This new financial assistance from the IMF demonstrates the international commitment to support Gambia in its economic and environmental challenges, while encouraging structural reforms for long-term sustainable development.
Major Financial Support for Gambia
The International Monetary Fund (IMF) has approved financing of 43.55 million USD for Gambia. This assistance is part of an agreement aimed at strengthening the country’s economic resilience in the face of current challenges, notably those related to climate change and macroeconomic stability.
Objectives and Use of Funds
This financing is intended to support the implementation of structural economic reforms, improve the management of green public finances, and promote the transition to a more resilient energy system. It is part of an 18-month Resilience and Sustainability Facility (RSF) designed to strengthen Gambian legal and institutional frameworks as well as enhance the collection and processing of climate data.
Economic Context and Outlook
Gambia is experiencing positive economic momentum, with real GDP growth projected at 5.7% in 2025, driven by the recovery of tourism as well as agriculture and construction sectors. Inflation has also decreased, reaching 8.1% in April 2025 after previously being significantly higher.
Call for Fiscal Discipline and Continued Reforms
Despite these improvements, the IMF warns of persistent fiscal pressures, particularly due to unforeseen expenses related to the National Water and Electricity Company (NAWEC). The institution urges the Gambian government to strictly adhere to its fiscal consolidation plans to preserve macroeconomic gains and ensure public debt sustainability.
The IMF also emphasizes the importance of continuing reforms in public financial management, governance, anti-corruption efforts, and the private sector to stimulate growth and job creation.
Financing Integrated into a Larger Program
This disbursement is part of a broader program that also includes support of 16.95 million USD under the Extended Credit Facility (ECF), totaling over 60 million USD recently mobilized for Gambia. These resources aim to support Gambia’s efforts toward sustainable economic growth and enhanced resilience to climate and economic shocks.
