Gambia Gets $38m IMF Loan to Further Economic Reforms
The Executive Board completed today the fourth review of The Gambia’s Extended Credit Facility (ECF) arrangement, approved on January 12, 2024, supporting reforms to address long-standing structural impediments to inclusive growth.
The completion of the review allows for the immediate disbursement of SDR12.44 million, which is about US$17.00 million bringing total disbursements under this arrangement to SDR49.75 million, or about US$68.00 million.
The Executive Board of the IMF also completed the first review under the Resilience and Sustainability Facility (RSF), approved on June 18, 2025, to help the authorities improve macroeconomic resilience and build policy buffers against climate shocks, allowing for an immediate disbursement of SDR15.54 million (about US$21.24 million).
The Gambia’s economic outlook remains positive, with real GDP estimated to expand by 6 percent in 2025, supported by the agriculture, construction and tourism sectors.
Headline inflation has further decelerated, reaching 7 percent by end-October 2025. The outlook remains subject to significant downside risks stemming from global geopolitical developments.
The authorities are noted to be committed to the objectives set out in the ECF and RSF arrangements. Combined reforms will result in stronger tax revenue collection, including through strong administrative measures and the introduction of a carbon-based excise duty on fuel products in the 2026 budget.
Going forward, policies geared towards reducing fiscal risks and preserving debt sustainability will be critical. The Executive Board approved the authorities’ request for a waiver of nonobservance of the performance criterion on the end-June 2025 floor on the net international reserves target based on corrective actions taken.
Deputy Managing Director Bo Li said, “The Gambia’s economy continues to experience robust growth and declining inflation. Implementation of the Extended Credit Facility (ECF) program has been satisfactory, and reforms under the Resilience and Sustainability Facility (RSF) are advancing.
“The authorities have reaffirmed their commitment to the reform agenda despite ongoing global geopolitical uncertainties.
“The authorities remain dedicated to meeting the 2025 fiscal targets despite a delayed disbursement from Africa50. This will be achieved through strong tax collection and expenditure restraint by strict prioritization and control of cash allocations.
“It is critical to avoid spending overruns during the election period and maintain fiscal consolidation efforts over the medium term to build fiscal buffers, preserve debt sustainability and support social and development spending.
“Enhancing public financial management will further support fiscal discipline and accountability. It is also important to limit fiscal risks from SOEs and public-private partnerships, and to improve data consistency for greater transparency.
“Maintaining price stability and a market-determined exchange rate remain priorities. The central bank should ensure that any easing of the tight monetary policy stance remains data-dependent and supports continued convergence of inflation toward the medium-term target. The foreign exchange market is functioning well following the implementation of the foreign exchange policy.
“The central bank’s commitment to cease direct or indirect financial support to public entities is a positive step to safeguard its financial position. Strengthening regulatory capacity, risk-based supervision, and monitoring of sovereign risk exposures are crucial for financial sector stability.
“Progress on structural reforms is needed to strengthen governance, enhance the anti-corruption framework, and improve the business environment to foster private sector development and job creation. The operationalization of the anti-corruption commission, pending National Assembly approval, is a key step.
“Steadfast implementation of the climate change agenda under the RSF will bolster the economy’s resilience to natural disasters and support long-term macroeconomic and balance of payments stability. Going forward, careful sequencing of reforms under both the ECF and RSF, supported by targeted capacity development support, will be important.”
