By Nelson Manneh
In a significant move to support The Gambia’s economic growth and climate resilience, the International Monetary Fund (IMF) Executive Board has approved an 18-month arrangement under the Resilience and Sustainability Facility (RSF) for the country, amounting to approximately US$63.55 million. This funding is aimed at helping The Gambia strengthen its economic stability and build policy buffers against climate-related shocks.
The IMF also completed the third review under the country’s existing Extended Credit Facility (ECF) arrangement, which unlocks an immediate disbursement of about US$16.95 million. This brings the total amount of funds disbursed under the ECF arrangement to approximately US$50.82 million.
The RSF will assist The Gambia in addressing its climate change challenges, including enhancing public finance management, supporting the energy transition, and strengthening legal frameworks related to climate adaptation and resilience. This initiative is seen as a key step in building long-term sustainability and resilience for the country.
While the country faces fiscal challenges, particularly due to unbudgeted spending pressures from the National Water and Electricity Corporation (NAWEC), The Gambia’s economic outlook remains positive, with projected growth of 5.7 percent for 2025. The IMF’s approval of these arrangements signals continued international confidence in The Gambia’s efforts to stabilize its economy and create a more sustainable future.
IMF Deputy Managing Director Bo Li commended the government for its commitment to structural reforms, though he underscored the importance of continuing to meet fiscal targets and tackling key challenges like domestic arrears and fiscal risks from state-owned enterprises. The IMF also welcomed the Central Bank of The Gambia’s commitment to tightening monetary policy to keep inflation in check.
