A dream deffered is a lost opportunity. The Gambia Stock Exchange.

At the office sipping my coffee and the idea of wealth creation crossed my thought process and instantly companies such as Julbrew, Comium Gambia, Africel, Qcell and other household brand names came to mind. It's time Gambia seriously look at the possibility of establishing a stock exchange and help local companies transition from privately owned to publicly traded companies. This will shift investment resources which have been heavily dumped in the construction sector to other productive sectors of the economy. Gambia is currently experiencing a glut in commercial rental space especially in the greater Banjul area. The establishment of a stock exchange will broaden the business space and entrepreneurs will have access to cheaper cost of capital by linking up with venture capitalist, institutional investors and individuals who are looking for decent returns on their investment. Consequently, the creation of an exchange will boost employment and create an emergence of a vibrant middle class.

My vision of an emerging Gambia will be anchored on a sound vibrant service sector led by financial services. The prerequisite for the formation of any stock exchange is the elimination of information asymmetry because valuations are the cornerstone of stock pricing and the decision matrices hinge on reliable real time information from accounting to corporate governance. The issue of voluntary reporting can be solved by proper regulation and legislation. It’s time for us to think out of the box. Our solutions cannot be picked from a development tool box kit but rather a customizable solution that is not conventional. Exchanges around the world are private led initiatives supported by sound legislation and vigorous regulation. Non bank holding of Treasury bill notes is quite significant and this to a point crowds out the banks in terms of deposits. The issue is not about disposable income. If one understand the dynamics of this small economy call Gambia, you will realize that foreign inflows amounts to significant portion of our investment pool but it is mostly geared towards, the construction sector. The people investing in these vehicles are just interested in return. Therefore the establishment of a stock exchange will create alternative investment vehicle for investment. It's never too early to establish a market and there is a need for such a market in the Gambia. 

There is no structured over the counter market for government issued securities and this would have deepen financial intermediation by offering discounts on Tbills and any other government security. Treasury bills which will not develop the country but rather mob up excess liquidity in the system and crowd out the banking system for potential deposit should not be seen as a primary investment vehicle. Another sector that enjoys foreign inflow is the construction and real estate sector and we are beginning to see a glut in the rental market particularly in commercial space. If a well regulated and legislated stock market is established in the Gambia, these same funds will come in and the investors will get a decent return and the economy will benefit significantly because the invested funds will go into developing the real sectors of the economy and that is the ONLY way sustained growth and development can be achieved. Bottle necks and hurdles should not be seen as hindrance but an impetus to muster our resolve in achieving our objectives. If we believe that private sector led growth should be the catalyst for an emerging Gambia, then we have to facilitate the fundamentals for such an emergence and a stock exchange is critical for the attainment of this goal.