• Gabon aims to digitalize public revenue collection to support a CFA7,233.3 billion (approximately $13 billion) budget for 2026.
• The initiative seeks to expand the tax base by integrating the informal economy and promoting electronic payments.
• The "Digitax Gabon" platform, launched in April 2024, has already increased tax revenue collection, exceeding 2024 targets by 18%.
The Gabonese government plans to digitalize public revenue collection, anticipating a CFA7,233.3 billion (approximately $13 billion) budget for 2026. This initiative, part of a broader digital transformation, expects to boost state transparency and revenues.
The digitalization plan emerged as a top priority during an urgent September 5 working session on the 2026 Finance Law, chaired by Head of State Brice Clotaire Oligui Nguema. Mark Alexandre Doumba, Minister of Digital Economy, Digitalization, and Innovation, detailed his department's mechanisms last week on the public channel Gabon 24.
A Three-Pronged Approach
Mr. Doumba outlined a three-point strategy, beginning with tax base expansion. He stated Gabon cannot mobilize all expected resources relying solely on known taxpayers. The informal economy, representing 40-50% of GDP, must gradually integrate into the fiscal system via digital channels to diversify and increase state revenues.
The minister then emphasized promoting electronic payments in commercial transactions. A significant portion of settlements still occur in cash, depriving the state of VAT and goods and services tax revenues. He added that increased mobile money and digital payments will improve indirect tax collection.
Finally, Mr. Doumba highlighted securing payments within public administration. Cash payments made to public services are not always fully remitted to state coffers. Digitalization will thus reduce leakages, enhance transparency, and consolidate trust between citizens and the administration.
Furthermore, he stressed the private sector's crucial partnership role. "In our country, the private sector produces most of our GDP. Despite this, when we examine data from the last ten, fifteen, or twenty years, in Gabon as on the continent, we observe very low, even near-zero, productivity," he explained. "The idea is that if large companies digitalize, those that produce most of our GDP, this digitalization will have a strong impact on our economy."
Benefits of Digitalization
According to the World Bank, digitalization has profoundly transformed taxpayer-tax administration relationships, replacing paper transactions with faster, more reliable electronic processes. This transition to electronic payments reduces errors, lowers administrative costs, and facilitates taxpayer compliance monitoring. Electronic systems have also lowered compliance costs for users by limiting travel, queuing, or interaction with tax agents, while decreasing corruption risks.
Many tax administrations now offer integrated portals, termed "virtual tax offices" by the World Bank. These centralize essential functions like account consultation, declaration, and tax payment. Such portals simplify procedures, allow direct tax payments without intermediaries, minimize input errors, and strengthen personal and financial data protection. They contribute to more efficient, transparent, and secure tax revenue collection.
Gabon has already begun this digitalization, notably with the April 2024 launch of the "Digitax Gabon" platform. "This innovative platform will enable integrated management of all fiscal processes, including tax base management, recovery, tax control, dispute processing, and tax payment by teleprocedure," the Directorate General of Taxes (DGI) explained at the time.
In its 2024 report, the DGI indicates that Digitax's launch significantly boosted tax revenue mobilization. At least 80% of tax revenues are now collected via this system. Data processing and operational internal control mechanisms have also improved, while cheque, Swift, or cash payments have become less frequent.
The DGI reported achieving CFA1,021.58 billion in treasury revenues against an CFA862.3 billion target for 2024, an 18% overshoot. For the CFA969.38 billion budgetary target, it realized CFA1,040.09 billion, a 107% achievement rate.
Challenges and Outlook
The minister acknowledged digitalization will face challenges, as it mandates a true paradigm shift. Gabonese citizens must adapt to new working methods, and such transitions often encounter resistance from some citizens or decision-makers. He believes the administration must support this transformation to demonstrate digitalization paves the way for a better future. This digital transition represents the key to building a new economy capable of creating more jobs, having a more significant impact, and providing the state with means to improve Gabonese living conditions.
These transformation ambitions also raise questions about technical capabilities, equipment, infrastructure, and internet access for both public administrations and the population. According to International Telecommunication Union (ITU) data, 71.9% of the population had internet access in 2023.
This article was initially published in French by Isaac K. Kassouwi
Adapted in English by Ange Jason Quenum
Togo parliament adopts WAEMU law against currency counterfeiting Bill defines offences including ...
Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees,...
CCR-UEMOA presents mid-term review of private sector competitiveness efforts Reforms, AfCFTA trai...
World Bank announces $137 million to boost West Africa digital economy Program expands broad...
Tilenga oil project required land from 4,954 households in Uganda Over 99% of affected households...
Seaturns launches 2 MW wave energy pilot in Mauritius Project tests grid-connected technology with potential expansion to 10 MW Initiative reflects...
(BIDC) - The ECOWAS Bank for Investment and Development (EBID), in partnership with ASKY Airlines and Plan International Togo, successfully hosted the...
SMEs drive up to 40% of GDP and most jobs but face regulatory and financial constraints Power shortages and limited access to finance remain major...
Rules set technical requirements and ensure fair competition in market Reform targets safer infrastructure and consumer protection in construction...
Event highlights growing role of diaspora entrepreneurs across multiple sectors Networks support trade, investment and SME...
Afreximbank launches Impact Stories season two highlighting trade-driven transformations Series features projects across Africa and Caribbean, from...