By: Kebba Ansu Manneh
The International Monetary Fund (IMF) has called on the Central Bank of The Gambia (CBG) to prioritize its core mandate and cease providing financial assistance, directly or indirectly, to the public sector. The directive came from Ms. Eva Jenkner, IMF Team Leader to The Gambia, during a press briefing following the conclusion of the IMF’s Staff-Level Agreement on the First Review of the Resilience and Sustainability Facility (RSF) Arrangement and the Fourth Review Under the Extended Credit Facility (ECF) Arrangement on Wednesday.
Ms. Jenkner emphasized the importance of the CBG maintaining an exchange rate driven by market forces and limiting foreign exchange interventions to address excessive market volatility and build reserves.
“The CBG is strongly encouraged to focus on its core mandate and cease any financial assistance, whether directly or indirectly through third parties, to the public sector,” she stated. She also urged that the forthcoming revised CBG Act reflect these principles and stressed the need to strengthen the financial sector’s resilience, particularly by addressing banks’ high exposure to public sector debt.
The Gambia’s economy is showing a robust recovery, with real GDP growth projected at 6% for 2025, driven by strong performances in agriculture, construction, and tourism. Inflation, which peaked at 18.5% year-on-year in September 2023, has decelerated to 7.6% in August 2025, though it remains above the CBG’s medium-term target of 5%. “Fiscal performance in the first half of 2025 exceeded expectations,” Jenkner noted, highlighting that tax revenues surpassed projections, current expenditure was lower than anticipated, and foreign-financed capital spending increased. The overall fiscal deficit for 2025 is within reach, with six out of seven performance criteria and all four indicative targets under the ECF met by June 2025.
Progress on structural reforms has been significant, with eight out of ten structural benchmarks completed, including measures to enhance revenue mobilization, public financial management, and governance. The remaining two benchmarks are expected to be finalized by October and November 2025. Additionally, reform measures under the RSF are on track, with one measure for the second review—a comprehensive climate change bill—already completed.
According to the IMF, despite public debt reaching 80% of GDP in 2024, it remains sustainable. However, Jenkner underscored the need for sustained fiscal consolidation, strong revenue performance, and expenditure restraint, particularly in the 2026 election year, to sustainably address The Gambia’s social and developmental needs. “Vigorously pursuing fiscal responsibility will be crucial,” she said.
The IMF welcomed the government’s efforts to strengthen governance and combat corruption, noting that the appointment of anti-corruption commissioners and the establishment of the commission will be a key milestone. The RSF reforms are also advancing, with measures to integrate climate change mitigation and adaptation into public investment management, including the upcoming budget cycle and public-private partnership frameworks. The approval of index-based insurance regulations is expected to enhance risk transfer mechanisms, offering better protection for climate-vulnerable households.
The IMF mission, led by Ms. Jenkner, held productive discussions with key Gambian officials, including Minister of Finance and Economic Affairs Seedy Keita, Attorney General and Minister of Justice Dawda Jallow, CBG Governor Buah Saidy, Commissioner General of the Gambia Revenue Authority Yankuba Darboe, and National Auditor General Chemo Sowe. The team also engaged with representatives from the private sector, civil society, and development partners.
Ms. Jenkner reaffirmed the IMF’s commitment to supporting The Gambia through financing, policy advice, and technical assistance. “We stand ready to help the Gambian authorities achieve macroeconomic stability and resilience to climate change,” she concluded, signaling continued collaboration to bolster the nation’s economic and environmental sustainability.
The IMF’s recommendations come at a critical juncture as The Gambia navigates economic recovery and prepares for the challenges of the 2026 election year, with a clear call for fiscal discipline and adherence to the CBG’s core responsibilities.
