The Gambia has unlocked access to additional loans totaling US$80.5 million from the International Monetary Fund (IMF), according to an official statement released by the multilateral lender following a review.
The IMF Executive Board approved a new 18-month arrangement under the Resilience and Sustainability Facility (RSF) for The Gambia for an amount equivalent to about US$63.55 million to help the authorities improve macroeconomic resilience and build policy buffers against climate shocks.
The board also completed the third review under the existing Extended Credit Facility (ECF) arrangement, enabling immediate disbursement of about US$16.95 million. The fund said despite substantial downside risks, The Gambia’s economic outlook remains positive, with growth expected to reach 5.7 percent in 2025 and inflation returning to single digits.
The Gambia has made good progress in implementing their economic reform programme despite fiscal policy challenges, the IMF stated.
The Gambia’s economic outlook remains positive, with real GDP estimated to expand by 5.7 percent in 2025, supported by continuous recovery in the tourism sector and good performance in the agricultural and construction sectors.
Headline inflation has gradually declined, reaching 8.1 percent by end-April 2025. The outlook is subject to significant downside risks stemming from global uncertainty.
While the authorities remain committed to the objectives set out in the ECF arrangement and revenue collection has been strong, unbudgeted spending pressures including from Nawec continue to weigh on fiscal balances.
Going forward, steadfast implementation of the policy and reform agenda will be essential to safeguard macroeconomic gains and debt sustainability.
The Executive Board approved the authorities’ request for waivers of non-observance of the performance criterion on the end-June 2024 floor on the domestic primary balance and the end-December 2024 ceiling on net domestic borrowing, based on corrective actions taken.
Following the Executive Board’s discussion, Deputy Managing Director Bo Li said: “The Gambia’s economic momentum remains robust, with resilient growth and gradually declining inflation. Programme implementation has been mixed, showing satisfactory adherence to quantitative performance criteria and indicative targets but delays in meeting structural benchmarks. The authorities have reiterated their commitment to their reform agenda despite ongoing global geopolitical uncertainties.”
“Enhancing revenue collection to build additional fiscal buffers is also critical. Furthermore, it is essential to limit fiscal risks from state-owned enterprises and public-private partnerships.
“The Central Bank of The Gambia’s commitment to cease direct financial support to public entities is a welcome measure to protect its balance sheet. Strengthening its regulatory capacity and risk-based supervision is essential to preserve the financial sector’s stability,” he stated.
