In 2019, a total of 573$ billion were transferred internationally out of which 447$ billion were transferred solely to the developing states. It is three times greater than the international funds, and the reason behind this is the remittance industry. A huge number of ex-pats send money to the Gambia regularly due to a multitude of reasons and here are some them.
According to research, if each remittent increases its transfer amount by 10%, then the overall poverty of the nation will decrease up to 3%. The remittance industry is one of the major industries in the sub-Sahara region, and they play an integral role in GDP stability of this region.
It increases the spending power of citizens. As poverty is very prominent in the Gambia, people living there lack the basic needs of life such as education, transportation and food. It will be not wrong to say that international income is the only major financial resource of this state.
However, no visible result of poverty reduction has been observed due to various transfer barriers. Many people also don’t tell the details of their international payment channels, which makes it difficult for the Government to get an estimate or make any social protection program.
Despite all the progress by the Government, the GDP of the Gambia has been declining continuously from the last 25 years. Without international income, there is a high chance of total economic collapse. Thereby, money transfer to the Gambia is significant for the economic stability of the state.
Online money transfer enables people to transfer their payments to poor states such as the Gambia in the cheapest rates. The currency exchange rates are optimized, and for remittances, costs are as low as 0$.
Access to Basic Needs
The beneficiary families use the received money for bearing more than 70% of their household expenses. It is noticed that the beneficiary families tend to have a better domestic situation than others.
The received money helps people in buying basic needs of life. Water is drastically unavailable in a large portion of the state, and people have to buy it. So, the transferred payments help people in getting access to basic needs, sending kids to schools and having a better quality of life.
Social Protection Programs
Many people also send money online for charity purposes. Huge businesses and investors transfer payments for the development of social protection in the state.
The received money is used in various ways such as the formation of clinics and schools, providing food and education to the people etc. It will not be wrong to say that this acts as a blessing for this beautiful state.
Tourism is also a great industry which is helping many states in earning great money. The Gambia is a wonderful state which is naturally blessed with eye-catching sceneries and breath-taking landscapes. The mighty forests cover its border. However, the black sea gives an exotic look to the Gambia’s beach.