He said inflation currently stands at about 6.9 percent, down sharply from 14.2 percent in 2023, describing the decline as significant progress even though prices remain high in local markets. According to the Fund, inflation measures the speed at which prices rise, not whether prices actually come down.
He acknowledged that food remains the main driver of inflationary pressure in The Gambia, largely because the country relies heavily on imports and is exposed to global price movements.
“Food prices are coming down compared to where they were in 2023, based on the data, but the adjustment is gradual.”
The IMF warned that until inflation reaches its medium-term target of five percent, authorities must remain cautious. It advised that tightening monetary policy remains a necessary tool for countries where inflation is still above target, stressing the need for consistency in economic management.
The inflation debate emerged during the presentation of the IMF’s flagship Regional Economic Outlook, themed: ‘Holding Steady’, held at the Sir Dawda Kairaba Jawara International Conference Centre in Bijilo. The report reviews economic developments across Sub-Saharan Africa and outlines policy challenges facing countries like The Gambia.
He also used the platform to explain the country’s ongoing economic programs with the Fund, amid persistent public skepticism. The Gambia is currently implementing two IMF-supported programs: the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).
Under the ECF, which runs from 2024 to December 2026, The Gambia has access to US$100 million, with US$68 million already disbursed, including US$17 million released earlier this week. The IMF stressed that the facility carries zero interest, a five-and-a-half-year grace period, and a 10-year maturity.
“Whatever the country borrows is exactly what it repays,” he said, pushing back against claims that IMF programs worsen financial pressure.
On public debt, he acknowledged that The Gambia remains at high risk of debt distress, a classification jointly assessed with the World Bank. However, officials noted that the overall debt level is gradually declining under the current program, describing this as one of its key anchors.
“The debt is still high, but it is sustainable,” the IMF said, adding that improved data, transparency and stronger public financial management are critical to managing debt more effectively.
