By: Kemo Kanyi
Sustainable Finance Specialist, Dr. Foday Joof, has given his observed opinion of how the country’s financial ecosystem entrenches poverty.
In an article shared with The Voice on Tuesday, he said that in most modern economies, access to credit is a catalyst — a tool that enables people to build, grow, and invest in their future, stating that in The Gambia, the financial system tells a different story. He asserts that consumption replaces investment, and survival trumps prosperity.
Dr. Joof states that The Gambia remains a predominantly cash-based economy, where financial services lack reach, depth, and relevance. For the average person, credit is simply not an option.
“There are no accessible credit cards. No personal or consumer loans for the working class. And very limited small business financing,” he pointed out.
He therefore argues that this kind of economic environment discourages investment. “People use what little money they earn to survive, not to build. Consumption is immediate, urgent, and continuous. There is no breathing room to think long term, no incentives or support systems to foster savings, capital accumulation, or entrepreneurship,” he noted.
Dr. Joof went on to point out why the current financial architecture fails the majority of Gambians.
“Firstly, high collateral requirements demanded by formal banks in the form of land titles or other hard assets, which most Gambians do not have. Weak credit infrastructure–no national credit scoring system, no formal record of repayment behaviour. Without data, lenders default to exclusion.” The third point, he says, is Financial Illiteracy, meaning many citizens are unfamiliar with credit management or savings culture, making them less appealing clients to financial institutions. Also, he says, there is No Income-Based Lending Access–even salaried workers with steady pay struggle to get loans. He argued further that the country’s financial system was not designed to serve the everyday Gambian.
The economist goes on to suggest that if the Gambia is serious about development and poverty reduction, it must rethink the architecture of its financial sector in a way that fits all citizens.
He outlines measures such as developing inclusive credit systems tailored to low – and middle-income earners, promoting nationwide financial literacy, especially in rural areas, and encouraging public-private partnerships to design locally relevant financial products can rescue the situation.