Fatoumatta: Despite the World Bank and IMF reports, The Gambia has accrued a massive international debt of US$1.6 billion. Addressing Gambians in his speech at the end of the year, President Adama Barrow underlined the heavy debt inherited from his predecessor President Yahya Jammeh.
“A debt of more than a billion dollars, or an astronomical rate of 120% of GDP” accounting for debt service of 25% of the total GDP, which is further stifling economic growth.
Fatoumatta: The Gambian economy is burdened with pervasive illegal practices in the financial and banking sectors, which is exacerbated by pervasive corruption, chronic lack of accountability, money laundering, infusing illicit money into the economy. But another failure of the Gambian economy, is its dependence on foreign aid, rather than investment, as the primary engine for economic growth.
Fatoumatta: The Gambia’s debt at US$1.6 billion (I don’t know how many zeros of Dalasis that is). The country owed foreign countries and the two brothers (IMF and World Bank) debt borrowed during the Kairaba Jawara and Yahya Jammeh days.
Adama Barrow must pay these debts if we as Gambians were to have a greater chance of developing our country. So Adama Barrow must embark on national austerity measures aimed at reducing wastage and engaged donors (with the help of NGOs) to cancel our debt. And if paid off. Gambia’s international debt will be cancelled and reduced to zero!
Now Fatoumatta! The Gambia’s foreign debt has risen to US$1.8 billion and rising as plans are underway to borrow more before the sun sets this year! The tactical government of Adama Barrow is borrowing from the Arabs, the Chinese and, hopefully from the Russians and Iranians. The government has also entered the local market to borrow from local banks and private citizens.
The end results? Are we worse than the Sir Dawda and Yahya days! Let Adama Barrow show us how to pay this debt in another two or five years
I think Mr Barrow is a true Gambian and if asked about the staggering debt will say
” We will leave it in the hands of God”
Gambia cannot begin to tackle its debts until Gambia starts to make a profit from it labour and enterprise.
The amount of debt hanging around every Gambians neck is equivalent to £ 1000 to every man woman and child/ 71% of all gambians live on less than 2 dollars per day/ Therefore it is no surprise that Gambia is spending so much effort to gain donor support. I doubt very much that Gambia will make any economic progress for the term of the coalition government and maybe for upto 5 to 10 years/ But if Gambia can lay the foundations for a solid long term objective/ it will succeed to egine to balance the books/ As for austerity///under these conditions it would be disastrous for the majority of hard pressed Gambian’s.It is in the government’s hands/ Not God… although faith can move mountains.
Mr President if you choose to pay Gambia debt, do this:
1.You have a sound economic blue print. Engage dedicated and honest professionals to help you deploy and maintain this plan.
2. Stop Corruption. It is costing Gambia a whooping 34% premium on every Dalasi.
3. Stop Waste. You can recoup another 50% on every Dalasi.
4.Finally make our country truly free, there is a huge economic benefit and premium on freedom. In a recent poll of VC and Investors, countries where the citizens are free are most ideal for investment.
On the other hand if you choose to maintain course and continue with business as usual, you will not, frankly cannot pay out debt and we are all in trouble. The real question is on what side of history will Barrow be. I personally hope on the side of fiscal responsibility and strong foundation in Islamic faith. Allah will help those who help themselves.
God Bless The Gambia.
I agree 100% with your synopsis Dr Sarr,,,,,,,,,,,,,,
There are a few if any country that is debt free,but monies borrowed must be judiciously utilized for the purpose or for the projects that they are secured for. The parliamentarians therefore have big stake here. They should not only stop bad bills passed in the National Assembly that are detrimental to the our economy but should also make a follow up all secured loans to the last Dollar for accountability.
I think the best that can be hoped for from the transitional coalition government is that it firms up the beginnings of the democratic process; and banishes the short memory of Yahya Jammeh/and dictatorship/ For this President Barrow will surely find much international support especially from other African countries/If left alone Gambia will improve it’s economic path without government intervention/ But of course economic improvement would be advanced with sound and proven long term economic policies.
I don’t think the Barrow government want to produce any economic data for public consumption, simply because it seems to have no credible means or urgency to gather such data. That’s why all annual reporting is absent from this governments reach. I would suspect that Gambia needed to borrow heavily since Jammeh departed and would presently stand between 10% to 20% worse off since the coalition took power/ Debt attracts more debt until it becomes unserviceable ending in a declaration of bankruptcy.To reverse this trend would require a long term, bespoke “Marshall plan ” The government give the impression of ” business as usual” with no discernable change of direction.