TERMS OF REFERENCE FOR THE UPDATE OF THE NATIONAL INVESTMENT POLICY

1999

1. BACKGROUND

In recent times, the World is persistently facing pressing socio-economic and environmental
challenges coupled with a very youthful population especially in the developing world. Therefore,
strategically harnessing economic growth for sustainable and inclusive development is more
important than ever. Investment (both Foreign Direct Investment and Domestic Direct Investment)
is a primary driver of such growth. Mobilizing investment and ensuring that it contributes to
sustainable development objectives is indeed a priority for all countries and for The Gambia in
particular. The Gambia’s development blue print, The National Development Plan, seeks to foster
a strong competitive private sector that can alleviate poverty, create wealth, improve the quality of
life of Gambians and help the country achieve the sustainable development goals. The NDP clearly
recognised the role Investment can play in achieving these objectives.

Also, The Gambia has adopted an open regime for Investment, in which the essential investment
protection guarantees are offered in the laws with regards to access to land, foreign labour, foreign
exchange (with regards to repatriation of funds and capital) and investment fund. In addition, the
country is also a signatory to a number of international organisations (e.g. Multilateral Investment
Guarantee Agency-MIGA) that offer investment guarantee and protection for investors.
Furthermore, The Gambia has adopted a range of modern business regulation tools such as the
single window business registration, environmental impact assessment and other laws that are in
line with International best practice. It has also undertaken far reaching policy and regulatory
reforms in recent years to improve the country’s competitiveness.

However, The Gambia like many Least Developed Countries (LDCs) shares some supply-side
constraints such as infrastructure (hard & soft) gap in the transport, energy and ICT sub-sector.
These constraints expose The Gambia to exogenous shocks, regulatory challenges and the negative
effects of climate change. All these have negatively affected the development of the private sector

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 in The Gambia. In addition, our policy approach to private sector development has been ad-hoc
and most often one-off, these interventions often bear limited gains and unintended consequences.

In 2016, The Ministry of Trade, Industry, Regional Integration and Employment with the support
of UNCTAD conducted an Investment Policy Review looking at the regulatory and Business
environment affecting the private sector development and growth. The IPR advocates a radical
shift in policy approach to private sector development arguing that Government should adopt a
facilitative role that mainly focuses on creating an enabling business environment for all. The core
element of this approach would therefore be the development of an effective Public-Private
dialogue mechanism such as the National Business Council. Also, looking at the fast pace of global
development trends such as the Internet of Things, Smart Agricultural Practices, latest
technological advancements in manufacturing and assembly, one can conclude that, there is a
greater need for The Gambia to update its 1999 National Investment Policy in order to match it
with our current needs. In addition, with the increasing desire for regionalism and the fast deepen
of the sub-regional integration, the Gambia need to continuously reposition itself in order to benefit
from these developments.

Against this background, the Government of The Gambia through this Ministry e and its stakeholders
seek to develop a broader and more intricate Investment policy, while building and maintaining a
generally favourable investment climate. This updated investment policy will place inclusive growth
and sustainable development at the heart of its objectives to attract and benefit from global
investment flows. This Policy will be the government’s vehicle to directly or indirectly operationalize
sustainable development with concrete measures and mechanisms at the national, regional and
community level. The update would seek to address the weakness identified in IPR to enhance the
competitiveness of the investment environment.

2. OBJECTIVES

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The primary aim of the Investment Policy update is to response to the changing dynamics of the
investment environment with an objective of attracting increase investment flows to the economy. It
is meant to encourage private investment as key growth lever in the economy and contribute to
addressing increasing unemployment and poverty. It also aimed at synergisingat withsynergising
with other national economic policies includingpolicies including industrial policies, ICT, Energy
roadmap, Entrepreneurship Policy, Agricultural Investment Plan and National Tourism Policy. . Also
to develop a mechanism that will help the government in seamlessly integrating sustainable
investments into our development strategies. Furthermore the Investment Policy Update will take into
account the current development needs and challenges of The Gambia and foster responsible investor
behavior and incorporate principles of Corporate Social Responsibility (CSR). Also to contribute to
achieving the objectives of the National Development Plan (NDP).

Keys Issues for the Update of the National Investment Policy The Investment Policy Update will help
The Gambia addresses the challenges posed by supply side constraints, as it will explicitly focuses on
the development dimension and presents a comprehensive Investment Policy Framework for
Sustainable Development (IPFSD). The IPFSD consists of a set of Core Principles for investment
policymaking, guidelines for national investment policies, and guidance for policymakers on how to
engage in the international investment policy regime, in the form of options for the design and use of
international investment agreements (IIAs). The IPFSD is built on the experience of UNCTAD and
other organizations in designing investment policies for development, and it incorporates lessons
learned on what policies and measures work well, or not so well, under what circumstances. Therefore,
the core objectives of the investment policy Update are;

a) Integrating investment policy in National Development Strategy: Channelling investment to

areas key for the build-up of The Gambia’s productive capacity and international competitiveness
by reviewing the Priority and Strategic Sectors listed under The GIEPA ACT 2015. This will
ensure coherence with the GIEPA Act 2015 and other policy areas geared towards overall
development objectives of The Gambia.
b) Incorporating sustainable development objectives in investment policy: through devising an
investment policy that will maximize positive impacts while minimizing negative impacts of
investment and at the same time fostering responsible investment. .
c) Ensuring investment policy relevance and effectiveness: by building stronger institutions to
implement investment policy (through strengthening GIEPA, TGSB, GCCPC etc).
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d) Strengthening the development dimension of International Investment Agreements (IIAs):
by safeguarding policy space for sustainable development needs and also making investment
promotion provisions more concrete and consistent with sustainable development objectives of
The Gambia.
e) Balancing rights and obligations of states and investors: investor responsibilities in IIAs,
learning from and building on CSR principles
f) Managing the systemic complexity of the IIA regime: Dealing with gaps, overlaps and
inconsistencies in IIA coverage, content and resolving institutional and dispute settlement issues.
Also, ensuring effective interaction and coherence with other public policies (e.g. climate change,
labour, Entrepreneurship, Agriculture, and Industrial) and systems (e.g. trading, financial).

3. PURPOSE :
The Specific purpose of this contract is to update the 1999 Investment Policy of The Republic
of The Gambia.
4. SPECIFIC TASKS TO BE PERFOMED BY THE CONSULTANT(s)

The Consultant(s) will be performing the following tasks;

a) Investment for sustainable development: to ensure that the overarching objective of
investment policy update is to promote investment for inclusive growth and sustainable
development for The Gambia by aligning it with the National Development Plan. .
b) Policy coherence: to ensure that Investment policy update must be consistent and coherent with
the overall national development strategy and reinforces other sectoral policies including Trade
Policy, Entrepreneurship policy, Competition law/policy, MSMDE policy etch. .
c) Public governance and institutions: Must be embedded in an institutional framework based
on the rule of law that adheres to high standards of public governance and ensures predictable,
efficient and transparent procedures for investors (both domestic and Foreign).
d) Must address the changing need of the investment environment and ensure security of
investment.
e) Must facilitate investment promotion and facilitation

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f) Balanced rights and obligations: Must be balanced in setting out rights and obligations of
States and investors in the interest of development for all.

g) Right to regulate: Must strengthen the sovereign right of the Government of The Gambia to
regulate entry and operational conditions for foreign investment, subject to international
commitments, in the interest of the public good and to minimize potential negative effects.
h) It should be in line the environmental laws, the company act and any other laws that may directly
or indirectly affect investment in The Gambia if they are found sufficient. However, where there
are gaps they must be identified and recommendation for improvement in line with the best
practice must be given.
i) . Where GIEPA Act 2015 is found insufficient to facilitate the implementation of the new policy
must be highlighted for amendment.
j) Openness to investment: In line with our National Development Plan, The Investment Policy
update should establish open, stable and predictable entry conditions for investment in The
Gambia.
k) Investment protection and treatment: The Investment Policy update should provide adequate
protection to established investors confident, and the treatment of established investors should
be non-discriminatory in nature as long as it is not a hindrance to public safety and health.
l) Corporate governance and responsibility: The Investment Policy update should promote and
facilitate the adoption of and compliance with best international practices of corporate social
responsibility and good corporate governance in The Gambia.
m) Promoting private sector development with focus on SMEs, employment creation and
livelihood security: The objective is to provide an enabling and competitive business
environment for the private sector by, among others, providing public support programs/services
aimed at promoting local production of goods and services.
n) Promote Industrialization: Must facilitate the country’s industrialization agenda with specific
emphasis on MSMEs, food security and livelihood security, creation of decent employment
opportunities for the youth and women and improving business and operational practices of
enterprises.
Regional Integration: must contribute to the country’s participation in regional trade and
investment flows.
o) Must determine appropriate investment incentives where the current incentives are found

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 inappropriate or insufficient.
p) Must address concerns in the IPR to improve the country’s competitiveness and thus its ranking
in the World Bank Doing Business Report.
q) Similarly, the consultancy will review existing government investment regimes, regulatory
environment and support services at the regional and national levels for different categories of
businesses (micro, small, medium and large scale investments), and identify opportunities for
fostering business linkages (backward and forward) across sectors and enterprise categories in
line with the National Development Plan.
r) Examine the effectiveness of company/firm registration systems, capacities and efficiencies and
identify opportunities for enhancing efficiencies;
s) Review the investment/doing business climate (policy, legal, systems, attitudes) and constraints
for the private sector development, particularly for MSMEs;
t) Recommend measures to improve the legal administrative capacities particularly in the
assignment and enforcement of property rights and settlement of commercial contracts/disputes.
u) Review labour productivity as relate to competitive investment in the economy.

5. EXPECTED DELIVERABLES AND TIMELINE

The Consultant(s) is expected to deliver the following;
a) An Inception report based on desk review, field work and extensive research.
b) Presentation of the first draft report with selected stakeholders
c) Incorporation of the comments and reviews from stakeholders
d) Validation workshop
e) Submission of final and acceptable draft (both hard and soft copy).

The Draft shall be in the below format:

a) Executive summary: highlighting the background information on the socio-economic
indicators of the Gambia, flows and stock of FDI, DDI, the contribution of Investment to
national development and growth.
b) Provide background information to help in justifying the policy elements proposed.

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 c) Outline: what are the objectives, the methodology used, policy options and an Action plan
in implementing the Investment Policy update.
d) METHODOLOGY The assignment would involve: Desk review of existing policies,
laws, programmes/projects; Interviews with major stakeholders including donors,
Government of The Gambia, relevant UN agencies and CSOs; filed mission when
necessary.

6. INSTITUTIONAL ARRANGEMENT/ REPORTING RELATIONSHIP: the following

institutional arrangements would be made to facilitate the work of the consultant(s);
 The Ministry of Trade, Industry, Regional Integration and Employment will manage the
overall financial and contractual arrangements with the consultant(s).
 A Contracts will be signed with consultant(s)
 The consultant(s) will be reporting to MoTIE- Directorate of Investment and Industrial
Development.

7. LOGISTICS AND ADMINISTRATIVE SUPPORT (if any)

MoTIE will provide to the consultant with office space whenever needed during working hours
from 8:00am to 4:00pm from Monday to Thursday and Fridays 8:00am to 12:00pm.

8. DURATION OF THE WORK:

The assignment is expected to take 30 working days from the signing of the contract.

9. REQUIRED QUALIFICATIONS
a) Education:
At least Master’s degree in Economics, Development Studies, Public Policy, Banking and Finance,
Political Economy of Development, Business Law or related fields.

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 b) Experience:
A minimum of 10years of relevant experience of working in Policy formulation or similar
assignments. A good experience of the private sector and the Gambian Economy would be a great
advantage.

c) Language:
Excellent knowledge of the English language and capacity to communicate fluently with different
stakeholders (Government authorities, Development Partners, civil society etc)
d) Functional Competencies:
 Ability to undertake technical policy-focused research related to local economic growth
and Development;
 Strong analytical capacity and experience in socio-economic analysis, needs assessment
and sustainable development.
 Good knowledge and substantial field experience with Investment Policy, Industrial and
Trade Policy design and governance.
 Good knowledge of the policy and implementation of the National Development Plan.
 Experience of working with a range of organizations including local communities, civil
society and governmental organizations;
 Ability to plan own work, report on work progress and deliver outputs in a timely manner;
 Excellent report writing, communication and interpersonal skills; and
 Ability to work under pressure and to deliver in a timely manner without compromising
quality standards.

10. COMMENCEMENT DATE:

The proposed commencement date for the assignment is ...................... and period of execution of
the assignment shall be 4 weeks (this is less 30 working days as ststed above) from the
commencement date.

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