By Haddy Touray
Gambian economist Dr. Ousman Gajigo has criticised remarks attributed to the country’s Minister of Agriculture, Demba Sabally, suggesting the imposition of steep penalties on individuals or businesses engaged in groundnut trading without a licence.
According to Dr. Gajigo, the minister reportedly proposed fines of up to five million dalasis and prison terms of up to five years for offenders, a suggestion he described as misguided and reflective of a misunderstanding of the challenges facing the sector.
He argued that the number of traders operating in the groundnut market is not the main problem affecting the sub-sector.
“Of all the problems facing groundnut marketing, having too many traders is decidedly not one of them,” he said, noting that the local market for groundnuts is limited.
Dr. Gajigo explained that, apart from the state-owned National Food Security Processing and Marketing Corporation (NFSPMC), most traders purchase groundnuts mainly for export and often offer higher prices to farmers than those provided by the government.
He said encouraging more buyers to enter the market would help improve competition and increase returns for farmers.
The economist further argued that existing regulations requiring private traders to register with the NFSPMC undermine competition, as private companies are effectively regulated by a state-owned competitor.
He noted that the issue was highlighted in a 2023 report by the Gambia Competition and Consumer Protection Commission (GCCPC), which concluded that the registration requirement could enable the state-owned enterprise to push competitors out of the market.
According to the report, the requirement has also been selectively enforced against small-scale marketing companies.
Dr. Gajigo stressed that the primary objective of groundnut marketing should be to ensure better returns for farmers through increased competition among buyers.
He added that the success of the NFSPMC should be seen as a means to improving farmer welfare rather than an end in itself.
Meanwhile, Deputy Speaker of the National Assembly of the Gambia, Seedy Njie, was among those who reportedly questioned the minister’s proposal.
Dr. Gajigo said punitive fines or prison sentences should only apply to activities that cause demonstrable harm, noting that groundnut trading is a legitimate business that should not be criminalised.
He also called on authorities to focus on more pressing challenges affecting the agricultural sector, including limited access to key farm inputs, inadequate irrigation infrastructure, weak local processing capacity and poor post-harvest handling.
“These are the issues the Ministry of Agriculture should be prioritising,” he said.
Dr. Gajigo urged members of the National Assembly to disregard the proposal and instead work towards reducing regulatory barriers in the sector.
He suggested that as long as businesses are registered with the Attorney General’s Chambers and comply with tax obligations to the Gambia Revenue Authority (GRA), no additional registration requirements should be imposed.
