## IMF Staff Completes Discussions for the Fourth Review under the Extended Credit Facility Arrangement for The Gambia

_IMF News, April 9, 2022_

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## Bibliographic details
- Published: April 9, 2022

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### Mission scope and timing
- Mission dates: March 28–April 8, 2022.
- Press release date: April 9, 2022.
- Mission led by: Mr. Ivohasina Fizara Razafimahefa, Mission Chief for The Gambia.
- Purpose: Fourth review of The Gambia’s economic program supported by the IMF’s Extended Credit Facility arrangement (ECF).
- Staff-level agreement reached with the authorities on financial and economic policies to support the IMF Executive Board’s completion of the fourth review.
- IMF Executive Board consideration of the staff report on the review is tentatively scheduled in June 2022.
- Upon Board approval, SDR 5 million (equivalent to about US$7.0 million) will be made available to The Gambia.
- Note: All statements reflect IMF staff views and do not necessarily represent the views of the IMF’s Executive Board.

### Key macroeconomic developments and outlook
- 2021 real GDP growth: 5.6 percent (rebound from COVID-19 low; driven by some recovery in the tourism sector and robust private construction).
- 2022 growth projection: around 5.6 percent.
- Medium-term growth projection: strengthening to an annual average of 6 percent.
- Inflation:
  - December 2021: 7.6 percent.
  - February 2022: 8.3 percent.
- Foreign exchange reserves: strengthened further, reaching almost 6 months of prospective imports in December 2021 (partly reflecting the IMF’s August 2021 SDR allocation).

### Fiscal, monetary, and external conditions
- Fiscal performance in 2021: weakened due to mounting spending pressures, primarily additional health spending and election-related security spending, and a shortfall in external budget support grants.
- Monetary policy: Central Bank continued to maintain a supportive monetary policy stance; IMF staff note monetary policy will need to be tightened in the face of increased inflationary pressures while safeguarding the fragile recovery.
- External shocks: Repercussions of the war in Ukraine are weighing on the rebound and fueling inflationary pressures; government determined to take necessary measures to tackle implications, such as revenue loss stemming from the recent surge in global commodity prices.

### Program performance and structural reforms
- Quantitative/indicative targets:
  - All but one quantitative performance criterion at end-December 2021 were met.
  - All but one indicative target at end-December 2021 were met.
- Structural reforms progressing in areas including:
  - Institutional framework of State-Owned Enterprises (SOEs).
  - Transparency of COVID-19 spending.
  - Public financial management.
  - Revenue administration, including tax expenditure policy and digitalization of tax collection systems.
  - Budget and debt management processes.
- Transparency measures for COVID-19 spending:
  - Authorities continue to publish the list of all COVID-19-related procurement contracts and their beneficiary owners on the Gambia Public Procurement Agency’s (GPPA) website.
  - National Audit Office (NAO) completed and published the first phase of an ex-post audit of COVID-19 spending.
- SOE governance: Good progress reported in strengthening the institutional framework.

### Policy recommendations and authorities’ commitments
- Fiscal policy:
  - Government determined to take all necessary measures to tackle implications of external shocks and revenue losses from surging global commodity prices.
- Monetary policy:
  - Need to tighten monetary policy in response to increased inflationary pressures while safeguarding the fragile economic recovery.
- Continued commitment to:
  - Full transparency of COVID-19-related spending.
  - Advancing structural reforms in revenue administration, public financial management, and SOE governance.

### Engagements and stakeholders consulted
- Meetings with Gambian leadership and officials:
  - His Excellency Adama Barrow, President of The Republic of The Gambia.
  - Her Excellency Isatou Touray, Vice President of The Republic of The Gambia.
  - Minister of Finance and Economic Affairs, Mambury Njie.
  - Minister of Justice, Dawda Jallow.
  - Minister of Trade of Trade, Industry and Regional Integration, Seedy Keita.
  - Minister of Tourism and Culture, Hamat Bah.
  - Governor of the Central Bank of The Gambia, Buah Saidy.
  - Senior staff of multiple ministries and state-owned enterprises (ministries listed in mission statement).
- Consultations with non-government stakeholders:
  - Representatives of the private sector, civil society, banks and microfinance institutions, and development partners—who showed strong support for the reforms under the ECF-supported program.

_International Monetary Fund, IMF Communications Department (Press Release No. 22/112), April 9, 2022._

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## References

- [The Gambia and the IMF](http://www.imf.org/external/country/GMB/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [The Gambia and the IMF](https://www.imf.org/en/Countries/GMB)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2022/04/09/pr22112-imf-staff-completes-discussions-fourth-review-ecf-the-gambia_