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Economic and investment potential of Gambia

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The Gambia is a small country in West Africa and is entirely surrounded by Senegal except for its coastline on the Atlantic Ocean. English language is the official language. The Gambia’s economy is dominated by farming, fishing and has excellent natural spots for tourism. Previously, the United Kingdom and many EU countries constituted its major domestic export markets. However, in recent years, the United States, China and Japan have become significant trade partners of The Gambia. Despite that, The Gambia looks forward to developing a strong economic partnership with Russia and former Soviet republics.

In this interview, Alieu Secka, the CEO of The Gambia Chamber of Commerce and Industry, (who is also an accomplished corporate governance expert, industry leader, entrepreneur and business practitioner), recently shares his thoughts about opportunities available for potential foreign investors in his country with Kester Kenn Klomegah, an independent researcher and policy consultant on African affairs in the Russian Federation and Eurasian Union.

In your objective assessment, what can you say are the current achievements or gains in the economic sphere under President Adama Barrow? 

Since last year, The Gambia’s economy has begun to rebound. Firstly, the foreign exchange rates have been steady throughout. Secondly, inflation is contained, and most importantly, The Gambia’s export cover has risen from 1 month to over 4 months. Economic growth is expected to continue to rise up to 4% in the coming year.

How has your organization promoted the country’s business and investment potentials abroad, especially towards Russia and Eurasia (for example, Kazakhstan, Belarus) direction? 

The Gambia Chamber of Commerce is the private sector partner to the government. It has direct links with many Chambers of Commerce worldwide and is member of the International Chamber of Commerce, and receive enquiries throughout the globe. We have attended various state missions and business forums with the both President Adama Barrow to Belgium, France and Turkey, as well as with Ministers elsewhere. We share stories of business opportunities, plus our work with partners and give interviews to media houses throughout. Last year, we signed an MOU with Belarus Chamber of Commerce and hope we can expand to Russia and other Eurasian countries.

Can you discuss the main economic sectors that are currently attracting foreign investors to The Gambia?  

The Gambia has tremendous potential for businesses from Russia and Eurasia in many sectors such as infrastructure, agribusiness, health services, tourism and education. As The Gambia prepares to host the next Organization of Islamic Countries (OIC) in 2019, foreign direct investment is expected to peak including the Airport, Gambia Ports Authority, industries for agri-processing and packaging, and new luxury hotels to be built.

I should also mention that tourism is one of the biggest foreign exchange in The Gambia contributing some 18% of our Gross Domestic Product (GDP), and we have tried to work with some Russian travel companies to bring Russians to come enjoy the beautiful sandy beaches on the Atlantic Ocean and tropical weather year-round, build resorts to Russian taste etc. Cement production also has huge potentials as we see building construction expansion expanding each year.

What challenges still remain in order to make way for optimizing foreign involvement in various economic sectors? 

Air access is still a challenge for many entrepreneurs, even though we have regular schedule flights on Brussels airlines 4 times weekly and on Royal Air Maroc daily, and some 50 flights weekly from our tourism source markets. Unfortunately, these tourist flights mainly from England, Holland and Spain are seasonal, and therefore I believe this further provides an opportunity to invest for direct flights to Banjul.

What investment incentives and kinds of business support have been made available for foreign investors in the country?

The Gambia offers an attractive package to FDIs including tax holidays from 5 to 8 years, duty-free on equipment, access to land and affordable labour, 500 hectares of arable land for agriculture. Both The Gambia Chamber of Commerce and Industry, and Gambia Investment Promotion Agency, plus many other ministries and agencies will support investors to achieve their target goals including business registration and permits within 24 hours.

Over the past few years, which external countries have been active in The Gambia? Can you also discuss the kind of economic spheres there are engaged in and possible reasons why?

The traditional investors in The Gambia have been the British, Lebanese and Indians. Increasingly, more Turkish and Chinese companies are showing interest and investing in The Gambia. Many foreign businesses are in the real estate, tourism services and hotels, infrastructure development, renewable energy, fisheries, trading in essential commodities like rice, sugar, oil, building materials etc. Many products are imported from Asia, South America and re-exported or transited to neighbouring countries, making The Gambia the supermarket of southern Senegal, Guinea Conakry, Bissau, Mali and others in ECOWAS.

Do you see Russians as potential investors and/or partners for business and investment in your country? As the CEO of the Chamber of Commerce and Industry, would you advocate for a broader economic cooperation between Russia and The Gambia?

The Gambia and Russia have recently opened an embassy and consulate respectively, meaning that there is political will to strengthen relations between the two countries. It is now for Russian businesses to come and enjoy the sun, peace and paradise that The Gambia offers in all sectors of the economy as we have seen them invest in Turkey and elsewhere.

There are good reasons why there are so many British tourists flock to The Gambia, and 1 out every 3 return many times. Also, there is a new free economic zone being developed that can yield tremendous returns for processing and imports to the region with a market of more than 300 million, despite our small population of 2million. The Gambia is also presently considering applications in the oil industry.

At Gambia Chamber of Commerce, it is our obligation to support all businesses and where necessary to introduce local partners. We will welcome the strengthening of economic cooperation between Russia and The Gambia, and will work with the embassies to facilitate and receive business leaders so that they can experience the warmth and benefit from our unique location known as the “smiling coast of Africa.” As CEO, I look forward to the first delegation of Russian entrepreneurs, as we had welcomed Russian travel agents and media to The Gambia, when I was Chairman of The Gambia Hotel Association.

MD Africa Editor Kester Kenn Klomegah is an independent researcher and writer on African affairs in the EurAsian region and former Soviet republics. He wrote previously for African Press Agency, African Executive and Inter Press Service. Earlier, he had worked for The Moscow Times, a reputable English newspaper. Klomegah taught part-time at the Moscow Institute of Modern Journalism. He studied international journalism and mass communication, and later spent a year at the Moscow State Institute of International Relations. He co-authored a book “AIDS/HIV and Men: Taking Risk or Taking Responsibility” published by the London-based Panos Institute. In 2004 and again in 2009, he won the Golden Word Prize for a series of analytical articles on Russia's economic cooperation with African countries.

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Shaping the Future Relations between Russia and Guinea-Bissau

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Russian Foreign Minister Sergey Lavrov and Guinea- Bissau Suzi Carla Barbosa have signed a memorandum on political consultations. This aims at strengthening political dialogue and promoting consistency in good cooperation at the international arena.

Russia expects trade and economic ties with Guinea-Bissau will continue developing; they must correspond to the high level of the political dialog between the countries, Russian Foreign Minister Sergey Lavrov said in his opening remarks at the meeting with his counterpart from Guinea-Bissau Suzi Carla Barbosa.

“Probably, the next natural step will be to build up our trade-economic, investment cooperation in order to bring it to the level of our sound, confident political dialogue,” the Russian Minister added.

Speculation aside, the face-to-face diplomatic talks focus on effective ways for developing tangible cooperation in most diverse areas in Guinea-Bissau. The meeting agreed to take a number of practical steps, including reciprocal visits by entrepreneurs both ways.

“We talked about more efficient ways of developing our trade and economic cooperation. We agreed to undertake a range of specific steps, including the trips of businessmen from Guinea-Bissau to Russia and then from Russia to Guinea-Bissau,” Lavrov said.

Last year, Prime Minister of Guinea-Bissau Nuno Gomes Nabiam met with representatives of the Russian business community. The areas of interest mentioned in this respect included exploration of natural resources, construction of infrastructure facilities, as well as development of agriculture and fisheries.

Guineans are keen on deepening bilateral cooperation in fishing. The five Russian fishing trawlers have recently resumed their operations in the exclusive economic zone of Guinea-Bissau.

As explained the media conference, the topics discussed for cooperation included such spheres as natural resources tapping, infrastructure development, agriculture and fisheries

In terms of education, over 5,000 people have already entered civilian professions, and more than 3,000 people have acquired military specialties, which is important for Guinea-Bissau. In addition, military and technical intergovernmental cooperation agreement is about to enter in force. According to reports, Russia would continue to pursue military cooperation with the country.

Both ministers reviewed the situation in Mali, the Republic of Guinea and some other African areas, with an emphasis on West Africa and the Sahara-Sahel region.

Lavrov and Carla Barbosa discussed preparations for the second Russia-Africa summit planned for 2022. With high hopes that the collective attendance will include President of Guinea-Bissau Umaro Sissoco Embalo.

Guinea-Bissau, like many African states, has had political problems. In April 2020, the regional group of fifteen West African countries often referred to as ECOWAS, after months of election dispute finally recognized the victory of Umaro Sissoco Embaló of Guinea-Bissau.

Perspectives for future development are immense in the country. The marine resources and other waterbodies are integral part to the livelihood. Steps to increase agricultural production are necessary. The economy largely depends on agriculture: fish, cashew nuts and peanuts are its major exports. Its population estimated at 1.9 million, and more than two-thirds lives below the poverty line.

Sharing borders with Guinea (to the southeast), Gambia and Senegal (to the north), Guinea-Bissau attained its independence in September 1973. Guinea-Bissau follows a nonaligned foreign policy and seeks friendly and cooperative relations with a wide variety of states and organizations. Besides, Eсonomic Community of West African States (ECOWAS), Guinea-Bissau is a member of the African Union (AU) and the United Nations.

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Analyzing The American Hybrid War on Ethiopia

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photo: UNFPA/Sufian Abdul-Mouty

Ethiopia has come under unprecedented pressure from the U.S. ever since it commenced a military operation in its northern Tigray Region last November. Prime Minister Abiy Ahmed ordered the armed forces to respond to the Tigray People’s Liberation Front (TPLF), which used to be the most powerful faction of the former ruling party, after it attacked a military barracks. Addis Ababa now officially considers the TPLF to be a terrorist group. It fell out with PM Abiy after initially facilitating his rise to power as a result of disagreements over his fast-moving socio-political reforms.

The TPLF refused to join PM Abiy’s Prosperity Party upon its formation in December 2019. It also regarded his decision to postpone national elections last August until this June due to the COVID-19 pandemic as resulting in him illegitimately remaining in power. In response, the TPLF organized its own elections in the Tigray Region in September 2020 that were not recognized by the central government. This set a tense backdrop against which the group attacked the military a few months later in early November, which was what triggered the ongoing conflict.

The U.S. and its allies claim that Ethiopia is carrying out a campaign of ethnic cleansing in Tigray, which Addis Ababa, of course, denies. This set the basis upon which the U.S. began to sanction the country. The first sanctions were imposed in late May to target Ethiopian officials as well as some of their Eritrean allies who, the U.S. claimed, were supporting them in their military campaign. The Ethiopian National Defense Force (ENDF) pulled out of Tigray a month later in June, claiming that this unilateral move would facilitate the international community’s relief efforts in the war-torn region that had attracted so much global attention.

The conflict did not end, however, but actually expanded. The TPLF felt emboldened to invade the neighboring regions of Afar and Amhara, parts of which it continues to occupy. Addis Ababa suspected that the group was receiving various equipment and other forms of support under the cover of UN aid shipments. It also accused the TPLF of manipulating international perceptions about the region’s humanitarian crisis in order to generate more support and increase pressure on the Ethiopian government. PM Abiy published an open letter to U.S. President Joe Biden last month, urging him to reconsider his country’s policy towards the conflict.

It regrettably went unheeded but deserves to be read in full, since the Ethiopian leader compellingly argued that the American policy is counterproductive and influenced by the TPLF’s lobbyists. Shortly after that, his government expelled seven UN officials at the end of September, who it accused of meddling. In early October, CNN published a report claiming that Ethiopian Airlines was illegally transporting weapons to and from Eritrea during the early stages of the conflict. This, in turn, prompted more sanctions threats from the U.S. The situation is such that the U.S. is now actively working in support of the TPLF against PM Abiy’s government.

This American hybrid war on Ethiopia is waged in various ways that deserve further study. They closely resemble the American hybrid war on Syria in the sense that the U.S. is using humanitarian pretexts to justify meddling in the country’s internal affairs. Its motivations to backstab its regional ally are entirely self-interested and zero-sum. The U.S. is uncomfortable with PM Abiy’s geopolitical balancing between Washington and Beijing. Although the former TPLF-led government was also close to China, the U.S. likely expected PM Abiy to distance Ethiopia from it, considering the pressure that Washington exerts upon its partners to do so.

He came to power in early 2018 around the time when the U.S. began to intensify its ongoing New Cold War with China. From the American perspective, it is unacceptable for the country’s partners to retain close ties with its top geopolitical rival. It is for this reason why the US far from appreciates PM Abiy’s balancing act since it likely expected for him to move away from China. This leads to the next motivation for the American Hybrid War on Ethiopia, which is to return the TPLF to power there, if not in a national capacity, then at least in its home region. Such an explanation will now be elaborated on more at length.

Ethiopia finds itself at a crossroads whereby the country can either continue on the path of centralization, like PM Abiy has attempted to do, or pursue the course of further federalization to the point where its regions receive more autonomy than before. One of the TPLF’s primary criticisms of the Ethiopian leader is that he is allegedly going against the country’s post-civil war federal foundation. If it can succeed at least in securing broad autonomy for its home region by force after failing to do so peacefully, this might then trigger radical reforms that result in advancing its federal vision throughout the rest of the country.

The U.S. could exploit the broad autonomy that these regions might receive in order to individually pressure them to distance themselves from China. Ethiopia is, after all, Africa’s second most populous country and used to have one of the world’s fastest rates of economic growth before the COVID-19 pandemic. From a continental standpoint, the U.S. might believe that turning Ethiopia against China could eventually become a game-changer in the New Cold War’s African theater. In other words, everything that the U.S. is doing against Ethiopia is motivated by its desire to “contain” China. It is now time to explain its modus operandi in detail.

The U.S. immediately exploited the TPLF-provoked conflict in Ethiopia to pressure PM Abiy to treat the group as his political equals. This was unacceptable for him, since doing so would legitimize all other groups that attack the armed forces in pursuit of their political objectives. The Ethiopian leader rightly feared that it could also trigger a domino effect that results in the country’s “Balkanization”, which would advance American interests in the sense of taking the country out of the “geopolitical game” with China. In response to his recalcitrance, the U.S. alleged that his government was carrying out ethnic cleansing.

American officials knew that this would attract global attention that they could manipulate to put multilateral pressure upon his government. Even so, PM Abiy still did not relent but continued waging his war in the interests of national unity. With time, the U.S. began to portray him as a “rogue leader” who did not deserve his Nobel Peace Prize in 2019 for resolving his country’s frozen conflict with the neighboring Eritrea. Its perception managers presented him as a power-hungry dictator, who was ruthlessly killing the ethnic minorities that opposed his government, including by deliberately starving them to death.

The ENDF’s withdrawal from the Tigray Region over the summer was interpreted by the U.S. as having been commenced from a position of weakness. It believed that ramping up the pressure at this sensitive point in the conflict could lead to him politically capitulating to the TPLF’s demands. This was a wrong assessment since PM Abiy hoped that everything would stabilize after his decision facilitated international relief efforts to the war-torn region. These were unfortunately exploited, according to Addis Ababa, in order to provide more support for the TPLF, which is why his government recently expelled those seven UN officials.

The U.S. “humanitarian imperialism”, as one can now call its policy against Ethiopia, is very pernicious. It focuses solely on the humanitarian crisis in the Tigray Region while ignoring the ones that the TPLF caused in the neighboring Afar and Amhara regions. This policy also manipulates perceptions about the situation in Tigray in order to delegitimize PM Abiy, the ENDF and the political cause of national unity that they are fighting for. The purpose is to encourage more members of the international community to pressure Ethiopia to the point where it finally feels compelled to politically capitulate. This policy, however, has proven to be counterproductive.

Far from giving up the fight, Ethiopia is doubling down and is now more motivated than ever before to see the war to its end, though ideally through a political rather than military solution due to humanitarian considerations. This does not imply treating the terrorist-designated TPLF as an equal but envisions replacing its leadership in the Tigray Region with a pro-government/unity party instead. That is, of course, easier said than done, which is why military means might continue to be relied upon to this political end. Throughout the course of its struggle, Ethiopia has begun to be seen as an anti-imperialist icon across Africa and the rest of the Global South.

PM Abiy’s open letter to Biden was full of powerful statements articulating Ethiopia’s sovereign interests. It showed that African leaders can resist the U.S., which could inspire the Ethiopian leader’s counterparts who might also come under similar pressure from their partner sometime in the future—due to its zero-sum New Cold War geopolitical calculations. Ethiopia’s sheer size makes it an African leader, not to mention it hosting the headquarters of the African Union, so it can influence the rest of the continent. It also has a very proud anti-imperialist history which motivates its people not to submit to foreign pressure.

China, Russia and India have politically supported Ethiopia against the U.S. at the UN, thereby debunking The Economist’s lie last week that “Ethiopia is losing friends and influence”. To the contrary, Ethiopia is gaining friends and influence, especially among the rising powers and the rest of the Global South. Its principled resistance to the American hybrid war on it has shown others that there is an alternative to capitulation. It is indeed possible to fight back in the interests of national unity. Not all American destabilization plots are guaranteed success. Just like the U.S. failed to topple the Syrian government, so too has it failed to topple the Ethiopian regime.

Ethiopia, however, is many orders of magnitude larger than Syria. This makes its hitherto successful resistance to the American hybrid war all the more significant. The leader in the Horn of Africa is a very diverse country, whose many people could be pitted against one another through information warfare to provoke another round of civil war that would help the TPLF’s U.S.-backed anti-government crusade. That worst-case scenario has not materialized, though, due to the majority of the population’s commitment to national unity even among some of those who might have misgivings about the present government.

This year’s elections saw the Prosperity Party win by a landslide, which shows how much genuine support it and its founder have among the masses. Furthermore, PM Abiy’s concept of “medemer” (“coming together”) aims to counteract “Balkanization” processes by pragmatically reforming socio-political relations inside the country. It is a very promising idea that could inspire other very diverse states across the Global South and help them ideologically thwart divide-and-rule plots like the one presently waged against Ethiopia.

Assessing the strategic situation as it presently stands, the American Hybrid War on Ethiopia is expected to intensify on manipulated humanitarian pretexts. More sanctions and even the threatened revocation of Ethiopia’s access to the U.S. market through the African Growth and Opportunity Act (AGOA) could worsen the economic situation for millions of people. The purpose in doing so would be to provoke anti-government protests that the U.S. hopes would be violent enough to catalyze a self-sustaining cycle of destabilization throughout the country after the security services crack down on the rioters.

The supplementary purpose is to encourage some Ethiopians to join anti-government terrorist groups allied or working in coordination with the TPLF unless the U.S. succeeds in pulling off a Color Revolution. This modus operandi is identical to the one that it relied upon in its hybrid war on Syria. In the Ethiopian context, the U.S. hopes to forcefully “Balkanize” the country, whether de jure or de facto through an extreme form of federalization. The point is to punish Ethiopia for balancing between China and the U.S., which showed other Global South states that such a pragmatic approach is possible instead of the U.S.-practised zero-sum one.

Nevertheless, the U.S. might still fail. The ENDF and other security services retain control throughout all the country’s regions with the exception of Tigray. It is therefore unlikely that any Color Revolution or Unconventional War there will succeed. Furthermore, Ethiopia enjoys close ties with the rising multipolar powers like China, Russia and India who can help it weather the current crisis by neutralizing U.S. attempts to isolate the country. In addition, the “medemer” concept ensures that national unity remains at the core of the Ethiopian society, reducing the appeal of foreign-backed “Balkanization” narratives.

Altogether, it can be said that Ethiopia is successfully resisting the U.S. hybrid war against it. There have certainly been some serious costs to its international reputation, but it remains committed to the cause of national unity, and it does not seem likely to politically capitulate to the terrorist-designed TPLF’s foreign-backed demands. Expelling those seven UN officials for meddling was a major move which speaks to how serious the country is about protecting its sovereignty. The same can also be said about PM Abiy’s open letter to Biden which preceded that development and explained why the U.S. is wrong for meddling in Ethiopia.

The American Hybrid War on Ethiopia will likely continue since the US doesn’t like to lose. It keenly understands what’s at stake in the realm of international perceptions, and it’s that the US cannot afford to have an African country – let alone one as large and influential as Ethiopia is – successfully resist its pressure campaign. Ethiopia’s resolute resistance can inspire other countries across the Global South, which can complicate the US’ efforts to pressure them into curtailing ties with China in the New Cold War. Had the US simply accepted Ethiopia’s balancing act, then the conflict might have ended by now, but its zero-sum policies prevented that.

From our partner RIAC

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Reducing industrial pollution in the Niger River Basin

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The Niger River is the third-longest river in Africa, running for 4,180 km (2,600 miles) from its source in south-eastern Guinea, through Mali, Niger and Nigeria, before discharging via the Niger Delta into the Gulf of Guinea in the Atlantic Ocean. Tributaries that run through a further five countries feed into the mighty Niger.

Hundreds of millions of people in West Africa depend on the river and its tributaries, for drinking water, for fish to eat, for irrigation to grow crops, for use in productive processes, and for hydroelectric power.

The health of the Niger River Basin is vitally important for the people and for the environment of West Africa. But this health is endangered by land degradation, pollution, loss of biodiversity, invading aquatic vegetal species and climate change.

To both assess and address these environmental issues, a Global Environment Facility (GEF)-funded project has brought together international, regional and national entities to work on integrated water resources management for the benefit of communities and the resilience of ecosystems. (Project details can be found here.)

One part of the early project research found that as the Niger River passes through Tembakounda, Bamako, Gao, Niamey, Lokoja and Onithsa – major trading, agro-processing and industrial cities – wastewater and other polluting substances are discharged directly into the river, often without consideration for the environment. National governments of the countries which the river runs through are either unable to deal with the accumulated environmental problems and/or are ineffective at preventing, regulating, reducing and managing pollution from industrial activities.

For this reason, one component of the GEF project, implemented by the United Nations Industrial Development Organization (UNIDO), will facilitate the Transfer of Environmentally Sound Technology (TEST) to reduce wastewater discharges and pollution loads into the Niger River.

Despite the limitations on travel resulting from measures to halt the spread of the coronavirus, in August this year, UNIDO successfully identified and engaged with 19 pilot enterprises in various sectors, including pharmaceuticals, mining and agribusiness, operating in ‘pollution hotspots’ in the countries of the Niger River Basin. This number exceeds the original target of one enterprise per country. 

UNIDO experts are now introducing and sharing the Transfer of Environmentally Sound Technology (TEST) methodology with the pilot enterprises. In essence, this will mean the application of a set of tools including Resource Efficient and Cleaner Production, Environmental Management Systems, and Environmental Management Accounting, which will lead to the adoption of best practices, new skills and a new management culture.

Armed with these tools, the enterprises will be able to reduce product costs and increase productivity, while reducing the adverse environmental consequences of their operations. An awareness-raising campaign will be carried out so that the demonstration effect resonates across the Niger River Basin, prompting other enterprises to follow suit.

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