The IMF called on The Gambia to cut operational losses at state utility NAWEC, improve its revenue collection and move toward cost-recovery electricity tariffs while protecting vulnerable households, after the government gave the utility emergency support that included clearing arrears to regional electricity suppliers, the Fund said on October 30. The government has budgeted 1bn GMD (€11.8mn) for electricity subsidies in 2027, after spending 2.4bn GMD (€28.4mn) on the sector in 2025, the finance minister said on October 23.
Analysis: Moving toward tariffs that cover NAWEC's costs could increase electricity bills, unless the utility cuts losses or secures other support. The 2027 budget allocates 1bn GMD to electricity subsidies, less than half the 2.4bn GMD spent on the sector in 2025. The IMF has not quantified the utility's losses or the gap between tariffs and costs. Its recommendation also contrasts with President Adama Barrow's October 28 pledge to reduce electricity costs once supply improves. Tariff regulator PURA has not announced a review, leaving the timing and distribution of any adjustment unresolved.
Source: Foroyaa Newspaper (Serrekunda), Minister of Finance's 2027 Budget Speech to the National Assembly, October 23, 2026, as reported by Foroyaa (October 23, 2026), FY2027 and 2025 and 2026 and 2026 (disbursed by October 23, 2026)