By Kebba AF Touray
The International Monetary Fund (IMF) is expected to approve US$11.05 Million for the Gambia.
This development was unveiled following discussions by officials of the IMF mission with Gambian authorities in Banjul, from September 30 to October 11, 2024.
According to the IMF team led by Ms. Eva Jenkner, productive discussions were conducted with Gambian authorities during the second review of the program supported under the 36-month Extended Credit Facility (ECF) arrangement, which was approved in January 2024, for total access of SDR 74.64 million (about US$99.5 million).
“Discussions will continue remotely and in Washington D.C. over the coming weeks to finalize the agreement. Subject to a later approval by the IMF’s Executive Board, the completion of the review will enable a disbursement of SDR 8.29 million (about US$11.05 million), bringing the total disbursement under the arrangement to about US$33.2 million,” the IMF authorities said.
At the conclusion of the discussions, Ms. Jenkner said Gambian authorities remain committed to their reform agenda and program objectives, noting that despite significant revenue collection efforts, fiscal outturns of the first half of 2004 were weaker than expected.
According to her, this is mainly reflecting strong spending pressures stemming from the OIC Summit, accelerated infrastructure projects and emergency support to the nation’s utility company (NAWEC). She said ten out of eleven quantitative performance criteria and indicative targets under the ECF-supported program were met. She added that progress was made on significant structural benchmarks such as audits of large taxpayers and improvements in public financial management, and the public debt-to-GDP ratio, which remains on a downward trajectory. She reported that economic activity is being strengthened and economic growth is estimated at 5.8 percent for 2024, supported by agriculture, services, telecoms and construction sectors.
“Tourist arrivals continue to recover, reaching a level closer to pre-pandemic peak levels. Remittance inflows have also improved. Inflation has declined to 9.8 percent at end August 2024, from a peak of 18.5 percent at end-2022,” the head of the IMF team of delegation said.
She further said that policy discussions focused on the implementation of the National Development Strategy for 2023-27 to further support the structural transformation of the economy.
“The Central Bank of the Gambia is committed to maintaining a monetary policy stance consistent with a convergence of the inflation rate towards its medium-term objective of 5 percent. It will also remain vigilant to ensure a market-determined exchange rate, a smooth functioning of the foreign exchange market, as well as a strong financial position,” Ms. Jenkner said.
While fiscal policy in 2024 remains largely anchored on the parameters of the budget approved by the National Assembly, she averred that the strong spending pressures from the OIC Summit and emergency support to NAWEC entailed major reallocations across budget lines, putting pressure on social spending. She conveyed that the IMF advised the authorities to maintain fiscal responsibility and vigorously pursue their domestic resource mobilization and reform of state-owned enterprises (SOEs) to respond to large social and developmental needs, and protect the most vulnerable. She also stated that structural reforms under the program cover domestic revenue mobilization, public financial management, governance, transparency, management of SOEs, the business environment and addressing climate-related risks and vulnerabilities. She remarked that the medium-term fiscal framework aims to further reduce debt vulnerabilities.
“We reaffirm our commitment to support The Gambia and the IMF team and the Gambian authorities will continue their constructive dialogue to conclude the second review of the ECF in time for the expected board approval at the end December,” she assured.
The mission team also had fruitful discussions with representatives of the private sector, civil society organisations and development partners
The mission thanked Gambian authorities for their kind hospitality and candid discussions.
