Gambia, the Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in gambia, the, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Trade Financing
Last published date:

Methods of Payment

Most commercial banks in The Gambia provide trade finance instruments such as letters of credit. These letters of credit usually need confirmation by a U.S. commercial bank. However, since the cost of financing is generally high, bank-intermediated trade finance is not as common as in other countries. Open account arrangements for cross-border transactions are rare since there are only a few Gambian distributors, many of which are not known internationally.  Consequently, many Gambian importers pay exporters directly before delivery. Unless there is a pre-existing relationship with a Gambian distributor, an open account arrangement is not recommended. U.S. exporters are advised to use letters of credit or demand pre-payment. All major credit and charge cards are used in The Gambia, including Visa and MasterCard, however, many businesses are not set up for accepting credit card payments and cash payment is generally preferred by local businesses. For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at https://www.trade.gov/trade-finance-guide-quick-reference-us-exporters.

Banking Systems

The Gambia has 12 operational commercial banks, with a total asset of $1.3 billion end of 2021. The banking system had been adequately capitalized, liquid and profitable with capital adequacy ratio of 32.6 percent in December 2020. The sector is dominated by subsidiaries of Nigerian banks (50 percent of the industry), though these subsidiaries are independent of their parent institutions and are usually majority-owned by Gambian entities. The two largest banks account of $506 million or 40 percent of the industry total assets.

While the sector is profitable, local banks disproportionately depend on government assets (treasury bills) to invest . Though the Gambian Government’s most recent auctions have featured dramatically lowered interest rates, lending to individuals and businesses is still not seen as profitable for the banks. As a result of the lack of a competitive consumer and business finance market, interest rates are prohibitively high. 

The Gambia has a central bank system. Foreign banks or branches can establish operations in The Gambia, following the country’s banking regulations. Ther e are no restrictions on foreigners opening a bank account and there no large peculiarities of the Gambian banking system that may impact U.S. businesses.

Foreign Exchange Controls

The foreign exchange rate is a managed float. Typically, the exchange rate fluctuates based on supply and demand factors. While the government occasionally intervened in the foreign exchange market during the Jammeh regime, the current administration has not done so.

U.S. Banks and Local Correspondent Banks

The Gambia has one U.S. owned bank:

Vista Bank (Gambia) Limited

No. 2 Kairaba Avenue, KMC

P.O. Box 1997

Banjul

The Gambia

Tel: +220 439 6580 / +220 373 1565

info@vistabankgroup.com

To access The Gambia’s ICS section on financing, visit the U.S. Department of State Investment Climate Statement website.

 

 

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility