The International Monetary Fund (IMF) has reached a staff-level agreement with the Government of The Gambia on two critical fronts: a Resilience and Sustainability Facility (RSF) to address climate change, and the third review of the country’s ongoing Extended Credit Facility (ECF) program. The agreement follows a two-week mission in Banjul led by Eva Jenkner, with the IMF delegation holding talks from April 2 to April 16 with key Gambian policymakers and institutions. The deals, if approved by the IMF’s Executive Board in June, would unlock up to SDR 59.09 million (approximately US$81.8 million) in combined disbursements.
According to the IMF team, The Gambia’s economic outlook is improving. GDP growth is projected at 6 percent in 2024, driven by robust performance in tourism and construction. Tourist arrivals have nearly returned to pre-pandemic levels, while remittance flows remain strong. Meanwhile, inflation has dropped to 9.1 per cent as of March 2025, down from higher double digits, though still above the Central Bank of The Gambia’s (CBG) medium-term target of 5 percent.
Despite these gains, fiscal performance in 2024 was weaker than anticipated, with the budget deficit widening to 3.8 percent of GDP. The shortfall was attributed to unplanned expenditures—including transfers linked to earmarked revenues, support for NAWEC and the OIC summit, and rapid execution of donor-financed projects. An additional 0.4 percent of GDP in unpaid commitments has been carried forward into 2025, according to the IMF.
Despite these pressures, the government has made progress on its homegrown reform agenda. Six out of seven quantitative performance criteria under the ECF program were met, with the only miss being the ceiling on net domestic borrowing. All quantitative indicative targets were achieved. Structural reforms in procurement, SOE oversight, social registry expansion, and budgeting are advancing. The public debt-to-GDP ratio is also trending downward.
The Central Bank remains committed to a market-determined exchange rate and minimizing foreign exchange interventions to periods of excess volatility. Amid persistent challenges in the financial sector, especially around non-performing loans, the CBG aims to bolster financial resilience and maintain a sound financial position.
In a key new initiative, the IMF and Gambian authorities agreed on a Resilience and Sustainability Facility valued at SDR 46.65 million (approximately US$65 million). If approved, this facility would support climate-related reforms across five areas: institutional framework for climate policy, green public financial management, climate data and financial sector integration, adaptation and resilience building, and energy transition and reduction of fossil fuel externalities. The facility is expected to catalyze additional climate financing from development partners and strengthen the country’s ability to absorb climate shocks, while also advancing sustainable development goals.
The IMF team also noted the government’s efforts to advance governance and anti-corruption reforms, following the publication of its Governance Diagnostic Roadmap in December 2024. Reforms aim to improve public service delivery, ensure public access to financial and legal information, and foster an investment-friendly business environment.
During the mission, the IMF team met with key government officials including Finance Minister Seedy Keita, Justice Minister Dawda Jallow, CBG Governor Buah Saidy, GRA Commissioner General Yankuba Darboe, SOE Commission Chair Ousainou Ngum, and senior officials from the auditor general’s office, civil society, and development partners.
In closing, Ms. Jenkner reaffirmed the IMF’s commitment to support The Gambia through financing, policy advice, and technical assistance. “The IMF will continue to work closely with the Gambian authorities,” she said, “to support macroeconomic stability, sustainable growth, and resilience to climate risks.”
