Rising costs of raw materials, electricity, transportation, imported equipment and finance had placed growing pressure on small businesses in The Gambia, with some entrepreneurs buying fewer materials, reducing product sizes and delaying plans to expand.
Business owners in agro-processing, fashion and environmental enterprises said customers had also reduced their spending as prices continued to rise.
The World Bank said small and medium-sized enterprises accounted for about 80% of businesses in The Gambia, but only around 15% had access to formal finance. The bank said access to affordable credit, lower energy costs and improved infrastructure could help businesses expand and create jobs.
Agi Fatou Bobb, Founder and Chief Executive Officer of Mbobanjack Enterprise, said rising prices had directly affected her business.
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Ms Bobb founded Mbobanjack Enterprise in 2014. The company processed locally produced agricultural commodities into fortified baby foods, cereals, beverages and fruit and vegetable products.
The company also worked with farmers, particularly women and young people, to create markets for locally produced agricultural goods.
Ms Bobb said rising wholesale prices and inflation had reduced customer purchases.
"Customers are buying smaller quantities," she said.
She said customers had become more conscious of prices and bought less than before.
Rather than pass the full increase in costs to customers, Ms Bobb said she sometimes absorbed part of the additional expenses.
She said she had bought raw materials in smaller quantities, focused on fast-moving products and reduced non-essential spending.
Ms Bobb said access to finance remained a major challenge for small businesses.
She said banks often required high interest rates, strict collateral, short repayment periods and lengthy application procedures.
Informal savings groups, known as kafoos, provided easier access to money, she said, but the amounts available often could not support major investments.
Ms Bobb said businesses needed larger and longer-term financing to buy processing equipment, improve packaging, increase production and enter new markets.
Ms Bobb also identified electricity as one of the main challenges facing her business.
She said unreliable and expensive electricity affected processing, storage and preservation, particularly for perishable products.
Power interruptions could disrupt production, while alternative sources of electricity added to business expenses. Transportation also increased the cost of moving agricultural inputs and finished products.
Bobb said the costs could lead to delays, higher production expenses and risks of spoilage. In June 2026, the World Bank approved a $160 million regional electricity project involving The Gambia and Togo to improve access to reliable and affordable power. The World Bank said expensive electricity generation, infrastructure limitations and affordability challenges continued to affect private-sector development. It said reliable electricity could help small businesses and agro-processors reduce their dependence on diesel generators.
Rebecca Oli Jallow, who ran the fashion company Rebz, said her business had also faced rising costs. Rebz produced children's clothing and luxury casual wear.
Jallow said the prices of fabrics, sewing materials and transportation had increased. She said customers also had less disposable income, affecting sales. Jallow said she sometimes bought smaller quantities of materials and postponed restocking to manage cash flow. She also said import costs affected local businesses even when they did not directly import goods.
Suppliers who imported fabrics, sewing materials and machinery faced duties and other charges, she said, and those costs affected the prices paid by local businesses.
Jallow said local council taxes and fees on production equipment added further expenses. Electricity also affected production. When electricity was unavailable, she used a generator, but fuel costs made it an expensive alternative.The situation could slow production and delay customer orders.
Jallow called for affordable loans or grants, reliable electricity and a review of taxes, duties and fees affecting business equipment and raw materials.
Babou E Sarr, Chief Executive Officer of Cave Empire, said rising import costs had also affected his business. Cave Empire focused on environmental activities and food processing. One of the company's projects converted organic waste into fertiliser.
Another project, Cave Lemon, processed locally sourced lemons into products supplied to restaurants and supermarkets. The company had also begun exporting, according to Mr Sarr. Mr Sarr said imported packaging materials from China had become more expensive because of increased taxes and other charges.
He said the company had reduced the size of one of its lemon products from 750ml to 350ml. Sarr also identified access to finance as a major challenge. He said many small businesses lacked the assets or guarantors required by financial institutions when applying for loans.
Sarr called for the creation of a comprehensive database of small and medium-sized enterprises. He said such a database could help the government work with businesses and microfinance institutions to develop flexible loans with affordable interest rates.
Cave Empire also faced storage challenges for its organic fertilizer. Sarr said demand for compost changed with the seasons, creating a need for adequate storage until demand increased. Transport also affected the company's operations. Cave Lemon sourced lemons from areas around Brikama and Foni and transported them to Banjul for processing. Sarr said rising transportation costs increased business expenses and could lead to higher prices for consumers.
The entrepreneurs' concerns came as businesses and households continued to face price pressures. According to the International Monetary Fund, inflation had fallen from its peak of 18.5% in September 2023. However, inflation rose to 7% in April 2026 as food and energy costs faced renewed pressure.The IMF said economic growth was expected to moderate to 4.7% in 2026.
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The World Bank said 81% of workers in The Gambia worked in the informal sector. It also said 41.3% of young people aged between 15 and 34 were not in employment, education or training. The bank said women faced barriers that included limited access to finance and land.
The entrepreneurs interviewed called for affordable long-term finance, reliable electricity, improved transport infrastructure, predictable fees and practical business training.
Bobb called for support in financial management, food processing, packaging and export readiness. Jallow called for assistance with affordable machinery and materials, as well as training. Sarr called for stronger coordination between the government, small businesses and financial institutions.
Some of the issues identified by the entrepreneurs are already featured in government programmes. The National Enterprise Development Initiative said its mission included providing Gambian women and young people with entrepreneurship and investment training, grants and loans.
The country's national employment policy also identified affordable finance, electricity, water, sanitation, markets and infrastructure as important forms of support for informal businesses.
For the business owners interviewed, rising costs continued to affect production, purchasing, transport, electricity and access to finance.
Ms Bobb, Ms Jallow and Mr Sarr said their businesses continued to face decisions about how to manage costs while maintaining production and serving their customers.
