Gambia: Rising Costs Push Gambian Small Businesses to the Brink

What the report says

Small business owners in The Gambia say rising prices are squeezing operations, forcing them to cut back on materials, shrink product sizes and delay expansion plans. The concerns, reported by Foroyaa and carried by AllAfrica, center on higher costs for raw materials, electricity, transport, imported equipment and financing. Entrepreneurs in agro-processing, fashion and environmental products said weaker consumer spending has added to the pressure.

The report highlights three business owners: Agi Fatou Bobb of Mbobanjack Enterprise, Rebecca Oli Jallow of Rebz and Babou E Sarr of Cave Empire. Their companies work in areas ranging from fortified foods and children’s clothing to lemon-based products and organic fertilizer. They described managing cash flow by buying smaller quantities, reducing non-essential expenses and, in one case, scaling down packaging sizes. They also pointed to expensive or unreliable electricity, customs-related charges on imported inputs, and difficult loan terms such as high interest rates, collateral demands and short repayment periods.

The World Bank said small and medium-sized enterprises make up about 80% of businesses in The Gambia, but only around 15% have access to formal finance. It also noted that lower energy costs and better infrastructure could support growth and job creation. The article also cited IMF figures showing inflation eased from a 2023 peak but rose again in April 2026, reinforcing the broader cost-of-living pressures affecting households and firms.

The digest is relevant because it shows how inflation and structural constraints can slow local production, especially for women- and youth-led enterprises that depend on affordable credit, transport and power.