CBG, AFREXIMBANK SIGN USD75M AGREEMENT

Press release

On Friday, June 27, 2025, the Governor of the Central Bank of The Gambia, Buah Saidy, concluded and signed a $75-million- (seventy-five-million-dollar) agreement with the African Export-Import Bank (Afreximbank).
The signing ceremony took place in Abuja, Nigeria, during the 32nd annual meetings of Afreximbank.
This agreement allows Afreximbank to invest in The Gambia’s Capital Market.
The agreement is a structured currency swap facility between the Central Bank of The Gambia (CBG) and Afreximbank. The transaction originated from a request by the National Roads Authority (NRA) for a USD 75 million swap over a five-year term.
Under this arrangement, Afreximbank will provide USD liquidity to the CBG, which in turn will supply the dalasi equivalent. The local currency proceeds will be used to purchase dalasi-denominated bonds issued by the NRA to finance critical road infrastructure projects.
The CBG serves as the counterparty to Afreximbank in the transaction. Afreximbank will invest the dalasi it receives under the swap in local currency securities—specifically, bonds issued by the NRA—in alignment with its infrastructure financing mandate.
To meet its obligations under the swap transaction with Afreximbank, the CBG will use the NRA levy account held at the bank to liquidate, either partially or fully, the outstanding NRA bonds (including both the original principal amount and any accrued interest coupons) as they become due. It is important to clarify that the Bank did not on-lend the US dollar proceeds to the Government or any public institution. Instead, the CBG will use USD 75 million to participate in Afreximbank’s Central Bank Deposit Programme (CeBDeP) and unwind the swap by matching the amortised portion of the bond until fully redeemed.
This structured financial arrangement is expected to inject over GMD 5 billion into the local economy over the next five years, directly supporting development financing without adding to the country’s external debt burden.
The NRA will issue dalasi-denominated bonds in the capital market. These bonds are issued domestically and subscribed to by Afreximbank using the dalasi received under the swap. The NRA is responsible for servicing these obligations directly using the cash flow from the fuel levy ring-fenced at the central bank. This structure does not create an external debt obligation for the central government, nor does it involve a sovereign guarantee.

Source: The Standard