by reducing their competiveness on world markets.  That bias can be
corrected by providing duty exemptions, as done th rough the Investment Promotion Act, on imported
inputs, to allow exporters of processed products to have access to inputs at world prices.  But this inWT/TPR/S/127 Trade Policy Review
Page 44
turn implies that producers of processed products will not use local raw materials, which are currently
produced at above-world market prices.
66. Duty exemptions granted under the Investment Promotion Act amounted to approximately
D70 million in 2002, or 20% of all exemptions granted in 2002.
67. Specific incentives are provided under the Petroleum Act for holders of a petroleum
production licence (see Chapter IV(3)(i)).
(ii) State enterprises and privatization
68. The Gambia's reform of state enterprises has been in two phases: 1986-94, and from 2001
onwards.  The first phase was launched under its Economic Reform Programme  (1986-94).  The twin
aims were to reduce state involvement in production activities, and the fiscal burden on the
Government incurred by state enterprises.  Twelve  state enterprises (approximately 60% of the total,
were either partially or fully privatized using a variety of methods.  Two were liquidated, and three
were the object of lease contracts signed by the Government of The Gambia with either local or
foreign investors (Tables III.2 and III.3).
Table III.2
Completed privatization, as at October 2003
Enterprise Sector State-owned shares Mode of privatizationPrivatization proceeds to
Government(D million)
Standard Chartered
BankCommercial bank 15% Public subscription 3.24
Compagnie
Française del'Afrique Occidentale
(CFAO)Supermarket 21% Public subscription .91
Gambia National
Insurance Company
(GNIC)Insurance 100% Combination of public tender
(51%); public subscription(34%); employee share
ownership  plan (15%)3
Gambia National
Trading Company
(NTC)Wholesale and retail 100% Combination of public
subscription and employee share
ownership plan.13.75
Sunwing Hotel Hotel 33.3% Sold to foreign investor 6.75
Atlantic Hotel Hotel 100% Leased to foreign hotelieraAnnual lease payment of
£450,000 linked to inflation
Nyambai Sawmill
GovernmentDepartmentTimber processing Annual government
subvention ofD200,000Public tender 1.2
Livestock Marketing
BoardAbattoir operations
and meat marketingD400,000 Public tender 1.3
Gambia National
Tours CompanyTour operator D100,000 Public tender; management and
employee buyout862
Gambia Airways
LimitedAirline operations,
ticketing, and airport
handling60% Government sold 11% of shares
to private sector partnerb3.17
Gambia Commercial
and Development
BankCommercial and
development bankingD 5 million Recapitalization (D 7.7 million),
sale to foreign investor..
Gambia Utilities
CorporationWater and electricity
utilities company100% Privatization of management
under lease contract
Gambia ProduceMarketing BoardMarketing,
processing and
export of groundnuts100% International tender Core assets sold for D 20
million; non-core assets
reabsorbed by government a
Table III.2 (cont'd)The Gambia WT/TPR/S/127
Page 45
Enterprise Sector State-owned shares Mode of privatizationPrivatization proceeds to
Government(D million)
Gambia Cotton
CompanyCotton ginning 100% Joint venture with French
Government
Marine Dockyard Ship repair 100% Lease contract Annual lease payment of
D400,000
Maintenance
Services AgencyAutomobile repair 100% Lease contract Lease contract
Brikama Ice Plant Ice block production 100%, supported by
Japanese grantLease contract Annual lease payment of
D48,000
Pakalinding Ice Plant Ice block production 100%, supported by
Japanese grantLease contract Annual lease payment of
D84,000
Kanifing Brick Plant Clay block
production100%, supported by
Chinese GrantPublic tender 0.8
.. Not available.
a Subsequently became known as The Gambia Groundnut Corporation.  Re-nationalized in 1999.
b Liquidated in 1996 and re-established as a state-owned enterprise, Gambia International Airlines.
Source: Government of The Gambia (1999), New Divestiture Strategy and Regulatory Framework .
Table III.3
Liquidations, as at October 2003
Enterprise Sector State-owned share Date of liquidation
Seagull Fisheries Cold Stores Fish storage and processing company 49% 1992
Gambia River Transport Corporation River transport 100% 1992
Source: Government of The Gambia, 1999.
69. The Government concluded performance contracts with six state-owned enterprises, which
were considered as "strategic", i.e. those that were to remain under state ownership in order to
facilitate the attainment of certain social policy objectives.  The enterprises concerned were:  The
Gambia Telecommunications Company, The Gambia Ports Authority, The Gambia Public TransportCorporation, The Gambia Civil Aviation Authority, the Social Security and Housing Finance
Corporation, and The Gambia Utilities Company (now the National Water and Electricity Company
Limited).  The perfomance contracts, the main principles of which were eventually codified in the
1990 Public Enterprise Law, were designed to introduce commercial discipline through performance
targets to reward or penalize management performance.  The contracts also aimed to increasefinancial transparency in relationships between  the central budget and state-owned enterprises:
annual accounts were to be presented to monitor liabilities incurred by the enterprises vis-à-vis the
Government (and vice-versa), and the grant of subsidies to the enterprises was linked directly to the
provision of a good or service that was in line with social policy objectives, but not in itself
commercially viable.  The divestiture programme and the implementation and monitoring ofcommercial contracts were assigned to the National Investment Board.
70. The divestiture and state-enterprise reform programme yielded mixed results.  On the positive
side, it contributed to the expansion of certain activities, notably retail, wholesale, and insurance.  It
also attracted foreign investment in subsectors such  as tourism.  On the downside, the transformation
of public monopolies into private monopolies in some subsectors (such as groundnuts) did little to
promote efficiency or welfare gains, in the absence of any regulatory measures.  At the same time,
efforts to improve the performance of state-owned enterprises, through performance contracts ratherthan privatization, also yielded mixed results.  Enforcement proved to be difficult, as the incentives
schemes proved complex to administer, and the National Investment Board's limited capacity
hampered its ability to fulfil the extensive monitoring and evaluation functions assigned to it.  ArrearsWT/TPR/S/127 Trade Policy Review
Page 46
owed by state-owned enterprises to the Government increased.7  The coup d'état of 1994 led to a
suspension of both the divestiture and state-enterprise reform programme for a period of two years.
Some of the leasing arrangements concluded by the Government with private investors were
terminated, and the enterprises concerned were brought back under complete government control.
71. Following the adoption of Vision 2020, the Government undertook to put its divestiture and
state-enterprise reform programme back on track.  In 1998, ten-year memoranda of understandingwere concluded with the six state enterprises that had been subject to performance contracts, and
parliament passed a Divestiture Act in 2001, which sets the current legal framework for privatization
(second phase of the reforms of state enterprises).  The Act created a Divestiture Agency (GDA) to:
(i) plan, manage, and implement the State's divestiture programme in respect of public enterprises and
public interest; (ii) develop criteria for the selection of public assets to be divested; (iii) prepare publicenterprises for divestiture; (iv) ensure consistency in procedures for divestiture;  and (v) evaluate all
state divestitures.  Th e GDA issues recomm endations to a sub-committee on divestiture (under the
High-level Economic Committee), which is tasked with considering the wider policy implications of
such recommendations.  Final decisions are taken by Cabinet.
72. The GDA has the authority to adopt any of the following divestiture methods:  the public
offering of shares; the sale of shares by privat e placement; negotiated sales insofar as pre-emption
rights exist and have been exercised
8; sale of assets, including liquidation; attracting new private
investments in public enterprises; employee/management buyout; and leasing or award of a
management contract.  As shown in Table III.2, mo st of these methods were already adopted under
the first phase of the privatization programme in 1986-94.  Once a decision to divest has been taken,
the GDA is required, under the Divestiture Act, to publish in newspapers and the Gazette  complete
particulars of each transaction, including the terms of sale, the names of the bidders, the name of thewinner, and the basis on which the winner was chos en (including the price at which the sale was
executed).
73. Bidding procedures have not been formally codified in the divestiture act or other legal
instrument.  Current practice has evolved on the basis of principles contained in the policy framework
document, which is not strictly speaking a binding legal instrument. The GDA, in practice, publishes atender notice in at least two newspapers and announces it on radio and television, twice a week for a
period of three weeks.  In the case of businesses that require foreign expertise, finance, technology or
marketing, notices are placed in foreign publications, and letters sent to Gambian representations
overseas and foreign representations in The Gambia.  The  policy framework document recommends
that "sufficient time" be provided between the init ial announcement of tender and the closure date for
the submission of bids.  Financial and technical bids are submitted in two separate sealed envelopes,
and all bids must be accompanied by a banker's cheque or bank guarantee for an amount representing
10% of the total offer.  The official opening of bids is done in public, and all interested parties are
notified.  Prospective bidders may be pre-qualified on the basis of the following criteria:  (i) proven
history of sound management and expertise;  (ii) financial strength;  (iii) ability to bring newtechnology;  (iv) intention to offer expanded or rela ted services;  and (v) intention to bring in foreign
exchange for the investment.  Tenders from pre-qualified bidders are evaluated on the basis of:  (i) the
financial value of the offer;  (ii) the bidder's commitment to continue operating the business;  (iii) the
feasibility of the bidder's business plan;  and (iv) the extent to which the proposal offers job protection
to the "maximum permissible economical level".  Negotiations with bidders are carried out via a
negotiating committee comprising representatives of  the GDA, the DOSFEA, the Department of State
responsible for the enterprise, the Department of State for Justice, and, as deemed necessary, of the
                                                     
7 See Hook, Mallon and McPherson (1995).
8 This refers to partially privatized enterprises whos e articles of association require that, in the event of
the sale of assets by one party, the other existing shareholders be given first choice.The Gambia WT/TPR/S/127
Page 47
private sector.  The final decision regarding privatiz ation rests with the Secretary of State for Finance
and Economic Affairs.
74. The framework for divestiture developed by the GDA covers 16 public enterprises, following
a two-track approach.  Track I enterprises are those considered to be of "key importance" to the
economy; should the decision be taken to privatize them, they would need to undergo significant
reform beforehand, and be the object of a specific post-privatization regulatory framework in view oftheir current dominant position. Of the track I enterprises, four – GAMTEL, GCAA, GPTC, and
NAWEL – are currently statutory ( de jure ) monopolies, while the Government's ports policy has
made the GPA a de facto monopoly.  Track II enterprises are those considered not to be in need of
major legislative or regulatory measures before divestiture.  Tables III.4 and III.5 provide details of
the enterprises concerned, and proposed strategies.  Whereas the privatization programme conductedduring the years 1986-94 excluded the Track I enterprises from the privatization process from the
outset, under the current framework, the Government is considering the possibility of opening the
capital structure of the companies to private investors, of partial or complete divestment of its assets,
and of opening the activities concerned to competition.  Government's decision to privatize or not is
contingent on the completion of specific studies, and on the development of regulatory capacity, giventhe Government's aim to avoid replacing a public monopoly with an unregulated private monopoly.
Progress to date has been slow, however, and none of the studies have been completed.
Table III.4
Performance of track I public enterprises, 1999-02
(Profit (loss) in D million)
Enterprise 1999 2000 2001 2002
GAMTEL 32.5 40.5 74.9 70.5
SSHFC 81.5 81.5 87.6 128.4
GPTC 0.5 (8.7)a(5.8)a(12.8)
GPA 8.5 23.2 21.3 25.7
NAWEC 9.7 (51.0) (18.4) (21.0)
GCAA (19.4) (4.4) (4.4) (9.1)
a Operating loss.
Source: Information provided by the Gambian authorities.
75. Legislation is under preparation to establish a multi-sector regulatory authority. The authority
would, inter alia , have the power to provide guidelines on rates and fees for the provision of regulated
public services, monitor and enforce standards of performance by public utilities, and promote fair
competition.  The draft legislation provides for the establishment of a schedule of "regulated
activities", in which participation would be conditional on operators being granted a licence by the
regulatory authority.  Licences would contain, inter alia , conditions concerning pricing and  terms on
which the operator would provide the given service, and requirements to publish the manner in which
the operator determines its prices and terms of service, to pay fees and charges determined by the
authority, and to provide operational information to  the regulatory authority. Non-compliance would
be punished by withdrawal or suspension of licence; the authority might also specify rectifying action.
Utilities not subject to licensing would have to sa tisfy, to the extent possible, certain requirements,
such as the provision of service in an efficient and non-discriminatory manner.  In the event of non-
compliance, the authority could force compensation.  Complaints about any utility could be presented
in writing by private individuals to the authorities.WT/TPR/S/127 Trade Policy Review
Page 48
Table III.5
Track I enterprises – envisioned timetable and actions, as at October 2003
Enterprise Ownership structure Activities Envisioned strategy and time frames
NAWEC Limited liability
company; joint venturewith SOGEA (France,
46% stake)Water, electricity and
sewerageUnbundling of services; privatization of support
services (no time frames as at end 2003)
GPA Public corporation
100% government
ownedPort operations at
Banjul, and inland port
of KaurPrivatization of stevedoring; leasing out of cargo
handling facility; setting up a port equipment leasingcompany; outsource vehicle and plant maintenance
workshop (no time frames as at end 2003)
GAMTEL Limited liability
company; joint venture
with Gambia cellularcompany (75%)Telephony and internet Unbundling – GAMTEL to be provider of basic
telephony ; privatization of value-added services
(GSM, paging, internet, prepaid services);
privatization of support services ; de-coupling ofbroadcasting from telecoms (no time frames as at
end 2003)
GPTC Public corporation
100% government
ownedMass transportation
services (road, river,
ferries)Joint ventures in ferries, river transport, and bus
services (no time frames as at end 2003)
GCAA 100% government
ownedAirport operations;
advisory role on civil
aviation regulatorymattersLiberalize bilateral traffic rights; commercialization
of airport terminal ; transfer regulatory role to
regulatory agency (no time frames as at end 2003)
Social Security andHousing FinanceCorporationOwned by subscribers
and contributorsSocial security and
pension fund
management; housing
financeEncourage private pension fund management;
liberalize pension fund management. (no time framesas at end 2003)
Source: Government of The Gambia (1999 and 2003).
76. The drafting of sector-specific legislation – for example, regarding universal service
obligations – is planned (Chapter IV(5)(ii)), and is also an area where The Gambia is in significant
need of technical assistance.  Many state-owned enterprises currently perform multiple functions, and
unbundling these and spinning them off separately are options to be considered.  The PublicEnterprise Act of 1992 also needs to be updated, as it reflects the relationship between government
and state enterprises that prevailed in the period 1986-94.
77. The memoranda of understanding concerning Track I enterprises set out enterprise objectives
relating to the scope and nature of services to be provided, and establish mutual obligations between
the Government and the enterprise.  Both parties ar e required to settle payments owed to the other
within thirty days, and the Government undertakes to provide subventions specifically linked to the
provision of agreed services deemed not to be commercially viable.  Annual performance targets areset at the start of each fiscal year, along with a corporate plan and a budget, which must be approved
by the office of the President.  Spending under individual budget lines on capital expenditure in
excess of the budgeted amount by D250,000 (or 10%, whichever is lower) is subject to approval of
the board of directors, while excesses of D1 mi llion or more require the approval of DOSFEA.
Tariffs on the services provided by the enterprises are set in agreement with the Government at the
start of the budget year; tariff increases, of up to 10% in excess of agreed rates, are authorized solely
to cover losses resulting from the provision of co mmercial services, or to cover losses arising from
foreign exchange fluctuations.  Under the performance contract system, monitoring was carried out by
the National Investment Board;  under current arrangements, monitoring is carried out on a quarterly
basis by DOSTIE and DOSFEA.  The memoranda established an employee incentive scheme, whichapplies a system of rewards/penalties depending on performance against agreed indicators set out in
the corporate plan.  Employees may receive up to two months of gross salary as a bonus, while
penalties range from the witholding of the annual salary increment to termination of employment of
the executive director, directors or other employees, and the dissolution of the Board of Directors.The Gambia WT/TPR/S/127
Page 49
According to the authorities, only three of the ente rprises subject to memoranda of understanding - the
SSHFC, GPA, and GAMTEL – have regularly met the benchmarks set.  The memoranda of
understanding do not appear to have curtailed the issue of cross-indebtedness between central
government and state-owned enterprises:  according to the authorities, these have to be regularly
monitored, and offset against each other.
78. Details on progress achieved to date in the privatization of Track II enterprises, and on target
dates for outstanding divestments, are provided in Table III.6.  Given the lack of substantive progress,
no receipts from privatization have been recorded since 2001.  Privatization proceeds would normally
be remitted to a special divestiture account at the Central Bank, with the intention of using them to
reduce domestic indebtedness.
Table III.6
Track II enterprises – envisioned timetable and actions, as at October 2003
Enterprise Ownership structure Activities Envisioned strategy and time frames
Gambia International
AirlinesLimited liability company,
owned 99% by the State,
1% by GAMTELFlight operations; cargo,
passenger handling,ticketing; travel agency
servicesLiberalize traffic rights of the national carrier
establish duo-poly in ground handling
Maintenance Service
AgencyLimited liability company,
owned 99% by the State,
1% by GPTCVehicle and plant
maintenance; scrap metal
businessThe State to divest its stake in MSA
National Printing and
Stationery Corp.100% state owned Printing and publishing Privatization (method undecided)
Atlantic Hotel 100% state owned Hotelier Privatization (method undecided)
SeneGambia Beach Hotel
(SGBH)50% state share
50% foreign investorHotelier Sale of the state share (method undecided)
Novotel Kombo Beach
Hotel37% state share
62.7% various foreign
investors0.3% Gambian private
investorsHotelier Sale of the state share (method undecided)
Banjul Breweries 19% state share
81% foreign investorBeer and soft drinks Sale of the State share (method undecided)
Kuntaur Rice Mill 100% state owned Rice milling and
distributionPrivatization or joint venture.
Gambia Post Office 100% state owned Postal services and
savings bankLiberalization of sector
Gambia Cotton Company 40% state share
60% FrenchCotton ginning Sale of the state share (method undecided)
Source: Government of The Gambia (1999 and 2003).
79. The divestiture programme is being supported by the World Bank under the Trade Gateway
project.  A credit of US$1.8 million is directed to supporting, inter alia , the divestiture of Track I
public enterprises in transport and telecommunications, and Track II public enterprises;  the design of
a retrenchment and social safety-net framework;  and the dissemination of privatization investment
opportunities to Gambian and foreign investors.
(iii) Competition policy and price controls
(a) Competition policy
80. Until 2003, The Gambia did not have any legislation relating to competition policy: policy
will be implemented through the competition bill of 2003, which is currently awaiting adoption by
Parliament.  The bill covers the supply of goods and services in The Gambia, and sets out the coreelements of a competition regime to be administered by an independent Competition Commission.WT/TPR/S/127 Trade Policy Review
Page 50
The bill prohibits two forms of restrictive business practices:  collusive horizontal arrangements, and
bid-rigging agreements, on the grounds that they are inherently anti-competitive.9  The Commission is
required to demonstrate that the parties implicated have infringed this prohibition, but does not need
to show that they have anti-competitive effects.  It can open investigations on the suspicion that an
enterprise is party to a prohibited practice. The bill also includes disciplines on restrictive business
practices that are not prohibited per se , but on which the Commission is mandated to take remedial
action if the practices are shown to have anti-competitive effects.  Practices in this category are
defined as restrictive business practices that are subject to investigation, and  include:
− non-collusive horizontal arrangements in which the parties must supply 30% of goods
or services in the market concerned, and which the Commission has reasonablegrounds to believe have anti-competitive effects;
− monopoly situations, defined as situations in which 30% or more of goods and
services of a given description are supplied or acquired by one enterprise; a
benchmark of 70% is applied in the case of three or fewer enterprises.  The
Commission must have reasonable grounds to believe that the enterprises or
enterprise in the monopoly situation is engaging in conduct that has the object of
preventing, restricting or distorting competition, or in any other way constitutes an
exploitation of monopoly power;
− vertical agreements in which the Commission has reasonable grounds to believe that
one or more parties are in a monopoly situation; and
− mergers, where one of the parties carries on its business in The Gambia, or is operated
or controlled by a body corporate incorporated in The Gambia, and where either both
parties, following the merger, account for, either as a supplier or buyer, 30% of a
particular market for goods or services; or one of the parties to the merger has, prior
to the merger, a market share of 30% or more, either as a buyer or a supplier.  Inaddition, the Commission must have reasonable grounds to believe that the creation of
the merger may result or may be expected to result in a substantial lessening of
competition.  The Secretary of State for Tr ade, Industry and Employment responsible
for the administration of the Act  may prescr ibe regulations relating to the notification
of mergers, penalties, time limits for the Commission's response to notifications, and
the suspension of the merger pending investigation.
81. Exemptions to the rules are: the activities of a statutory monopoly; practices or agreements
expressly required or authorized by an enactment, or by scheme or instrument made under enactment;
any practices of employers or any agreement to which employers are party and that relate to the
remuneration, terms or conditions of employment of employees; any practice, conduct or agreement
insofar as it relates to the export of goods from The Gambia or the supply of services outside The
Gambia; an agreement or conduct insofar as it relates to the protection, exercise, licensing orassignment or rights under, or which exits by virtue  of, laws relating to copyright, design rights,
patents or trade marks, or other intellectual property rights; any practice, conduct or arrangement
approved or required under an international agreement to which the State of The Gambia is a party;
any agreement or conduct relating to activities within a free zone under the control of GIPFZA;  and
any enterprise with an annual turnover not exceeding D250,000.
                                                     
9 The bill defines the agreements as those implemented or intended to be implemented in The Gambia,
thus technically allowing for the regulations to cover agreements not formally concluded in The Gambia.  It is
recognized nevertheless that, in practice, the Commission would not be able to establish jurisdiction unless oneor more of the parties concerned were legally registered in The Gambia.  The bill does not at present containprovisions allowing for the exchange of information with competition authorities in other countries (seeCommonwealth Secretariat, 2002).The Gambia WT/TPR/S/127
Page 51
82. The powers of investigation of the Commission extend to all classes of cases, and to the
search for evidence to determine whether enterprises have complied. The bill allows the Commission
to delegate its work to a designated department of state or agency when it does not, in the initial phase
of the competition regime, have the necessary resources to undertake investigations.  The Commission
can hold a hearing at any time during the investiga tion at which interested parties may express their
views; it is required to hold a hearing if a party under investigation so requests.10  The Commission
may not impose a penalty at the conclusion of the case unless a hearing has been held.11
83. The penalties and remedies that the Commission may impose on an enterprise found to be or
have been party to a prohibited agreement are:
− a directive to cease to be party to the agreement or to terminate or modify the
agreement, or its parts contravening the prohibition; and/or
− the imposition of a financial penalty, where the breach of the prohibition has been
committed intentionally or negligently.12  The maximum penalty is 10% of turnover
assessed over the period during which the breach was committed.13  The legislation
provides for the possibility of further regulations on the calculation of turnover in
cases where this information is not available.  For all penalties, the date by which the
enterprise is required to pay must be specified.
84. In cases where a restrictive arrangement or monopoly has been the subject of an investigation,
and a determination has been made by the Commission that there are adverse effects of competition,
the Commission is authorized to issue directives to the enterprise.  The directives aim to remedy,
mitigate, or prevent the adverse effects on competition the Commission has identified; or to remedy,
mitigate or prevent any detrimental effects on users or consumers that may have resulted or may have
been expected to result from the adverse effects of competition.  The legislation contains an
illustrative list of remedies14, though the Commission is free to determine the directive, as long as it is
deemed necessary, reasonable, and practicable.
85. In cases where the Commission has found that a merger has caused or is likely to cause
adverse effects on competition, it may issue directives that it considers to be necessary, reasonable
and practicable for the purposes of remedying, mitigating or preventing a substantial lessening of
competition and the adverse effects arising out of such a lessening.  In relation to prospective mergers,
directives include blocking the merger or imposing requirements as to the divestment of assets or thepursuit of a certain course of conduct as a condition of allowing the merger to proceed.
86. The legislation allows for the adoption of interim measures by the Commission to prevent a
party from suffering irreparable harm or in order to prevent an enterprise that appears to be inhibiting
or distorting competition from taking action that  would pre-empt the Commission's investigation.
Allowance is also made for an enterprise to offer undertakings or commitments relating to its future
conduct, in anticipation of the concerns of the Commission.  The Commission is allowed to determine
                                                     
10 The Commission can defer an investigation requested by a party under investigation until such time
as the Commission feels it has enough information about the case.
11 This requirement does not apply if an enterprise elects not to attend the hearing.
12 Intent is inferable from documents, the holding of secret meetings, or the destruction of evidence.
13 The basis is the total turnover of the enterprise.
14 The list consists of directives to: terminate or amend an agreement; cease or amend a practice or
course of conduct, including conduct in relation to prices; supply goods or services, or grant access to facilities;
separate or divest itself of any enterprise or assets; provide the commission with specified information on acontinuing basis.WT/TPR/S/127 Trade Policy Review
Page 52
a case on the basis of an undertaking if its concerns about anti-competitive behaviour are fully
addressed.
87. In order to enforce directives issued or undertakings agreed to, the Commission is able to use
all its powers of investigation to establish whether an enterprise has complied.15 The Commission is
required to hear representations from the enterpri se before delivering a verdict of non-compliance.  In
cases of non-compliance, the Commission is requir ed to apply to the Commercial Division of the
High Court of The Gambia, for a court order to enforce compliance.
88. The Commission is required to publish the reasons for all its decisions.  Every decision taken,
and every determination and directive issued, by the Commission is appealable by a person aggrieved
by the decision/directive.16  Appeals have to address specific points, and once these have been
established, the party may not bring in further points.  All appeals are heard by the CommercialDivision of the High Court.  There are two types of appeal:  appeals against decisions on cases falling
under the scope of prohibited arrangements, and appeals against decisions on cases falling under an
investigation.  In the former case, the High Court may review fully the facts and evidence on which
the Commission relied in reaching its decisions, as well as the level and proportionality of any
remedial action imposed.  In the latter case, the role  of the High Court is to review the proportionality
or practicability of the action(s) specified in the directive, and to look for procedural errors or errors in
evaluating evidence on the part of the Commission.
(b) Price controls
89. Under the provisions of the 1974 Price Control Act, the Secretary of State for Finance and
Economic Affairs, in  collaboration with the Secretary of State for Trade, Industry and Employment,
has powers to declare (by order published in the Government's Gazette ), and to implement price
controls on commodities or classes of commodities.  The Act establishes a Price Control Committeedesigned to help, and provides for the appointment of price controllers and price inspectors.  In
practice, the policy of implementing price controls was ended under the Economic Recovery
Programme.  From time to time, consultations are conducted with the private sector, when the
Government has reasons to be concerned with price increases, particularly of food commodities.
(iv) Intellectual property
90. The Gambia has been a member of the World Intellectual Property Organization (WIPO)
since 1980, and acceded to the Paris Convention in 1992 and the Berne Convention in 1993.  It is a
signatory to the Patent Cooperation Treaty since 1997, and a member of the African Regional
Industrial Property Organization (ARIPO) since 1985.
17
91. Legislation on the protection of intellectual property in The Gambia is underdeveloped.  The
main laws are the Industrial Property Act of 1989, which deals with patents, industrial designs, and
trademarks, and the Copyright Act of 1916.  Questions relating to intellectual property are mainly the
responsibility of the Department of State for Justice, and DOSTIE, which is responsible for
international negotiations on matters relating to intellectual property.
                                                     
15 The exact time limit for compliance is to be specified in a regulation enacted by Parliament.  
16 That is, "a person who has a genuine grievance because an order has been made which prejudicially
affects his interests", or "a person who has some legal grievance, for example a deprivation of something or an
adverse effect on the title to something".  The High Court decides whether a person is eligible to bring anappeal.
17 ARIPO contracting parties are: Botswana, Th e Gambia, Ghana, Kenya, Lesotho, Malawi,
Mozambique, Sierra Leone, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe.The Gambia WT/TPR/S/127
Page 53
92. Under the provisions of the Industrial Property Act, patents are not registered in The Gambia
but with the ARIPO;  The Gambia is party to ARIPO's Harare protocol under which the substantive
examination of patentability is carried out by the ARIPO office.  If the requirements for patentability
are met, the examination creates a presumption of validity of the patent in the territories designated by
the applicant; a territory must provide reasons in writing for rejecting the validity of the patent within
six months.  Legislation regarding patent protect ion does not cover agricultural or pharmaceutical
products, and The Gambia currently has no "mailbox" provisions.  Regarding industrial designs,
ARIPO examinations focus on questions of form (as opposed to those of substance considered in
relation to patent applications).  If these requirements are satisfied, then the industrial design is
registered, conferring protection on th e design amongst all ARIPO members.
93. Applications for registration of trade marks must be filed with the Registrar General.
Protection is granted for a period of ten years from the filing date of the application, and the registered
trade mark must be published in the national Gazette .  In practice, capacity constraints have led to a
backlog of 12 years in the publication of registered trade marks, thus hampering the enforcement of
trade mark protection.  No information is available on how the non-utilization of patents is dealt with,
nor on the procedures for the renewal of patents.  There are no provisions relating to parallel importsor the issuing of compulsory licences in respect of provisions relating to patents.
94. Enforcement is entrusted to the Attorney General’s office.  Beneficiaries of protection can
initiate proceedings in writing, requesting that th e Attorney General issue an injunction to prevent
infringement or potential infringement, or any unla wful act.  The Attorney General may also award
compensation or order any other remedy deemed appropriate.
95. The Copyright Act of 1916 was enacted by the former colonial power; it is thoroughly
obsolete.