The International Monetary Fund (IMF) has reached a staff agreement to provide $11.04 million to The Gambia, as approved by the IMF Executive Board.
This will bring the total IMF support to The Gambia under a 36-month loan agreement approved in January to $33.1 million.
Lenders approved $98.7 million in January and the program is expected to run from 2024 to 2026 after a review is completed.
The Gambia’s economy is expected to grow by 5.8% in 2024, driven by increased investment in agriculture, services, communications and construction, according to the International Monetary Fund.
“Continued policy discussions mainly focused on the fiscal trajectory for 2024 and 2025 intending to maintain fiscal responsibility. This includes increasing the room for responding to large social and developmental needs, protecting the most vulnerable, addressing climate-related risks and vulnerabilities, and ensuring gradual clearance of central government arrears and unsettled commitments.” Eva Jenkner, the IMF team lead noted in a statement.
Inflation in Gambia rose to 10% in September from a peak of 18.5% in September 2023, still above the central bank’s 5% target. In addition, the country has seen an increase in remittances as tourists return to pandemic levels.
The IMF completed its first review of the ECF in May, releasing $10.9 million to help protect the country’s economy. The International Monetary Fund had previously noted that the new foreign exchange policy, which was implemented in December 2023, would help largely close the gap between the exchange rate and the linked economy and reduce the foreign exchange gap.
