- The Gambian authorities and the IMF team reached staff-level agreement on the fourth review of the authorities' reform program supported by the IMF's Extended Credit Facility (ECF), and the first review under the Resilience and Sustainability Facility (RSF) to enhance resilience to climate change.
- The outlook remains positive with economic growth expected to reach 6 percent in 2025 and inflation remaining on a downward trend around 7.5 percent. Progress continues in implementing a homegrown economic reform program despite challenges to fiscal and governance policies.
Washington, DC: An International Monetary Fund (IMF) team, led by Ms. Eva Jenkner, held discussions in Banjul from September 25-October 8, 2025. A staff-level agreement was reached on the fourth review of the program supported under the 36-month ECF arrangement approved in January 2024 for total access of SDR 74.64 million (about US$102.3 million). Subject to approval by the IMF's Executive Board, the completion of the review would enable a disbursement of SDR 12.44 million (about US$17.1 million), bringing the total disbursement under the arrangement to SDR 49.75 million (about US$68.2 million). A staff-level agreement was also reached on two reform measures of the first review of the RSF to enhance resilience to climate change. A reform measure planned for the second RSF review was also completed in advance, bringing the total disbursement under the RSF to SDR 15.54 million (about US$21.3 million). The IMF Executive Board is tentatively scheduled to meet in early December 2025.
At the conclusion of the discussions, Ms. Jenkner issued the following statement:
"Economic recovery remains strong, while inflation is decelerating. Real GDP growth is estimated at 6 percent in 2025, supported by the agriculture, construction, and tourism sectors. After peaking at 18.5 percent (y-o-y) in September 2023, headline inflation decelerated to 7.6 percent (y-o-y) in August 2025, while still above the central bank's medium-term target of 5 percent and showing some persistence.
"Fiscal performance during the first half of 2025 was stronger than anticipated. The expected overall fiscal deficit for this year is within reach. Tax revenue exceeded expectations by a large margin. Current expenditure was lower than anticipated, while there was an increase in foreign-financed capital spending.
"Overall performance under the ECF has been satisfactory. Six out of seven performance criteria (QPCs) and all four indicative targets (ITs) for end-June 2025 were met. Of the ten structural benchmarks (SBs), eight have been completed, including steps to enhance revenue mobilization, public financial management and governance. The remaining two are expected to be completed in end-October and end-November, respectively. The two reform measures (RMs) for the first review of the RSF arrangement are well on track, and one RM for the second review on approving a comprehensive climate change bill has been completed in advance. While reaching 80 percent of GDP in 2024, public debt is still deemed sustainable. However, vigorously pursuing fiscal consolidation and maintaining strong revenue performance, expenditure restraint and fiscal responsibility in the 2026 election year and beyond will be crucial to addressing The Gambia's large social and developmental needs in a sustainable manner.
"The Central Bank of The Gambia (CBG) continues to drive inflation on a downwards trajectory towards its medium-term target. It is important to maintain an exchange rate determined by market forces and to limit foreign exchange market interventions to the mitigation of excessive market volatility and reserves accumulation. 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. The forthcoming revised CBG Act should reflect these principles. It is also important to focus on the resilience of the financial sector, including banks' high exposure to the public sector.
"We welcome the government's aim to strengthen its reform agenda on governance and anti-corruption to facilitate access to information and enhance private investment-led growth. The final appointment of anti-corruption commissioners and the establishment of the commission will be an important milestone.
"To strengthen macro-economic stability and balance of payments resilience to climate change, the RSF reform measures are well on-track. The authorities are including mitigation and adaptation criteria in the public investment management process (selection, appraisal, monitoring) which will be applied in the next budget cycle, as well as in PPP management. The forthcoming approval of index-based insurance regulations will broaden risk transfer instruments and better protect climate-vulnerable households.
"The IMF will continue to work closely with the Gambian authorities and stands ready to help them through financing, policy advice, and strong technical assistance."
The mission met with the Minister of Finance and Economic Affairs, Seedy Keita; Attorney General and Minister of Justice Dawda Jallow; Governor of the Central Bank of The Gambia Buah Saidy; Commissioner General of the Gambia Revenue Authority Yankuba Darboe; National Auditor General Cherno Sowe; and senior government and central bank officials. The mission team also had fruitful discussions with representatives of the private sector, civil society, and development partners.
