The International Monetary Fund (IMF) has reached a staff-level agreement with the Gambian authorities on a new Resilience and Sustainability Facility (RSF) to bolster the country’s defenses against climate change, alongside the third review of its Extended Credit Facility (ECF) program. The agreements, announced following discussions in Banjul from April 2 to April 16, 2025, mark significant steps in supporting The Gambia’s economic reforms and climate resilience efforts.
Led by IMF mission chief Eva Jenkner, the team concluded that The Gambia’s economy is on a positive trajectory, with growth projected at 6 percent in 2024, driven by a rebound in tourism and robust construction activity. ‘Tourist arrivals have nearly returned to pre-pandemic levels, and remittance inflows have strengthened. Inflation, while still above the Central Bank of The Gambia’s 5 percent target, fell to 9.1 percent in March 2025, signaling a downward trend.’
The ECF, approved in January 2024 with a total access of SDR 74.64 million (approximately US$100.9 million), supports The Gambia’s homegrown reform program. The third review, pending IMF Executive Board approval in mid-June 2025, would unlock an additional SDR 12.44 million (about US$16.8 million), bringing total disbursements to SDR 37.71 million (around US$51.0 million). The proposed RSF, with a potential access of SDR 46.65 million (about US$65 million), aims to enhance climate resilience through reforms in institutional frameworks, green public financial management, climate data, adaptation measures, and energy transition.
Despite economic progress, fiscal challenges persisted in 2024. Unbudgeted spending, including support for the National Water and Electricity Corporation (NAWEC) and the Organization of Islamic Countries (OIC) summit, led to a higher-than-expected deficit of 3.8 percent of GDP. According to the IMF Banjul team in a press statement, unpaid commitments of 0.4 percent of GDP were carried into 2025.
However, the IMF says the authorities met most quantitative performance criteria under the ECF, with the exception of a ceiling on net domestic borrowing and advanced structural reforms in public procurement, state-owned enterprise management, and budgeting.
“The authorities remain committed to fiscal responsibility and structural reforms to address The Gambia’s social and developmental needs sustainably,” Jenkner said in a statement. The public debt-to-GDP ratio continues to decline, and the Central Bank is focused on curbing inflation, maintaining a market-determined exchange rate, and strengthening financial sector resilience amid elevated non-performing loans.
The RSF is expected to catalyze additional climate and sustainable development financing, supporting The Gambia’s climate agenda through reforms and capacity-building efforts with the IMF and other partners. ‘Following the release of its Governance Diagnostic Roadmap in December 2024, the government is also advancing governance and anti-corruption measures to foster private sector-led growth.’
The IMF mission engaged with key officials, including Minister of Finance Seedy Keita, Central Bank Governor Buah Saidy, and representatives from the private sector, civil society, and development partners. The IMF reiterated its commitment to supporting The Gambia through financing, policy advice, and technical assistance as the country navigates its economic and climate challenges.
