The Gambian dalasi, once a modest symbol of economic stability, is now crumbling under immense pressure. Its relentless depreciation against major foreign currencies such as the US dollar, the Euro, and the British pound has thrown the tiny West African nation into an economic storm, forcing citizens to navigate soaring living costs in a country heavily dependent on imports and remittances. 

A 2024 census by the Gambia Bureau of Statistics paints a dire picture, a significant portion of the nation’s 2.7 million people live below the World Bank’s poverty line. Daily survival has become a test of resilience for many Gambians. Between 1990 and 2024, the dalasi lost 800% of its value against the US dollar, reflecting decades of external shocks, domestic economic mismanagement, and systemic vulnerabilities.

A Market in Decline

At Banjul’s Albert Market, the once-bustling hub of trade, the impact of the dalasi’s collapse is heartbreakingly evident. Vendors stare at empty stalls and grapple with dwindling sales. 

Yerro Sowe, a vendor with over 20 years of experience, voices his frustration: “We can go a whole day without selling anything, yet taxes keep piling up. This market is no longer the vibrant place it used to be.”

Bilal Singhateh, another trader, lays the blame squarely on the dalasi’s freefall. “Gambia’s economy is in tatters,” he says.

“Every year, the dalasi depreciates. This has been happening since the Jawara era.

What is the government doing? There is a critical shortage of foreign currencies.”
Stalls that once thrived now stand eerily empty.

Tijan Camara, a fabric seller, describes the desolation.

“Banjul Market is empty. This has never happened before. Sometimes I end up giving away materials to people in need. Taxation is killing us too.”

The Ripple Effect

The crisis’s reach extends to sellers of basic goods. 

Fatou Samusa, a rice vendor for 40 years, laments the sluggish pace of her business.

“I used to sell a bag of rice in two days. Now, it takes ten,” she says. “Living conditions are unbearable.”

Street vendors like Amie Joof, who sells water, are also struggling. 

“This used to be a profitable business,” she explains. “Now, business is dull. It’s hard to make ends meet.”

Warehouse merchants face the same harsh reality. 

Abdourahman Jallow, sitting in his Serekunda warehouse surrounded by unsold goods, speaks candidly about the challenges.

“The depreciation of the dalasi is crippling us. Every time I buy goods abroad, the exchange rate worsens. I can no longer afford to stock as much as I did before,” he explains. “Where I used to buy 100 gallons of oil, now I can only afford 50.”

Expert Analysis

Dr. Foday Joof, a finance specialist, offers a sobering analysis. He attributes the dalasi’s nosedive to The Gambia’s over reliance on imports and lack of local production to stabilise the exchange rate.“

We don’t manufacture our exchange rate in The Gambia,” he says. “To strengthen the dalasi, we need to boost production—whether through agriculture or manufacturing.”

Dr. Joof also warns of the dalasi’s vulnerability to the CFA franc, urging the government to prioritise local production.

“The CFA will continue to appreciate unless we innovate financially and support local industries,” he cautions.

He calls for bold government intervention, emphasising the potential of agriculture and fisheries. “The agricultural sector is key,” he says. “It’s not just about farming—our fisheries sector is grossly underutilised. We’re losing valuable opportunities there.”

Government Perspective

Despite the public’s frustration, the Central Bank of The Gambia maintains that the foreign exchange market remains stable. 

According to the Bank, total foreign currency transactions reached $479.4 million in the third quarter of 2024, down from $563 million in the previous quarter. 

The decline is attributed to a drop in private remittance inflows, which fell from $201.4 million in the second quarter to $182.5 million in the third quarter.

However, the exchange rate data tells a different story. Between June and September 2024, the dalasi depreciated by 0.3% against the US dollar, 3.1% against the Euro, 3.3% against the British pound, and 1.2% against the CFA franc. Rising import demands continue to exert pressure on the currency.

The dalasi’s decline underscores deeper structural flaws in The Gambia’s economy. The nation’s dependency on imports and insufficient foreign currency reserves leave it vulnerable to economic shocks. 

With basic necessities becoming unaffordable, Gambians are losing faith in their government’s ability to steer them out of this crisis.

Traders, families, and individuals across the country are demanding action. They seek not just reassurances but tangible solutions to stabilise the dalasi and revive the economy.

By Adama Makasuba