Resource information
For decades, Gambia has served as a
regional entrepot, using the river as a transportation link
to the hinterland. Relatively low import taxes,
well-functioning port and customs services, and limited
administrative barriers reinforced Gambia's position as
a trading center. About 80 percent of Gambian merchandise
exports consist of re-exports to the sub-region goods
imported into Gambia are transported unofficially into
Senegal and beyond. Gambian economy and especially its
public finances are highly dependent on this trade because
imported goods destined for re-export pay the normal import
duties. Recently, however, re-exports have declined due to a
combination of tensions with Senegal, harmonization of
import and sales taxes in the region, and improved port and
customs operations in Senegal and other neighboring
countries. The current re-export trade is unlikely to be
sustainable, calling for a strategy to build growth on a
more secure foundation. The report identifies directions for
establishing a more sustainable foundation for the
country's position as a gateway to the region by
improving the transport system and reinforcing its efficient
trade facilitation services, while recognizing the limited
potential for growth. The study makes detailed
recommendations on strengthening and diversifying domestic
production of goods and services in the areas of tourism,
groundnuts, other agriculture, and fishing, by improving the
business climate as well as implementing sector-specific reforms.
