WORLD TRADE
ORGANIZATIONWT/IFSC/W/8/Add.2
24 October 2001
(01-5220)
Integrated Framework Steering Committee
INTEGRATED FRAMEWORK PILOT SCHEME:
PROPOSAL FOR FOLLOW-UP TO THE IF ROUND TABLES
Addendum
The Gambia
I. BACKGROUND
A. INTEGRATED FRAMEWORK ROUND TABLE
1. The Sectoral Consultations on Trade, Investment and Private Sector Development were held
under the Integrated Framework for Trade Development for LDCs in Geneva on 23 November 1999.
There was general support and endorsement of the policies, strategies and programmes presented.However, no financial pledges were made on the Technical Cooperation Projects presented.  In this
regard, the Round Table noted the need for the mobilization of resources to finance these programmes
as part of the Integrated Framework.
2. A summary of conclusions and recommendations of the Round Table meeting are attached as
Annex I
B. M
ACROECONOMIC CLIMATE FOR TRADE DEVELOPMENT
3. Overall economic performance in The Gambia during 2000 and the early part of 2001 was
mixed. The country made important gains in implementing economic and structural reforms, which
were supported by the second and third annual arrangements under the Poverty Reduction and Growth
Facility (PRGF). The economy benefited from robus t real GDP growth with low inflation, while
important reforms were implemented. They include a further reduction in the external tariff, the
rescinding of the problematic preshipment inspection scheme, increases in petroleum product prices,and improvements in budgetary expenditure reporting and control. Through mid-2001, the
government implemented budgetary measures that are expected to bring fiscal performance to a
sustainable level. This outcome should also make it feasible to maintain a prudent monetary policy for
the year and permit further improvement in the external sector.
4. In 2000, real GDP growth was 5.6 percent as a result of good rains, which boosted the
production of groundnuts and other crops, and a robust performance in the construction sector. The
good harvest in 2000 also helped to contain the end-of-period inflation (based on the low-income
consumer price index) below the program target of 2 percent.
5. The external current account deficit (excluding official transfers) is estimated to have
widened to 12 percent of GDP in 2000 from 11.5 percent in 1999. The real effective exchange rate ofthe dalasi depreciated by 4.8 percent during 2000, contributing to an improvement in the external
competitiveness of The Gambia. The overall balance of payments surplus moderated somewhat as
private capital inflows declined; gross official rese rves increased only slightly to SDR 82.5 million at
the end of 2000, providing the equivalent of about six months of import cover. Effective July 1, 2000,WT/IFSC/W/8/Add.2
Page 2
the maximum import tariff rate was reduced from 20 percent to18 percent, and the number of tariff
bands was reduced from ten to three.
6. The overall fiscal deficit (excluding grants) was reduced to 3.6 percent of GDP in 2000
(virtually in line with the program target) from 4.75 percent in 1999 as a revenue shortfall, mainly in
customs receipts, and a slight overrun in recurrent expenditure were largely offset by lowerdevelopment expenditure because of lower external financing.
7. Monetary policy was largely accommodating as domestic credit expansion, both to the
government and the private sector, exceeded the targets through end-March 2001.
8. A number of reforms were implemented to strengthen budgetary  performance, including the
identification of, and measures to pay off, government arrears and the introduction of reporting and
control safeguards on all government expenditure.
C. S
TRATEGIC CONSIDERATIONS FOR TRADE , I NVESTMENT AND PRIVATE SECTOR
DEVELOPMENT
9. The strategies adopted by the Government of the Gambia aim at creating an enabling
environment for private sector-led growth. The thrust of the current strategy include:
- Greater diversification into production of higher value export processing activities;
- Increased export volume and value;- Identifying opportunities in a precise environment that requires specific activities and resources
(human, material and finance) for poverty alleviation and to create additional jobs; and
- Increased number of export-oriented firms and companies.
10. The Government of the Gambia emphasises Trade, Investment and Private Sector
Development as the instrument for economic transformation and self-reliance.
11. Key strategic issues of trade liberalisation in The Gambia revolve around tariff reform and its
attendant fiscal costs; the capacity to reform the regulatory framework to be in consonance with WTO
consonants; and the development of the supply response capabilities to exploit the potential gains of
global trade liberalisation.
12. Current obstacles towards the exploitation of export opportunities relate to structural
constraints that hamper more efficient and competitive export production.  These include inadequate
infrastructure; institutional limitations in trade and investment promotion, effective trade associations,
targeted advisory and support services as well as scarcity of trade related technical and managerial
expertise.  The lack of long-term capital has been a perennial restraining factor.
13. The Government’s revised economic program for the rest of 2001 appropriately aims at
strengthening policies in areas where slippages have occurred, and at deepening structural reforms toimprove the environment for private sector activity and to enhance the delivery and monitoring of
public services. Such an approach is essential to restore macroeconomic stability and contribute to a
durable reduction in poverty.
14. Government’s attempts to lure the private sector have also entailed reforms of the banking
system to enhance efficiency and effectiveness and the formulation of an Investment Policy with theappropriate set of fiscal incentives, legal guarantees and legislative reforms in the priority areas
identifies for private sector development.WT/IFSC/W/8/Add.2
Page 3
D. THE POVERTY REDUCTION AND GROWTH STRATEGY :  PROCESSES AND INSTITUTIONAL SET -
UP
15. The formulation of specific sectoral objectives, targets and activities to implement the
activities of different sectoral plans are laid down in the Poverty Reduction and Growth Strategy
(PRGS) for the period 1999-2001.  The PRGS paramete rs have been further crystallised in the
program areas of the strategy for Poverty Alleviation 2 (SPA2) and planned for further
operationalisation through an extensive consultation process.  These consultations are being led by
selected agents in the NGO community and are conducted at the local, district and national levels.
16. The government has made significant progress  in implementing the PRSP process, including
the completion of a detailed work agenda to complete the full PRSP by end-2001. In May 2001, the
government introduced a comprehensive framew ork to monitor poverty-reducing expenditure,
including expenditure funded from debt relief under the enhanced HIPC Initiative. It has alsocontinued to make significant progress in preparing several pieces of legislation, which are awaiting
parliamentary approval, aimed at strengthening the supervisory and regulatory role of the central bank
in the financial sector, establishing an updated legal basis for business incentives and privatization,
and enhancing competition in the private sector.
17. The formulation of the Plan of Action (2001-2010) in preparation for the Third UN
Conference on the Least Developed Countries was co-ordinated by the National Vision 2020 Task
Force headed by the Department of State for Tr ade, Industry and Employment.  The drafts were
enriched from comments from various government agencies and the NGOs through TANGO and
Action Aid.  The final version was endorsed by the High Level Ministerial Economic Committee.
18. In preparing the Plan of Action for LDC III, the National Task Force worked closely with
SPACO whose responsibility is to monitor and co-ordinate the implementation of the poverty
alleviation programme, both from a horizontal and vertical perspective.  The overlap of representation
of government, civil society and NGO in both organs could serve as opportunity for information and
resource sharing and the undertaking of joint national action for effective co-ordination and maximum
impact and in particular, for the mainstreaming of trade into poverty reduction strategies.
E. T
HE TRADE , INVESTMENT AND PRIVATE SECTOR DEVELOPMENT PROGRAMME
19. The Government of the Gambia has embarked upon an ambitious programme to boost trade
and investment in the country and to create conditions conducive to the growth of the private sector.
The Trade, Investment and Private Sector Devel opment Programme is composed of modules and is
laid down in the documentation prepared for the UNDP Trade-Related Round Table held in
November 1999 and reaffirmed in the plan of Action 2001-2010 prepared for the Third UN
Conference on LDCs. Module 1 seeks to improve the nation’s investment promotion capacity,Module 2 is focussed on export development and promotion;  Module 3 is concerned with trade
support and trade facilitation;  Module 4 on private enterprise development;  Module 5 on compliance
with multilateral Trading agreements and Module 6 on human resource development and
strengthening labour market systems.  The programme has been the subject of donor consultation,
under the auspices of the UNDP, and its implementation includes significant donor financingrequirements.
20. The Government of the Gambia strongly emphasises the importance of trade in achieving the
development objectives of the country and in particular the role it can play in poverty reduction.
Efforts need to be strengthened to “mainstream” trade in national development and poverty reduction
strategies e.g. through the integration of trade issues in the Poverty Reduction Strategy Paper.WT/IFSC/W/8/Add.2
Page 4
21. The objective of the poverty reduction strategy paper (PRSP) under the assistance of the
WB/IMF is to link it to macro-economic growth and poverty reduction. Five development objectives
(called pillars) and eleven programme areas have been identified for the strategy paper:
(i) Enhancing the productive capacity of the poor;
(ii) Improving access to and the performance of social services;
(iii) Building capacities at local levels for people-centred development management;
(iv) Strengthening communications processes;
(v) Providing Infrastructure support to the poor.
22. These development objectives are operationalized through the eleven action programmes.
F. ON-GOING TRADE -RELATED TECHNICAL ASSISTANCE1
23. The main TRTA programmes are the Trade Gateway and Free Port project of the World Bank
as well as projects covering specific sectors such as the groundnut sector (EU). Other on-going TRTAprogrammes were described in the RTM document.
II. PRIORITY PROGRAMMES UNDER THE INTEGRATED FRAMEWORK
24. The Government of the Gambia proposes to utilise funds made available under the Integrated
Framework through the Integrated Framework Trust Fund for the following priority activities in
support of mainstreaming of trade and investment. These projects, to be implemented immediately,
fall under Category I activities. Projects mentioned under Category II are also ready for
implementation, subject to the availability of funds from development partners, over and above the IF
Trust Fund allocation. Both projects being proposed will be implemented with the full participation ofthe private sector including export-oriented enterprises, product associations and the Gambian
Chamber of Commerce and Industry.  ITC will be the overall Executing Agency for both project
modules, with UNCTAD and WTO being associated in certain individual activities through an Inter-
Agency Agreement.
A. PROJECT TITLE 1: SUB-SECTOR ANALYSIS AND MASTERPLAN FOR EXPORT PROMOTION
(a) Objectives
25. To facilitate the sustainable growth, development and active promotion of the productive
sectors of the Gambian economy with special emphasi s on fisheries, horticulture, floriculture and
livestock sub-sectors.
(b) Activities
1. Undertake in-depth sub-sector feasibility studies on export opportunities
2. Analyse the overall constraints on the development of exports and identify measures, which
need to be undertaken to overcome such constraints.
3. Prepare short-list of sectors for which sectoral strategies need to be prepared at a National
Symposium to be attended by all stakeholders
                                                     
1 The coordination of the project activities as well as other on-going trade-related TA with the proposed
project will be ensures by DOSTIE.WT/IFSC/W/8/Add.2
Page 5
4. Provide training on sectoral strategy formulation to selected persons from the public and
private sectors (Strategy Counterpart Teams)
5. Prepare preliminary studies which will provide the elements for drawing up sectoral strategies
and action plans for the selected sectors and an Action Plan for Export Promotion
6. Undertake a study to identify marketing channels for products with export potential and assist
in contact promotion/export marketing missions
(c) Budget
− US$ 130,950
(d) National Counterpart
− DOSTIE;
− Ministry of Agriculture; and,
− Gambian Chamber of Commerce and Industry
B. PROJECT TITLE  2: STRENGTHENING THE CAPACITY OF DOSTIE AND GIPFZA TO PROVIDE
EFFICIENT TRADE AND INVESTMENT RELATED INFORMATION SERVICES
(a) Objective
26. To further develop and enhance the capacity of Department of State For Trade, Industry &
Employment (DOSTIE) and the Gambia Investment  Promotion and Free Zones Agency (GIPFZA) to
provide effective and needs-based trade and investment-related information services, within their
respective mandates, to enterprises operating in th e trade sector to enable them to make informed
business decisions.
(b) Activities
1. Conduct a survey of the trade and investment related information needs of identified groups
of users i.e. export-oriented enterprises, importers, potential investors, government trade
officers, trade researchers, etc. and an assessment of the existing trade information supply
capacities.
2. On the basis of the preceding activity, formulate a plan of action to address the supply-side
needs in the areas of trade information and investment promotion.
3. Establish the necessary information infrastructure required for trade and investment-related
data collection, analysis and dissemination including the installation of necessary equipment
(computer software and hardware).
4. Establish a trade and investment documentation and library reference centre.
5. Procure licenses and subscription for the utilisation of ITC’s Interactive Trade Maps, Product
Maps, Market News Service and Market Briefs.
6. Establish an information enquiry-reply service as a delivery outlet of the trade information
services (TIS) and investment information services, staffed with well-trained and motivated
personnel.
7. Organize seminars to users of trade and investment related information on their application in
effective business decision making and management.
(c) Budget
− US$ 150,000WT/IFSC/W/8/Add.2
Page 6
(d) National Counterpart:
− DOSTIE, and
− GIPFZA
C. CALENDAR OF ACTIVITIES
Project Module Starting date Expected date of
CompletionRemarks
Sub-sector Analysis and Master Plan
for Export Promotion October 2001 December 2002
Strengthening the capacity of
DOSTIE and GIPFZA to provideefficient trade and investment related
information servicesOctober 2001 October 2002
D. CONSOLIDATED BUDGET
Project Module 2001 2002 Total
Sub-sector Analysis and Master Plan
for Export Promotion 39,285 91,665 130,950
Strengthening the capacity of
DOSTIE and GIPFZA to provide
efficient trade and investment related
information services39,285 91,665 130,950
Total without support costs 78,570 183,330 261,900
Programme Support Costs (10%) 8,730 20,370 29,100
Grand Total 87,300 203,700 291,000
III. PRIORITY PROGRAMMES: CATEGORY II
A. PROJECT TITLE  3: INFORMAL SECTOR PLANNING , SUPPORT AND COORDINATION
(a) Objectives
1. To plan development strategies for the informal sector aimed at providing a conducive
business environment;
2. To assist informal sector enterprises to integrate into the formalized sector
3. To address constraints faced by the sector in;
- the low managerial and technical skills
- poor quality of products and marketing strategy
- poor infrastructure
- poor planning and coordination of efforts in the informal sectorWT/IFSC/W/8/Add.2
Page 7
- the inadequate financial services support to the sector
- the inability to exploit linkages with the modern private sector
(b) Activities
4. Establish a process of monitoring and identification of constraints in the informal sector and
use the findings to fine tune policy and develop appropriate institutional framework.
B. PROJECT TITLE  4: DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES )
(a) Objectives
1. To stimulate growth in SMEs sector, especially in production and processing;
2. To enhance growth and efficiency in SME operations;
3. To promote linkages between SMEs and IMSEs and the large scale enterprises;
4. To promote an equitable regional distribution of SMEs and IMSEs.
(b) Activities
1. Design and undertake training programmes for entrepreneurs to improve their competitive
edge and managerial capacities;
2. Introduce competency-based programmes in vocational institutions;
3. Establish networking between local entrepreneurs and sectoral associations and technology
centres through the Gambia Investment Promotion Agency;
4. Develop necessary infrastructure to link SMEs
C. PROJECT TITLE  5: REVIEW AND REFORM OF TARIFFS IN ACCORDANCE WITH WTO
AGREEMENTS
(a) Objective
27. To endeavour to maintain the competitiveness and comparative advantages of The Gambia in
the West African sub-region, in the wake of the world trends of economic globalisation and liberationof trade.  Government would review with a view to reform its trade and tariff policies as major
instruments to encourage trade and investment in a proactive and sustainable manner
(b) Activities
1. Train selected staff of line Ministries in the formulation, planning and implementation of
tariffs (IMF/UNCTAD)
2. Organise trade policy seminar and undertake prima facie needs assessment of implementation
issues in particular with regard to notifications, inventory of laws and regulations that wouldneed to be made WTO compatible, revision of  existing legislation and drafting of specific
legislation
3. Review the institutional arrangements for trade and tariff policies and advise on their
harmonisation (IMF/WTO).
4. Assess the current capacity for the efficient execution of trade and tariff policies and advice
on the need or otherwise for technical assistance and training in order to build and/or sustain
capacity in the design, planning and implementation trade policies and programmes.
(UNCTAD)WT/IFSC/W/8/Add.2
Page 8
(c) Overall Executing Agency:
− UNCTAD
(d) National Counterpart:
− Ministry of Finance;
− DOSTIE; and,
− Customs Department
D. PROJECT TITLE  6: FACILITATE THE ESTABLISHMENT OF AN ECONOMIC
ZONE /INDUSTRIAL ESTATES2
(a) Objective
28. To facilitate the development of an industrial park (economic development zone) with the
desired objectives of accelerating economic growth by developing informal sector, small and
medium-scale enterprises in the country that have potentials of contributing to employmentgeneration, skills development, and value-addition to the domestic economy
3.
(b) Activities
1. Undertake comprehensive feasibility studies on the development of an industrial estate to
contain factory cells and an appropriate technology training unit.
2. Pursue and finalize the process for international competitive bidding procedures for the
development of the project through BOT concept.
3. Establish management and operational structures for the Estate.
4. Identify training needs of selected SMEs through the appropriate technology training unit.
                                                     
2  This project has become particularly important si nce the recent establishment of the Gambia Investment
Promotion and Free Zone Authority. This project will benefit from the comprehensive study undertaken by
International Development Ireland Ltd. in association with the Jebel Ali Free Zone Authority and Sahel InvestManagement International on the Gambia Free Zone Development Strategy. The conclusions andrecommendations contained therein will prov ide a sound foundation for this project.
3  It is proposed that the IF funds be utilised to kick-start the project and the Government of the Gambia
will consult with other bilateral and multilateral donors to secure funds for the implementation of all the
activities envisaged under the project.WT/IFSC/W/8/Add.2
Page 9
ANNEX I
Main recommendation and outcome of the conference
♦ The government presented an overview of its macroeconomic framework and technical
assistance requirements for trade, investment and private sector development.  The total
estimated cost of the projects presented in the TCP was US$13.2 million, of which theGambia Government contribution was estimated at US$1.5 million.  The external financial
requirements for the implementation of these projects were expected to address the major
constraints and challenges militating against trade and investment.
♦ In response to the presentation of the macroeconomic framework and six modules by the
government, the development partners congratulated the government of the Gambia on the
quality of the documentation for the Conference, its pursuit of sound macroeconomic policies
and remarkable economic performance.  However, they expressed concern over some
slippages in the implementation of fiscal policies and structural reforms.  The delegation
noted with satisfaction the correction of these slippages.
♦ The development partners also commended the government for adopting a governance
framework agenda for the procurement code, the formulation of an investment code and the
proposed establishment of a one-stop shop for investors.
♦ The delegation expressed the need for deepening macroeconomic policies and reforms
including in particular consolidating government finances, through a further reduction in the
budget deficit and the unsustainable domestic debt;  creating an enabling environment for
private sector development, foreign direct investment and economic diversification;
strengthening the institutional capacity of the public administration;  implementing acomprehensive social agenda especially in the education and health sector;  and implementing
tariff reform with a view to safeguarding the Gambia’s external competitive position.
Additionally, the need for monitoring external developments and policy implementation
through technical assistance was emphasized.
♦ The development partners noted the laudable initiatives of the government in addressing
governance issues, including the consolidation of the legal and constitutional framework.  Onaccount of the government’s unflinching commitment to macroeconomic reform coupled with
its remarkable macroeconomic performance, the development partners reaffirmed their
support for the Gambia’s medium- and long-term macroeconomic policies and programmes.
♦ In the context of the energy sector, the development partners pledged support for
rehabilitating and extending the electricity network in the Greater Banjul and rural areas. ThePrivate sector expressed concern over the lack of an adequate infrastructure, the high cost of
energy and high import tariffs.
♦ Regarding poverty alleviation, the participants reaffirmed their commitments to undertaking
interventions in the micro credit, fisheries, environment and agricultural sectors at grass-root
level.
♦ The delegation noted with deep satisfaction the Gambia’s commitment to political stability
and the efforts it deployed in returning the country to democratic constitutional rule.WT/IFSC/W/8/Add.2
Page 10
♦ The development partners acknowledged with deep appreciation the government’s timely
intervention in the political crisis in Guinea –Bissau as well as its active participation in theSecond Tokyo International Conference on African Development (TICAD II).
♦ On the account of the limited capacities in the Gambia, the development partners supported
the need expressed by the government for human resource development to meet the daunting
challenges in the areas of trade, investment and private sector development.
♦ On the revenue and trade policy fronts, the development partners pledged further support for
the ongoing ASYCUDA Project at the Department of Customs and Exercise.
♦ In view of the crucial role of the private sector as the engine of growth, the delegations
expressed the need for the private sector supplementing the government’s efforts in
promoting domestic and foreign investment.
♦ The development partners reaffirmed their support for efforts by the Gambian authorities in
the area of trade, investment and private sector development.  In particular, the Islamic
Development Bank, the World Bank, IMF, Japan and France expressed intentions to review
their co-operation programmes in order to quickly address the priority needs submitted to theConference as part of the Technical Co-operation Programme.  The Conference also noted the
strong support from the six core agencies of the Integrated Framework.WT/IFSC/W/8/Add.2
Page 11
ANNEX II
UNITED NATIONS DEVELOPMENT PROGRAMME
Integrated Framework Trust Fund (IFTF)
Project Number : ……………………..
Title : Follow-Up of Trade Round Table
Pilot Phase of the Integrated Framework
Estimated Starting Date : October 2001
Duration : 15 months
Project Location : Banjul, The Gambia
Government Cooperating Agencies :
Department of State for Trade,  Industry and Employment (DOSTIE)
Ministry of Agriculture
Gambian Chamber of Commerce and Industry
Gambia Investment Promotion a nd Free Zone Authority (GIPFZA)
Executing Agency : International Trade Centre UNCTAD/WTO (ITC)
Implementing Agencies : United Nations Conference on Tr ade and Development (UNCTAD)
World Trade Organisation (WTO)
Sector : Trade Development
__________________________________________________________________________________
Brief Description:   The project aims to assist exporters to integrate in the global trading system and government strategy
makers to « Mainstream » trade in national development plans and poverty alleviation strategies in the country, in particularthe PRSP. The two main focus areas of the project is to assist in the preparation of sub-sector strategies for products having
good export potential and to strengthen the capacities of DOSTIE and GIPFZA to provide efficient trade and invest
promotion related services.
__________________________________________________________________________________
On behalf of:  Government of Gambia
_________________________________________________ Date: _____________
United Nations Development Programme
_________________________________________________ Date: _____________
International Trade Centre UNCTAD/WTO
________________________________________________ Date: _____________
__________Contributions
IFTF
($US)
2001 : $   87 300
2002 : 203 700
________
TOTAL : $ 291 000
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