Trade Committee Highlights Local Producers’ Struggles with Port Congestion

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By Kebba AF Touray

The legislative select committee on trade has raised concerns about the challenges local producers face due to congestion at the Banjul Ports. 

This issue, which significantly impacts productivity and costs, was highlighted during the committee’s recent site visit as part of their oversight responsibilities.

In line with Section 109(2) of the Constitution of The Gambia and Standing Orders 97(1) and (2)(b) of the Revised Standing Orders of the National Assembly, the committee is mandated to oversee institutions within its purview. The visit aimed to foster networking opportunities between local producers, consumers, and the business community, promoting awareness of local products and encouraging support for the domestic economy. Additionally, the committee sought to identify challenges to improving productivity, particularly in terms of product accessibility, the use of available labor resources, and producers’ ability to stay competitive amidst imported products.

Hon. Muhammed L. Bah, Member for Banjul North and committee member, presented the findings of the visit to the plenary. The committee toured various sites, including Nessim Company Limited in Banjul, Gambia Milling Corporation (GMC), the Gambia Songhai Initiative (GSI), Jah Oil Rice Farm in Bayaba, Sami (CRR North), Maruo Farms, and M.A. Kharafi Farms in Kafuta, among others.

One key finding was that Nessim Company, with a daily production capacity of 500 metric tons of flour, currently sells a 50kg bag at D1,930. Similarly, GMC, the first flour mill in The Gambia, produces around 450 metric tons of flour per day, equating to 850,000 metric tons per year. 

They sell a 50kg bag at D1,940 and aim to increase their production to 100,000 metric tons annually within the next two to three years.

The GSI, a centre dedicated to transforming the agricultural sector, produces 30 crates of eggs daily. The center’s capacity is tied to the number of trainees, with 49 students currently enrolled. The site spans 256 hectares of land, though only 25 hectares are currently fenced.

Jah Oil Farm, covering 1,200 hectares, is focused on the cultivation of rice, onions, potatoes, and corn. The farm, which is fully funded by the Jah Oil Group, plans to employ over 500 staff when it reaches full operation. Maruo Farms, employing 30 full-time staff and up to 50 daily workers during peak seasons, focuses on agricultural production, while M.A. Kharafi Farms operates on 350 hectares between Kafuta and Kuloro, concentrating on onions and potatoes for the local market.

Among the challenges highlighted by the committee were insufficient, erratic, and costly energy supply from NAWEC, limited access to financing for production improvement, difficulties in obtaining foreign currency, and the ongoing congestion at the port, which leads to expensive demurrage charges.

The committee’s recommendations include urging the Ministries of Trade and Agriculture to work with the Ministry of Energy to develop special energy tariffs that support agricultural production. The committee also calls for the creation of a market for local products to reduce dependence on imports and recommends that local producers be assisted with proper packaging that meets both domestic and international standards, including expiry dates, ingredient descriptions, and barcodes.

In conclusion, the committee emphasized the importance of addressing these challenges to ensure the growth and sustainability of local production. The report was praised by lawmakers, who stressed the need for prompt action to implement the recommendations. The National Assembly subsequently adopted the Trade Committee’s report.