Economic Deep Dive: The Link Between Power Cuts and the Cost of Rams

President Barrow electricity switch

The Link Between Power Cuts and the Cost of Rams

By Dr. Ousman Gajigo

As Tobaski approaches, almost everyone is bemoaning the high cost of rams. The past week has also seen some of the worst electricity blackouts the country has experienced. In my neighbourhood of Brusubi alone, we endured over 10 hours of outages in a single 24-hour period. These two phenomena – both of which are deeply affecting the average Gambian – are more closely related than they might appear.

Many of the rams sold in The Gambia are imported from Senegal and other neighbouring countries. The primary driver of their high cost is that the Dalasi has significantly depreciated against the CFA franc. Between 2022 and today, the Dalasi has lost over 30% of its value against the CFA.

This means that imported goods from Senegal and the wider region are costing more not only because of general price increases but also because our currency is steadily losing its purchasing power. The natural question is, why does our currency continue to lose value against the CFA? A key part of the answer lies in our electricity crisis.

Over the past week, the chronic unreliability of our power supply has grown significantly worse. Outages are more frequent and longer in duration – averaging around six hours per cut in Brusubi. The problem is not confined to urban areas either. A recent visit to the URR confirmed that households there are enduring equally frequent and extended blackouts.

These electricity outages and the high cost of rams are directly connected. Since Adama Barrow came to power, his government has prioritised importing electricity over building domestic power generation capacity. But purchasing electricity from a neighbouring country is, economically speaking, no different from importing any other good. When a country imports far more than it exports, it puts sustained downward pressure on its currency. The more we depend on Senegal for electricity, the more the Dalasi weakens – a downward spiral with no end in sight.

At present, the volume of electricity we import from Senegal is several orders of magnitude greater than what we generate domestically. Rather than investing in power plants, President Barrow has focused on connecting additional villages to the national grid – a strategy that appears designed for short-term electoral gain rather than long-term development.

This cynical use of electricity as a campaign tool is actively retarding infrastructural progress. The villages newly connected to the grid are unlikely to enjoy reliable power after the election, precisely because the imported electricity underpinning that supply will become scarcer and more expensive.

As the cost of rams illustrates, the consequences of mismanaging the energy sector extend far beyond electricity bills. Any good originating from Senegal will cost more as our trade deficit grows – a deficit that Adama Barrow is deliberately worsening through his short-sighted campaign strategy.

What is the value of connecting another village to the national grid if the benefit is fleeting, and the collective cost of living continues to rise? As we gather with our families this Tobaski, let us reflect on our true national priorities. Genuine development should improve the standard of living of the average Gambian – not quietly erode it.