Pressured by its public debt which represents more than 120% of its GDP, Gambia’s government asked its lenders for a debt restructuring.
“We are calling to all, to the Club de Paris as well as to bilateral and multilateral lenders… The debt presently represents 120% of our GDP. It is very high and that’s the reason why we are asking for it to be restructured,” said Gambia’s minister of finance, Amadou Sanneh, in Paris, Tribune Afrique reported.
It is true that Gambia’s indebtedness level leaves not much operating margin to the Barrow government which since in place, launched its 2018-2021 development plan which involves a $2.5 billion investment in the sectors of power, infrastructures and agriculture.
Debt servicing captures half of the government’s budget revenues, impairing the authorities’ efforts to revive the economy. “Our debt is unbearable… debt servicing takes a whole portion of State resources, leaving only a minimal budgetary margin for required funding in key infrastructures and human capital,” Banjul had already declared during the plan’s presentation.
The need for this small West African nation which is landlocked in Senegal, to restructure its debt, is urgent, for the recovery of its economy that grows less rapidly than its population.
Based on AfDB’s forecasts, the economy should grow by 3.5% this year, and 4.8% next year. However, these results depend strongly on public investments, which for now, are hampered by the debt.
Fiacre E. Kakpo
• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...
• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...
• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...
• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...
• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...
• Ghana signs a deal with eLearning Africa to expand digital learning access across the country.• The partnership focuses on deploying modern digital...
Ghana launches the Oncology Nurse Leadership Program (ONLEP) to train specialized oncology nurses from seven African countries. The five-year...
Ivanhoe Mines signs deal covering 100% of Kamoa-Kakula smelter’s copper output. The smelter will process up to 500,000 tonnes annually, starting at...
African gas projects drive significant contracts for Asian shipbuilders, especially for Floating Liquefied Natural Gas (FLNG) units. South Korean...
Kolmanskop offers a haunting blend of lost wealth, colonial history, and the unstoppable force of nature. Located just a few kilometers inland from...
Located about 40 kilometers from Cape Town’s city center, Boulders Beach in Simon’s Town is one of the Cape Peninsula’s most iconic destinations. This...