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The Economic Implications of COVID-19 on The Gambia

OpinionGuest EssaysThe Economic Implications of COVID-19 on The Gambia

By Fatima Mboge Esq.

The Coronavirus known to cause COVID-19 has taken many lives and disrupted livelihoods around the globe. Life as we know it may never return to the old normal—at least, not anytime soon. While it is immensely important that people around the world follow the guidelines and recommendations of public and health officials to contain the spread of the virus, the consequences of the implementation of these guidelines will devastate the global economy. The impact of COVID-19 on the global economy is a concern for developed countries but, it would by far be more devastating to the economies of developing countries. According to the International Monetary Funds (IMF), the economic crises resulting from COVID-19 outbreak in The Gambia has already contracted the Gross Domestic Product of The Gambia by 3.8 percent from 6.3 percent to 2.5 percent. 

According to the United Nations (UN), the impact of COVID-19 on the global economic, could lead to a recession leading to a half-billion people in developing countries to experience further poverty. To ameliorate these problems, the IMF on 15th April 2020 approved a debt relief of $500 million for 25 developing countries, including The Gambia. The Gambia will receive $2.9 million to curb the impact of COVID-19 on its economy. Additionally, The Gambia will also receive $21.3 million on credit from the IMF as a financial assistance to protect its economy for the wellbeing of its people against COVID-19.

In a statement released on the 24th March 2020, the Chairperson of African Commission on Human and Peoples’ Rights (African Commission) emphasized that member states to the African Charter on Human and Peoples Rights (African Charter) should protect peoples’ human rights in the fight against COVID-19. The Chairperson reiterated that governments adopt mitigating measures to provide for individuals, communities, and businesses affected by the socio-economic disruptions caused by the COVID-19 containment measures.

As enshrined in the African Charter “all peoples shall have the right to their economic…development with due regard to their freedom and identity and in the equal enjoyment of the common heritage of mankind.” In 2016 the African Commission interpreted the application of this article in the Centre for Minority Rights Development (Kenya) and Minority Rights Group International on behalf of the Endorois Welfare Council v The Republic of Kenya, that the burden of creating favourable conditions and benefits for the development of a people rests on its government. 

At the national level, the National Assembly of The Gambia has enacted the Essential Commodities Emergency Powers Regulation, 2020 (No.1)(The Regulation), which took effect on 26th March 2020. The purpose of the regulation is to cap prices of essential commodities and restrict the movement of people. This regulation caps the pricing of staple commodities in The Gambia including rice, maize, fish, etc. The legislation also restricts movement of people relating to public gatherings and school closures. To effectively observe social distancing these restrictions need to be stricter. That said, however, additional measures need to be put in place to subsidize incomes of those whose source of earnings will be affected by the restrictions. 

The legislature and executive branches of the government of The Gambia should protect the Gambian economy and most importantly the interest of the underprivileged, especially those offering social services such as market vendors and public transport providers during the COVID-19 pandemic. By virtue of the regulation, markets in The Gambia are opened only between 9:00 AM and 14:00 PM. While the markets are opened there is no social distancing which puts into questions the effectiveness of these measure to curb the spread of the Coronavirus and a COVID-19 pandemic in the country. Scientist have stated that, some people could be infested with the Coronavirus while they are asymptomatic. But with social distancing the risk of spreading the Coronavirus in the general population could be minimized.  

Those who provide essential services such as market vendors and public transportation are unable to observe social distancing because of the impact it will have on their earnings. It is necessary that the government of The Gambia provides an alternative by subsidizing their incomes. These market vendors couldn’t refrain from interaction with their customers given the transactional nature of the services they deliver to the public. 

In addition to the market vendors, those working in the tourism sector should be included in the list of recipients of the government financial support. Restrictions on air travel leading to a complete halt in tourists vacationing in the country will affect the earnings of those working in the tourism sector. These restrictions have adverse spill-over effects on other employees and businesses within the tourism sector. According to the World Bank, The Gambia’s economy is dependent on tourism and agriculture. Many of the produce of the agricultural sector are consumed in the tourism sector. In 2017, according to the European Union, almost 19 percent of the Gambian workforce were employed in the tourism sector.

More stringent measures are needed to minimize the spread of COVID-19, especially given that The Gambia lacks adequate medical facilities to contain large outbreaks. Government and public health officials in the United Kingdom, United States of America, and Italy — countries with more equipped medical facilities — are struggling to effectively manage the Coronavirus outbreak. These countries even after going on lockdowns still have high COVID-19 related deaths. 

These countries have social safety nets in place to provide incomes for their citizens. The United Kingdom for instance provides Universal Credit for those who lost their jobs because of COVID-19. The UK Chancellor of Exchequer reiterated his concerns about a recession due to COVID-19 thereby leading efforts by the British government to provide grants and loans for businesses that are hit hard by COVID-19 economic disruptions.

The 1997 Constitution of The Gambia states in Section 100(1) that “the Legislative powers of The Gambia shall be exercised by bills passed by the National Assembly and assented to by the President.” Hence it is important that the National Assembly and President use their powers to provide legislation that will be a foundation and guide for the protection of the interest of every Gambian.

Considering the dust has not settled in the fight against COVID-19, the government of The Gambia should take measures to protect the jobs, businesses, and incomes of citizens. By failing to protect the employment and business incomes of people in the formal economy and earnings of other citizens in the informal sectors through a comprehensive economic relief package, the government would not have ensured the economic securities of Gambians.

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