By Fatou Bojang
Ousainou Darboe, the leader of the United Democratic Party, recently voiced serious concerns during a press conference about the Gambia’s rising national debt and economic mismanagement. He highlighted a troubling trend of prioritizing non-productive sectors over essential areas such as agriculture and fisheries.
Darboe pointed out that with the national debt approaching D118 billion and the government’s questionable financial practices, there is an urgent need for transparency and strategic investments to ensure the country’s economic future.
In a contrasting statement, Dr. Ousman Gajigo reported, “The Gambia’s total public debt is now approximately D120 billion.” He noted that the Minister of Finance and Economic Affairs has recently acknowledged that the country is on the brink of debt distress. Gajigo remarked that this realization is likely dawning on the ministers in Adama Barrow’s administration, as many have started to recognize the mismanagement of public finances. However, he insists that the proximity to debt distress is not new to many observers.
Darboe criticized the allocation of D1.9 billion to the Ministry of Foreign Affairs. At the same time, only D95 million is designated for agriculture, emphasizing that such misallocation threatens the nation’s economic stability. Gajigo’s report further indicated that the country’s debt service obligations total D11 billion, which exceeds the amounts allocated to vital sectors like agriculture, health, education, and energy.
“This situation indicates that a substantial portion of the budget is being allocated to debt repayment rather than investing in services and infrastructure that could greatly benefit the nation and its citizens,” he stated in his report. “This reflects a significant financial challenge, as essential services may face underfunding due to the large sums dedicated to servicing the debt.”
Darboe also underscored the government’s tendency to sign loans without adequate transparency, including a recent D2 billion loans not disclosed in the budget speech. He cautioned that such practices could exacerbate the country’s debt crisis, complicating the financing of essential services and development projects.
Furthermore, Dr. Ousman noted that the IMF has identified The Gambia as being at risk of debt distress and mentioned that the country currently operates under an IMF program, which often involves a compromise of sovereignty. While debt is not inherently detrimental, it becomes problematic when a nation accumulates excessive and unsustainable debt levels. He emphasized that unmanageable debt primarily stems from the mismanagement of borrowed funds.
Darboe elaborated on his concerns regarding the government’s ambitious economic growth projection of 6%, suggesting that a more realistic estimate would fall between 3-4%. He argued that such an estimate is inconsistent with the realities of the country’s limited resources and ongoing challenges with corruption.
