The Gambia has secured a significant legal victory after an Annulment Committee of the International Centre for Settlement of Investment Disputes (ICSID) set aside in full a US$33.2 million arbitral award that had been issued against the country in favour of Western African Aquaculture.
The ruling, delivered on 17 July 2026, annuls the March 2024 award by the Centre that had ordered The Gambia to compensate the foreign investor over the takeover of a shrimp farming and processing operation during the administration of former President Yahya Jammeh.
President Adama Barrow welcomed the decision, describing it as a major success for the country and an affirmation of the government’s commitment to protecting public resources through lawful and robust legal action.
According to a government statement, the ruling removes a financial liability exceeding US$32 million from the national budget while enabling the country to recover approximately US$213,000 in arbitration costs.
The dispute arose from the 2015 takeover of Western African Aquaculture’s shrimp farming and processing facilities located in the West Coast communities of Pirang and Sanyang. The company alleged that the takeover amounted to an unlawful expropriation of its investment and sought compensation through ICSID arbitration.
In March 2024, an arbitral tribunal ruled in favour of the investor and awarded damages against The Gambia. Following the decision, the government, led by the Attorney General and Minister of Justice Dawda A. Jallow, with the support of an international legal team, mounted a challenge to set aside the award, citing lack of jurisdiction by the tribunal.
In its decision, the ICSID Annulment Committee held that the original arbitral tribunal had failed to adequately explain how Gambian law established the state’s consent to submit the dispute to ICSID arbitration. The committee concluded that this omission was fundamental to the tribunal’s finding on jurisdiction and consequently annulled the award in its entirety.
The Gambian government had consistently argued that no valid legal agreement existed through which the state had consented to ICSID arbitration in the dispute.
The government further maintained that the decision sends a positive message to the international investment community by demonstrating that while The Gambia remains open to foreign investment, particularly in sectors such as agriculture, tourism and fisheries, it will vigorously defend itself where legal claims lack a sound jurisdictional basis.
Officials acknowledged, however, that disputes arising from expropriations and actions taken under previous administrations continue to shape investor perceptions of sovereign risk. They stressed the importance of well-drafted investment agreements, including clear dispute resolution and stabilisation clauses, in safeguarding both investors and the state.
According to the government, the Ministry of Justice is expected to undertake a comprehensive review of other pending international disputes involving the Gambian state in order to identify cases with significant financial exposure, refine litigation strategies and improve the drafting of future investment contracts.
While the annulment brings the arbitration award to an end, government officials indicated that discussions with stakeholders in the aquaculture sector will continue with the aim of encouraging renewed investment under stronger legal and contractual safeguards.
Reaffirming its commitment to the rule of law, the government said it remains dedicated to protecting public funds, honouring its international obligations and ensuring that all disputes involving the state are resolved fairly and in accordance with international legal standards.
