Gabon has officially breached its debt wall, with the country’s public debt reaching a record 8.78 billion francs CFA by the end of 2025.
The surge in debt is a major concern for the Gabonese economy, which relies heavily on oil exports and faces significant challenges in generating sustainable growth.
Debt Structure
The breakdown of Gabon’s external debt reveals a diverse range of creditors, with bilateral loans standing at 764.5 billion francs CFA, commercial debts at 406.1 billion, multilateral institutions at 1.5807 billion, and international bond issuances at 1.3763 billion.
Domestically, the majority of funding comes from regional markets, with a total of 3.45 billion francs CFA mobilized by investors in the region.
The Accelerating Debt Burden
The country’s debt has increased by 23% over the past year, reaching an unprecedented level.
Despite this, the Gabonese government remains optimistic about its ability to manage the debt burden and generate sustainable growth.
The Need for Discipline
The International Monetary Fund (IMF) has long warned of the risks associated with Gabon’s high debt levels, and the country now faces a critical juncture in managing its finances.
With oil prices remaining volatile, the government must balance its commitment to investing in key sectors such as healthcare and education with the need to maintain fiscal discipline and avoid further accumulation of debt.