By Landing Ceesay
The 1st Deputy Governor of the Central Bank of the Gambia said the country has registered an inflow of over D44 billion of remittances in the year 2022.
“The flow of remittances has grown considerably in the Gambia, in the five years between 2017 and 2021, it grew by more than threefold and the numbers are there to be shared. This is quite significant and further substantiates the impact that the diaspora and the remittances have had on the economy.
“For 2022, the interim remittance inflow to the Gambia is 712,450,000 US Dollars (D.44,293,728,950) Even though this represents a contraction of 8% relative to last year, It is nonetheless significant. The contraction is partly due to increased utilization of non of informal sectors or channels to send money as COVID restrictions ease globally. As a result, there are some of these remittances that are not captured in the formal system and our official statistics,” Dr. Jallow said.
Dr. Jallow made these remarks at Sixth Stake in the Nation Forum held on Saturday, January 14, 2023.
Dr. Jallow said In recognition of the significant role and the potential that remittances can have in development, the Central Bank of the Gambia will be introducing instruments and platforms to support the other parts of the government’s efforts in facilitating the transmission of the diasporan and National private capital in the development needs of the country.
Dr. Jallow said this initiative would help in their mandate of maintaining stability for the economy.
He said this initiative will be under the auspices of the economic transformation agenda of the Central Bank, which he said seeks to support the realization of supply-side constraints with development in the country.
“It is important to also outline that remittances are a key source of forex exchange for the Gambia, and has considerable impact on our balance of payments and our interest from the central bank. Furthermore, several studies have established a strong link between remittances and financial inclusion. With the Gambia targeting to include 70% of its adult population in the formal financial sector by 2025. The inflow of remittances could serve as an important catalyst for the inclusion of the unbanked into the financial system of the Gambia,” he said.
Dr. Jallow further said members of the diaspora are considered very important stakeholders in improving the lives and livelihoods of Gambians.
The 1st Deputy Governor of CBG said remittances continue to play a pivotal role in the economic development of the Gambia and its economic impact cannot be over-emphasized.
“Over the years, official statistics on remittances have recorded substantial inflows of funds, providing direct economic benefits to Gambians from all walks of life. The central bank as a custodian of the financial system will ensure suitable policies are designed to ensure that all stakeholders get the maximum benefit from the financial system,” Dr. Jallow said.
The Stake in the Nation Forum (SNF) is part of the MSDG Technical Cooperation Programme (TCP), co-financed by the Swiss Agency for Development and Cooperation (SDC) and GK Partners (GKP); implemented with the government of the Gambia.
The main aims of the Stake in the Nation Forum (SNF) are to present updates on Gambian Diaspora Strategy (GDS) and National Development (NDP), facilitate thematic discussions on how to improve development policy and practice, facilitate dialogue and networking between diaspora, government and non-state actors, the launch of relevant development policies, programmes, projects and initiatives as well as Exploration of new approaches, concepts and frameworks for national development.
This year’s theme of the Stake in the Nation Forum is “Supporting Private Action For Public Benefit.”
The Stake in the Nation Forum (SNF) brought diaspora groups together to engage with government Ministries, Departments, and Agencies, as well as NGOs and CSOs, on a wide range of developmental matters to contribute to formal policy, as well as strategic, thematic and sectoral consultations initiated by different government and quasi-government institutions.