(Ecofin Agency) - Gambian companies mostly resort to banks to secure loans, which can sometimes carry interest rates of up to 20%. To alleviate this situation and provide them with a broader range of options, the government is preparing to launch a stock market.
"The Capital Market of The Gambia," will start operations at the central bank to help keep costs low, mentioned Paul Mendy, the second deputy governor of the Central Bank of Gambia, as reported by Bloomberg.
This new stock market will enhance the fundraising options available to businesses that grapple with high bank interest rates, despite the establishment of a Credit Bureau by the central bank and local banks for sharing financial commitments and credit histories of bank clients.
Addressing the need for a stock market, Gambian Finance Minister Seedy Keita revealed that Gambia's financial structure has been limited since independence and is incapable of meeting the financial and economic requirements of the country and its citizens for sustainable economic growth and poverty reduction.