By Nelson Manneh and Ndey Sowe
The International Monetary Fund (IMF) and the Government of The Gambia have reached a staff-level agreement on the first review of the country’s Resilience and Sustainability Facility (RSF), aimed at boosting The Gambia’s capacity to withstand and adapt to climate change. The announcement came at a joint press conference held on Wednesday, October 8, 2025, in Banjul.
The agreement also covers the fourth review of The Gambia’s homegrown economic reform program, supported by the IMF’s Extended Credit Facility (ECF). According to officials, the country’s economic outlook remains positive, with forecasts projecting economic growth of 6 percent in 2025 and inflation continuing its downward trend to about 7.5 percent.
The IMF delegation, led by Ms. Eva Jenkner, held discussions in Banjul from September 25 to October 8, meeting with key government officials, including Finance Minister Seedy Keita, Attorney General Dawda Jallow, Central Bank Governor Buah Saidy, and others. The mission also engaged with representatives from the private sector, civil society, and development partners.
Pending the approval of the IMF Executive Board, the completion of the ECF review will unlock a further disbursement of SDR 12.44 million (approximately US$17.1 million), bringing total disbursements under the arrangement to SDR 49.75 million (about US$68.2 million). For the RSF, The Gambia has completed two key reform measures and one additional measure ahead of schedule, qualifying for a total disbursement of SDR 15.54 million (about US$21.3 million).
Economic Recovery and Fiscal Performance
In a statement, Ms. Jenkner highlighted that The Gambia’s economic recovery continues to gain momentum, with real GDP projected to grow by 6 percent in 2025, driven by robust performance in agriculture, construction, and tourism. After peaking at 18.5 percent in September 2023, inflation has dropped significantly to 7.6 percent as of August 2025, although it remains above the Central Bank’s medium-term target of 5 percent.
Fiscal performance in the first half of 2025 surpassed expectations. Tax revenues were higher than projected, and current government spending was lower than anticipated, while foreign-financed capital spending increased. “Overall performance under the ECF has been satisfactory,” Jenkner said, noting that six out of seven quantitative performance criteria and all four indicative targets for June 2025 were met.
Advancing Climate Resilience and Governance
The RSF reform measures are progressing well. Notably, The Gambia has already completed a key reform for the second RSF review: the approval of a comprehensive climate change bill. The government is also integrating climate change mitigation and adaptation criteria into its public investment management processes, which will be applied in the next budget cycle.
The IMF mission encouraged the Central Bank of The Gambia to continue its focus on reducing inflation and maintaining a market-driven exchange rate, while limiting interventions in the foreign exchange market. The forthcoming revision of the Central Bank Act is expected to reinforce these principles and help ensure the resilience of the financial sector.
On governance, the IMF welcomed the government’s efforts to strengthen anti-corruption measures, including the imminent appointment of anti-corruption commissioners and the establishment of a dedicated commission.
Looking Ahead
Despite high public debt, which reached 80 percent of GDP in 2024, the IMF considers Gambia’s debt sustainable. However, the Fund emphasized the importance of ongoing fiscal consolidation, strong revenue performance, and responsible expenditure management, especially with national elections approaching in 2026.
The IMF Executive Board is scheduled to meet on The Gambia’s program in early December 2025. Upon approval, the country will receive further financial support to bolster its economic reforms and climate resilience efforts.
“The IMF will continue to work closely with the Gambian authorities and stands ready to help them through financing, policy advice, and strong technical assistance,” Ms. Jenkner concluded.
