Banking And Finance, Insurance, ICT, Manufacturing Etc.

The Daily Observer (Banjul)

Momodou Touray

11 July 2011

Hello and a warm welcome to the maiden edition of the Corporate Business column, which will be coming out every Monday. In this edition, we will like to introduce to readers, what this column is all about.

Corporate business is essentially a country’s formal business sector, made up of registered companies that range from small firms to large multinational corporations. These include banks, insurance companies, manufacturing companies, telecoms companies etc. Corporate firms and companies are usually manned by skilled professionals. The corporate business sector plays a pivotal role in a country’s economy, and to a great extent, determines the direction in which the pendulom of the economy swings.

The Gambia economy has witnessed phenomenal growth and expansion over the last decade. Efforts to open up the country’s market to foreign investors have paid off, with growing macro-economic stabiliy, active stabilisation programmes, improved risk-rating, investor-friendly environment and a stable political environment contributing to a high inflow of foreign direct investment (FDI) into the country. This column will cover issues relating to corporate business in The Gambia, with special emphasis on banks and financial institutions.

This page will provide information on the latest development in the sector, how such developments impact on The Gambia economy and how far they are in sync with national development aspirations. We will also feature brief interviews with corporate juggernauts, i.e. The key players in the sector; young Gambians on the ascent in the sector; manpower development in the sector; movements/promotions; how the companies are living up to their corporate social responsibilties; how they are partnering with government for national development etc. Furthermore, we will inform on the latest developments and innovations in the world of ICT, and guage how the key players in that sector here in The Gambia are shoring up.

The column will also explore the investment potentials in The Gambia, make attempts to explain how easy it is to do business in the country; as well as keep tabs on the flow of FDI into the country.

Corporate briefs

Gambia’s FDI portfolio rising

FDI flows into The Gambia has surged in recent years. Economists now list the country as one of Africa’s frontier markets that is attracting FDI into diverse economic sectors. The financial sector has taken a large chunk of the investments, with about 13 banks now operating in country. The tourism sector is also having its share of mega-investments, as well as agriculture, manufacturing and other sectors. Longer-term prospects for FDI depends on how much the country can attract into value-added manufacturing, services and infrastructure. However, everything on the ground right now indicate that the country is favourably positioned to continue attracting FDI, including the big global corporate players.

About FDI

FDI (foreign direct investment) is defined as the long-term investment that involves the acquisition abroad (i.e. outside the home country) of physical assets, such as plant/equipment, real estate or a significant equity stake. It implies either full or partial managerial control of a productive asset in one economy by a foreign direct investor or parent enterprise (a multinational or transnational corporation) based in another. Private individuals as well as business entities may undertake FDI.

FDI flows comprise capital provided either directly or through other related enterprises by a strategic investor to an enterprise, or capital received from an investing enterprise by a strategic investor. FDI has three components: equity capital; reinvested earnings (i.e., profits not distributed as dividends by affiliates, or earnings not remitted to foreign direct investor); and intra-company loans. The latter includes soft (low interest loans) provided by parent enterprises, which are often rolled over, hence forming a part of the affiliate’s capital base. Another form of foreign investment consists of non-equity forms of participation. They include subcontracting, licensing or management contracts, franchising, turnkey arrangements and product sharing.

Access Bank Wins Financial Times/IFC Sustainable Bank Of The Year Award For Africa And Middle East

Access Bank Gambia LTD is poised for greater things in the country’s financial sector, as its parent company, Access Bank PLC, is coming on strongly in the global banking industry. The bank recently emerged the winner of the 2011 FT/IFC “Sustainable Bank of the Year Award” for Africa and Middle East region. The Bank was presented with the award at the Financial Times/IFC Sustainable Finance Gala Dinner in London attended by around 200 senior decision-makers in finance and sustainability.

Receiving the Award, Aigboje Aig-Imoukhuede, Group Managing Director/CEO, Access Bank, said “We are delighted and honoured to receive this prestigious award, we dedicate this award to all financial institutions in the developing and emerging markets, who despite the challenges have chosen to pursue Environmental, Social and Governance Best Practices”.

Access Bank’s emergence as the winner of this covetnationaled award signals the growing commitment of African banks to adoption of responsible business practice and incorporation of environmental, social and governance considerations into the different facets of their operations. A number of African Banks numbered amongst the 187 entries received from 161 institutions in 61 countries. Entries came from institutions such as Ahli United Bank, Bank of Palestine, BMCE Bank, Doha Bank, Ecobank, Exim Bank, GT Bank, National Bank of Abu Dhabi, Standard Bank and Ned Bank (South Africa), a past winner of the award.

Over the past five years, Access Bank Plc has built a strong franchise by adhering to socially responsible goals. The Bank has continuously displayed a strong commitment to global health issues by leveraging its people and financial resources to invest in successful health programmes in Nigeria and other African countries. The Bank has earned numerous recognitions for its commitment to adoption and implementation of responsible business practice. Notable among these recognitions and awards are the Business in Community “Big Tick” Award and African Banker Magazine’s “Most Socially Responsible Bank” Award.

Speaking on the quality of entries received, Martin Dickson, FT Deputy Editor and Co-Chair of the awards judging panel said ‘This year’s shortlist reflects the very strong entries we have received across all categories. I am also delighted at the regional diversity of the nominees in the transactional awards such as Achievement in Basic Needs Financing. It’s going to be a challenge for the judging panel to pick the winners from such a high-quality group’.

Duncan Goose, Founder and Managing Director, Global Ethics, was the keynote speaker at the Awards Dinner which followed a one-day Sustainable Finance Conference organized by the Financial Times of London and the International Finance Corporation, an arm of the World Bank Group. The FT / IFC Sustainable Finance Awards evolved out of the FT Sustainable Banking Awards, which over five years established themselves as the world’s leading awards for banks and other institutions focused on sustainable development.

Since its inaugural edition in 2005, the FT Sustainable Banking Awards has gained an overwhelming acceptance as evidenced by the increase in the total number of entries received and participating institutions and countries yearly. Arguably, the most prestigious global banking awards hence its description as the “Oscars of Banking”, that significantly promotes best practice in triple bottom line banking.

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