The Gambia’s economy has recorded encouraging growth, declining inflation, and some reduction in extreme poverty. Yet the country remains at high risk of debt distress.
A 2026 World Bank update reported that public debt declined to approximately 76.4 percent of gross domestic product in 2025, but low government revenue and high debt-service costs continued to limit spending on development. A related assessment projected debt-service payments equivalent to about 29 percent of the 2025 budget.
Debt is not automatically harmful. Responsible borrowing can finance roads, hospitals, electricity, water, and productive infrastructure. The danger arises when loans fund poorly planned projects, recurrent political spending, inflated contracts, or investments that cannot generate social or economic returns.
Every major loan should therefore answer four public questions: How much is being borrowed? On what terms? For what purpose? How will citizens benefit?
The National Assembly, auditors, journalists, and civil society must carefully examine new borrowing and monitor funded projects. Procurement details should be published, and contractors must be held responsible for delays or defective work.
The government must also increase domestic revenue fairly. The easiest response cannot be repeatedly taxing small businesses and struggling households while powerful interests receive exemptions or avoid their obligations.
Tourism remains important, but The Gambia needs greater investment in agriculture, fisheries, digital services, processing, and youth enterprise. A narrow economy leaves the country vulnerable to external shocks.
Debt management is ultimately about national sovereignty. A government that spends much of its revenue servicing old obligations has less freedom to educate children, support hospitals, or respond to emergencies.
The Gambia must borrow for transformation—not for consumption, political convenience, or projects that leave citizens with bills but no benefits
