Gabon's public debt projected to reach 94.3% of GDP by 2027 amid ambitious infrastructure drive

This increase of over 23 percentage points of GDP in three years follows a period of rapid infrastructure development in the country, encompassing roads, buildings, housing, water, and energy projects. The IMF also indicates that Gabon's public financing needs will be around 10% of GDP in 2026, signifying that government expenditure significantly exceeds revenue. Initially, the government presented an ambitious budget for 2026 with 3,321.5 billion FCFA in investment spending.

However, this was subsequently reduced to 2,173 billion FCFA in the adopted budget and further cut to 1,169 billion FCFA in a budget amendment, largely due to the removal of projects lacking feasibility studies. This adjustment reflects the challenge of financing initial ambitions and the insufficient maturity of some projects. In parallel, Gabon recently secured a $920 million loan from international markets by issuing bonds repayable by 2033 at an interest rate of 9.375%.

While the Minister of Finance stated in June that the total debt was approximately 8,700 billion FCFA and over 3,000 billion FCFA had been repaid since August 2023, the high interest rate implies substantial future repayment costs. The government's strategy is to finance infrastructure that will boost the economy and generate new revenues to cover these debts. However, the IMF