A Belgian senior consultant and researcher, Dr. Alex P.M. Pasmans has stressed that, ‘now is the time’ for the Gambia government to work with funding partners to stimulate its economy in a post-Covid world, but posited this requires ‘a new way of working with a different kind of Corporation’ with Development Finance Institutions (DFIs) in Africa.
While the Gambia still accounts relatively few Coronavirus Disease (Covid-19) deaths compared to other nations across Africa and the world, the fragile economic impacts of the pandemic within the country continues to aggravate.
A research conducted by Dr.Pasmans, 1st Senior Consultant at the Institute for Geopolitical Research and Development (SIFD/INGRED) in Belgium, revealed that the Gambia’s Growth Domestic Product (GDP) has been slashed as governments across the globe implement harsh restriction measures including international travel bans.
The Researcher indicated most African nations, including the Gambia, lacked the fiscal capacity to protect businesses and entrepreneurs through stimulus packages as they have it in most advanced economies like Europe and United States of America.
Dr. Pasmans described the Gambia’s tourism and hospitality as one of the hardest hit sectors which are the most significant contributors to the country’s economic and social growth. He noted before the Covid-19 pandemic, the Gambia recorded a total of 619,000 tourists in 2019 corresponding to 9.2 percent of its GDP.He continued:“Tourism is the third largest contributor to Gambia’s GDP after agriculture and services sector.
The industry employs more than 110,000 people–41,000 of whom are or where directly employed.”
To him, the long term question is how finance can be found to lead an eventual rehabilitation of the country’s hospitality sector and job preservation mechanisms, hinting also that the country would emerge looking very different from when it entered the Covid-19 crisis.
“Rigorous constraints in terms of how people travel will last a significant period of time adding further pressure,” Dr. Pasmans, who spoke with this medium, pointed out. While observing that traditional funding lines are likely to be harder to come by as the continent’s banks try to stabilize and aid recovery across multiple sectors, he argued private investors have their own cash constraints whilst many are in fundraising mode than focusing on development.
The Belgian Senior Consultant, therefore, posited that ‘development finance institutions’ such as the International Finance Corporation and regional development banks should identify the hospitality sector as a key player in the country’s economic recovery, adding this is a critical time for the private sector to invest in it, too and work closely with financial institutions.
He advised that, more than ever, it is vital to have coordinated approach as Covid-19 changes the way people travel from the airports ‘check-ins through to the new safety and hygiene norms’ within hotels to mitigate physical interactions, reasoning this would influence and provide travelers with a whole new experience.
“Divarication of the economy is the solution for the Gambia,” he said in a social media conversation. He explained a diversification of the economy is essential if Gambians want to make the country attractive again for visitors, and not only for those who like to spend their holidays, but also in combination with educational programs, business seminars as well as various alternatives.
In citing the alternatives, the Institute for Geopolitical Research and Development Senior Consultant referenced the expansion of agricultural capacity and initiating food production facilities as he pointed out that, the huge quantities of mangoes, bananas and other fruits getting spoiled (in the Gambia) could have served as basic ingredients for fruit drinks or canned products. He described water, which the Gambia has in abundance, as one of the essential resources that are required for proper growth of crops.
The Research Fellow from the Institute for Geopolitical Research and Development in Belgium charged: the expansion of the Gambia’s agriculture will need to be performed professionally to be supported by the University of The Gambia (UTG) and local communities to make sure it is sustainable.
Presently, irrigated agriculture is responsible for about 70% of all freshwater abstractions by humans, said Dr. Pasmans, noting that agriculture as a whole, is responsible for roughly 92% of worldwide consumptive use of freshwater.
“Agriculture touches everyone’s life whether as a livelihood or through food supply, clothing, fabrics and other products,” he stated.
