By: Nyima Sillah
Renowned economist Dr. Ousman Gajigo has warned that The Gambia is rapidly approaching debt distress.
In an exclusive interview with this medium, Dr. Gajigo described the country’s official debt as extremely high. “Our debt exceeds D120 billion. Over 60% of it is external, while the rest is domestic. The country spends about 30% of its annual budget on debt servicing. This rate is extremely high and unsustainable. We are rapidly approaching debt distress,” he said.
He described the economy as “stagnant,” noting that it is not growing at a rate that reduces poverty. “Incomes remain stagnant, so poverty levels stay high. The economy is not generating enough jobs, leading to widespread unemployment, and as a result, many young people are trying to leave the country,” he added.
Dr. Gajigo further highlighted the impact of inflation, saying it is making life more difficult for ordinary Gambians. “The cost of living is high because inflation is also high. When inflation rises but incomes remain stagnant, as is the case in The Gambia, people’s real income falls. In other words, the same amount of money buys fewer goods. Inflation directly erodes people’s ability to maintain a decent standard of living.”
Addressing the recent U.S. aid cut, the economist said its long-term impact on the country would likely be minimal. He stressed that The Gambia’s economic future depends on domestic policy decisions.
“Policymakers must design and implement strategies that promote economic growth, raise real incomes, and create quality jobs. This would also allow key sectors to be prioritized and strengthened, ultimately boosting the economy. As a result, real incomes would increase, the cost of living would decrease, and poverty levels would fall. This is the path that can free us from dependence on foreign aid.”
