By: Alieu Ceesay
Gambian authorities and an International Monetary Fund mission have reached a staff-level agreement on the sixth review of the country’s Extended Credit Facility (ECF) arrangement and the third review under the Resilience and Sustainability Facility (RSF), paving the way for additional disbursements once the IMF Executive Board approves.
The agreement, subject to Board approval and the completion of agreed prior actions, would provide The Gambia with SDR 20.73 million (approximately US$28 million) under both facilities. This would bring cumulative disbursements under the two arrangements to SDR 105.75 million (about US$142 million).
The IMF team, led by Eva Jenkner, concluded a visit to Banjul on October 30 after discussions that began on October 19, and held a press conference on Friday to discuss the visit.
The Gambian economy has shown resilience amid external uncertainties and domestic energy disruptions. Real GDP growth is projected to hold steady at 5.1 percent in both 2026 and 2027, driven by activity in construction, tourism, and remittances. Inflation eased to 6.1 percent in September 2026 from 7 percent in April, though it remains above the Central Bank of The Gambia’s 5 percent target. While the outlook is broadly favorable, authorities and IMF staff flagged downside risks linked to global commodity price volatility, geopolitical tensions, climate shocks, and ongoing vulnerabilities in the energy sector.
Program performance under the ECF has been solid. All eight end-June 2026 quantitative performance criteria were met, and three of four indicative targets were observed. The tax revenue target was missed by a modest margin, underscoring the need for continued fiscal discipline to meet end-December targets. Structural reforms have advanced, including better cash management and the partial privatization of Gambia Telecommunications Cellular Company Limited (GAMCEL). However, further progress is required on public financial management and broader governance measures.
Fiscal policy remains focused on reducing debt vulnerabilities while addressing social needs. In response to the recent electricity crisis, the authorities have reprioritized spending. The 2027 budget aims for an overall deficit of around 1 percent of GDP. Sustained revenue mobilization, tighter expenditure control, improved cash management, and timely clearance of arrears are essential, alongside protecting priority social spending to tackle persistent poverty.
The electricity crisis has highlighted the urgent need to strengthen the operational efficiency and financial sustainability of the National Water and Electricity Company (NAWEC). The government has extended emergency support to NAWEC to clear arrears to regional suppliers and restore generation capacity. To limit fiscal risks and ensure reliable power supply, further steps are required to cut operational losses, improve revenue collection, and gradually move toward cost-recovery tariffs, while shielding vulnerable households.
On the monetary front, the Central Bank of The Gambia is expected to maintain a prudent, data-driven stance to guide inflation toward its medium-term target. Exchange rate flexibility and adequate reserve buffers are viewed as critical for external stability. The banking sector remains resilient overall, though banks’ exposure to government debt and concentration risks require continued monitoring. Strengthening the central bank’s governance and autonomy—through amendments to the CBG Act and the cessation of quasi-fiscal activities—remains a priority.
Governance progress includes the National Audit Office’s clearance of longstanding audit backlogs. Additional efforts are needed to fully operationalize the Anti-Corruption Commission, enhance transparency, and improve the business climate to attract private investment and support job creation.
Under the RSF, reforms to build climate resilience continue, including measures to improve groundwater management and integrate climate considerations into coastal zoning regulations. Sustained implementation of these reforms is expected to reduce vulnerability to climate shocks, contain related fiscal risks, and help mobilize additional climate financing.
The IMF mission held meetings with Finance and Economic Affairs Minister Seedy Keita, Attorney General and Justice Minister Dawda Jallow, Central Bank First Deputy Governor Abdoulie Sireh Jallow, Gambia Revenue Authority Commissioner General Yankuba Darboe, Auditor General Cherno Sowe, SOE Commission Executive Secretary Bai Ceesay, and other senior officials. The Fund also held discussions with representatives of the private sector, civil society, and development partners.
In a statement issued at the conclusion of the visit, Jenkner reaffirmed the Fund’s commitment to supporting The Gambia’s reform agenda through financing, policy advice, and technical assistance. The staff-level agreement marks another step in the country’s multi-year engagement with the IMF as it seeks to consolidate macroeconomic stability, strengthen public institutions, and foster inclusive, private-sector-led growth.
