Startups in Gambia.

In XVIII century Gambia (namesake of Gambia river) was one of the largest West African slave trade centers. After 1821, under the name British Gambia, it became part of the British Empire. In 1901 first legislative and executive councils were established. After gaining its independence (18 February 1965) Gambia entered the Commonwealth. In two public referendums (1965 and 1970) the majority of Gambians voted for their country remaining inside of the Union.

The Republic of Gambia was declared after the second referendum (24 April 1970). The first President elect — former veterinary Dawda Jawara — had stayed in office until 22 July 1994, when he was ousted from power by 29-years old lieutenant Yahya Jammeh in the staged coup d’etat. Jawara’s organization — People’s Progressive Party (PPP), which dominated the political life of Gambia for 24 years, was replaced by Alliance for Patriotic Reorientation and Construction. In aftermath of the coup Alliance occupied 43 out of 48 seats in the National Assembly- unicameral Gambian Parliament. In January 2017 real estate developer Adama Barrow beat Jammeh in Presidential elections, which led country to a military crisis.

In its official policies and programs Gambian government follows principles of free markets economy. However, with its per-capita less than $400, Gambia is one of the least developed countries on Earth. Major contributors to local GDP are agriculture and tourism. 15% of Republic’s export are cashew and coconuts. Growing social inequality and multiplying bureaucratic red-tapes present serious threat for Gambian economic progress.

Gambian poor rural population, subsistent agriculture based economy and underdeveloped infrastructure put a barrier on the way of local startup ecosystem growth. Additionally, unfavorable to SME administrative, legal and tax regimes seriously undermine overall entrepreneurial climate in this country. On the other hand, Gambian large and thriving diaspora presents an opportunity for local high tech founders in the fields of financial technologies and e-services (notably, tourism).

Business Notes for Startups Founders:

  • political climate: not friendly;
  • economic climate: not friendly;
  • regions to focus: West Africa;
  • industries to focus: FinTech, e-services;
  • major limitations: 60% of population live under the poverty line ($1 a day), small economy (GDP $1 billion) which is based on a subsistent agriculture, budget depends on foreign aid, high level of social inequality (Gini 50), excessively high tax rates (collective tax on SME business is about 60%), low fixed Internet penetration rate (under 20%);
  • stimulus: large diaspora, steady GDP growth rate (4–5%), low competition;
  • opportunities: to lunch an e-business aimed at Gambians living in other countries.
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