The World Bank has approved an emergency budget support of $20 million to support the government of The Gambia.

According to the government of The Gambia, the support is aimed at improving debt and public investment management, strengthening financial viability and service delivery in the energy and telecommunication sectors.

It is also aimed at enhancing the transparency and governance framework of state-owned enterprises (SOEs).

‘Additionally, the relief will enhance the delivery of the government’s socio-economic development plans while mitigating the ravaging effects of the Covid-19 pandemic and war in Ukraine’, the government said in a statement.

‘Therefore, the complementary role of our development partners in sustaining socio-economic growth and national resilience to both domestic and external shocks is highly appreciated’.

The statement further expressed a profound debt of gratitude to the World Bank for the continuous support it is providing the West African nation with.

A 2018 report by the United States Agency for International Development (USAID) showed that the total debt ratio of The Gambia stood at more than 120 percent of GDP at the time.

The report also showed that domestic debt, representing about 59 percent of GDP, posed the greatest risk, with an average interest rate of 11 percent and short maturities.

42.8 percent of the government’s revenue in 2017 went to debt service, making much-needed government investment in infrastructure and critical social programmes difficult.

Photo source: Jpoelen