Finance Minister Seedy Keita updated Gambian lawmakers on the nation’s rising debt, which increased from D46 billion in early 2017 to D110 billion by December 2023.
The rise was partly driven by the depreciation of the Gambian dalasi, which added D7.56 billion to the foreign currency debt.
The Minister highlighted that the debt grew under the new administration due to various factors, including D10.8 billion of unrecorded debts from 2017, which were securitized with a 30-year bond. Other significant borrowings included D1.7 billion to cover the liabilities of the National Water and Electricity Company (Nawec) and D2.4 billion in other confirmed debts.
In total, the net borrowing since 2017 amounted to D41.9 billion, with funds used to finance infrastructure and development projects like the New Bertil Harding Highway, airport renovations, and energy and road initiatives.
Responding to concerns about the sustainability of the debt, Keita assured lawmakers that Gambia’s debt, which stands at 72% of GDP, is being managed prudently.
The government conducts regular debt sustainability analyses and is contracting only concessionary loans, noting that the debt-to-GDP ratio has decreased from a peak of 85%.
