- The Gambian authorities and the IMF team reached staff-level agreement on the sixth review under the IMF's Extended Credit Facility (ECF) arrangement and the third review under the Resilience and Sustainability Facility (RSF) arrangement.
- Economic growth is projected to remain robust at 5.1 percent in both 2026 and 2027, while inflation continues to ease. The outlook remains favorable but is subject to significant downside risks, including volatility in global commodity prices, external uncertainties, and vulnerabilities in the energy sector.
- The authorities have made progress in implementing their economic and climate reform programs. Sustained fiscal discipline, stronger public financial management, improved financial sustainability of the energy sector, and accelerated governance reforms remain critical to preserving macroeconomic stability and fostering inclusive, private sector-led growth and job creation.
Washington, DC: An International Monetary Fund (IMF) team, led by Ms. Eva Jenkner, visited Banjul during October 19-30, 2026, to hold discussions on the sixth review of The Gambia's economic reform program supported by the Extended Credit Facility (ECF) arrangement and the third review under the Resilience and Sustainability Facility (RSF) arrangement to enhance resilience to climate change.
At the end of the mission, Ms. Jenkner issued the following statement:
"The Gambian authorities and IMF staff have reached staff-level agreement on the sixth review under the ECF arrangement and the third review under the RSF arrangement, subject to IMF Executive Board approval and the implementation of agreed prior actions. Completion of the reviews would provide The Gambia with additional financing of SDR 20.73 million (about US$ 28 million) under both arrangements, bringing total disbursement under both ECF and RSF arrangements to SDR 105.75 million (about US$ 142 million).
"The Gambian economy remains resilient despite external uncertainties and domestic energy supply disruptions. Real GDP growth is projected at 5.1 percent in both 2026 and 2027, supported by construction, tourism, and remittances. Inflation declined to 6.1 percent in September 2026, from 7 percent in April, but remains above the Central Bank of The Gambia's 5 percent target. The outlook remains favorable, although risks from commodity price volatility, geopolitical uncertainty, climate shocks, and energy sector vulnerabilities persist.
"Program performance remains strong, with all eight end-June 2026 quantitative performance criteria met and three of four indicative targets observed. The tax revenue target was missed by a modest margin. Continued discipline will be required to meet end-December targets. Progress on structural reforms includes improved cash management and the partial privatization of Gambia Telecommunications Cellular Company Limited (GAMCEL), although further efforts are needed to advance public financial management and governance reforms.
"Fiscal policy should continue to focus on reducing debt vulnerabilities while addressing pressing social needs. The authorities have reprioritized spending in response to the electricity crisis, and the 2027 budget targets an overall deficit of around 1 percent of GDP. Sustained revenue mobilization, expenditure control, improved cash management, and timely arrears clearance remain essential, while protecting priority social spending to address persistent poverty.
"The recent electricity crisis underscores the urgency of strengthening National Water and Electricity Companies (NAWEC)'s operational efficiency and financial sustainability. The authorities have provided emergency financial support to NAWEC, including to clear arrears to regional electricity suppliers and restore generation capacity. To contain fiscal risks and ensure reliable power provision, further efforts are needed to reduce operational losses, improve revenue collection, and move toward cost-recovery tariffs, while protecting vulnerable households.
"The Central Bank of The Gambia should maintain a prudent, data-driven monetary policy stance to bring inflation sustainably toward its medium-term target. Exchange rate flexibility and adequate international reserves remain essential to external stability. The banking sector remains resilient, although the banks' exposure to government debt and concentration risks warrant close monitoring. Strengthening the CBG's governance and autonomy, including through amendments to the CBG Act and ceasing quasi-fiscal activities remain critical.
"We welcome progress in strengthening public accountability, including the National Audit Office's clearance of longstanding audit backlogs. Further efforts are needed to operationalize the Anti-Corruption Commission, strengthen governance and transparency, and improve the business environment to foster private investment and job creation.
"Progress continues under the RSF-supported reform agenda, including measures to strengthen groundwater management and incorporate climate resilience into coastal zoning regulations. Continued implementation of climate reforms will help reduce vulnerabilities to climate shocks, contain fiscal risks, and mobilize climate financing.
"The IMF remains committed to supporting the authorities' reform efforts through financing, policy advice, and technical assistance."
The mission met with Minister of Finance and Economic Affairs Seedy Keita; Attorney General and Minister of Justice Dawda Jallow; First Deputy Governor of the Central Bank of The Gambia Abdoulie Jallow; Commissioner General of the Gambia Revenue Authority Yankuba Darboe; Auditor General Cherno Sowe; Executive Secretary of the SOE Commission Bai Ceesay, and senior government and central bank officials. The team also held discussions with representatives of the private sector, civil society, and development partners.
The IMF staff team thanks the Gambian authorities for their close cooperation and constructive policy discussions.
