Gambiaj.com – (BANJUL, the Gambia) – The government of The Gambia is confronting mounting debts owed by state-owned enterprises (SOEs), with authorities working on a strategy to manage the liabilities and ensure the continued operation of key public companies.
Speaking during the National Assembly’s question-and-answer session on Wednesday, Finance and Economic Affairs Minister Seedy Keita disclosed that total lending to SOEs has reached $331 million, equivalent to about D23.7 billion.
According to the minister, many of the state-owned companies are struggling to generate sufficient revenue to service their loans, prompting the government to step in to meet some of the financial obligations.
Keita explained that several SOEs are also engaged in partnerships with private firms through public-private ventures (PPVs) or concession arrangements. However, these partnerships do not remove the underlying debts from the companies’ balance sheets.
“The government continues to monitor these obligations closely to ensure that repayment commitments are honored,” the minister told lawmakers.
He further noted that the government also keeps track of debts owed to the state by private individuals as part of its broader financial management framework. Keita clarified that these individual debts do not include former president Yahya Jammeh but remain part of the state’s overall debt oversight.
The finance minister said authorities are currently developing a comprehensive strategy to manage SOE liabilities, improve repayment mechanisms, and safeguard essential services provided by the public companies.
As part of the options being considered, the government may restructure some of the loans owed by SOEs. This could include converting portions of the debt into government equity in certain enterprises.
Keita emphasized that any such restructuring would be handled cautiously to protect public resources while ensuring that the affected state-owned companies remain operational.
The disclosure highlights growing concerns over the financial health of SOEs in The Gambia and the potential burden their debts could place on public finances if not properly managed.
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