Technical assistance mission to The Gambia

With colleagues in the Fiscal Affairs Department of the IMF, we visited The Gambia in May 2024 to conduct a comprehensive diagnostic of climate fiscal policies. The mission met with senior officials and staff from various government ministries and engaged with development partners and stakeholders. Read a high-level summary of the mission's findings and recommendations here.

The Climate Policy Diagnostic (CPD) provides countries with an in-depth analysis of their climate policies, focusing on mitigation and adaptation strategies. It also addresses the necessary institutional and legal frameworks to support these policies. The CPD has already been instrumental in shaping the Resilience and Sustainability Facility programs in countries like Tanzania, Moldova, Cabo Verde, and Honduras.

Abstract

The Gambia’s economic and social development is highly impacted by climate change. Sea level rise poses substantial risks, and the country is exposed to natural disasters that could become more frequent and intense. Recurring droughts and floods impose large economic and welfare losses. With increasing temperature and decreasing rainfall, The Gambia will face a significant challenge due to the heavy reliance on rain-fed agriculture. Salinization and degradation of soil is expected to intensify, that, together with declining agricultural productivity, leads to increased deforestation. Groundwater depletion is an emerging risk, and water access, as well as agricultural expansion are the main drivers of climate related challenges. The lack of efficient land policy, planning and forest protection lead to the expansion of agricultural and livestock activities to forest areas. Demand for water and electricity is expected to grow, but private investment in these sectors is lacking. The mission reviewed the current fiscal policies supporting climate action, including mitigation and adaptation policies and the institutional framework, and provided recommendations to support the long-term climate resilience of The Gambia’s economy.