Economy of the Gambia
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Through Developing country, Mixed economy and Liberalism
Short-run economic progress remains highly dependent on foreign aid, and on responsible government economic management as forwarded by International Monetary Fund technical help and advice.
Economic history
The re-export trade normally constitutes a major segment of economic activity, but the 50% devaluation of the CFA franc in January 1994 made Senegalese goods more competitive and hurt the re-export trade. The Gambia has benefited from a rebound in tourism after its decline in response to the military's takeover in July 1994. Lately, Indian global health expert Dr Edmond Fernandes stated that Gambia presents a global investment opportunity and dissected various areas of business interests.
The Gambia's economy is characterized by traditional subsistence agriculture, a historic reliance on peanuts or groundnuts for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry.
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Economic sectors
Agriculture
Agriculture accounts for 23% of gross domestic product (GDP) and employs 75% of the labor force. Within agriculture, peanut production accounts for 5.3% of GDP, other crops 8.3%, livestock 4.4%, fishing 1.8%, and forestry 0.5%.
Industry
Industry accounts for 12% of GDP. Manufacturing accounts for 6% of GDP. The limited amount of manufacturing is primarily agriculturally based (e.g., peanut processing, bakeries, a brewery, and a tannery). Other manufacturing activities include soap, soft drinks, and clothing. Services account for 19% of GDP.
Mining
Mining in the Gambia, which is limited to the production of clay, laterite, sand and gravel, silica sand, and zircon, does not play a significant role in the Gambian economy.
Tourism
Tourism in Gambia has three major strands. There is the traditional sun seeking holiday making use of the hot climate and wonderful beaches. The Gambia is also usually the first African destination for many European birders, due to its easily accessed and spectacular avian fauna. There are also a significant number of African Americans tracing their roots in this country, from which many Africans were taken during the slave trade. While not that many American slaves came from Gambia it was made popular by Alex Haleys historic novel and TV miniseries Roots: The Saga of an American Family.
The tourist season is the dry season, during the Northern Hemisphere winter.
Infrastructure
Transport
The system of transportation in the Gambia mixes both public and private operations and consists of a system of roads (both paved and unpaved), water and air transportation. The Trans-Gambia Highway runs along both sides of the river Gambia, which bisects the country. The river may be crossed by ferry or the Senegambia bridge. There are no railways in the country.
Telecommunications
Telecommunications in the Gambia includes radio, television, fixed and mobile telephones, and the Internet.
Trade
In 2020 The Gambia's major export markets were Senegal, Mali, Guinea-Bissau, India and China, accounting for 84% of all exports. Neighboring Senegal accounted for 50.5% of exports. This contrasted with 1999 when the UK and other EU countries were The Gambia's major domestic export markets, accounting for 86% of all exports.
In 2020 Norway, China, Cote d'Ivoire, Brazil and Turkey were the major sources of imports, accounting for 49% of the total. This contrasted with 1999 when the UK and other EU countries were the major sources of imports, accounting for 60% of all imports.
An import declaration form, prepared in triplicate, must be lodged with Customs together with the invoice, the bill of lading or air waybill, a packing list, a tax identification number and a certificate of origin where a preferential rate under the ECOWAS Trade Liberalisation Scheme is claimed. Imports of animals, plants and processed foods of plant or animal origin require an import certificate.
Statistics
Main indicators
The following table shows the main economic indicators in 1980-2026. Inflation below 5% is in green.
Other indicators
Electricity
- production: 75 GWh, entirely from fossil fuels (1998)
- consumption: 70 GWh (1998)
- Electricity is not imported or exported from the Gambia.
Agriculture - products: peanuts, pearl millet, sorghum, rice, maize, cassava (tapioca), palm kernels; cattle, sheep, goats; forest and fishery resources not fully exploited.
Economic aid - recipient: $45.400 million (1995)