In 2024, Gambia’s remittances reached a record $776 million, a 4% increase compared to the previous year. These remittances now account for 31.5% of the country’s GDP, making them as important as tourism for the economy. Central Bank Governor Buah Saidy shared these figures at a national forum on diaspora financing, underlining the vital role of Gambians living abroad in supporting the country’s economy.

Remittances Rival Tourism

The increase in remittance inflows highlights their growing importance as a major source of foreign currency, now competing with Gambia’s traditionally strong tourism industry. Saidy pointed out that contributions from Gambians abroad are essential for economic stability and provide a cushion against external challenges.

“The steady rise in remittances shows the strong bond between Gambians abroad and their home country. These funds are not only helping families but also supporting wider development,” Saidy said at the forum.

The Economic Impact of Diaspora Contributions

With remittances contributing 31.5% of GDP, they play a key role in stabilising Gambia’s economy, especially amid global uncertainties. These funds are often used for everyday expenses, healthcare, education, and local investments, which directly improve living standards and support economic growth.

Policy Considerations

The Central Bank’s data calls for policymakers to find ways to maximise the impact of remittances. Introducing investment incentives and improving financial infrastructure could help direct these funds into productive economic sectors. Including remittances in broader development plans could enhance their role in driving Gambia’s growth.

Looking to the Future

As Gambia continues to strengthen its relationship with the diaspora, events like the national forum on diaspora financing will be crucial in shaping future policies. Leveraging these contributions can strengthen the country’s economic resilience and promote long-term development.

Don’t miss out on the latest updates. Stay updated with Business & Innovation with The Sisters Show. Get all the details and never miss a beat!

Read More:- FIRST CITY MONUMENT BANK WELCOMES FELICIA OBOZUWA AS EXECUTIVE DIRECTOR