Gambia: Investing
According to UNCTAD World Investment Report 2022, FDI inflows into The Gambia increased from USD 190 million to USD 252 million between 2020 and 2021, in the context of the global recovery from the global health crisis. The total FDI stock was estimated at USD 914.9 million in 2021. In 2022, global FDI momentum weakened in the context of the war in Ukraine, rising food and energy prices, financial turmoil and debt pressures (UNCTAD’s Investment Trends Monitor). Agro-processing activities and tourism attract most of the FDI. The main investors are India, Lebanon, Mauritania, China, Turkey and the United Kingdom.
The Gambia offers tax incentives, transparent and simple procedures as well as a strong potential in the tourism and re-export sectors. Its limited size and its landlocked position can be impediments to investment. The country should improve the access to electricity and to the credit, simplify the tax system, better protect minority investors and resolve issues due to insolvency. Since the election of new President Adama Barrow, the government is working to attract more foreign investments in the country. These investments are mostly concentrated in the agro-food and tourism sectors. The government has identified several areas as 'priority sectors' that attract a Special Investment Certificate (SIC), which provides a range of incentives, including duty exemptions and tax holidays. There are no laws or practices in The Gambia that discriminate against foreign investors. Through the National Entrepreneurship policy, the State promotes business creation in order to diversify the economy. Tax advantages, simple procedures and tourism’s strong potential are some of the country’s main assets.
| Gambia | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 2.0 | 5.5 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 5.0 | 3.5 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 5.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2020 | 2021 | 2022 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 190 | 249 | 236 |
| FDI Stock (million USD) | 663.1 | 914.9 | 1,151.0 |
| Number of Greenfield Investments* | 0.0 | 0.0 | 1.0 |
| Value of Greenfield Investments (million USD) | 0 | 0 | 10 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
| Personal income tax | Progressives rates from 0% to 25% |
| From GMD 0 to GMD 24,000 | 0% |
| From GMD 24,001 to GMD 34,000 | 5% |
| From GMD 34,001 to GMD 44,000 | 10% |
| From GMD 44,001 to GMD 54,000 | 15% |
| From GMD 54,001 to GMD 64,000 | 20% |
| Above GMD 64,000 | 25% |
| Gambia | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 49.0 | 36.6 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 326.0 | 284.8 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 48.4 | 47.3 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Gambia | Sub-Saharan Africa |
|---|---|---|
| Procedures (number) | 6.00 | 7.51 |
| Time (days) | 8.00 | 21.30 |
Source: Doing Business.
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Latest Update: September 2023
