(JollofNews) – The Gambia has signed a 30 million Euro grant agreement with the European Commission for its budget support programme.
The programme will contribute to sustainable and inclusive growth and to the improvement of political and economic governance in the Gambia.
According to the Ministry of Finance and Economic Affairs, the new government of Adama Barrow is turning to international donor to support the intended democratic reforms, to ensuring essential functions of the state and to re-launching socio-economic developments.
It said the government is facing many challenges which includes extreme high expectations of the population, as well as the need to urgently redress the economy and guarantee financial/budgetary stabilisation, despite the difficult political and economic legacy of the former president.
“The recent change of leadership ending 22 years of dictatorship provides a historic opportunity, which the new government is determined to seize in order to a create a ‘New Gambia’, based on the democratic institutions, separate powers, the rule of laws and respect for human rights,” the ministry said.
“It is in the interest of the European Union (EU) to support this change with all the available means and avoid any slipping back. The State Building Contract (SBC) will support the democratic transition of the Gambia by giving fiscal space in the fiscal year 2017 at a very clear stage of appointment of the government and election of a new parliament. The duration of the SBC will be one year for the budget support component and three years for the technical assistance part.”
The ministry added that the programme is relevant for the United Nations 2030 Agency for Sustainable Development as it contributes primarily to the progressive achievement of SDG 1 ‘No poverty’ but also promotes progress towards SDG 8 ‘Decent work and economic growth’ and SDG 16 ‘Peace justice and strong institutions’.
Excellent News;
Let Gambia move forward! We have to give back…
Correct “Simbonba” no such thing as a free lunch,
The EU, have recognised the “black hole” in Gambia’s fiscal deficit and this Grant will be a valuable source of finance to tide the Gambian government over and help in balancing the financial requirement for the next 12 months. By then it will be expected that the Gambia will be further assisted by the coming tourist season, and the agricultural awakening, leading to increased tax revenue, allied to increase in foreign currency. This should also strengthen the dalasis, and be further assisted by remittances from abroad. and other assistance from other international donors. The further benefit could be a turning point to those contemplating economic migration to stay and enter into business building, with increasing business opportunities made possible by a stable democratic government.
That “Black hole”, with a huge debt burden and ratio of over 80% to GDP, effectively bankrupting the country, is what drives me mad when people praise Yaya Jammeh for bringing development to the country. That man had actually retarded the country’s development and economic stability (By Third World Standards) gained after the painful Economic Recovery Programme (ERP), by isolating the country from our traditional development partners for over a decade, due to his poor rights records, thus starving us of much needed assistance and development funds, whilst he looted the little that we generated within, borrowed from “international loan sharks” or received as aid from rich Gulf States.
It is very sad that we have supposedly educated people actually praising Yaya Jammeh’s reign of waste, terror and theft on the grandest scale ever seen in The Gambia.
Bax, according to this link, Gambia Debt to GDP is,
Actual
50.70%
Forecast
Q3/17 = 60%
Q4/17 = 60%
Q1/18 = 63%
Also
corruption index
Actual
26
Forecast
Q3/17 = 29
Q4/17 = 28
Q1/18 = 28
Very interesting statistics
https://tradingeconomics.com/gambia/forecast
USA Debt to GDP 106% in 2016!
Grim reaper….IMF published a DSA (Debt Sustainability Analysis) Report on The Gambia on March 4 2015, and here’s the relevant section on the subject of Debt/GDP ratio:
@DSA Report (point 9): ” Total public debt is currently significantly in excess of its indicative threshold and is not
expected to fall below it until 2019. The Gambia’s total public debt currently stands at 100 percent of
GDP in nominal terms and just above 80 percent of GDP in net present value terms, more than 25 percent
above the indicative threshold for public debt distress. Even under the significant fiscal consolidation
foreseen under the baseline of our framework, public debt would not fall below the threshold until 2019.”
You have cited debt/GDP ratio of the USA, presumably to indicate that it is not a problem because it is happening in the USA. I have seen a NAM argue in the same line when he cited the debt burden of the French Economy, during the debate on the reversed budget.
I think we should all agree that what is unhealthy for the economy is unhealthy, whether it happens in USA, France or Gambia. We should be seriously looking at changing the trend, rather being comfortable with the status quo, because it seems to affect bigger economies too.
Furthermore, the effect of such indebtedness on national populations and the tools available to the governments to address their impact are completely different. We need to be mindful of that fact. You cannot just pluck USA debt/GDP ratio to make a case for the Gambia, without looking at other factors that are in play in the USA and Gambian economies. That approach would be inadequate and grossly misleading.
Bax>> I could not agree more/ I also think all this APRC political agitation, has the Greedy “white hand” of a tyrant behind it. Gambians need to be very cautious. The Barrow government, appear to be hampered by democratic constraints, in dealing with this effectively. Mindful of the international community watching them closely. It is therefore with some relief that The EU have put their best foot forward in giving this valuable support. I think economically things will look much better in 6 to 12 months time, provided government roots out corruption and offers leadership in industrial growth and economic revitalisation. Such improvement will make the political issues diminish.
Bax, Ok, you forgot to mention this quote in your original statement “IMF published a DSA (Debt Sustainability Analysis) Report on The Gambia on March 4 2015”
Following the Banking crash of 2007/8 the entire western world became heavily indebted nations. China and the emerging markets gave significant economic opportunities, to redress the balance which has reinforced their individual economic success stories. George W. Bush advanced the theory that the world would face a global realignment for a number of years. What the west have done is hold back wages especially in the Public sector, and in some cases allowed a gradual drop on currency value. This to some degree, has made western economies more competitive when compared to industrial costs and productivity. Gambias debt to GDP currently stands at 110%. Inflation at 9% and growth at 2.7% Imports continue to grow, leaving a substantial trade imbalance. What we need to see is growth rising, inflation reducing, and debt to GDP stabilizing in the short term and reducing in the long term. This would be the preferred objective allied to new business creation and more jobs and investment opportunities.