In Gambia, remittances remain one of the most important factors for financial development. Many Gambians rely on personal remittances received from their family or relatives abroad. As Gambia imports everything, having foreign currency becomes essential. Initially, the country was dependent on foreign investments, official assistance, and the export of agricultural goods.
In this way, they had enough foreign currency, but due to some consequences, these sources became unstable. Young people started to move abroad for better opportunities and droughts made it necessary to receive remittances in Gambia.
Here we will learn more about the impact of remittances on Gambia’s economy.
Impact Of Personal Remittances on the Economy
Remittances play an important role in stabilizing the Gambia’s economy. When more people receive remittances from family members living abroad, it becomes easier to bring foreign currency into the country. Local businesses and the government get the currency they need for imports. This inflow of funds helps to stabilize the economy. Furthermore, it also supports crucial services and infrastructures.
Families in Gambia purchase food, clothes, pay bills, and other necessary goods. This helps businesses to expand while in challenging economic conditions. This economic stability by personal remittances encourages people to invest in their businesses.
In difficult times like droughts or other natural disasters, remittances become the safety pillar for Gambian families. For a country’s economy agriculture is a major part but it is more open to climate change. In such situations or due to heavy rains when local farmers face poor harvests, the money received from their loved ones abroad becomes a saviour.
This financial support through international money transfers helps people to put meals on their tables. It can also help families cover medical expenses, school fees, and other essential costs that arise, preventing them from falling deeper into poverty.
Economic activity in rural regions, which get a large portion of remittances, may be stimulated by the consistent flow of these funds. The demand for products and services is increased as a result of these families’ spending, which benefits the whole community.
How Remittances Are Sent and Received?
Expats from around the world use banks and international money transfer companies to send money to Gambia. Some people also transfer money through cash transfer agents. This is not a safe and secure way because people can face scams by losing their hard-earned money and they also need to pay a high amount as a fee.
This way is informal and risky to use while traditional methods are still common. Online money transfer companies have made it easier for Gambians abroad to send money to Gambia. Remit Choice offers speed, transparency, and efficiency on all international money transfers to Gambia.
Before receiving money from abroad Gambians feel it hard to manage their basic needs. But money transfer companies made it easy for them to receive personal remittances instantly. Now they do not have to worry about any difficult times because we offer affordable, fast, and secure money transfer services around the world.
When money is sent through Remit Choice, people in Gambia can receive it from our cash pickup points. We have a large network of partners for receiving money with maximum ease. Receivers can visit their nearest location to get their cash instantly sent by loved ones abroad.
How Gambians Use Personal Remittances
Gambia’s economy highly depends on the way people use personal remittances. Here are multiple things that they do with this money.
Education and Future Opportunities
Educational expenses for children get a large part of the remittances. In the eyes of many low-income families, investing in their children’s education is the surest way out of poverty. However, only over 10% of remittances are used toward real estate purchases or construction, and 4% are used to start a new business. Because of this, the majority of households put off saving or investing for the future to meet their unexpected financial needs.
Limited Savings
Many rural households do not save money from the personal remittances they get. They left with nothing after paying for basic living costs. Because of this, it is clear that this money is crucial to their daily needs. Families may find it difficult to save up for future requirements or unforeseen bills if they do not have savings.
Future Estimations of Digital Remittance in Gambia
In the future, digital remittance in Gambia is expected to grow swiftly. It is estimated that in 2024, the transaction value reached about US0.81 million. Digital remittances are expanding with an annual growth rate of 8.44% until 2028. That means that by 2028 the total could reach US1.12 million as more people use digital services like Remit Choice to send money to Gambia.
The advancements in technology made it easier for people to send and receive personal remittances. When more people use online money transfer companies, they will send more and save more. Gambians will invest in education and business for the future, which could lead to greater economic stability and growth.
