Press release
An International Monetary Fund (IMF) team, led by Ms. Eva Jenkner, held discussions in Banjul from April 22-May 6, 2026, and via remotely thereafter, under the 2026 Article IV Consultation. A staff-level agreement was reached on the fifth review of the program supported under the 36-month ECF arrangement approved in January 2024 for total access of SDR 74.64 million (about US$102.2 million). This agreement, which includes a six-month extension of the ECF arrangement to July 2027 along with an augmentation of access by SDR 12.44 million (about US$17.0 million) to help address current challenges stemming from the war in the Middle East, is contingent on the implementation of the prior actions agreed and is subject to approval by the IMF’s Executive Board. The agreement would enable a disbursement of SDR 6.22 million (about US$8.5 million), bringing the total disbursement under the ECF arrangement to SDR 55.97 million (about US$76.6 million).
A staff-level agreement was also reached on the second review under the 18-month RSF arrangement approved in June 2025 for total access of SDR 46.65 million (about US$63.9 million). This would enable a disbursement of SDR 10.36 million (about US$14.2 million) bringing the total disbursement under the RSF to SDR 25.9 million (about US$35.5 million). This agreement also includes an extension of the RSF arrangement by six months, to July 2027, to allow more time for implementing these important reform measures. The IMF Executive Board is tentatively scheduled to meet in early July 2026.
At the conclusion of the discussions, Ms. Jenkner issued the following statement:
“Economic recovery remains strong, while inflation has decelerated. Real GDP growth is estimated at 6.0 percent in 2025, supported by agriculture and construction. Tourist arrivals and remittance inflows remained robust. After peaking at 18.5 percent (year-over-year) in September 2023, headline inflation reached 7.0 percent (year-over-year) in April 2026 due to lower global food and energy prices over most of the period. However, headline inflation remains above the central bank’s medium-term target of 5 percent, and the impact on inflation of higher commodity prices due to the ongoing war in the Middle East has started to emerge. The war is expected to affect significantly the macroeconomic outlook and amplify domestic risks in 2026 and beyond.
“Fiscal performance in 2025 was weaker than anticipated. Tax revenue overperformed, but spending exceeded targets due to unbudgeted spending on transfers, arrears payments, emergency subsidies for the National Water and Electricity Company Limited, and emergency support to the National Food Security Processing and Marketing Corporation. This resulted in a larger-than-expected fiscal deficit of 5 percent of GDP. Public debt reached about 79 percent of GDP in 2025 and remains sustainable. Given limited fiscal buffers, fiscal policy will need to remain prudent while managing the challenging impact of the war in Iran which will require the reallocation of some expenditure.
“Five out of seven quantitative performance criteria (QPCs) for end-December 2025 were met. Two QPCs were missed by a large margin mainly due to expenditure overruns. All indicative targets were met. Out of six structural benchmarks, five benchmarks to improve public financial management, statistics and financial sector stability have been completed, and the last measure is expected to be taken within the coming weeks.
“The Central Bank of The Gambia (CBG) should keep a tight policy stance and incorporate forward-looking analysis to bring inflation back to its medium-term target of 5 percent. The exchange rate should be determined by market forces by limiting foreign exchange market interventions to the mitigation of excessive market volatility and to reserve accumulation. The CBG is strongly encouraged to focus on its core mandate and cease any financial assistance, whether directly or indirectly, to the public sector. The ongoing revision of the CBG Act should reflect these principles. The banking sector remains sound, though high exposure to the public sector deserves scrutiny.
“The government is encouraged to strengthen its reform agenda on governance and anti-corruption, to facilitate access to public information and to promote conditions for private investment-led growth. The establishment of the anti-corruption commission would be a positive signal.
“From a climate perspective, the authorities are now equipped to incorporate analysis of fiscal risks into their budget process and identified a window of opportunity to implement a carbon-based excise, which will in the short term reduce the fiscal burden on fuels and align fuel prices with carbon content once prices return to more moderate levels.
“The IMF will continue to work closely with the Gambian authorities and stands ready to help them through financing, policy advice, and strong technical assistance.”
