The International Monetary Fund’s Executive Board has completed the fourth review under The Gambia’s Extended Credit Facility (ECF) and the first review under the Resilience and Sustainability Facility (RSF), unlocking an immediate disbursement of approximately US$38.15 million to support the West African nation’s ongoing reforms.
This includes $17 million from the ECF arrangement, approved in January 2024, bringing total ECF disbursements to about $68 million and $21.24 million from the RSF, approved in June 2025, aimed at bolstering resilience against climate shocks.
The Gambia’s economy continues its strong recovery, with real GDP growth estimated at 6 percent for 2025, driven by vibrant agriculture, construction, and tourism sectors. Headline inflation has eased to single digits, reaching 7 percent by October 2025, reflecting effective monetary policies and declining global pressures.
Despite challenges, including fiscal slippages and global geopolitical risks, authorities have shown commitment to reforms. The Board granted a waiver for nonobservance of a June 2025 international reserves target, citing corrective measures.
Deputy Managing Director Bo Li praised “robust growth and declining inflation,” noting satisfactory ECF implementation and the advancement of RSF reforms. He emphasized the need for strong tax collection, expenditure restraint—especially ahead of elections—and fiscal consolidation to preserve debt sustainability while boosting social and infrastructure spending.
Key priorities include enhancing revenue through administrative measures and introducing a carbon-based fuel excise duty in 2026, limiting risks from state-owned enterprises, and strengthening governance and anti-corruption efforts, including operationalizing a new commission.
The RSF will support climate resilience, crucial for a nation vulnerable to natural disasters, by improving policy frameworks and green finance.
The outlook remains positive but cautious, with downside risks from external shocks. Steadfast implementation of reform is vital for inclusive growth, private-sector development, and long-term stability.
