The Central Bank of The Gambia (CBG) has directed commercial banks to replace non-Gambian employees not covered by approved expatriate quotas with qualified Gambian nationals by December 31, 2026. The policy, which targets all commercial banks in the country—including Nigerian-owned lenders like Access Bank, FirstBank, Guaranty Trust Bank, and Zenith Bank, as well as regional institutions such as Ecobank—has sparked criticism from analysts who warn of potential disruptions to the banking sector.
Regulator's Justification and Industry Response
The CBG said its decision followed an industry-wide review that found a “relatively high number” of non-Gambian employees working in banks outside the approved expatriate quota. The regulator stated that the practice was inconsistent with The Gambia’s Labour Act 2023 and Guideline 9 governing expatriate employment in the banking sector.
However, the policy has ignited debate over whether forcing banks to replace experienced foreign workers is the best approach to increasing local participation in the industry, according to Punch. Gambian commentator Alpha Bah questioned the broader implications of restricting African workers within Africa, particularly as countries across the continent continue to push for greater freedom of movement. Bah argued that the principle of fair treatment of African migrants should apply regardless of whether restrictions are imposed by Western countries or African governments.
Analysts Warn of Banking Disruptions
Nigeria-based economist and financial analyst Chukwunonso Ihuoma questioned whether The Gambia has enough qualified professionals to immediately fill all the affected positions. He warned that a rushed localisation process could increase costs, disrupt banking operations, and weaken regional financial integration if banks struggle to find suitable replacements.
“This kind of order can raise banks’ transition costs. Clearly, replacing experienced employees within a short period of time requires recruitment, training, compensation changes and knowledge transfer programmes. Those costs may outweigh any savings from reducing expatriate employment,” he said. He argued that the additional costs could outweigh some of the expected savings from reducing expatriate employment.
Emerging markets analyst Ike Ibeabuchi similarly warned that the loss of specialised foreign personnel could affect critical banking functions, including treasury, cybersecurity, risk management, technology, and compliance.
Nigerian Banks Face Regional Workforce Challenge
Ibeabuchi noted that Nigerian and other pan-African banks routinely move experienced employees between subsidiaries as part of their regional operations. He said restricting that flexibility could increase operating costs and make it harder for banks to deploy specialised expertise where it is needed.
“It could increase recruitment costs. If several banks compete for the same pool of qualified Gambian professionals, salaries for scarce skills could rise. That could offset some of the expected savings from localisation,” he argued.
While the CBG has directed banks to develop succession plans and transfer skills to Gambian employees, the criticism centres on whether the transition can be achieved without increasing costs or weakening efficiency in the country's banking sector.
