Africa-Press – Gambia. Finance Minister Seedy Keita has called for a reform in the international financial system saying the current international financial architecture is not working for the vast majority of countries including The Gambia since credit ratings are often based on narrow and outdated metrics which drive up cost of borrowing, regardless of macroeconomic discipline.
“We face multiple, overlapping challenges: high debt burdens, climate shocks, a young and growing population, and limited access to affordable finance. And the hard reality is that, while we are being asked to do more to invest in health, in education, in agriculture, in climate resilience, the tools we need are still out of reach. For example, in The Gambia, nearly 60% of our population is under the age of 25. This is a tremendous opportunity, but only if we can invest in jobs, skills, and infrastructure. Yet today, we are spending more on servicing our debt than we are on health and education combined. In 2024, interest payments alone consumed nearly 25% of our domestic revenues. This is not sustainable.” Minister Keita gave the warning during his address at a multi-stakeholder conference on reforming international financial architecture in Spain.
He said these challenges are not unique to The Gambia but other developing and vulnerable countries. According to him, reform of the international financial system is not a matter of preference but survival adding that such reform cannot be limited to “quota adjustments” at the IMF or World Bank.
“We need full and fair representation in the governance of these institutions. We need to be at the table, and heard, when global rules are written, when crises are managed, and when solutions are designed,” Minister Keita urged.
He also emphasised that in order to unlock private capital, underlying issues need to be addressed to ensure better engagement with credit rating agencies, adjustments to risk-weighted capital rules, and investments in transparent and country-led development plans.
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