Gambia - Economy
GDP per capita – 704 US dollars (2018, at current prices, UNCTAD).
GDP – 1,6 bln US dollars (2018, at current prices, UNCTAD).
GDP - gross domestic product
Exports (marchandise) – 102 mln US Dollars (2018, at current prices, UNCTAD).
Imports (marchandise) – 551 mln US Dollars (2018, at current prices, UNCTAD).
Exports (services) – 136 mln US Dollars (2017, at current prices, UNCTAD).
Imports (services) – 122 mln US Dollars (2017, at current prices, UNCTAD).
Main export commodities - peanut products, fish, cotton lint, palm kernels, re-exports.
Main import commodities - foodstuffs, manufactures, fuel, machinery and transport equipment.
Economy overview
The Gambia has been largely stable since independence in 1965, with intermittent episodes of instability. The country experienced a military coup d’état in 1994 that installed former President Yahya Jammeh. Jammeh ruled the country for 22 years, surviving four presidential elections (in 1996, 2001, 2006, and 2011).
Presidential elections on December 1, 2016, resulted in a prolonged political transition after the incumbent, President Yahya Jammeh, was defeated by businessman Adama Barrow, who garnered 43.3% of the vote. Parliamentary elections in April 2017 led to an absolute majority for Barrow’s United Democratic Party.
The Gambia has sparse natural resource deposits.
The Gambia’s economy relies on tourism, rain-dependent agriculture, and remittances. Located in the Sahel, The Gambia experiences far less average rainfall than other West African coastal countries much farther south.
https://www.export.gov/article?id=Gambia-Market-Overview
The agriculture sector employs approximately 75% of Gambians and comprises 30% of the country’s GDP. The sub-regional body known as SeGaBi (Senegal, The Gambia, and Guinea Bissau) was included in the USDA Priority Countries in the 2017 Food for Progress program, with a focus on the cashews industry.
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/inde...
The main export crop is peanuts - accounts 40% of the value of exports. For domestic consumption rice, corn, millet, sorghum, cassava (manioc), fruits of the oil palm, etc. are produced. Oranges, bananas, legumes, mangoes, papayas, vegetables and cotton are also grown. Livestock breeding is developing - cattle, goats, sheep, pigs, donkeys, horses, and poultry are bred there. Marine and river fisheries are developed: sharks, baracuda, bongo (seldy), catfish, flounder, mackerel, sea bass, sardines, solor ("tiger" fish), tarpan, tuna, anchovies, shrimps, lobsters and oysters
The government has invested in the agriculture. The agricultural sector has untapped potential - arable land which is cultivated less than half, and productivity is low. Manufacturing activity is small-scale and features the processing of cashews, groundnuts, fish, and hides.
The Gambia's reexport trade accounts for almost 80% of goods exports. Gambia’s largest trade partner for both exports and imports is China.
The services sector, including tourism, comprises approximately 60% of GDP, while industry comprises 10%. The country has a functional banking system with 12 commercial banks. https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/inde...
The Gambia's location on the ocean and proximity to Europe has made it one of the most frequented tourist destinations in West Africa, boosted by private sector investments in eco-tourism and facilities. Tourism brings in about 20% of GDP.
Gambia relies heavily on remittances from workers overseas and tourist receipts. Remittance inflows to The Gambia amount to about one-fifth of the country’s GDP.
Economic progress depends on sustained bilateral and multilateral aid, on responsible government economic management, and on continued technical assistance from multilateral and bilateral donors.
International donors and lenders were concerned about the quality of fiscal management under the administration of former President Yahya JAMMEH, who reportedly stole hundreds of millions of dollars of the country’s funds during his 22 years in power. After the change of government in The Gambia, donors, including the IMF, the World Bank, the European Union and the African Development Bank, expect to see significant improvements in Gambia governance under the new administration of President Adam Barro, who took office in early 2017.
https://www.cia.gov/library/publications/the-world-factbook/geos/ga.html
The Gambia stretches 450 km along the Gambia River, its borders completely surrounded by Senegal except for 60 km of Atlantic Ocean beachfront. Although the smallest country on the African continent, it harbors wealth in terms of coastal, marine, and wetland habitats housing bird species of global significance, making it an attractive tourist destination. Due to the convenience of its geographic location on the edge of West Africa, it is also a hub for trade.
The major ports of entry are the Banjul International Airport and the Banjul Sea Port. The seaport in Banjul is served by major container lines such as CMA-CGM / Delmas, Maersk, MSC, and Grimaldi.
The macroeconomic framework is characterized by high levels debt (over 120% of GDP in 2016). More than half of the debt is held by domestic banks (55% in 2016), which undermines the stability of the banking sector. http://www.worldbank.org/en/country/gambia/overview
The main market challenge in The Gambia is poor infrastructure. Access to electricity stands at 35%, and blackouts are frequent. Energy costs in The Gambia are among the highest in the sub-region at close to 25 cents per kilowatt hour (kWh). The new administration determines for itself the priority task to improve this sector. Despite some constraints, there have been investments in the country’s energy sector, which should result in improved electricity supply in the near future. https://www.export.gov/article?id=Gambia-Market-Challenges
The Gambia is becoming increasingly urban. Urbanization poses a significant challenge as the arrival of large numbers of unemployed young people in Banjul and other cities further strains already inadequate urban infrastructure and overwhelms the capacity of municipal governments, leading to rising crime, drug abuse, and the general deterioration of the urban environment. Meanwhile, rural areas are losing important labor resources and experiencing a profound demographic shift.
Despite its small market size, there are potentially many sectors that offer market opportunities.
The agricultural sector depends almost exclusively on imports for machinery and irrigation equipment. Demand for efficient post-harvest storage is increasing.
The demand for quality materials and equipment for construction is growing.
Due to the constraints in the energy sector, there is a high demand for quality generators, energy storage equipment, and renewable energy machines. Potential investment opportunities in electricity generation are substantial, given projected growth in demand. An additional 40 megawatt (MW) of electricity is needed just to meet current national demand. Electricity demand is expected to reach 200 MW by 2025. Once the present gaps in transmission lines are addressed, investment opportunities in electricity in generation will be significant. Given the high number of sunlight hours throughout the year, a potentially lucrative market for solar energy exists. Other renewables such as wind energy and biofuels present significant opportunities, given windy coastal areas and the presence of agricultural produce with high residue-to-kernel ratios.
The urbanization rate is 60%, and it is increasing. This has led to a high demand for processed food. https://www.export.gov/article?id=Gambia-Market-Opportunities
Finance
The currency of the Gambia is the dalasi = 100 bututs.
The dalasi was adopted in 1971. It replaced the Gambian pound at a rate of 1 pound = 5 dalasi, i.e., 1 dalasi = 0.2 pound = 4 shillings www.en.wikipedia.org/wiki/Dalasi
Exchange Rate
1 US Dollar = 44,1 GMD, 1 euro = 47 GMD (13.04.2017)
www.finance.yahoo.com/currency-converter
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