The International Monetary Fund has approved fresh financing for The Gambia after completing two key programme reviews, unlocking about US$38.15 million in immediate disbursements for the West African country, the Fund announced on Friday.
The IMF Executive Board signed off on the fourth review of The Gambia’s Extended Credit Facility (ECF) and the first review of its Resilience and Sustainability Facility (RSF), two arrangements supporting economic reforms and climate-resilience measures. The decision allows the release of SDR12.44 million (US$17 million) under the ECF and SDR15.54 million (US$21.24 million) under the RSF.
The combined payments bring total disbursements under the ECF, approved in January 2024, to SDR49.75 million (US$68 million).
Growth rebounds, inflation eases
The IMF said The Gambia’s recovery remains on track, with real GDP projected to expand by 6 percent in 2025, driven by agriculture, construction and tourism. Inflation has fallen sharply, easing to 7 percent by end-October 2025, returning to single digits after months of monetary tightening by the Central Bank of The Gambia.
However, the Fund warned that the outlook faces risks from global geopolitical tensions, including shocks to commodity prices and external financing conditions.
Fiscal pressures persist
Despite the positive indicators, the IMF noted fiscal pressures stemming from delayed inflows, including a postponed disbursement from Africa50. The authorities plan to meet fiscal targets through stronger tax collection and tighter spending discipline.
A carbon-based excise tax on fuel products is expected to be introduced in the 2026 budget, part of efforts to boost domestic revenue and pursue gradual fiscal consolidation to safeguard debt sustainability.
The Board also approved The Gambia’s request for a waiver after the authorities failed to meet the end-June 2025 performance criterion on net international reserves, citing corrective measures.
IMF praises reform momentum
IMF Deputy Managing Director Bo Li said the Fund was encouraged by the authorities’ performance under both programmes.
“The Gambia’s economy continues to experience robust growth and declining inflation. Implementation of the Extended Credit Facility has been satisfactory, and reforms under the Resilience and Sustainability Facility are advancing,” he said.
Li urged the government to avoid spending overruns ahead of upcoming elections and to maintain a disciplined fiscal stance “to build buffers, preserve debt sustainability and support social and development spending”.
He also stressed the importance of curbing fiscal risks from state-owned enterprises and public-private partnerships, improving public financial management and ensuring greater transparency in financial data.
On monetary policy, Li said the central bank must keep easing “data-dependent” to ensure inflation continues converging toward target. He welcomed the authorities’ commitment to stop providing direct or indirect financing to public entities, a key step in safeguarding the bank’s balance sheet.
Governance, climate resilience remain priorities
The IMF said The Gambia must accelerate governance and anti-corruption reforms, noting that operationalising the new anti-corruption commission pending parliamentary approval would be a significant milestone.
Under the RSF, the government is pursuing climate-resilience reforms to strengthen its ability to respond to natural disasters and reinforce long-term macroeconomic stability. The IMF said sequencing of reforms across both the ECF and RSF, backed by technical support, will be critical.
Background
The ECF is the IMF’s main tool for providing concessional financing to low-income countries facing balance-of-payments needs, while the RSF offers longer-term support to countries exposed to climate shocks. The Gambia remains one of West Africa’s most tourism-dependent economies and has been rebuilding after years of structural weaknesses, low revenue mobilisation and climate-related disruptions.
