IMF approves new disbursement, extends support programmes for Gambia

The International Monetary Fund (IMF) has completed The Gambia’s 2026 Article IV Consultation and approved further financial support under its ongoing programmes, unlocking an immediate disbursement of SDR 16.58 million to support the country’s economic reforms.

The IMF Executive Board also approved a six-month extension of both the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF), alongside an increase in access under the ECF by SDR 12.44 million (20 percent of quota) to address emerging balance of payments pressures linked to the Middle East conflict.

Despite a challenging global environment, The Gambia’s economy remains resilient, with growth estimated at 6 percent in 2025. However, growth is projected to slow to 4.7 percent in 2026 before stabilizing at around 5 percent over the medium term, amid rising inflation driven by higher food and energy costs.

The IMF noted that while reform implementation has been mixed, the government remains committed to stabilizing the economy and advancing structural reforms. In response to fiscal slippages recorded at the end of 2025, authorities will tighten fiscal policy through increased revenue mobilisation and stricter expenditure controls.

The Central Bank is expected to maintain a tight, data-driven monetary policy stance to curb inflation and protect external stability, while preserving a market-determined exchange rate.

The IMF emphasised the need for stronger fiscal discipline, particularly in the 2026 election year, urging strict spending controls, improved public financial management, and enhanced oversight of state-owned enterprises to contain fiscal risks and safeguard debt sustainability.

Structural reforms will be accelerated to strengthen governance, improve the business environment, and support private sector-led growth and job creation. The IMF also called for progress in operationalising the anti-corruption framework and advancing key financial and audit legislation.

Support under the RSF will continue to focus on building climate resilience and integrating climate risks into economic planning, while capacity development assistance remains central to strengthening institutions, data systems, and policy implementation.

The IMF reaffirmed that sustained reform implementation will be critical to maintaining macroeconomic stability, reducing vulnerabilities, and securing inclusive, long-term growth for The Gambia.