Gambia’s Record Remittances Make up Over a Third of GDP

Remittances have become a major source of foreign exchange for The Gambia (Photo by Mass Njie | TNBES | August 13, 2019)

A significant surge in remittance inflows last year makes up 31.5% of the West Africa nation’s gross domestic product (GDP), according to the Central Bank of The Gambia.

Remittances stood at $775.6 million in 2024, representing a significant increase of $28.8 million compared with 2023, the Bank’s governor Buah Saidy said on Saturday at the 'Stake in the Nation Forum', a national forum on diaspora financing.

Lower costs of sending money, the emergence of fintech companies, improved monitoring methodology and the increased use of formal channels by the diaspora are the main reasons for the rise in remittance inflows – which made it easier for Gambians abroad to send money and invest locally.

The Gambian economy relies heavily upon tourism – one of the three biggest contributors to gross domestic product (GDP) and the largest sources of foreign exchange for the country. Agriculture and remittances are the other two sources with the largest shares of GDP.

"Remittances play a critical role in our nation's socioeconomic factor, contributing significantly to household incomes, education, healthcare and the overall economic stability of our country," Saidy said.

"The inflow of remittances has become a vital component of our economy often surpassing the traditional sources of foreign currency supply including tourism and exports," he said.

In November, Finance Minister Seedy Keita told lawmakers that “economic growth remains relatively stable largely due to investments in infrastructure projects, increased productivity in agriculture, recovery in tourism and resilient remittance inflows.” 

Upward Trajectory 

Remittance inflows has seen an upward trajectory year-on-year since 2017 when 122, 310 (36% out of 280, 659 households) in The Gambia directly benefited from money transferred either from a member of the household or another individual outside of the household, the Integrated Household Survey, a government study, released in October that year indicated.

In 2018, The Gambia received $245 million (more than D11.5 billion) in remittances – representing 15.3 percent of the country’s gross domestic product – an increase of $17 million from the 2017 figure of $228 million.

 

Written by Modou S. Joof 

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