The Gambia has reduced its banks interest rates to 15 percent in an effort to signal that the country is open for business and help revive the economy.
The monetary policy committee of the Central Bank has reviewed the interest rates and revised it down to 15% from 23%.
This gave green light to the commercial banks to drop their interest rates from 23% to 18% some.
Finance Minister Amadou Sanneh said they still have room to negotiate to further drop interest rates to an all time low.
With interest rates at 23 percent, many businesses gave their backs to the Gambia because they are unable to make profits.
Investors who have taken the risk to take loans at such high interest rate, end up in court and losing their assets.
Many businesses are collapsing because they cannot carry that interest burden, putting more stress on the unemployment burden.
Lower interest rate will ignite the investment process in the private sector and will take up challenges in different areas: agriculture, light industries and energy to create jobs.
The Gambian economy is facing some severe challenges compounded by unsustainable public debt at 120 percent of the GDP.
The Barrow administration has made deep cuts to the budget to close the deficit gap and lower domestic borrowing.
The country’s international partners, IMF, EU and World Bank have pumped at least $250 million into the economy in hopes to revive it and give it the kick it needs to create jobs.
Gambian officials have been traveling across the world to charm entrepreneurs and investors to take a look at the New Gambia and all the great opportunities and incentives it has to offer.