While the immediate focus on road infrastructure is commendable, this deal should serve as a springboard to address even more critical gaps in our financial ecosystem - particularly SME financing, industrial development, and affordable housing.
Mr President, there is no denying that quality road networks are vital for economic growth. Improved transport corridors will reduce business costs for farmers and traders, enhance access to markets and social services, and boost tourism potential.
However, infrastructure alone cannot drive sustainable development without parallel investments in human capital and enterprise growth.
Mr President, the missing links here are SME and Housing Finance, such as SME access to credit.Over 70% of Gambian businesses are SMEs, yet most struggle to secure affordable financing. The CBG should explore similar swap mechanisms to provide low-cost credit lines for small businesses through partner banks.
There is also mortgage financing revolution. The Gambia’s housing deficit remains a crisis, with only 3% of households having access to formal mortgages. Thus, a portion of future swap deals could be earmarked for long-term mortgage facilities at single-digit interest rates.
Again there should be construction financing for affordable housing projects.
Under industrial development, strategic currency swaps could help establish manufacturing import-substitution industries, and agro-processing facilities to add value to our agricultural exports.
Mr President, the current deal sets an important precedent that should be expanded to capture road infrastructure financing through NRA bonds, and SME development fund via commercial banks.
Also there can be housing finance facility through Public Private Partnerships (PPPs) and leveraging possibilities with Shelter Afrique and the International Finance Corporation, Ecowas Bank for Investment and Development (EBID), and the Islamic Development Bank. Possibilities exist also for Industrial Development and Housing Bonds.
Mr President, transparency serves as the cornerstone to development. While applauding Governor Saidy’s transparency with the current deal, we urge that there be quarterly impact reports on road projects during Monetary Policy Committee ( MPC) briefings, and a criteria for selecting beneficiary sectors for impact.
Mr President, our suggestions are that the CBG and the Ministry of Finance should conduct a national financial inclusion survey to identify sectoral needs. They should also engage development banks like BADEA and reactivate the $50 million facility earlier offered for SME-financing ECOWAS Bank for similar arrangements going forward.
In the same vein, we should prioritise job-creating sectors in future deals. This swap agreement demonstrates what is possible when our financial leaders think creatively. Now is the time to broaden the vision beyond infrastructure to tackle the systemic financing gaps that continue to hold back our entrepreneurs, homeowners and industrial potential.
Mr President, we would like tocall on policymakers to use this model as the first step towards a more comprehensive financial transformation that leaves no Gambian behind.
Once again, congratulations to the Government, the Central Bank of The Gambia and Afreximbank for this groundbreaking initiative!
Good Day!