The World Bank in The Gambia

Stretching for 450 km along the Gambia River, the country is surrounded by Senegal. The country is among the smallest in Africa, covering 10.7 thousand square kilometers and with a population of 2.5 million. With 176 people per square kilometer, it is among the most densely populated countries in Africa. Most of the population (57%) is concentrated around urban and peri-urban centers.

Political Context 

The Gambia is a multiparty republic. Under the 1997 constitution, the President is the head of state and government, elected by universal suffrage to a five-year term. The 2016 Presidential Election led to the end of the autocratic rule of former President Yahya Jammeh, who was in power from 1994 to 2017.

The incumbent President Adama Barrow was declared the winner by the Independent Electoral Commission (IEC) with 53.2% of the vote and was inaugurated for a second term on January 19, 2022. The next presidential election is expected to take place in December 2026.

Economic Overview  

Economic growth accelerated to an estimated 5.7% (3.4% in per capita terms) in 2024, driven mainly by agriculture and services. Industry slowed following the completion of major infrastructure projects related to the Organization of Islamic Cooperation (OIC) Summit. Robust private investment and consumption, supported by remittances, and public consumption, boosted growth on the demand side. Inflation moderated to 11.7% in 2024 as energy and food prices slowed. Higher labor incomes – driven by a successful harvest, public construction works, and a recovery of tourism – and soaring remittances supported household consumption and contributed to better household living standards. In combination with lower inflation, extreme poverty is estimated to have declined to 16.2% in 2024, from 17.3% in 2023.

The fiscal deficit decreased to an estimated 3.5% of GDP in 2024, as increased domestic revenue and decreased capital spending offset higher interest payments and current transfers. Public debt continued to decline to an estimated 70.6% of GDP in 2024. Nevertheless, The Gambia remains at high risk of debt distress, as highlighted by the joint December 2024 WB/IMF Debt Sustainability Analysis.

The current account deficit (CAD) increased to an estimated 5.7% of GDP in 2024, reflecting large OIC event-related imports. The Central Bank has maintained a tight monetary stance, keeping its policy rate at 17% in November 2024, unchanged since August 2023. International reserves, while remaining at comfortable levels, are estimated to have declined to 4.7 months of imports in 2024, from 4.9 months in 2023, as the currency depreciated by 7.2% in nominal terms over the same period. The banking industry remains stable and financially sound, despite elevated non-performing loans.

Last Updated: Apr 09, 2025

The Country Partnership Framework (CPF) for the period 2022-2026  is aligned with The Gambia’s National Development Plan (NDP) and focuses on accelerating the country’s transition out of fragility. This partnership between the World Bank Group and The Gambia covers 3 priority areas: 

• 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.  

The CPF is anchored in two cross-cutting principles: i) Accelerate Cross-sectoral Digital Transformation; and ii) Empower Women and Girls.

The mid-term review of the CPF Performance and Learning Review (PLR) is currently under preparation. The PLR assesses progress in implementing the Country Partnership Framework (CPF) program and introduces necessary changes and course corrections

The Government of The Gambia accessed its first Turnaround Allocation (TAA) in November 2021. The TAA eligibility note was embedded in the FY22-FY26 Country Partnership Framework (CPF). While The Gambia has already benefited from its third year, eligibility was reconfirmed for FY25 to consolidate ongoing reforms. The FY24 annual review confirms the Government’s commitment. For three years, the TAA has provided The Gambia with critical financing, bringing the allocation to US$253.7 million for IDA20. 

Last Updated: Apr 09, 2025

Energy and Water

The combined national and regional energy projects under supervision are worth over US$200 million. The Gambia Electricity Restoration and Modernization Project (GERMP, P163568) was approved for US$43 million in May 2018 with additional financing of US$41 million approved in 2020.  Complementary regional projects include the OMVG Regional Interconnection Project (with US$47 million World Bank financing out of an US$86 million allocation) and the ECOWAS Regional Access Project (US$66 million allocation for The Gambia).

This portfolio has enabled much-improved operational and financial performance for the National Water and Electricity Company (NAWEC). These operations are providing critical infrastructure support to the utility:

• Development of the first utility-scale solar power plant in The Gambia (23 MWp + 8 MWh battery storage);
• Inauguration of the first national 225 kV high-voltage transmission line;
• Electrification of over 600 rural communities;
• Interconnection with the regional network, enabling access to affordable hydropower;
• Mentorship and learning program for women, with over 100 beneficiaries in technical and non-technical roles.

Social Protection

The World Bank is supporting the Social Protection sector through the cross-sectoral Resilience, Inclusion, Skills, and Equity (RISE) project.

Key results include:

• Completion of the full cycle of the Nafa program, implemented by the National Nutrition Agency (NaNA), which started under the previous Gambia Social Safety Net project, delivering the 36 months of cash transfers and Social and Behavioral Change Communication (SBCC) activities for about 17,000 households in the 20 poorest districts;
• Development of a productive economic inclusion program (PEI), starting with a pilot round of 1,000 beneficiaries in 2025;
• Strengthening the national social protection system through support to the National Social Protection Agency (NSPA);
• Continued efforts to enhance the system’s ability to respond to climate shocks through adaptive social protection.

Health

The Gambia Essential Health Services Strengthening Project [P173287] (US$30 million), approved in October 2020, aims to improve the quality and utilization of essential health services and strengthen the national system for public health preparedness.

Notable activities the project has supported include:

• Establishment of the national health insurance authority for the rollout of the National Health Insurance Scheme;
• Support to the postgraduate medical training program for Gambian doctors;
• Establishment of Bachelor of Science (BSc) degree programs for Nurse Anesthesia and Midwifery, as well as postgraduate diploma programs for Anesthesia, Midwifery, Pediatrics and Perioperative Nursing; supported by a clinical simulation laboratory for nursing education;
• Establishment of an electronic civil registration and vital statistics system;
• As of February 28, 2025, over 1.1 million people had been registered through combined birth and health insurance campaigns.
• Ongoing construction and equipping of the national emergency treatment center and intensive care unit in Farato;
• Digitalization of the health sector by the Ministry of Health, through the establishment of health information systems that are interoperable with the existing District Health Information Software 2 (DHIS2).

Education

The World Bank is supporting the Ministry of Basic and Secondary Education (MoBSE) in improving foundational learning and strengthening education management. The Gambia Resilience, Inclusion, Skills, and Equity (RISE) Project addresses critical gaps in literacy and numeracy among early-grade students and is expected to benefit over 216,000 students, significantly enhancing the country’s education quality.

In post-secondary education, the RISE Project is designed to strengthen Technical and Vocational Education and Training (TVET) through the establishment of two TVET Centers of Excellence and a newly established Skills, Innovation, and Entrepreneurship Fund, benefiting over 4,000 individuals, half of whom are women.

Digital

The Gambia’s digital sector is rapidly evolving, with increasing mobile and internet penetration driving economic transformation. While the ICT sector contributes around 4% of GDP, digital services are becoming critical enablers of inclusion, government and growth. Key constrains remain.

To address these constraints and accelerate digital development, The Gambia is benefiting from a US$50 million allocation under the Digital Transformation for Africa/Western Africa Regional Digital Integration Program – Series of Projects 1 (WARDIP-SOP1). The project is fostering a competitive, secure, and integrated digital economy through a combination of national and regional investments.

Key interventions include:

• Expanding Digital Infrastructure: Deployment of a second submarine cable to improve broadband affordability, enhance international connectivity, and increase network resilience;
• Legal and Regulatory Modernization: Reforming the telecom and digital market regulatory frameworks to promote competition, encourage investment, and strengthen consumer protection;
• Cybersecurity and Data Protection: Establishing a trustworthy data ecosystem to ensure digital security, protect personal data, and build confidence in online transactions;
• Fostering Digital Innovation: Supporting entrepreneurs and tech startups through incubation programs and investment in digital skills to drive job creation and competitiveness;
• Enhancing Digital Payments and Financial Inclusion: Developing interoperable payment systems to improve financial access, streamline transactions, and expand digital financial services;
• Strengthening E-Government Services: Modernizing government platforms and digital services to improve public service delivery and administrative efficiency.

Statistics

Under the “Harmonizing and Improving Statistics in West and Central Africa Project” (HISWACA, P178497), the World Bank supports The Gambia in strengthening the foundations of the national statistical system to support the production and use of accurate, complete, reliable, relevant, and timely statistics.

The project development objective (PDO) is to “improve country statistical performance, regional harmonization, data access and use, and to enhance modernization of the statistical system in participating countries.”

The Gambia received an allocation of US$30 million (IDA Grant E1750-GM) to (i) strengthen the harmonization and production of core [economic, social, price, and environmental] statistics using international data quality standards, (ii) support statistical modernization, institutional reform, human capital development, data accessibility and use, and (iii) finance the construction, upgrading, and modernization of physical infrastructure.

The Gambia Bureau of Statistics (GBoS) is leveraging the project to implement an ambitious survey program to support the successful rebasing of national accounts and preparation of the National Development Plan.

This includes the Economic Census (completed), the Agricultural Census (ongoing), the Business Survey (planned), the Labor Force Survey (ongoing), the National Household Survey (planned), and sectoral initiatives such as the MICS and an agricultural survey program.

Agriculture

The Gambia’s economy is heavily dependent on agriculture, contributing 17% of GDP and 30-40% of foreign exchange earnings from exports. The US$40 million Gambia Inclusive and Resilient Agricultural Value Chains Development Project (P173070), approved in November, 2021, and effective as of March 14, 2022, promotes the development of four key priority agricultural value chains:

1. rice (substituting for increasing imports);
2. horticulture (vegetables and mangoes for urban centers and export);
3. cashews (for domestic processing and export);
4. poultry (for urban centers), in conjunction with maize for feed.

The project has made commendable progress towards achieving the PDO. It has met all the annual PDO targets, including: (i) 25% increase in the volume of marketed output by project direct beneficiaries against a 20% target in 2023; (ii) 420% increase in yield of targeted agricultural commodities by project direct beneficiaries against a 50% target in 2023; (iii) 42,791 farmers reached with agricultural assets or services against a 30,000 target in 2024; and (iv) 26,699 farmers using/adopting climate-smart technologies against a 30,000 target in 2024.

Increased agricultural productivity and production resulting from the country-wide dissemination and adoption of improved seed varieties. The seed program implemented for a third consecutive year using the digital platform was successful. A total of 750 tons of improved climate-smart varieties of certified seeds (high-yielding, early maturing, drought-resistant, salt-tolerant, and aromatic) - including 400 tons of rice and 350 tons of maize - were distributed.

The transfer of improved technologies is ongoing, supported by the procurement of agricultural machinery to develop mechanization services.

The matching grant (MG) window for small and medium enterprises (SMEs) and groups has recorded strong early results. The MG window for individuals value chain actors is progressing, with beneficiary selection completed and grants soon to be awarded.

MG beneficiaries selected include : (i) 19 SMEs (out of 127 applications) for a total investment of US$6.63 million, of which US$3.98 million from GIRAV and US$2.65 million from SMEs beneficiaries as private capital mobilized; (ii) 74 groups (out of 1282 applications) for a total investment of US$1.44 million of which 1.20 million from GIRAV and 0.22 million from private capital mobilized from beneficiaries; and (iii) 312 individual beneficiaries (out of 6,169 applications) for a total investment of US$3.03 million of which 2.44 million from GIRAV and 0.59 million from beneficiaries.

These matching grants are helping beneficiaries grow their agribusinesses and contribute to improved value chains, commercial agriculture, food security, and poultry self-sufficiency.

Important progress was made on digitalization of the agricultural sector with the official launching of the e-extension and e-international trade fair and e-registration digital platform of The Gambia Chamber of Commerce and Industry (GCCI) and the upgrading of e-commerce digital platform of The Gambia Investments and Exports Promotion Agency (GIEPA).

With respect to marketing infrastructure, the construction works for the two ALCs (in Wassu and Maka-Farafenne) began in September 2024 and expected to be completed within 18 months (by February 2026).

The procurement processes of 40 women-and youth-led agribusiness farms (WYLAF) and agro-logistic centers (ALC) infrastructures have been completed, contracts awarded, and construction is underway.

Tourism 

The Tourism Diversification and Resilience (TDR) project supports the diversification and climate resilience of the tourism sector.

The project comprises four components:

• Component 1, “Policy Framework and MSME Participation,” representing approximately one-fifth of the project, aims to address key challenges in The Gambia's tourism sector to foster sustainable and inclusive growth.
• Component 2, the largest in terms of budget, accounting for nearly three-quarters of the project’s budget, focuses on strengthening the tourism sector's climate resilience through infrastructure support and diversification efforts.

Environment and Disaster Risk Management

The West Africa Coastal Areas Resilience Investment Project 2 (WACA ResIP 2) in The Gambia, led by the Ministry of Environment, Climate Change and Natural Resources (MECCNAR), focuses on disaster risk management, flood protection, coastal resilience, and sustainable urban infrastructure. The project aims to strengthen flood and coastal risk management through four components:

1. Regional Integration Strengthening;
2. Strengthening Policy and Institutional Frameworks;
3. Strengthening National Physical and Social Investments;
4. Project Management.

Institutional Strengthening: Since the project's inception, capacity-building initiatives have been conducted to enhance the capabilities of key agencies responsible for resource and disaster risk management in The Gambia.

Flood risks protection : In order to address immediate flood risks before the main infrastructure works start in 2026, the project partnered with communities in 2024to swiftly implement short-term flood mitigation measures, which successfully reduced flood impacts for 1400 households along the Kotu Stream during the rainy season, and protected 4000 households against exposure to pollution risk.

Objectives and 2025 Focus Areas

In 2025, the project will prioritize a livelihoods and resilience grant program, informed by the recently finalized market assessment of the Kotu stream, focusing on green jobs and entrepreneurship for women and youth; alongside emergency preparedness and early warning systems, Disaster Risk Management Policy and Disaster Risk Financing. Additionally, efforts will advance on the feasibility studies and detailed design of future flood protection infrastructure works.

Last Updated: Apr 09, 2025

The World Bank Gambia Country Team works closely with development partners and is an active member of the Development Partners’ Group (DPG). It collaborates with the IMF, G20, European Union, European Investment Bank, UNOPS, the Global Fund, WHO, UNICEF, UNDP, WFP, and the Global Partnership for Education to support responses across macroeconomic, energy, health, education, and social protection sectors.

Last Updated: Apr 09, 2025