On Wednesday, Finance Minister Seedy Keita warned lawmakers that The Gambia’s increasing debt obligations are continuing to limit the national budget, as he justified the government’s spending plans during the parliamentary debate on the 2026 Budget Estimates.
In response to the concerns raised by National Assembly members, Mr. Keita explained that the current repayment pressures faced by the country are partly a result of the global debt service suspension initiative that was implemented during the COVID-19 pandemic. The program postponed principal repayments from 2020 to 2024, he noted, resulting in an accumulation that now needs to be resolved within a more constrained schedule.
“For four years, there was no servicing of the principal. Once the crisis ended, these accumulated payments had to be made, and that has compounded this year’s debt challenge,” he informed the Assembly.
He stated that fluctuations in exchange rates and the long-term structure of most external loans have further raised repayment costs. “When these debts were incurred, the dalasi was approximately 40 to 50 to the dollar; currently, it stands in the 70s.” This effectively raises the debt burden.
In light of those pressures, Mr. Keita stated that the government primarily depends on “credible international financial institutions” for external borrowing and continues to collaborate with development partners to uphold sustainable debt levels.
He aimed to calm legislators concerned about increasing liabilities, pointing out that the majority of the development budget is funded through a combination of loans and grants, with only a small portion coming from loans.
The minister addressed inquiries regarding sector spending, emphasizing a significant rise in agricultural funding, which he described as pivotal to the administration’s economic strategy. The sector is set to experience an 84 percent increase, described as “the largest allocation ever in the history of this country,” he stated, with the goal of enhancing domestic production and decreasing reliance on imports.
Mr. Keita stated that the 2026 budget was designed to prioritize the needs of the people, allocating over a quarter of total expenditures to social sectors such as education, health, infrastructure, and agriculture. He encouraged lawmakers to prioritize revenue mobilization to ensure the expansion and enhancement of government services.
“We are working to manage debt, increase revenue, and ensure allocations reach the areas that impact the lives of Gambians,” he said.
