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Central Bank of The Gambia Announces Annual Report for 2021

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Forward by the Governor

I am pleased to present the Annual Report of the Central Bank of The Gambia (CBG) for the year 2021. This report highlights the governance and organizational structures of the Bank, as well as reviews the developments in the Gambian economy during the year.

Global economic activity picked up pace in 2021, driven by strong policy support and mass vaccination programs. However, the emergence of the Omicron variant of COVID-19 led to renewed lockdowns and disruptions in economic activity. Despite these challenges, The Gambia’s economy showed signs of recovery, with real GDP growing by 4.3 percent in 2021.

Economic Developments

The Gambian economy experienced a mixed bag of developments in 2021. On the positive side:

  • Private remittances continued to support household consumption and private investment.
  • The construction sector showed signs of recovery.
  • Exports of goods and services declined due to slower-than-expected recovery in re-export trade and tourism activities.

However, balance of payment pressures emerged during the year, driven by:

  • A sharp increase in imports of medical equipment
  • Stronger domestic demand amidst soaring commodity prices

As a result, the current account deficit widened to 5.3 percent of GDP in 2021.

Financial Sector

The Gambia’s financial system remained resilient in 2021, with robust fundamentals. Banks maintained:

  • Decent liquidity
  • Capital buffers throughout the year
  • Non-performing loan (NPL) ratio declined to 5.2 percent of gross loans in December 2021

Anti-Money Laundering and Combating the Financing of Terrorism

The Bank continued to prioritize the fight against money laundering and terrorist financing (ML/FT) in 2021, including:

  • Creating a dedicated AML/CFT unit
  • Capacitating and upgrading Risk Management and Legal Units to departments with expanded mandates

Payment Systems Development

Significant improvements were made in payment systems development in 2021, including:

  • Upgrading and modernizing infrastructure to improve capacity and accommodate various products and services
  • Evolving the national payment system since its establishment in 2011 and transforming the financial landscape in The Gambia

Conclusion

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In conclusion, the last two years have been challenging, and it took hard work and dedication to navigate through them. We remained committed to our mandate of price and financial sector stability to promote the growth and development of the Gambian economy. I would like to thank the staff and Management of the Bank for their continued support and commitment during the year.

BUAH SAIDY

Governor Central Bank of The Gambia