Yesterday, this paper carried a story in which it was revealed that the Government of The Gambia has already secured 2 billion dalasi for the purchase of groundnuts for the coming trade season. The announcement, coupled with the introduction of a digital payment system and the end of credit buying, is a development that has stirred cautious optimism among Gambian farmers.
The reason for this is that for many years, rural producers have borne the brunt of delayed payments, inconsistent pricing, middlemen exploitation, and political interference in the groundnut trade. If implemented faithfully, this new approach could mark a turning point for thousands of households who depend on the ‘golden seed’ for survival.
It is clear that the first major benefit is the timely and transparent payment to the farmers. A digital system, if properly designed, will reduce the familiar queues, errors, and bureaucratic hurdles that often delay farmers’ earnings. No more will farmers have to wait weeks or months for their money or accept promissory notes that sometimes lead to losses. Instant or near-instant payments will allow families to plan better, pay school fees, invest in the next farming season, and avoid the cycle of debt that has long plagued rural communities.
Secondly, ending credit buying restores dignity and fairness in the trade. Too often, farmers have been pressured into giving away their produce on credit, sometimes with the promise of future payment that never fully materialises. By removing credit purchases from the system, government is signalling that farmers’ labour must be compensated upfront and at full value.
However, for this initiative to truly empower farmers, trust and fair pricing must be at the centre. Government must ensure that the official farm-gate price is both competitive and reflective of international market trends. Farmers often complain that prices offered locally do not correspond to global levels, leaving them feeling cheated while intermediaries reap outsized profits. A clear formula for price-setting, one that is publicly communicated and periodically adjusted, is crucial.
The success of the new system will also depend on digital literacy and accessibility. Many rural farmers may not be familiar with mobile wallets or digital receipts. Government, in partnership with cooperatives, must conduct training sessions, create help desks at buying points, and ensure that farmers without smartphones can still receive payments securely. The use of the electronic media to educate farmers could be one of many ways to create awareness.
If these safeguards are respected, this year’s groundnut trade season could mark the beginning of a more equitable and prosperous relationship between the state and the farmers who feed the nation.
This is a priority!
