Gabon's Public Debt Rises 23% as Government Turns to Regional Markets

AFRICAN BUSINESS AND ECONOMYJuly 17, 2026 at 11:23 AM UTC

TLDR

Gabon's public debt rose 23% to 8,780.3 billion FCFA in 2025, with a shift towards domestic borrowing.
External debt was at 4,127.6 billion FCFA, while domestic debt reached 4,652.7 billion FCFA.
Total public debt increased by 1,647 billion FCFA, driven by a surge in domestic debt issuance and validated obligations.

Gabon's outstanding public debt rose 23% year-on-year to 8,780.3 billion FCFA at the end of December 2025, driven by a sharp increase in domestic borrowing as the government shifted away from traditional external financing.

According to the Directorate General of Debt, external debt stood at 4,127.6 billion FCFA, while domestic debt reached 4,652.7 billion FCFA. Total public debt increased by 1,647 billion FCFA from the end of 2024. While external debt declined by 40.9 billion FCFA, or 0.98%, domestic debt surged by 1,687.9 billion FCFA, up 57% from a year earlier.

The regional financial market became the largest source of domestic debt, with outstanding securities reaching 3,449.9 billion FCFA, representing about 39% of Gabon's total public debt. The 2026 supplementary budget reinforces this strategy, increasing treasury and financing resources to 2,251.8 billion FCFA.

The shift was driven by a sharp rise in government securities issuance, which climbed to 1,282.8 billion FCFA from 480.3 billion FCFA a year earlier. At the same time, disbursements from program loans fell to 36.1 billion FCFA from 830.5 billion FCFA. Domestic debt also increased after a government task force validated 758.7 billion FCFA of previously defaulted obligations, reflecting the recognition of existing liabilities rather than new borrowing.

The government's debt servicing costs are also rising. Under the 2026 supplementary budget, debt service will increase to 487.6 billion FCFA, while debt amortization is projected at 1,309.2 billion FCFA, accounting for most of the country's treasury and financing expenditure.

Key Takeaways

Gabon's debt profile is changing as the government relies more on regional capital markets instead of external lenders. Issuing treasury bills and bonds within the CEMAC region gives authorities faster access to financing and reduces dependence on multilateral and bilateral loans, but it also increases competition for liquidity in the regional market. With nearly 40% of the country's total debt now raised through regional securities, Gabon has become one of the largest borrowers in the CEMAC zone. That concentration could crowd out financing available to other sovereigns and private companies seeking funds in the same market. At the same time, a large share of the increase in domestic debt reflects the formal recognition of previously unpaid obligations rather than fresh borrowing, making headline debt growth appear larger than new financing alone would suggest. The government's growing debt service burden also highlights the importance of restoring investor confidence and maintaining access to affordable funding. Ongoing discussions with the International Monetary Fund and the results of the country's public debt audit are expected to play a key role in shaping Gabon's financing strategy and borrowing costs over the coming years.

Gabon