The Gambian government should encourage low interest letters of credit (L/Cs) to keep soaring global prices of essential foodstuffs, particularly rice, as low as possible, according to a Gambian consultant.

Gambians are big rice eaters, and while some is grown locally, much of it is imported so the country's rice import bill is substantial.

L/C encouragement

The government should "encourage the commercial banks to reduce their interest rates on all L/Cs for foodstuffs, particularly rice," says chief executive of the Amra consultancy, Tombong Saidy

"The central bank should use its influence to work with the commercial banks and come up with low interest rates on all L/Cs dealing with foodstuffs, preferably to as low as 8 per cent," he adds.

Other measures

Saidy is also calling on the Gambian government to suspend all kinds of taxes and import duties on essential foodstuffs with immediate effect.

The Gambia Ports Authority should also reduce its port charges for imported foodstuffs, he says.

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