Gambia Faces D16.2 Billion Debt Service Burden in 2027 as Interest Costs Jump by Almost a Third

By Staff Writer

The Gambia is projected to spend D16.17 billion on servicing its national debt in 2027, making debt obligations the government’s single largest expenditure and consuming more than two-fifths of projected domestic revenue.

The figure represents a 20 percent increase from the D13.46 billion allocated for debt service in 2026. With domestic revenue projected at D37.39 billion, debt payments alone would absorb roughly 43 percent of government revenue.

The sharpest increase is expected in interest payments, which are projected to rise by nearly a third.

The government has budgeted D9.07 billion for interest payments in 2027, a 31.5 percent increase from D6.90 billion in 2026. At that level, interest payments alone would consume about 24 percent of projected domestic revenue.

Domestic borrowing accounts for most of the increase. Interest on domestic debt is projected to climb 34 percent to D7.69 billion, driven in part by the rising cost of Treasury bills.

Treasury bill interest is expected to reach D3.96 billion, an increase of 51 percent, while interest payments on government bonds are projected to rise 20 percent to D3.70 billion.

Interest on external debt is projected at D1.38 billion, up 19 percent from the previous year.

In addition to interest payments, the government expects to spend D7.10 billion repaying the principal on its debts, an increase of 8.3 percent.

Foreign debt amortization accounts for D5.38 billion of that amount, while domestic repayments are projected at D1.72 billion. The domestic figure includes D1.15 billion in repayments associated with the 2021 Extended Credit Facility, up from D728 million.

The government’s debt repayment schedule includes dozens of loans contracted to finance major infrastructure and development projects, including roads, power plants, airports, universities, and water systems.

Among the projects for which The Gambia continues to service debt are the National Assembly building, the Brikama II power station, and the Bertil Harding Highway.

The rising debt burden is also putting greater pressure on government-funded expenditure. Although the overall budget is projected to grow, the increase is considerably smaller once debt-service obligations are removed, leaving less fiscal space for other government-funded programs and investments.

The figures underscore the growing weight of debt repayments on the national budget, with nearly 43 bututs of every Dalasi the government expects to collect in domestic revenue in 2027 earmarked for servicing existing debt.