Economy
The Gambia has a liberal, market-based economy and is characterized by traditional subsistence agriculture. This small nation is confronted with issues such as a high population density, limited land space, few readily extractable resources, high illiteracy, and a single crop economy: groundnuts (peanuts), which used to account for more than 80% of total exports.
Millets, sorghum, and rice are the staple food crops, however, because emphasis on groundnut cultivation has diverted production from staple crops, most foods must be imported. Livestock farming is also a contributor to the GDP (gross domestic product) at 4.4% seen by the herds of cattle, sheep, and goats that roam wherever they can. Fishing accounts for 1.8% of the GDP. Re-export trade, an important factor to Gambia's economy (though it has been in decline over the last decade or so), is built up around the ocean port in Banjul, with low import duties and minimal administrative procedures.
The main export partners to The Gambia are India, the UK, Indonesia, Senegal, and Belgium. Import commodities include foodstuffs, fuel, machinery, and transport equipment, with China, Senegal, Cote d’Ivoire, Brazil, the US, the UK, and the Netherlands for the main import partners to The Gambia. To overcome the obstacles to self-sufficient and economic growth, the Government of The Gambia is pursuing policies to diversify the economy through the development of rice and maize (corn) for domestic consumption and cotton and sesame as additional export crops.
The government is also encouraging the further development of its fishing and tourist industries, tourism being the major industry in The Gambia, contributing at least 12% to the GDP. In addition, new hospitals and schools, and the improvement of essential infrastructure such as roads and utilities are continuing to add to the positive growth of economic activity in The Gambia.
Even a short drive down Kairaba avenue (a main business strip in the Kombos area) can show how new shops are constantly cropping up, while there is also a great increase in home construction in the suburban areas. Bilateral assistance continues to be given by countries such as the US, the UK, Germany, Sweden, Taiwan, and Kuwait, so the future is looking bright for The Gambia.
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