Gambiaj.com – (Washington, DC) – The International Monetary Fund (IMF) announced a key development in its partnership with The Gambia, following a recent round of discussions held in Washington, DC, led by IMF mission chief Eva Jenkner and Gambian authorities. This engagement builds on previous discussions held in Banjul from September 30 to October 11, 2024, as part of the IMF’s 36-month Extended Credit Facility (ECF) arrangement initiated earlier this year.

The IMF and Gambian officials reached a staff-level agreement on the second review of the program, which grants The Gambia access to Special Drawing Rights (SDR) totaling 74.64 million (approximately US$99.4 million). Pending approval by the IMF Executive Board, which is tentatively scheduled for December 20, 2024, the successful completion of this review would enable a disbursement of SDR 8.29 million (about US$11.04 million), bringing the total amount released under this arrangement to approximately US$33.1 million.

The IMF’s mission chief, Ms. Jenkner, acknowledged the Gambian government’s commitment to its reform agenda and broader economic objectives, particularly in fiscal and social sectors. She noted that economic activity in The Gambia continues to strengthen, with projected growth of 5.8 percent for 2024, driven largely by agriculture, services, telecommunications, and construction sectors.

Inflation, though, remains a challenge; it reached 10 percent in September 2024, down from a peak of 18.5 percent the previous year but still above the Central Bank of The Gambia’s medium-term target of 5 percent.

The discussions in Washington focused on shaping The Gambia’s fiscal policies for 2024 and 2025 to bolster economic resilience. Key objectives include enhancing fiscal responsibility to address the country’s social and developmental needs while protecting its most vulnerable populations. The program also prioritizes tackling climate risks, reducing central government arrears, and meeting outstanding commitments.

Under the ECF-supported program, The Gambia aims to navigate its fiscal challenges within a medium-term framework designed to reduce debt vulnerabilities and stabilize the economy.

The new disbursement, if approved, is expected to support The Gambia in meeting its immediate developmental goals while positioning the nation on a path toward long-term financial sustainability.