The International Monetary Fund (IMF) approved approximately US$23 million in new funding for The Gambia and extended its Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) programmes by six months. The decision, finalized on July 6, followed the conclusion of the 2026 Article IV consultation and the completion of the fifth review of the ECF arrangement and the second review of the RSF arrangement. The approval permits the immediate disbursement of SDR16.58 million, equivalent to about US$22.51 million, under the two programmes.
Economic Outlook and Challenges
The International Monetary Fund (IMF) stated The Gambia’s economy remained resilient, with gross domestic product (GDP) growth estimated at 6 percent in 2025. However, inflation has increased in recent months within the country. The war in the Middle East has also added pressure to The Gambia’s economic outlook, increasing domestic risks. Economic growth in The Gambia is expected to slow to 4.7 percent in 2026 before stabilising at around 5 percent over the medium term. The IMF acknowledged the ongoing pressures from persistent global shocks and domestic challenges. These factors continue to influence the country's financial stability and development prospects. Maintaining fiscal discipline and implementing structural reforms are key for sustaining the observed resilience and addressing the inflationary trends impacting the population. The broader geopolitical landscape, particularly the conflict in the Middle East, introduces external vulnerabilities that necessitate careful economic management and policy responses.
Fiscal and Monetary Policy Commitments
The Gambian authorities are committed to the objectives of the Extended Credit Facility (ECF) and Resilience and Sustainability Facility (RSF) programmes, according to the International Monetary Fund. Fiscal policy will be tightened in response to spending overruns recorded at the end of 2025 through stronger revenue mobilisation and spending reprioritisation measures. The Central Bank intends to continue its efforts to contain inflation and maintain external stability.
Bo Li, Deputy Managing Director of the IMF, stated, "The authorities are committed to tightening fiscal policy in 2026 and 2027 to correct the fiscal slippage in 2025 through additional revenue mobilization efforts and stronger fiscal discipline." Li added that the authorities remain dedicated to safeguarding fuel revenue despite significant increases in fuel import prices. He emphasized the importance of containing spending pressures in the current election year through strict expenditure prioritization and control. This approach will accommodate targeted short-term mitigation measures, including cash transfers to protect vulnerable populations, which are financed by a World Bank grant.
Maintaining a tight monetary policy stance is considered necessary as inflationary pressures increase within the country. Preserving external stability is critical, and this will be achieved by maintaining a market-determined exchange rate. The implementation of measures aimed at refraining from quasi-fiscal operations has been noted as a positive development.
Structural Reforms and Capacity Support
The IMF Executive Board approved an increase in access under the Extended Credit Facility (ECF) arrangement by SDR12.44 million, equivalent to 20 percent of The Gambia’s quota. The International Monetary Fund's capacity development support is assisting reforms in revenue administration, public financial management, oversight of state-owned enterprises, data reporting, and climate resilience in The Gambia. Further strengthening public financial management will support fiscal discipline and accountability. Containing fiscal risks from state-owned enterprises (SOEs) and improving data consistency are considered key to enhancing transparency, while strengthening supervisory capacity and advancing risk-based supervision, alongside close monitoring of sovereign exposures, will be important for maintaining financial stability.
IMF Deputy Managing Director Bo Li stated, "Continued progress on structural reforms is needed to strengthen governance, enhance the anti-corruption framework, and improve the business environment to support private sector-led growth and job creation." Li added that the authorities have advanced key reforms with extensive Fund capacity development support. He emphasized that continued capacity development will be critical to strengthen implementation capacity, including in revenue administration, public financial management, financial sector oversight, and statistics, and to address remaining data gaps. Li noted that steadfast implementation of the climate agenda under the Resilience and Sustainability Facility will support resilience, stability, collaboration with development partners and the private sector, and help mobilize additional financing.