The Gambia has much to do to tackle the constraints on its private sector, according to an annual World Bank report. The Doing Business 2011 report ranks 183 countries around the world in nine areas that examine the regulatory environment and give an indication of the ease of doing business. The Gambia has fallen five places in the rankings, to 146th, from 141st in the past year. While its poor showing ranks it in the bottom quarter globally, it fares better than most of its West African neighbours. Unsurprisingly, it ranks ahead of the unstable duo, Guinea Bissau (176th) and Guinea (179th), as well as Senegal (152nd), but has lost ground to Sierra Leone (143rd) and the regional powerhouse, Nigeria (137th). The country lags badly behind the leading African countries-Mauritius (20th), South Africa (34th) and Botswana (52nd)-and is placed 21st out of the 46 Sub-Saharan African countries surveyed.

No major reforms to the business environment have been carried out in The Gambia since the previous survey was done a year ago, according to the World Bank. It takes eight procedures and 27 days to open a business in The Gambia, but the cost is prohibitive for most, equivalent to 200% of income per head, excluding costs associated with bribes. The country scored reasonably in three categories: dealing with construction permits (17 procedures and 146 days on average), trading across borders (US$831 to export a container); and enforcing contracts (434 days). However, it scored dismally on protecting investors (strength of investor protection was scored at 2.7 out of 10, compared with the African average of 4.4 and the OECD average of 6.0) and paying taxes (tax on commercial profit averages 41.4%). The discretion of the president also casts a long shadow over the investment environment, adding to worries on investor protection, as the state likes to be involved in most major business ventures in the country. The lack of progress in business reforms in 2010 reflects poorly on the authorities, particularly at a time when the public finances are in need of a boost, and could benefit greatly from the increase in tax revenue that new investment would bring.