Can the Gambia sustain growth momentum?

The Gambia recently celebrated its 60th independence anniversary, reflecting on its journey from a small agricultural-dependent nation to a vibrant economy with promising growth prospects. Fitch, a leading global rating agency, expects the country's growth momentum to continue, driven by private consumption, construction activities, and robust trade relations with neighboring countries. Alieu Secka, a Transformation Specialist at ABSS Consulting, discussed the country's economic outlook in an exclusive interview with CNBC Africa. Reflecting on the significance of the 60th independence anniversary, Secka highlighted the country's resilience and progress over the past six decades. Despite initial doubts about its sustainability, The Gambia has defied expectations and emerged as a stable and thriving nation. The recent celebration saw dignitaries from Senegal and Guinea-Bissau, underscoring the country's regional ties and importance. Fitch's forecast of a 5.6% economic growth for the Gambia this year is largely attributed to key drivers such as private sector development, infrastructure investments, and expanding export trade. While these factors bode well for the economy, Secka warned about the looming threat of inflation, currently hovering between 15 to 20%. The challenge for monetary authorities lies in balancing economic stimulus with inflation control measures, especially amidst global uncertainties such as energy price hikes and geopolitical tensions. To support small businesses and spur economic growth, the Gambian government is focusing on reducing the cost of finance, improving energy infrastructure, and creating a conducive business environment. However, challenges persist, particularly in addressing high youth unemployment rates. Secka emphasized the need for targeted initiatives in fintech and agriculture mechanization to harness the potential of the country's young workforce. Moreover, leveraging the African Continental Free Trade Area presents a significant opportunity for Gambian businesses to access regional markets and expand exports. With a potential market of 1.4 billion people and a GDP of $3.4 trillion, the country stands to benefit from closer economic integration and trade partnerships within the continent. Despite the positive outlook, Secka highlighted the importance of addressing underlying challenges such as inflation, youth unemployment, and limited access to finance. As the Gambia navigates these complexities, strategic policy interventions and investments in key sectors will be crucial to sustaining its growth momentum and fostering inclusive development. In conclusion, the Gambia's journey from independence to economic resurgence symbolizes hope and resilience in the face of adversity. With a clear vision and concerted efforts, the country can overcome its challenges and unlock its full potential on the path to sustainable growth and prosperity.