Gambia Faces Mounting Debt Burden as Finance Minister Flags Servicing Challenges

By Fatou Sillah

Gambia’s rising public debt is emerging as a central challenge for the government, with Finance Minister Seedy Keita describing debt servicing as “the elephant in the room” during a National Assembly session on Monday.

Responding to questions from the National Assembly Member for Janjanbureh, the minister said the burden of repaying both domestic and foreign debt continues to weigh heavily on the national budget. External borrowing accounts for the larger share, he noted, and fluctuations in the Dalasi exacerbate the cost of servicing foreign loans.

“The debt stock has two elements. You have the foreign component, you have the domestic elements,” Mr. Keita said. “For every decline in the exchange rate of the Dalasi, keeping your foreign debt constant, the Dalasi value of your obligations rises.”

Part of the rising debt reflects financing for major development projects, including infrastructure, energy expansion, and higher education facilities. Projects cited by the minister include the University of the Gambia campus in Faraba Banta, the national electricity expansion initiative, and the OIC Road project.

Mr. Keita emphasized that the government is being cautious with future borrowing, prioritizing concessional loans with favorable terms. “We only contract concessionary debt, that is, debts with a grant element of 35%, and we contract debts that are long-term so that the repayment period will not be very heavy in the immediate term,” he said.

Increasing the country’s capacity to service its obligations remains a key priority, the minister added, highlighting the government’s efforts to boost revenue collection alongside economic growth.

He also pointed to the 2026 national budget as an example, noting an unprecedented allocation to the agriculture sector. “We have allocated the largest amount to agriculture as a sector ever. The increase is more than 100% compared to previous years,” he said.

The remarks come amid broader concerns about fiscal sustainability in The Gambia, where public borrowing has surged to fund infrastructure and social projects while economic growth remains modest.