RTGS coming soon in the Gambia

For the developing economies of Africa, the main benefit of an RTGS system is the reduction of settlement risk by ensuring finality of payment. A sound payment system leads to confidence in the system and improved business conditions, with the aim of attracting foreign investment. Payments that usually take several days to settle will only take less than a minute with the RTGS system.

Since the creation of the West African Economic and Monetary Union (UEMOA) in 1994 which is a group of eight West African countries (Benin, Burkina Faso, Cote d'Ivoire, Mali, Niger, Senegal, Togo and Guinea-Bissau), which share a common currency, the "CFA Franc". The English speaking countries of West Africa came together and form the West African Monetary Zone (WAMZ) which consists of five countries - Gambia, Ghana, Guinea, Nigeria and Sierra Leone. WAMZ expects to launch a common currency, named "Eco", by 2015.

Large-value transfer systems supporting the interbank markets are the main arteries of a nation’s payment and financial system. They provide the ultimate settlement vehicle for important cross-border markets in multiple currencies, and are key infrastructural requirements for implementing a single monetary policy. They permit monetary policy impulses to be transferred quickly and widely throughout the union.
In a bid to launch a strong and stable Monetary Union, West African Monetary Institute (WAMI) in collaboration with the West African Monetary Zone (WAMZ) member countries on July 3, 2008, secured a grant of US$23 million from the African Development Fund (ADF) for the modernization of the payment systems in The Gambia, Guinea and Sierra Leone. This is not only to bring them to the same level as those in Ghana and Nigeria in order to facilitate the harmonization of the payment systems in all the five member countries, but also to develop an integrated payments system in the WAMZ for the implementation of a single monetary policy and cross-border funds transfer.

In collaboration with the commercial banks, the Central Bank of Ghana and Nigeria has set up a national switch to promote the usage of Electronic purse and network ATMs among the banks. The Gambia will follow suit hopefully by the end of the year 2010.
The contract for the implementation of The Real-Time Gross Settlement (RTGS) system for the Gambia has been won by Unique Solutions and implementation of the project will start later this year. Unique Solutions is an IT Solution company that have just launched a groundbreaking Broadband Internet and Data services via a robust network infrastructure using the latest Motorola Broadband Wireless Technology. The network coverage is from Banjul all the way to Basse, which makes them the fist providers to bring internet and data connectivity to the rural areas meeting the Gambia’s universal service objectives in ensuring people in the hinterland have access to cheap and life changing technology in their daily lives.