By Omar Bah
The Gambia, ranking 7th among African countries, is grappling with a severe issue of high food inflation, a significant contributor to its overall inflation. This is not an isolated problem, as many African nations, including The Gambia, have been hit by a surge in food inflation, profoundly impacting their economies and the daily lives of their citizens. A recent United Nations report attributes this crisis to weak currencies and harsh weather conditions.
In February, The Gambia’s yearly inflation rate rose to 9.2%, which then escalated to 17.2% by March. The Gambia Bureau of Statistics (GBoS) reported that the country’s average inflation rate from 1962 to 2024 stood at 8.28%. However, it hit a historic peak of 75.64% in August 1986 and a record low of -10.91% in July 1964.
The Gambia, heavily reliant on imports, is particularly susceptible to global price fluctuations. Due to global inflation and a depreciating Gambian Dalasi, the country is now facing the brunt of rising import costs. Shortfalls in domestic food production, leading to a surge in food prices, further exacerbate the situation. However, the government is not sitting idle. It actively boosts domestic food production and tourism to alleviate the impact on essential goods, instilling hope for a better future.
In economics, inflation refers to the gradual rise in prices of goods and services over time. This phenomenon can chip away at your purchasing power, acting as a sneaky tax that can impact your overall standard of living. It can also create challenges when trying to afford necessities. When inflation reaches high levels, businesses may become hesitant to invest or expand, which can hamper economic growth. While moderate and sustained inflation can stimulate an economy, excessive inflation can have adverse effects.
According to a recent report from the World Bank titled “Addressing Inequality to Revitalize Growth and Alleviate Poverty in Africa,” there may be a turning point on the horizon. The report projects that in 2024, inflation is likely to cool in most Sub-Saharan African nations compared to the previous year. Around 90% of these nations are expected to experience a decrease in inflation rates in 2024 compared to last year. This encouraging trend is attributed to factors such as the normalization of global supply chains, a gradual decline in commodity prices, and tighter monetary policies implemented by African governments. However, it’s important to note that some countries still need to grapple with concerning inflation figures.
