By: Binta Jaiteh
Babucarr Joof, the Minister of Trade, Industry, Regional Integration and Employment (MOTIE), has explained that recent hikes in commodity prices are a result of the Gambia’s practice of free market economy policies and trading environment, where prices of goods and services are determined by market forces. The Trade Ministry, he maintains, monitors the stock and price levels of essential commodities in the market on a weekly basis to ensure their availability, accessibility, and affordability, as well as to mitigate any unjustifiable market price escalation in the domestic market.
“The recent trend in price hikes of basic commodities may be a reflection of the volatility of global commodities, and The Gambia, as a net importer of basic commodities, is vulnerable to these external challenges. The value of the dalasi against major currencies such as the US dollar has occasionally been depreciating, adding costs to importation. To minimize the negative impact on domestic price hikes and to ensure availability and affordability of food commodities, the ministry is promoting the participation of Gambians in commodity trading, which has to a large extent stabilized the price of rice domestically,” he explained.
He made these comments while responding to Bakary Badjie, National Assembly Member of Foni Bintang Karanai, who wanted to know what plans MOTIE has in place to control the price hike of basic commodities, especially during Ramadan. The trade minister further disclosed that the Central Bank of The Gambia (CBG) has made progress in their efforts to stabilize the value of the dalasi and reduce inflation.
“The Ministry continues to engage key stakeholders to mitigate or dampen the effects of price hikes of essential commodities in the country. We continue to engage the Gambia Ports Authority and affiliates to provide priority to vessels carrying essential commodities to avoid demurrage charges that may add to prices in the market. As a long-term strategy, the Ministry is supporting domestic production of some of the basic commodities to minimize their importation and exposure to external challenges,” he asserted.
Joof went on to assure that his ministry will continue to strengthen its surveillance mechanisms through weekly market monitoring and regular engagement with importers and retailers of essential commodities, admitting that price hikes and price differentials are not the same, as it depends on variables. He maintains that the government can only control prices if funds are available, but without funds being available, the government will allow market forces to control prices.
