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About

The Gambia is the smallest country on mainland Africa. Defined by the Gambia River, which flows east to west, the river shapes the country’s geography, creating fertile plains and supporting rich ecosystems that are central to the national economy. The country is surrounded by Senegal, except for its Atlantic coastline, and has a population of approximately 2.5 million. Covering just 10,700 square kilometers, The Gambia is one of Africa’s most densely populated countries, with 176 people per square kilometer. More than half of the population (57%) live in urban and peri-urban areas.

Political Context

The 2016 presidential election marked the end of 22 years of autocratic rule under Yahya Jammeh, ushering in a new era with President Adama Barrow assuming office in 2017. Re-elected in 2021, Barrow’s administration has been navigating a complex post-dictatorship transition focused on democratic consolidation and institutional reform. A cornerstone of this transition has been constitutional reform. However, efforts to replace the 1997 Constitution have repeatedly stalled. A revised draft introduced in July 2025 was rejected by the National Assembly, echoing a similar outcome in 2020. The next presidential election is scheduled for December 2026.

Economy

Economic growth in The Gambia accelerated to 5.3% in 2024 (3.0% per capita), driven by industry and services, with tourism and construction playing key roles. Agriculture contracted due to poor weather, though livestock and fisheries performed well. Growth was supported by higher private investment, remittances, and public spending linked to the OIC Summit. GDP is projected to grow by 5.7% in 2025 (3.4% per capita), with broad-based sectoral expansion and continued recovery in tourism and trade.

Inflation eased to 11.7% in 2024 and is expected to fall to 9% in 2025 due to tighter monetary policy and lower global prices. Rising labor incomes and remittances improved household consumption and living standards, contributing to a decline in extreme poverty to 20.7% in 2024, with a slight drop to 20.4% projected for 2025. The government is also scaling up targeted social programs to cushion vulnerable groups from economic shocks.

The fiscal deficit widened to 3.9% of GDP in 2024 due to unbudgeted spending but is expected to narrow to 1.4% in 2025 with stronger revenue collection. Public debt declined to 74.4% of GDP in 2024 and is projected to fall further to 71.3% in 2025, though the country remains at high risk of debt distress per June 2025 WB/IMF Debt Sustainability Analysis.

The current account deficit rose to 5.8% of GDP in 2024 due to OIC-related imports but is expected to narrow to 5.0% in 2025. The Central Bank maintained a tight monetary stance, keeping its policy rate at 17%. International reserves are projected to rise to 4.4 months of imports in 2025, while the exchange rate is expected to depreciate by 5.2% annually. The banking sector remains stable, with non-performing loans declining from 13.5% in March to 8.9% in June 2025.

Last Updated: Oct 06, 2025

Country Partnership  

ľ¹ÏÓ°Ôº Group’s efforts in The Gambia are guided by the current Country Partnership Framework (CPF) for the period 2022-2026. Aligned with the country’s Recovery Focused National Development Plan (2023-2027), the CPF was developed in consultation with government, civil society, private sector stakeholders, and development partners.

Anchored in two cross-cutting principles: Accelerate Cross-sectoral Digital Transformation; and Empower Women and Girls, the CPF focuses on accelerating the transition out of fragility through three priorities:

• Strengthening Transparency, Accountability, and Effectiveness in Governance to support the efforts to improve the transparency, accountability, and effectiveness of public administration and to provide room in the government’s budget for productive investments in infrastructure and human capital.

• Enabling Inclusive and Resilient Private Sector-Driven Job Creation to support efforts to create an enabling business environment that fuels job creation by investing in infrastructure, strengthening the role of commercial agriculture, boosting the tourism sector, and increasing urban, coastal, and climate resilience.

• Enhancing Human Capital Investments to Develop a Productive Workforce to support efforts to improve the quality of and access to essential healthcare, expand social protection services, enhance the quality of education, and explore ways to improve the skills and employability of women and youth.

ľ¹ÏÓ°Ôº Group’s portfolio in The Gambia is driving inclusive growth and resilience by supporting governance reforms, human capital development, infrastructure expansion, and climate adaptation. Currently, the active portfolio comprises seven national projects totaling $420 million, plus several regional initiatives.

Last Updated: Oct 06, 2025

Development  

Energy and Water

The Gambia Electricity Restoration and Modernization Project (P163568), approved for $43 million in 2018 with an additional $41 million in 2020, has improved the operational and financial performance of the National Water and Electricity Company. 

Social Protection

The Resilience, Inclusion, Skills, and Equity Project (P175743) with $92.71 million in financing, aims to improve foundational learning, expand vocational training, and scale up the Nafa cash transfer program. 

Health

The Gambia Essential Health Services Strengthening Project (P173287) with $30 million in financing, aims to improve the quality and utilization of essential health services and bolster public health preparedness. 

Digital

The Digital Transformation for Africa/Western Africa Regional Digital Integration Program – Series of Projects 1 with a US$50 million allocation, is building a competitive, secure, and integrated digital economy through national and regional investments. 

Statistics

The Harmonizing and Improving Statistics in West and Central Africa Project (P178497) with US$30 million in financing, seeks to strengthen the foundations of the national statistical system to support production and use of accurate, complete, reliable, relevant, and timely statistics. 

Agriculture

The $40 million Inclusive and Resilient Agricultural Value Chains Development Project (P173070) aims to boost productivity, climate resilience and agribusiness development across rice, horticulture, cashew, and poultry value chains. 

Tourism

The Tourism Diversification and Resilience Project is promoting sustainable tourism by enhancing climate resilience, supporting MSMEs, and improving competitiveness through digital innovation.

Environment and Disaster Risk Management

The West Africa Coastal Areas Resilience Investment Project 2 (WACA ResIP 2) addresses disaster risk, flood protection, and sustainable urban infrastructure, supporting The Gambia’s climate adaptation goals.

Last Updated: Oct 06, 2025