Gambia Reaches IMF Staff-Level Deal That Could Unlock $28 Million

BANJUL, The Gambia — The Gambian authorities and International Monetary Fund staff have reached an agreement that could unlock approximately $28 million in additional financing, as the country advances economic and climate reforms while confronting electricity supply problems.

The agreement, announced October 30, covers the sixth review under the Extended Credit Facility (ECF) and the third review under the Resilience and Sustainability Facility (RSF).

It remains subject to IMF Executive Board approval and implementation of agreed prior actions. Completion would bring total disbursements under the two arrangements to approximately $142 million, according to the supplied IMF statement.

An IMF team led by Eva Jenkner visited Banjul from October 19–30 for the review discussions.

Growth Projected at 5.1 Percent

The IMF projects The Gambia’s economy will grow 5.1 percent in both 2026 and 2027, supported by construction, tourism and remittances.

Inflation eased to 6.1 percent in September, down from 7 percent in April, but remained above the Central Bank of The Gambia’s 5 percent target.

The fund described the outlook as favorable while identifying risks from global commodity prices, geopolitical uncertainty, climate shocks and weaknesses in the energy sector.

Electricity Crisis Puts Pressure on Public Finances

The IMF identified reliable electricity supply as a central challenge for economic stability.

According to the statement, the government provided emergency support to the National Water and Electricity Company, known as NAWEC, to clear arrears owed to regional electricity suppliers and restore generation capacity.

The fund called for improvements in operational efficiency, reduced losses, and stronger revenue collection. It also recommended moving toward tariffs that cover service costs while protecting vulnerable households.

Electricity disruptions have prompted authorities to reprioritize public spending, underscoring the connection between energy reliability and the government’s finances.

Most Program Targets Met

The Gambia met all eight quantitative performance criteria for the end of June 2026 and three of four indicative targets, according to the IMF. Tax revenue fell modestly short of its target.

Progress included improved cash management and the partial privatization of Gambia Telecommunications Cellular Company Limited, or GAMCEL.

The IMF said continued discipline would be necessary to meet end-of-December targets and advance public financial management and governance reforms.

Budget Plans Target Lower Deficit

The government’s 2027 budget targets an overall deficit of around 1 percent of gross domestic product, according to the statement.

The fund urged authorities to strengthen revenue collection, control expenditure, improve cash management and clear arrears on time while protecting priority social spending.

It also recommended a cautious monetary policy approach to bring inflation toward the central bank’s target. Although the banking sector remains resilient, the IMF flagged banks’ exposure to government debt and concentration risks for monitoring.

Accountability and Climate Reforms Continue

The IMF welcomed the National Audit Office’s clearance of longstanding audit backlogs and called for further steps to operationalize the Anti-Corruption Commission.

Other priorities include stronger transparency, central bank governance and a business environment that supports private investment and job creation.

Under the climate-focused RSF program, reforms include improved groundwater management and the integration of climate resilience into coastal zoning regulations.

The IMF said continued implementation could help reduce exposure to climate shocks, limit fiscal risks and attract climate financing.

Source: IMF staff statement dated October 30, 2026, supplied to Habari Entertainment. Financing remains conditional on Executive Board approval and agreed prior actions.

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