Gabon turns to international markets to borrow $1.5 billion

Written by Ziad Abdel Fattah:

The Gabonese government has approved its revised 2026 budget, including an authorization to borrow up to $1.5 billion (approximately 857.9 billion CFA francs) from International marketsIn a move aimed at meeting funding needs amid increasing financial pressures and a significant decline in revenues.

The move comes as the Central African nation seeks to reach an agreement on a financing program with the International Monetary Fund, while a comprehensive audit of public debt covering the period from 2016 to 2024 continues, with the aim of reviewing undisclosed financial commitments and projects that have not been implemented, as well as tracking funds that have not reached treasury accounts.

High debt service bill

According to the revised budget, the financial debt service bill, which includes interest payments and principal repayments, rose to 1.797 trillion CFA francs (about $3.16 billion) during 2026.

The government also increased debt interest allocations by 16%, compared to the original budget approved in December 2025, to reach 487.6 billion CFA francs, while the value of short-term cash advances used to bridge financing gaps jumped by 376% to 39.1 billion CFA francs.

The government plans to issue bonds worth 424.9 billion CFA francs.

In addition to external borrowing, the government plans to issue local treasury bonds worth 424.9 billion CFA francs, as part of its plan to provide the necessary liquidity to cover spending needs.

In contrast, the government lowered its overall revenue forecast by 22% to 3.24 trillion CFA francs, driven by a decline in revenues from the extractive industries sector, as oil revenues distributed as dividends fell by 30%, while tax revenues from mining companies declined by 97%.

Budget documents showed that the financing gap widened to 915.6 billion CFA francs during 2026, reflecting the pressures facing the country's public finances.

The results of the public debt audit are expected to reveal the true extent of Gabon’s financial obligations, after Moody’s indicated that the review may uncover additional debts that were not previously disclosed.

In another context, the Gabonese Football Federation announced the appointment of French coach Sebastien Migné as the new technical director of the national team, in a move aimed at rebuilding the team and achieving positive results during the qualifiers for the upcoming African Cup of Nations.

Gabon's signing of Migné comes after the coach's successful stint with the Haitian national team, during which he led the team to a historic achievement by qualifying for the 2026 World Cup finals for the first time in more than five decades.