GAMBIA: An Introduction to General Business Law
Doing Business in The Gambia
The Gambia is one of the smallest countries in West Africa, with a population of 2.7 million. The Gambia is ranked 174th out of 194 countries by the UN Human Development Index.
The Gambia’s National Development Plan for 2024 focuses on creating sustainable, inclusive and resilient growth, prioritising a resilient private sector, enhancing human capital investments and strengthening transparency and accountability in governance.
The Gambia is an excellent country for investment, offering one of the most politically stable environments in West Africa and a strong presence of foreign investors.
The government is committed to attracting foreign direct investment (FDI) and encouraging local investment by providing incentives to investors who qualify for a Special Investment Certificate in order to promote manufacturing and development in The Gambia. This includes income tax holidays for investors who wish to participate in the priority sectors for a period of five years and priority regions for a period of eight years.
The country’s GDP has been steadily increasing over the past two years, and growth is projected to average at 5.4% in 2024-2025 and 5.6% in 2025-26 by the World Bank.
Current Economic Conditions
Economic growth in The Gambia is projected to rise, driven by increased activity across many sectors. The agriculture, transportation, tourism, and information and communication sectors have all seen significant activity since the COVID-19 pandemic. The increase in private and public sector investment supported by the inflow of overseas remittances are also expected to drive economic growth in The Gambia.
The Gambia has registered notable economic growth in 2024, accompanied by a reduction in the fiscal deficit by 0.45%. However, the Public Utilities and Regulatory Commission has approved an increase in utility tariffs by 18.3%, alongside rises in customs and excise taxes, as part of measures to address the fiscal deficit. Additionally, inflation, driven by the global pandemic and the Russia-Ukraine conflict, has eroded the purchasing power of the Gambian population to some extent.
Nonetheless, The Gambia has made great strides in developing the infrastructure of the country. The OIC project was set up with the aim of constructing a 22 km road stretching from the Airport Junction to Banjul highway, in addition to 20 new roads, complete with drainage systems, streetlights, and pathways. There have also been consistent upgrades to the national power grid in urban areas.
Trends and Developments
The Gambia has witnessed a rise in mergers and acquisitions, particularly within the banking sector, where the value of these transactions has increased in 2024 and is projected to grow further in 2025. The banking industry in The Gambia has become increasingly competitive, while the microfinance sector continues to expand rapidly.
In recent years, the firm has successfully conducted or provided advisory services for a significant number of major sales and acquisitions in The Gambia, representing both domestic and international companies and investors.
The firm acts as a trademark and patent attorney in The Gambia, Sierra Leone and Liberia, for principals all over the world, including partner law firms that routinely instruct the firm to manage intellectual property (IP) matters on behalf of their clients.
The Gambian legal system is a tripartite system comprising common law, customary law and Shariah law, with the latter two only being applicable to Gambian citizens and/or Muslims.
The firm’s expertise covers all aspects of technology agreements, market entry, collaborative contracts, procurement contracts, investment and management licensing, etc. The firm has advised and assisted regional and international IT and telecommunication companies on investment and acquisition, policy, law and regulation.
Hurdles Affecting Clients and How They Can Be Overcome
Litigation remains the most common practice area in the jurisdiction; however, it is often a very protracted process.
A positive development in addressing this issue is the enactment of the Alternative Dispute Resolution (ADR) Rules. While ADR has already been incorporated into the court system, the new rules aim to encourage all litigants to explore alternative solutions outside of the courtroom. This approach is designed to expedite the resolution of disputes and litigation.