The Gambia has secured a major financial boost from the International Monetary Fund (IMF), following a staff-level agreement that could unlock up to $116 million in funding to support economic reforms and strengthen the country’s climate resilience.

The deal, announced this week, includes two key components: a third review of the government’s ongoing reform agenda under the IMF’s Extended Credit Facility (ECF), and a fresh request for access to the Resilience and Sustainability Facility (RSF).

The agreements were reached after an IMF mission, led by Eva Jenkner, held talks with authorities in Banjul from 2 to 16 April.

Subject to approval by the IMF Executive Board in June, The Gambia will receive a disbursement of about $16.8 million under the ECF, bringing total funding under that programme to $51 million.

An additional $65 million would become available under the RSF to help the country implement its climate change agenda.

“The Gambian economy is gaining momentum,” Ms. Jenkner said in a statement.

“We estimate growth at 6% in 2024, driven by strong performance in tourism and construction. Inflation has eased to 9.1% as of March and is expected to return to single digits by early 2025.”

Remittances and tourist arrivals have also strengthened, boosting foreign exchange reserves and investor confidence.

However, the IMF noted that fiscal performance in 2024 was weaker than anticipated, mainly due to unplanned expenditures.

These included transfers to the national utility company NAWEC and costs linked to hosting the Organisation of Islamic Cooperation (OIC) summit.

The fiscal deficit rose to 3.8% of GDP, with further commitments rolled over into 2025.

The Central Bank of The Gambia was recognised for efforts to stabilise inflation and strengthen financial sector oversight.

 The IMF noted its commitment to a market-driven exchange rate and limited intervention in the foreign exchange market, while addressing risks from non-performing loans.

By Adama Makasuba