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The goal of investment promotion in The Gambia will see accelerated push, even as The Gambia Investment Promotion & Free Zones Agency (GIPFZA), charged with this duty will now be known as Gambia Investment and Export Promotion Agency (GIEPA).
According to the permanent secretary, Ministry of Economic Planning & Industrial Development, Mr. Abdou Touray, a new law has revised the GIPFZA Act of 2001 and replaced it with the GIEPA Act of 2010. He said the change in nomenclature will be finalized by June 2010, when the new agency will start its work.
He said this at a sensitization workshop for companies issued with Special Investment Certificate (SIC) on the status of the preparation of the new agency and the type of support this new Agency will give them. According to him, the new agency will continue to provide a range of business services to interested businesses.
He said the GIPFZA was established by an Act of Parliament in 2001 with the mandate to promote, facilitate and attract foreign direct investment in The Gambia. According to Mr. Touray this mandate has guided them in registering quality investments over the years. He also noted that the government, realizing the need to cement the gains but also to expand the role of the agency, embarked on reviewing the 2001 Act, taking into account the lessons learnt over the years. This he said led to the repealing of the GIPFZA 2001 Act to be replaced by GIEPA Act.
He stated that the purpose of the review was to respond to the concerns of the investors, business environment and the development aspiration of the government in addressing poverty, MDGs and the actualization of Vision 2020. The new bill therefore seeks to address the development challenges facing the country.
The permanent secretary further noted that the new agency would continue administering the incentive support to all companies issued the Special Investment Certificate (SIC) adding that it should not be seen as a government thing only but to create a better environment to participant fully in the economy of the country.
The mandates are among others, investment promotion and facilitation, export and enterprise development noting that the new agency has a bigger mandate than the GIPFZA as it added to its functions promotion of export and to promote and facilitate the development of micro, small and medium enterprises.
He also said that the new agency will create dialogue and understanding for business growth and to improve quality of investment. He noted that the new act has provisions for investment monitoring committee to monitor and evaluate the performance of the investors in respect to their obligation under the SIC and also the Act has support for investors interested in exporting as well as small and medium scale businesses that require support. He said that the service of the new agency is all inclusive; it will not only be promoting investment but would provide range of business to interested businesses.
According to the PS, the SIC contained in the new bill has better incentives than the current one; but does not have duty exemption on raw materials and capital, rather 5% duty on them. He said that this is to comply with the ECOWAS proposed common external tariff system as well as avoid delays experienced in the application of duty waiver.
“The new SIC grant tax holiday in respect of corporate or turnover tax, depreciation allowance and withholding tax on dividends for investors in the priority sector for a period of five years in the case of investors in the priority sector and priority area for a period of 8 years. This is to decentralize investment in the country,” he said.
Mr. Touray revealed that the minimum capital required for SIC is US$250,000.00 instead of US$100,000.00 in the earlier arrangement.
He finally assured the gathering of the government’s continued support. He also assured the valid SIC holders that are that their certificate will continue to be recognized as the changes have no effect on it.
