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