An International Monetary Fund (IMF) team, led by Eva Jenkner, conducted discussions in Banjul from April 2 to April 16, 2025. The team reached a staff-level agreement regarding the third review of the program supported under the 36-month Extended Credit Facility (ECF) arrangement approved in January 2024. This program allows for a total access of SDR 74.64 million, approximately US$100.9 million. Subject to the IMF Executive Board's approval, completing this review will enable a disbursement of SDR 12.44 million, about US$16.8 million, increasing the total disbursement under the arrangement to SDR 37.71 million, or approximately US$51.0 million.
Additionally, a staff-level agreement was reached for access under the Resilience and Sustainability Facility (RSF), potentially granting SDR 46.65 million, about US$65 million, to enhance climate change resilience. The IMF Executive Board is tentatively expected to convene in mid-June 2025 to review these agreements.
Following the discussions, Ms. Jenkner said, "Economic activity is strengthening. Growth is estimated at 6 percent for 2024, supported by tourism and construction sectors. Tourist arrivals continued to recover, reaching a level close to the pre-pandemic peak levels. Remittance inflows also strengthened. Inflation declined to a single digit (9.1 percent) in March while remaining above the central bank’s medium-term objective of 5 percent."
She further explained the fiscal performance in 2024 was weaker than anticipated due to unbudgeted spending pressures and faster execution of donor-financed projects. Ms. Jenkner noted, "Fiscal performance in 2024 was weaker than anticipated, largely due to unbudgeted spending pressures, transfers linked to earmarked revenues and faster execution of donor financed capital projects, despite strong revenue collection performance. Current spending largely exceeded initial plans as transfers of third-party revenue had not been reflected in the budget and there have been pressures from unbudgeted support to the National Water and Electricity Corporation (NAWEC) and the Organization of Islamic Countries (OIC) summit. Similarly, donor financed capital projects continued at a high pace. As a result, the overall deficit exceeded projections, reaching 3.8 percent of GDP. In addition, about 0.4 percent of GDP of unpaid commitments were carried over to 2025."
Despite these challenges, the authorities remain committed to meeting program targets and the structural reform agenda. "The authorities remain committed to meeting the program’s targets and structural reforms agenda, albeit with some delays. Quantitative objectives under the ECF-supported program have been largely met. All seven quantitative performance criteria but one (ceiling on net domestic borrowing) and all quantitative indicative targets were met. Also, progress was made on significant structural benchmarks relative to public procurement, the management of state-owned enterprises (SOEs), expansion of the social registry, and improved budgeting. The public debt-to-GDP ratio remains on a downward trajectory. The authorities are committed to maintaining fiscal responsibility in 2025 and in the medium term to be able to respond to The Gambia’s large social and developmental needs in a sustainable manner," Ms. Jenkner stated.
Jenkner emphasized the central bank's efforts, stating, "The Central Bank of The Gambia (CBG) is committed to keeping inflation on a firm downwards trajectory and meeting its medium-term objective. It will also remain vigilant to ensure a market-determined exchange rate, and a smooth functioning of the foreign exchange market supported by a policy that limits any foreign exchange market interventions to only alleviate excess market volatility. Considering the elevated non-performing loans, the CBG is determined to strengthen financial sector resilience to future shocks. Focusing on its core mandate, the CBG will preserve a strong financial position."
She also touched on the government's reform agenda, noting, "Following the publication of its Governance Diagnostic Roadmap in December, the government is strengthening its reform agenda on governance and anti-corruption, improved public service delivery, public access to financial and legal information, and an enhanced business environment to encourage private sector-led investment and growth."
The IMF mission engaged with various officials, including the Minister of Finance and Economic Affairs, Seedy Keita, and other key figures from the government and private sector.