The Gambia is nearing a critical debt situation, according to Finance Minister Seedy Keita, who highlighted the country’s heavy debt servicing burden and limited budgetary support from development partners.
Minister Keita explained that approximately 29% of the 2025 budget, equivalent to D11 billion, is allocated to debt servicing, surpassing the combined budgets of five ministries. He attributed this strain to the expiration of debt servicing deferrals and the ongoing depreciation of the exchange rate. “The strengthening of the US dollar globally impacts developing countries like ours, causing currency depreciation regardless of domestic economic policies,” he noted.
Addressing lawmakers’ concerns over insufficient allocations for critical sectors like health, the minister stressed the need to expand the tax base and manage the national debt more effectively.
He also raised concerns about unreported revenues from entities under the Ministry of Health. “Some subvented institutions generate revenue that is not reported to the central government. This lack of transparency hinders effective budget planning,” he stated. He cited a recent improvement where revenues from a key health institution increased from D1.2 million to D4.6 million within a month after stricter oversight was implemented.
The minister called for better financial accountability, urging all revenue-generating entities to submit their budgets and expenditures to ensure efficient use of government resources.
