{
  "title": "The Gambia's Pathway to Prosperity",
  "publication": "IMF News, May 14, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/05/13/sp051419-the-gambias-pathway-to-prosperity",
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  "summary": "Sub-Saharan Africa overview:",
  "publishDate": "2019-05-14",
  "sections": [
    {
      "heading": "Economic context and recent performance",
      "content": "- Sub-Saharan Africa overview:\n  - Growth is expected to accelerate this year to 3.5 percent from 3 percent in 2018.\n  - Expected to expand at close to 4 percent over the medium term.\n- The Gambia recent macroeconomic outcomes:\n  - Growth in 2018 reached 6.6 percent.\n  - Inflation has dropped to just above 6 percent.\n  - Gross official reserves have increased to about 3 months of imports.\n- Contributors to stabilization and recovery:\n  - Support from Gambians living abroad, the private sector, and international partners.\n  - Progress in infrastructure development (example: Senegambia Bridge)."
    },
    {
      "heading": "Regional integration, trade, and infrastructure",
      "content": "- Role of regional integration:\n  - Enhanced trade and connectivity are central pillars of the pathway to prosperity.\n  - The Gambia has endorsed the Continental Free Trade Area.\n  - Potential benefits: add jobs, foster competition, increase investment, spur spread of knowledge and technology.\n- Constraints to fully realizing benefits:\n  - Significant nontariff bottlenecks: infrastructure shortcomings, logistical costs, and other hurdles to cross-border trade.\n- Infrastructure projects and regional linkages:\n  - Senegambia Bridge: deepens economic ties and could be part of a Trans-Gambia corridor within ECOWAS.\n  - Electricity transmission investments: link Eastern and Northern parts of the country and enable cross-border energy trading.\n  - OMVG project: unites The Gambia, Guinea Conakry, Senegal, and Guinea Bissau to harness The Gambia River Basin for low-cost renewable energy.\n  - Port of Banjul upgrades could create a new trans-shipment hub for the region."
    },
    {
      "heading": "Sectoral opportunities and modernization",
      "content": "- Agriculture:\n  - Regional trade integration and improved infrastructure key to expanding agriculture.\n  - Examples of modernization: automation, advanced irrigation, processing plants, transit facilities.\n  - Future tools: weather tracking, satellite imaging, artificial intelligence to modernize agriculture and build climate resilience.\n  - Goals: food self-sufficiency and new export markets.\n- Tourism and services:\n  - Record numbers of visitors; new hotels, roads, and amenities expanding offerings including eco-tourism and water sports.\n  - Transport expansion will support tourism and trade-related services (including re-exports).\n- Financial sector and private sector-led growth:\n  - Private sector-led growth needs responsible lending by financial institutions.\n  - Vigilant supervision of banks and other credit institutions necessary to ensure financial stability amid growing private capital inflows.\n- State-owned enterprises:\n  - Regional orientation may be essential to long-term viability of many state-owned enterprises."
    },
    {
      "heading": "External position and social outcomes",
      "content": "- External buffers and flows:\n  - Exports, private capital inflows, and remittances are rebounding and likely to increase with regional integration.\n  - These flows will help build foreign exchange reserves and strengthen confidence in the Dalasi.\n- Social progress:\n  - Observed reductions in maternal and infant mortality rates.\n  - National Development Plan envisages further improvements in quality of life."
    },
    {
      "heading": "Key challenges and priority reforms",
      "content": "- Three highlighted areas for reform:\n  - Resolve unsustainable public debt to unlock donor financial support.\n    - At a recent roundtable in Washington, D.C., most creditors indicated support for debt relief; the government and advisors are following up.\n  - Foster inclusive growth and address social needs:\n    - Target poverty reduction through programs aiding vulnerable households and creating jobs for unemployed youth.\n    - Debt relief can lower debt service costs and create budget room for social priorities and state-owned enterprise reform.\n  - Strengthen rule of law, accountability, and transparency:\n    - Recover stolen domestic and foreign assets identified by the Janneh Commission.\n    - Support transitional justice reform: Commission of Enquiry, Truth, Reconciliation and Reparations Commission, National Human Rights Commission, and planned Anti-Corruption Commission.\n    - Support security sector reforms to modernize the state and strengthen the rule of law."
    },
    {
      "heading": "IMF engagement and support",
      "content": "- Recent and prospective IMF involvement:\n  - The Fund provided emergency support in 2017 and is continuing engagement through a Staff-Monitored Program.\n  - Potential to move to a medium-term program with concessional financing in the future.\n  - IMF committed to help strengthen key institutions through technical expertise and training, coordinated with the international community.\n- Conditionality for assistance:\n  - IMF assistance should be closely linked to The Gambia’s development priorities; the IMF stands ready to listen to Gambian ideas and proposals.\n\nKeynote Address by IMF Deputy Managing Director Tao Zhang, May 14, 2019. As prepared for delivery. IMF Communications Department.\n\n---\n\n\n References\n\n- Tao Zhang\n- The Gambia and the IMF\n- Speeches\n- PRESS CENTER\n- April 2019 Regional Economic Outlook for Sub-Saharan Africa\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/05/13/sp051419-the-gambias-pathway-to-prosperity"
    }
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    "Published: May 14, 2019",
    "Sub-Saharan Africa overview:",
    "The Gambia recent macroeconomic outcomes:",
    "Contributors to stabilization and recovery:",
    "Role of regional integration:",
    "Constraints to fully realizing benefits:",
    "Infrastructure projects and regional linkages:",
    "Agriculture:",
    "Tourism and services:",
    "Financial sector and private sector-led growth:",
    "State-owned enterprises:",
    "External buffers and flows:",
    "Social progress:",
    "Three highlighted areas for reform:",
    "Recent and prospective IMF involvement:",
    "Conditionality for assistance:",
    "[Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)",
    "[The Gambia and the IMF](http://www.imf.org/external/country/GMB/index.htm)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[April 2019 Regional Economic Outlook for Sub-Saharan Africa](https://www.imf.org/en/Publications/REO/SSA/Issues/2019/04/01/sreo0419)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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