By Mai Ahmed Fatty
The recent 10% tariff imposition by the United States on Gambian exports represents a new development that demands strategic approach, both in terms of trade policy and national economic resilience. While this tariff creates immediate challenges, particularly in terms of our balance of trade, it also underscores the need for urgent reforms and more assertive economic diversification. We must, however, be prepared to respond in a manner that reflects our dignity, sovereignty, and a long-term view of national self-reliance.
In addition to the tariff increase, the closure of USAID projects in The Gambia has already placed a significant strain on those critical projects that rely on it for sustainability. The closure of USAID, while part of a broader political shift, has left us with gaps in foreign development aid that we must now address.
We must immediately pivot to a model of self-reliance. The Gambia has shown that it is capable of generating and deploying domestic resources, as seen in the rapid expansion of road infrastructure funded by our own tax revenues. This is an encouraging precedent, and it highlights our potential for economic independence. Moving forward, our priority should be to reduce reliance on external funding by strengthening domestic resource mobilisation, diversifying the economy, and making targeted interventions in key sectors.
The Gambia’s trade imbalance with the United States is a critical issue that needs to be addressed. The trade imbalance is unsustainable and leaves us vulnerable to external shocks like tariff increases.
To remedy this situation, we must focus on building a more diverse and competitive export sector. We should prioritise sectors where The Gambia has natural advantages, such as agriculture, fisheries, and tourism. Value-added exports such as processed agricultural goods (e.g., groundnut oil, fruit juices, and fish products) must take precedence over raw material exports. Additionally, we should seek to build strong trade partnerships with regional actors through the ECOWAS Trade Liberalisation Scheme, creating a more robust, integrated market for Gambian goods.
It is also important for us to review and reassess our trade relations with the U.S. and advocate for fairer trade terms and seek to engage in dialogue to reverse or mitigate the tariff imposition. If diplomacy and negotiations fail, we should not hesitate to take countermeasures that protect Gambian interests. After all, last year alone, US exports to The Gambia was a whopping USD80.6 million while comparatively our exports to the United States was a meagre 2 million Dollars. It means The Gambia’s balance of trade deficits with the U.S amounted to 76.8 million Dollars in favour of the U.S. Who benefits more in this unequal trade relations? Obviously, it is the U.S and not The Gambia. Trade-wise, this is leverage we can use. With potential constriction in global economies, it’s easy for The Gambia to build or expand new trade alliances and shift our monies elsewhere away from U.S markets, especially when the U.S does not reserve a monopoly over the type of goods we import. The Gambia should explore new and more favourable markets to substitute the US.
The tariff increased and USAID project closures do have adverse consequences for sectors such as health. The country’s reliance on pharmaceutical imports is absolute—100% of our pharmaceutical needs are met through imports, making this sector exceptionally vulnerable to trade disruptions.
The imposition of tariffs on critical imports such as medicines, vaccines, and medical equipment exacerbates the challenges our healthcare system already faces. Moreover, The Gambia is a recipient of Global Fund assistance, particularly in the fight against tuberculosis, malaria, and other infectious diseases. The reduction in available funding, coupled with tariff impositions on health-related imports, threatens the success of these vital programmes.
To mitigate these risks, we must urgently invest in building a local pharmaceutical industry. Although local pharmaceutical manufacturing does not currently exist, we should explore ways to encourage private sector participation in this field. Through targeted incentives, such as tax breaks, infrastructure development, access to capital and partnerships with global pharmaceutical giants, we can gradually build the capacity for local pharmaceutical production. This will help to reduce our dependence on imports and improve the resilience of our health system.
In the short term, we may negotiate with our international partners and the Global Fund to ensure that health interventions continue unimpeded. We may also explore other funding avenues, such as private-public partnerships, to sustain these critical programmes.
In light of the tariff imposition and other external challenges, it is imperative that we review and adjust our national budget to accommodate the current realities. We must be proactive in realigning our fiscal priorities to ensure that critical sectors such as healthcare, education, and infrastructure continue to receive the necessary funding, even in the face of reduced external support.
This will require a detailed and transparent budget review process, aimed at identifying areas where spending can be optimised, where efficiencies can be introduced, and where funds can be redirected to urgent priority sectors.
The 10% tariff increase is a reminder that we must not rely solely on foreign aid or trade advantages to drive our economic growth. It is time to build a more resilient, diversified economy that is driven by domestic capacity, not external forces. This can only be achieved by fostering a competitive private sector, investing in local manufacturing, and prioritising sectors with strong growth potential.
We should continue to promote agriculture, tourism, and manufacturing, while also developing new sectors like renewable energy and technology. Through strategic investments, public-private partnerships, and regional cooperation, we can begin to reduce our dependency on imports and build a sustainable economy that creates jobs, generates wealth, and protects our sovereignty.
I concede that the 10% tariff increase by the U.S. and the closure of USAID projects present immediate challenges, but they also offer us an opportunity to rethink our approach to economic development and international trade. The Gambia must move toward self-reliance by diversifying its economy, building local capacity, and ensuring the resilience of its key sectors, including healthcare. By taking proactive measures, revisiting our trade relations, and prioritising the growth of our domestic industries, we will weather this storm and emerge stronger, more self-sufficient, and better equipped to face the future.
