• Gabon plans reforms to curb rising non-performing bank loans
• NPLs hit 10.2% of total loans in 2024, AfDB says
• Credit tightens despite liquidity surplus; private lending slows

The Gabonese government plans to implement a series of reforms to strengthen its banking and microfinance system and prevent systemic risks, according to an official statement released after a Council of Ministers meeting on Monday.

The measures are specifically aimed at combating a growing threat from non-performing loans. The Minister of Economy, Finance, Debt, and Public Participations, Henri-Claude Oyima, stated in the release that the sector faces an increasing threat from "doubtful and litigious debts, stemming from non-repayment of loans, which could compromise financial stability in the medium term."

According to the 2025 country report from the African Development Bank (AfDB), the quality of bank assets in Gabon has deteriorated. Non-performing loans increased by 19.8% to reach 205 billion CFA francs in 2024, representing 10.2% of total outstanding loans, up from 8.6% in 2023.

In response to this increased risk, banks have adopted a more restrictive approach. They have tightened lending conditions, increased collateral requirements, and raised interest rates. While understandable, this caution has significantly slowed financing for households and small businesses, which are already vulnerable due to the economic climate.

The latest economic report from the Ministry of Finance notes that gross loans granted fell by 13% in the first quarter of 2025. Loans to the private sector, which account for nearly 91% of all credit, decreased by 1.7%, while financing for state-owned enterprises dropped by nearly 49%, and loans to non-residents fell by 1.6%. Paradoxically, this situation is unfolding amid banking over-liquidity, with cash surpluses increasing by 47.3% over the quarter and 35.3% year-on-year.

Industry experts explain this overall deterioration by a strained economic environment, marked by volatile commodity prices and persistent budgetary pressures that are affecting borrowers' ability to repay. The high concentration of credit in vulnerable sectors, such as the informal economy, also increases risks for financial institutions. To address these challenges, experts recommend strengthening credit risk monitoring tools, more rigorous management of loan portfolios, and providing support to struggling borrowers.

Sandrine Gaingne