Reimagining Cross-Border Trade: Challenges and Opportunities for Gambian Manufacturers in the Era of African Free Trade -

By: Fatoumatta krubally

The landscape of cross-border trade is fraught with challenges and opportunities for Gambian manufacturers.

In a candid interview with the President of the Association of Gambian Manufacturers FarimangSaho, the complexities of navigating international markets and the barriers faced by local businesses were brought to light.

With the recent introduction of American trade agreements in Africa and the prospects offered by the African Free Trade Agreement, Gambian manufacturers find themselves at a critical juncture of exploration and transformation.

Reflecting on the current situation, the President highlighted the disparities in market access for various industries, emphasizing, “While women engaged in food processing have been quick to capitalize on the new trade agreements, the main industries are struggling due to limited access to financing and the lack of standardization in their products.”

The inability to compete on a global scale poses a significant challenge for Gambian manufacturers, with issues such as unreliable electricity supply, high taxes, and a shortage of skilled workers impeding their growth prospects.

He said: “It is essential for Gambian manufacturers to compete effectively in regional and international markets. However, obstacles such as high operational costs hinder our ability to fully leverage the benefits of the African Free Trade Agreement.”

One of the key issues identified was the lack of standard verification for Gambian products, making it challenging for manufacturers to meet the high standards required in international markets.

The President emphasized the importance of addressing these issues to enhance the competitiveness of Gambian businesses and facilitate their access to global markets laying a strong foundation within the local market before venturing into international trade.

He pointed out, “Without addressing the fundamental concerns within our industries, such as improving the business environment and ensuring product standardization, it becomes challenging to compete in a vast market like America.”

The logistical challenges of exporting goods to distant markets like America further compound the obstacles faced by local manufacturers, highlighting the need for robust infrastructure and streamlined trade processes.

Adding to the conversation, Saidou Baldeh a businessman and member of the association, illuminated the burdens faced by manufacturers engaging in cross-border trade.

“The hurdles are formidable as we navigate through unjust fees and payments at various checkpoints, impeding the efficacy of our business operations,” he voiced with a note of concern.

The challenges not only strain the financial stability of local manufacturers but also hinder the growth potential of The Gambia’s manufacturing sector.

The Interview shed light on the practical challenges encountered by Gambian manufacturers engaged in cross-border trade with neighboringcountries like Senegal. Exorbitant fees, unjust payments, and demands for undocumented payments at checkpoints have posed significant financial burdens on local businesses. The lack of transparency and adherence to established trade regulations further hinder the seamless flow of goods and impede the growth of the manufacturing sector in The Gambia.

Commenting on the prospects of leveraging the African Free Trade Agreement, the President envisioned a future where Gambian manufacturers could thrive on an international scale. He remarked, “With access to favorable financing terms and the development of essential infrastructures, Gambian manufacturers can expand their market reach, not only to America but also within the sub-regional markets.” The need for robust communication channels, efficient cargo handling, and reliable shipping routes emerged as critical factors in facilitating seamless trade operations for local businesses.

In response to the challenges faced by Gambian manufacturers, the President called for a concerted effort to ensure fair trade practices, transparent business processes, and the development of efficient infrastructural facilities. By addressing these fundamental issues and fostering a conducive trade environment, Gambian manufacturers can position themselves to realize the full potential of the African Free Trade Agreement and compete effectively in the global marketplace.

The journey of Gambian manufacturers in navigating cross-border trade challenges and harnessing the opportunities presented by the African Free Trade Agreement reflects a story of resilience, determination, and the power of collaboration. As the manufacturing sector in The Gambia continues to evolve, the path to sustainable growth lies in overcoming barriers, embracing innovation, and championing a spirit of progress. With a renewed focus on addressing key concerns and advocating for a more conducive business environment, Gambian manufacturers are poised to chart a transformative course toward prosperity and success in the dynamic landscape of international trade.

POLICY

The Association of Gambian Manufacturers (AGM) plays a critical role in advocating for and shaping policies that affect the manufacturing sector in The Gambia. While specific policies may evolve and be tailored to current needs and economic conditions, AGM’s policy framework typically includes the following key areas:

1. Policy Advocacy and Reform

• Regulatory Environment: AGM advocates for a favorable regulatory environment that simplifies business operations. This includes lobbying for the reduction of bureaucratic red tape, streamlining permitting processes, and ensuring that regulations are clear and predictable.

• Taxation and Incentives: The AGM pushes for tax policies that benefit manufacturers, such as reduced corporate tax rates, investment tax credits, and other incentives that encourage local and foreign investment in the sector.

• Trade Policies: The AGM supports trade policies that enhance the competitiveness of Gambian manufacturers. This includes advocating for fair trade practices, reducing import duties on raw materials, and negotiating favorable trade agreements to access regional and international markets.

2. Support for SMEs and Local Industries

• Access to Finance: AGM works to improve access to financial resources for small and medium-sized enterprises (SMEs) in the manufacturing sector. This includes advocating for better financing options, grants, and subsidies that support business growth and innovation.

3. Innovation and Technology

• Research and Development (R&D): AGM promotes policies that encourage investment in research and development. By supporting innovation, the AGM aims to enhance the competitiveness of Gambian manufacturers and foster the development of new products and processes.

4. Local Content and Value Addition

• Local Sourcing: AGM encourages policies that support local sourcing of raw materials and components. This helps increase the value added within the country and reduces dependency on imports.

• Value Chain Development: The AGM supports initiatives that enhance the value chain of local products, from raw material processing to finished goods. This approach helps create more jobs and economic opportunities within the sector.

5. Export Promotion and Market Access

• Export Incentives: The AGM advocates for export promotion policies that make Gambian products more competitive in international markets. This includes supporting export subsidies, market access agreements, and trade facilitation measures.

• Market Expansion: The AGM helps manufacturers explore new markets by providing information on export opportunities and connecting them with international buyers and partners.

6. Environmental and Social Standards

• Sustainable Practices: The AGM promotes policies that encourage environmentally sustainable manufacturing practices. This includes supporting waste management programs, reducing emissions, and complying with environmental regulations.

• Social Responsibility: The AGM advocates for fair laborpractices and safe working conditions in manufacturing facilities. Ensuring that manufacturers adhere to social standards contributes to the overall well-being of workers and communities.

7. Monitoring and Evaluation

• Policy Impact Assessment: AGM regularly assesses the impact of manufacturing policies and provides feedback to policymakers. This helps ensure that policies are effective and responsive to the needs of the manufacturing sector.

• Continuous Improvement: The AGM advocates for continuous improvement in policy implementation based on industry feedback and changing economic conditions.