The International Monetary Fund (IMF) Executive Board has completed the second review of The Gambia's Extended Credit Facility (ECF). This arrangement, initially approved on January 12, 2024, amounts to SDR 74.64 million, approximately US$97.3 million. With this completion, The Gambia will receive an immediate disbursement of SDR 8.29 million (about US$10.8 million), raising total disbursements to SDR 24.87 million (US$32.4 million).
Economic recovery in The Gambia is showing signs of strengthening, with real GDP growth expected to reach 5.8 percent in 2024. Key factors contributing to this growth include a rebound in economic activity and recovering tourist arrivals approaching pre-pandemic levels. However, energy prices have caused inflation to rise slightly to 10 percent as of October 2024.
Despite strong revenue collection efforts, fiscal balances are pressured by spending for the Organization of Islamic Cooperation Summit and emergency support for the public utility company NAWEC. A new foreign exchange policy has been successful so far, with international reserves surpassing targets by September.
Projections indicate a growth rate of 5.9 percent in 2025 and around five percent over the medium term; however, risks remain from global conflicts and commodity price fluctuations impacting tourism and remittance flows.
Bo Li, Deputy Managing Director at IMF, commented: “The Gambia’s economic recovery is strengthening while inflation has trended down." He acknowledged mixed program implementation but noted satisfactory adherence to quantitative performance criteria despite delays in structural benchmarks.
Li emphasized the importance of fiscal consolidation: “Continued commitment to fiscal consolidation is critical to reduce fiscal risks and preserve debt sustainability." He highlighted several strategies including finalizing the Domestic Revenue Mobilization Strategy and improving expenditure structures.
On monetary policy matters: “The Central Bank of The Gambia has appropriately maintained its tight monetary policy stance.” Li also praised improvements following the new foreign exchange policy introduction.
Structural reforms are deemed essential for enhancing governance and business environment improvement: “Progress with structural reforms will be essential,” Li stated while stressing climate-related policies' importance for resilience against climate risks.