The International Monetary Fund (IMF) has reached a staff-level agreement with Gambian authorities following the completion of the 2026 Article IV Consultation and the fifth review under the Extended Credit Facility (ECF) arrangement, as well as the second review under the Resilience and Sustainability Facility (RSF).
The agreement, announced today, paves the way for fresh disbursements and program extensions amid a complex global environment shaped by the ongoing war in the Middle East. While two fiscal targets were missed in 2025 due to higher spending, the authorities have reaffirmed their commitment to reforms to strengthen economic stability and build resilience to climate shocks.
An IMF team led by Ms. Eva Jenkner conducted discussions in Banjul from April 22 to May 6, 2026, with virtual follow-ups. The team secured staff-level approval for the fifth ECF review under a 36-month arrangement approved in January 2024. The program, originally for SDR 74.64 million (about US$102.2 million), has been augmented by SDR 12.44 million (about US$17 million) and extended by six months to July 2027 to address emerging challenges from rising commodity prices linked to the Middle East conflict.
This would unlock a disbursement of SDR 6.22 million (about US$8.5 million), bringing total disbursements under the ECF to SDR 55.97 million (about US$76.6 million). The funds are contingent on prior actions and final Executive Board approval, expected in early July 2026.
Similarly, staff-level agreement was reached on the second RSF review under an 18-month arrangement approved in June 2025 for SDR 46.65 million (about US$63.9 million). A disbursement of SDR 10.36 million (about US$14.2 million) will follow, raising total RSF payouts to SDR 25.9 million (about US$35.5 million). The RSF arrangement has also been extended by six months to July 2027 to support critical climate-related reforms.
Strong Growth with Emerging Risks
Economic recovery in The Gambia remains robust. Real GDP growth is estimated at 6.0 percent in 2025, driven by strong performance in agriculture, construction, tourism, and remittances. Inflation has eased significantly from a peak of 18.5 percent in September 2023 to 7.0 percent year-over-year in April 2026, thanks to lower global food and energy prices. However, inflation still exceeds the Central Bank of The Gambia’s (CBG) 5 percent medium-term target, and the impact of higher commodity prices from the Middle East war is beginning to materialize, clouding the 2026 outlook.
Fiscal performance in 2025 fell short of expectations. Although tax revenues exceeded targets, unbudgeted expenditures—including transfers, arrears clearance, subsidies for the National Water and Electricity Company, and support for the National Food Security Processing and Marketing Corporation—pushed the fiscal deficit to 5 percent of GDP. Public debt stood at around 79 percent of GDP at end-2025 but remains sustainable. Authorities are urged to maintain prudent fiscal policy while reallocating resources to manage war-related pressures.
Five out of seven quantitative performance criteria for end-December 2025 were met, with all indicative targets achieved. Progress on structural benchmarks was strong, particularly in public financial management, statistics, and financial sector stability. The CBG is encouraged to maintain a tight monetary stance, allow market-determined exchange rates with limited interventions, and refrain from indirect financing of the public sector. The banking sector is sound, though exposure to government requires close monitoring.
Governance reforms, including establishing an anti-corruption commission and improving public access to information, are seen as vital for attracting private investment. On the climate front, authorities have advanced tools to assess fiscal risks from weather events and are exploring a carbon-based excise tax.
At the conclusion of the mission, Ms. Jenkner stated: “Economic recovery remains strong, while inflation has decelerated… 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 team held meetings with Finance Minister Seedy Keita, CBG Governor Buah Saidy, senior officials, private sector representatives, civil society, and development partners.
The staff-level agreements mark a positive milestone for The Gambia’s reform journey. However, sustained fiscal discipline and decisive action on governance will be critical to navigating external headwinds and securing long-term sustainable growth.
