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The Link Between Housing and a Strong Economy

OpinionColumnistsThe Link Between Housing and a Strong Economy

By Tumbul Trawally, Seattle, USA

No economic activity gives a jolt to the economy — in the short run — than building houses. If you think about it, building and furnishing a house requires buying materials from nearly every sector of an economy. The wood that goes into the building comes from the timber industry; the cement, iron rods,  roofing material, carpets, lighting, refrigerator, bowls, plates, dishes, utensils, cooking stoves, dishwasher, washing machine, furniture, door and window frames, computers, beds, bedsheets, toilets, bathtubs, etc., come from various other industries within the economy. All these purchases with their requisite multiplier effect on the economy are unmatched by any other form of economic activity within an economy. The reason for the varied purchases involved in building and furnishing a house are because most humans live in houses, so they contain most of our valued possessions. Further, most people work in buildings, although more so in the developed world than in the developing world. As a country develops, a majority of her residents transition from farming to work in offices and factories. Office buildings and factories use even more appliances than dwelling units. Think about the computers, copiers, fax machines, and other furnishings that go into an office or a factory. Enormous! These purchases are the grease of an economy.

That brings the importance of building a bridge between Barra and Banjul, and the ensuing housing boom in the Nuimis, Jokadu, and Badibous. It will be the most economically consequential project, so far, twenty-two months into President Barrow’s presidency. And to the sceptics who think building a bridge between Barra and Banjul is a futile endeavor—think again! I mentioned this in a previous posting: land is finite, unless you are the Dutch, who have the wherewithal to reclaim land from the sea.  As the Kombos become saturated, we have to look for other areas of expansion, to accommodate the growing population. The first benefit would be the reduction in the cost of land in the Kombos, to match the cost of land in the North Bank Region. The money saved will be used to purchase other goods or services in the economy. Businesses flushed with extra cash on their balance sheets are likely to invest and create jobs. A bridge will also reduce congestion in the Kombos and decentralize development. Time wasted sitting in traffic between Banjul and the Kombos is time lost!

Right now, the North Bank region is not performing at its full potential when it comes to economic activity. The underutilization of the potential of nearly a half of the country is economic suicide. Imagine the jobs that would be created, with hotels lining the beach at Barra. It is a no-brainer to build the bridge. In fact, more bridges should be built across The River Gambia to integrate the economies of the south and northern banks of the country. I know I am being too Pollyannaish, but at the bare minimum, there should be a reliable ferry service between different points of crossing on either side of the river. With a reliable ferry service—the Fonis/Kombos can be economically integrated with the Nuimis. Likewise, the economies of the Kiangs and the Badibous, Jarras and the Sanjals, Niaminas and the Saloums, Fulladous and the Nianis, all the way to Kantora and the Wullis can be fully integrated. These places are not far away from each another, but the river makes it seem as if they are in a different country.

The ferries can be deployed at critical points of crossing between the North and South Banks of The River Gambia. The obvious points of crossing that come to my mind are between Salikenni in Badibou and Tankularr in Kiang, Albreda in Nuimi and Berefet in Foni, Dankunku in Niamina and Kani Kunda in Sanjal, to name a few. There is more economic activity between Sika in Nuimi and China or Dubai than between Sika and Berefet. Equally there is more business activity between Salikenni and China or Dubai than between Salikenni and Tankularr. This is utter insanity! The people on the north bank of The River Gambia should be able to patronize the businesses on the south bank of the river, and vice versa. Local businesses have to be nurtured by the locals, through sales. It is nothing different from a mother nurturing her young before letting them face the harsh realities of the world. Instead, we are patronizing Chinese and Emirati businesses, thereby creating jobs in China and Dubai, but at the same time desolating our rural areas. Ease of transportation and communication are vital in the development of any country.

There is an abundance of salt in Jokadou, but the salt used in the Fulladous and Nianis, and beyond does not come from Jokadou; instead, it comes from Senegal. With their boats, the Serrers are able to ply their trade for the entire length of the river, to sell their salt and dry fish. The ability to move humans and goods from point A to point B is a key to development. With an increase in economic activity, comes jobs, which are — woefully — in short supply in The Gambia.

Another benefit would be the alignment and integration of our economy with Senegal’s, which is sixteen times bigger than ours. According to the International Monetary Fund (IMF), Senegal’s GDP is 16. 057 billion US dollars, and Gambia’s GDP is 1. 038 billion US dollars.  The Gambian economy will benefit tremendously from integration and ease of transportation of goods between the two countries. For that reason, the bridge at Bambatenda is welcome news! With a bridge between Barra and Banjul, trucks that spend days at the ferry terminals will breeze through Banjul, on their way to the Kombos or North Bank region, and beyond. Remember, the owners of the trucks pass the transportation costs on to the consumers, thereby, increasing the price of goods and, ultimately, inflation. The cost savings from transporting goods will be spent on other goods and services.

 

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