News Finances

Gabon debt jumps 20.6% as arrears top $792mln in 10 months

Gabon debt jumps 20.6% as arrears top $792mln in 10 months
Friday, 19 December 2025 10:23
  • Public debt rose to CFA8,606.6 billion by end-October 2025
  • Domestic debt now exceeds CFA4,391 billion, driven by regional markets
  • Debt arrears climbed to CFA443.6 billion, raising sustainability concerns

By the end of October 2025, Gabon’s public debt recorded a sharp increase. According to data from the General Directorate of Debt (DGD), the total outstanding stock rose from CFA7,133 billion to CFA8,606.6 billion ($15.37 billion), an increase of nearly CFA1,473 billion in ten months. This 20.6% rise reflects the government’s increased reliance on borrowing to cover its financing needs, amid strong cash flow pressures.

The increase was driven mainly by domestic debt, which now stands at CFA4,391.9 billion. The regional financial market accounts for the bulk of this amount, with more than CFA3,200 billion, confirming the Gabonese Treasury’s growing dependence on this source of financing.

External debt, for its part, amounts to CFA4,214.8 billion. It is largely dominated by multilateral creditors and the international financial market. Commitments to multilateral institutions are around CFA1,646.7 billion, while debt contracted on international markets exceeds CFA1,397 billion.

This structure reflects a growing reliance on commercial and bond financing to support public policies.

Arrears continue to accumulate

At the same time, debt arrears have continued to rise. By the end of October 2025, they reached CFA443.6 billion ($792 million), up by more than CFA174 billion compared with December 2024. This stock combines unpaid current maturities and older arrears, highlighting persistent difficulties in managing public liquidity.

This situation is raising concerns about debt sustainability and the government’s ability to meet its obligations on time, particularly to certain creditors and suppliers, with potential repercussions for economic activity.

A trajectory seen as worrying

The current debt trend reinforces the forecasts of international financial institutions, which expect Gabon’s debt burden to worsen in the coming years. According to the latest World Bank economic update, titled Building and Preserving Gabon’s Wealth to Improve Living Standards, public debt is expected to continue rising and reach 86.1% of gross domestic product by 2027, well above the CEMAC convergence threshold of 70%.

In response to these prospects, Gabonese authorities are defending an approach focused on the quality of borrowing. For Henri-Claude Oyima, minister of Economy, Finance, Debt, and State Holdings, in charge of the fight against high living costs, the challenge is not to reduce the debt stock at all costs, but to use it as a lever for growth. “Debt becomes a problem when it generates no revenue. Our objective is to build good debt: when borrowing finances structuring investments that generate additional income, debt becomes a factor for development,” he recently said in local media.

Sandrine Gaingne

On the same topic
CEMAC prices fall 0.4% in Q4 2025, ending five-year rise Inflation stood at 2.8%, below region’s 3% threshold Sharpest price declines recorded in...
International Finance Corporation approved a senior loan of up to €50 million ($58 million) to Société Générale Sénégal to expand financing for...
Persistent launched the $70 million Persistent Africa Climate Venture Builder Fund (Persistent ACV Fund) to finance African climate...
Fund targets office, logistics, industrial, mixed-use projects in urban hubs First investment: office development site in Casablanca’s Casa-Anfa...
Most Read
01

The BCEAO cut its main policy rate by 25 basis points to 3.00%, effective March 16. Inflation...

BCEAO Cuts Key Rate to 3.00% as WAEMU Faces Deflation
02

Ethio Telecom has signed a new agreement with Ericsson to expand and modernize its telecom netwo...

Ethiopia’s State-Owned Telco Teams Up With Ericsson to Expand and Upgrade Its Network
03

EIB commits over €1 billion for renewable energy in sub-Saharan Africa Funding supports Miss...

EIB Commits €1 Billion to Renewable Energy Under Africa’s “Mission 300” Initiative
04

MTN Zambia tests Starlink satellite service connecting phones directly from space Direct-to...

Satellite direct-to-device telecoms: promise, momentum and hard limits
05

Nigeria introduced a 1% flat tax on the turnover of informal-sector businesses under a new presump...

Nigeria Rolls Out 1% Tax on Informal Businesses Under New Fiscal Framework
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.