By Tabora Bojang
Finance Minister Seedy Keita on Wednesday briefed lawmakers on the evolution of the Gambia’s debt, which rose from D46 billion at the beginning of 2017 to D110 billion as of December 2023.
The minister provided this update in response to concerns raised by Upper Saloum lawmaker Alagie Mbow about the depreciation of the Gambian dalasi against major currencies, its impact on Gambia’s foreign loan portfolio as well as the current state of the debt.
According to Minister Keita, the impact of the depreciation of the dalasi on the foreign currency debt portion amounted to D7.56 billion as of December 2023, and at the same period, the total loan stock stands at D110 billion.
In breaking down the evolution of the debt stock, Minister Keita said: “The total debt stock at the beginning of 2017 was D46 billion. In 2017, the new administration also inherited D10.8 billion and these were debts in the system that were not recorded and it was subsequently securitised using a 30-year non-marketable bond. In 2018 the government had an MOU to take over the liabilities of the National Water and Electricity Company (Nawec)and issued a 7-year bond at market rate which was D1.7 billion to make the debt service payment. Also, there were confirmed debts to other parties to the tune of D2.4 billion and Fx D7.6 billion. So as a result, the net borrowing under the new dispensation came to D41.9 billion.”
Finance Minister Keita further explained that these borrowings were to finance the following projects: “New Bertil Harding Highway, Phase I of the University of the Gambia, Rehabilitation of the Banjul Airport, Construction of VVIP Lounge at Banjul Airport, Gamtel Broadband Network, Ports Expansion project, OMVG Interconnection project, Gambia Renewable Energy Project, OIC Roads in the Greater Banjul Area, Rural roads, Construction of Basse and Brikama Markets and the Rice Value Chain Project.”
When asked by the LatriKunda lawmaker Yaya Sanyang whether huge borrowing is in anyway sustainable, Minister Keita replied: “The debt is sustainable and its being managed prudently. That is why we conduct debt sustainability analysis every year. That is why we are only contracting concessionary loans. Our debt to GDP is about 72 percent. It was as high as 85 percent but it is coming down.”
