By: Haddy Touray
The International Monetary Fund (IMF) has approved a new $63.5 million financing arrangement to help The Gambia tackle climate change challenges and build long-term resilience, while also releasing $16.95 million under its ongoing economic reform program.
A statement made available on Wednesday, the IMF said its Executive Board endorsed an 18-month Resilience and Sustainability Facility (RSF) arrangement for The Gambia, amounting to SDR 46.65 million (approximately $63.55 million). Disbursements under the RSF will begin after the first review of the program is completed.
The statement further stated that the fund completed the third review of The Gambia’s Extended Credit Facility (ECF), which was approved in January 2024. This allows for the immediate release of SDR 12.44 million (about $16.95 million), bringing total disbursements under the ECF to over $50 million.
According to the IMF, the RSF will support The Gambia in strengthening its legal and institutional frameworks, improving green public finance, managing climate data, and transitioning to a more resilient energy system.
The country’s economic outlook remains positive, with real GDP projected to grow by 5.7 percent in 2025, driven by the recovery of tourism and steady performance in agriculture and construction. Inflation has eased to 8.1 percent as of April 2025.
However, the fund warned of ongoing fiscal pressures, particularly from unbudgeted spending linked to the National Water and Electricity Corporation (NAWEC). It urged the government to adhere strictly to its fiscal consolidation plans to safeguard recent macroeconomic gains and ensure debt sustainability.
IMF Deputy Managing Director Bo Li praised the government’s economic momentum and reaffirmed the need for continued reform efforts, especially in public financial management and governance. He welcomed the central bank’s tighter monetary policy and its move to end direct financing of public entities.
He also emphasized the importance of advancing anti-corruption measures and private sector reforms to unlock growth and create jobs.
The IMF expects the new climate facility to strengthen coordination between Gambian authorities and development partners, supporting both environmental and economic goals.
The Gambia is among a growing number of African nations benefiting from the IMF’s newly created RSF, which aims to address climate vulnerabilities while ensuring long-term financial stability.
