The Gambia government will spend 41% of its 2020 budget on debt financing. The draft budget presented before the National Assembly by the finance minister, Mr. Mambury Njie in Banjul revealed.
The Gambia’s small economy relies primarily on tourism, rain-dependent agriculture, and remittances. Over the years, the economy has been dangling with less or nor gain in each succeeding fiscal year.
The former autocratic leader, Yahya Jammeh and his administration left the Gambia highly indebted and the economy in bad shape. The country is highly dependent on loans for all major development projects. Most of the loans that support the economic do come from the IMF, the World Bank, China, European Union, and the African Development Bank among others. The Gambia hasn’t realized a negative economic this year.
In 2016, the WEF (World competitive Forum) listed The Gambia 18th out of the 19 countries with the highest level of government debt. “The Gambia-91.6% WEF points out that the West African country does not just suffer from high levels of government debt versus its GDP, access to financing and onerous foreign currency regulations make doing business in the country difficult.”
African governments have recently come under strong criticism for seemingly being naïve and for falling into the “debt traps” instituted by imperialist nations such as China and the USA.
With this budget, what 2020 holds for the masses of the Gambians, their health sector, education, agriculture and development in general remains to be seen.