Gabon’s 2026 public finance review: boosting budget policies for better outcomes

The 2026 Public Finance Review outlines strategic budget policies designed to enhance fiscal sustainability, stimulate employment growth, and elevate living standards for all Gabonese citizens.

Key findings uncovered:

• Revenue challenges: Non-oil tax revenues averaged just 10.5% of GDP from 2014 to 2024—a figure well below regional peers—due to extensive tax exemptions and compliance hurdles.
• Public spending trends: Public expenditure surged to 25% of GDP in 2023–2024, yet allocations to social sectors remained critically low at 4% of GDP—less than half the Sub-Saharan Africa average. Meanwhile, wage bills, fuel subsidies, and debt servicing crowded out productive and social investments.
• Natural resource revenue gaps: Despite being the fourth-largest oil producer in Sub-Saharan Africa, second-largest manganese exporter globally, and a major timber supplier, Gabon’s per-barrel oil revenue lags peers. Moreover, earnings from mining and forestry sectors fall short of their potential fiscal contribution.
• Public finance governance deficits: Direct contracting accounted for 90% of public procurement value in 2024, debt arrears reached 3.5% of GDP by late 2025, and combined debt of key state-owned enterprises exceeded 8% of GDP—highlighting systemic weaknesses in budget management, cash flow control, procurement practices, and corporate governance.
• Social sector underfunding: Health, education, and social protection systems remain under-resourced. Gabon’s doctor-to-population ratio stands at 0.5 per 1,000 residents, fewer than half of preschool teachers hold formal qualifications, and social protection spending amounted to just 0.03% of GDP in 2024.