How the IMF is supporting Gambia’s post-COVID-19 recovery

The International Monetary Fund (IMF) has announced the successful completion of the first review of The Gambia's performance on the Extended Credit Facility arrangement. In light of this achievement, the IMF has disbursed 28.8 million USD to The Gambia. The IMF's Resident Representative to The Gambia, Mamadou Dioulde Barry, shed light on the key parameters that were scrutinized during this review. Barry highlighted the challenges posed by the COVID-19 pandemic, especially on the country's vital tourist sector. The lockdown measures implemented since March 2020 had a significant impact on businesses and households in The Gambia. However, despite these challenges, The Gambia's program performance exceeded expectations. The fiscal revenue mobilization and control remained robust, thanks to the efforts of the economic team led by the Minister of Finance and the governor of the central bank. The country's macroeconomic performance outperformed similar countries in Sub-Saharan Africa, with a projected 6 percent growth for the year. To sustain this momentum, Barry stressed the importance of continuing economic reforms and strengthening governance in areas such as public financial management and financial sector stability. Furthermore, the IMF's rapid credit facility disbursed 21.3 million USD to The Gambia in response to the pandemic, aiding the government's health crisis response and nationwide food distribution program. The additional COVID-19 funding grants received by The Gambia further supported its fiscal and monetary policies in meeting humanitarian and economic recovery needs. Looking ahead, Barry expressed confidence in The Gambia's fiscal position for 2021, with continued IMF support to address the ongoing challenges from the pandemic. However, he emphasized the need for vigilance and maintaining reform momentum to mitigate risks. The IMF report did flag concerns about mounting risks in The Gambia's financial sector, particularly relating to non-performing loans. While the sector remains relatively healthy compared to other African countries, ongoing monitoring and policy adjustments are crucial to address any emerging risks.