Free Trade Zones in Africa: Gambia Business & Investment
A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. Free trade zones can be defined as labour intensive manufacturing centers that involve the import of raw materials or components and the export of fast moving consumer goods and other factory products.
Most FTZs are located in developing countries: China, the Philippines, Malaysia, Pakistan, Mexico, Costa Rica, Honduras, and Madagascar have EPZ programs.. In 1997, 93 countries had set up export processing zones (EPZs) employing 22.5 million people, and five years later, in 2003, EPZs in 116 countries employed 43 million people
Corporations setting up in a zone may be given tax breaks as an incentive. Usually, these zones are set up in underdeveloped parts of the host country; the rationale is that the zones will attract employers and thus reduce poverty and unemployment, and stimulate the area's economy. These zones are often used by multinational corporations to set up factories to produce goods (such as clothing or shoes).
Free Trade Zones are also known as Special Economic Zones in some countries. Special Economic Zones (SEZs) have been established in many countries as testing grounds for the implementation of liberal market economy principles. SEZs are viewed as instruments to enhance the acceptability and the credibility of the transformation policies and to attract domestic and foreign investment.
In 1999, there were 43 million people working in about 3000 FTZs spanning 116 countries producing clothes, shoes, household goods, electronics, and toys. The basic objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries and to generate employment opportunities.
Investing inside the Free Zones in The Gambia: Accessing the Incentives
Eligible investors shall be eligible for investment
incentives which shall be accessed as follows:
- A list of all materials required during the construction
and setting-up phases of a venture shall be pre-determined
and approve upon the issue of a licence. This shall be
sent to the Customs and Excise Department with instructions
to waive customs entry duties and taxes upon the presentation
of customs entry forms by licence holders accompanied
by invoices, original bills of lading and packing lists;
- Similar notification shall be sent to the Income Tax
authorities to exempt such taxes at the time of assessment;
- Goods ordered by Zone Enterprises shall be granted temporary
admission by The Customs authorities on arrival to enable
such imports to circulate freely within the Free Zones,
and shall be eventually exonerated from the levy of customs
duties and taxes upon the presentation of evidence that
such goods have been exported to foreign markets. The
modus operandi of the movement of goods in and out of
the Free Zones and the rules governing the conduct of
business within the Zones have been established by GIPFZA
and contained in the "The Free Zones Regulation 2001".
GENERAL APPLICATION PROCEDURES
Applications for Licensing under the Investment Promotion
Act and Free Zones Act must complete the relevant application
forms accompanied by the following documents:
- Four copies of a project proposal document.
- Four copies of company articles of association and memorandum
of understanding
- Four copies of company or business registration certificate.
Business Registration Requirement
Investors wishing to seek GIPFZA's support and assistance
must first register their business ventures as legal entities
operating in The . The process of registering a business
in The has been simplified and requires the filling of the
following documents with the Registrar of Companies:
- Memorandum of Association - includes the name and registered
place of business of the company, its objectives and authorised
share capital subscribed by each share holder
- Articles of association - giving information on the
organisational structure and operational rules of the
company.
Supporting Information
The following additional information must also be furnished:
- The name and address of the proposed business enterprise,
its legal form and bankers;
- The name and address of each director, partner or proprietor,
as the case may be, and the name, address, nationality
and shareholdings of any shareholder who is not a citizen
of The ;
- The nature of the proposed business activity and the
proposed location where that activity is to be carried
out;
- The proposed capital structure and projected growth
over the next five years or more;
- The estimated number of persons to be employed;
- The qualification, experience, nationality and other
relevant particulars of the project's management and staff;
- Strong evidence of sources of financing such as confirmation
of bank accounts, and guarantee documents from financiers
or bankers.
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Gambia Business Consultant
P.O. Box 1783, Banjul
2nd Street East,
Fajara "M" Section
Tel: +220 437 2522
Cell: +220 799 0419
Email: info@solielaw.gm
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Gambia Trade & Shipping
We offer consultancy services on every aspect of importing, exporting and distributing into the West African market, including supplier selection, sourcing trading partners, contract negotiation, favourable shipping terms, carrier and route selection, licensing, customs clearance, warehousing, sales and distribution, as well as any other area of concern for your company.
Business Investment Africa
Businesses in The Gambia may be registered as a company, sole proprietor, partnership, co-operative or as a Gambian branch of foreign or companies
Exports to West Africa
The Gambia has become the port of choice for the importation and distribution of products, goods and commodities to the whole of West Africa, including Benin, Burkina
Faso, Cameroon, Cape
Verde, Chad, Equatorial
Guinea, Gabon, Ghana, Guinea
Bissau, Guinea
Conakry, Ivory
Coast- Liberia, Mali, Mauritania, Nigeria, Senegal, Sierra Leone, The Gambia and Togo
Gambia Investment Promotion & Free Zones Agency
The Free Zones Act provides the legal framework for setting up Free Zones and their efficient management. The main thrust is to create a world-class investment climate in emerging market of The Gambia for businesses engaged in manufacturing, processing and export oriented activities.
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