Gabon clears 51 billion FCFA in domestic debt to boost private sector

Government prioritizes private sector ahead of independence celebrations

As Gabon approaches its 66th independence anniversary, President Brice Clotaire Oligui Nguema has authorized the release of 51 billion FCFA to settle a portion of outstanding domestic debt owed to businesses. This initiative targets small and medium-sized enterprises (SMEs) to revitalize the private sector’s momentum.

Funds allocated across key economic sectors

Out of the total 51 billion FCFA, 30 billion is earmarked for companies in the mining and timber industries, while the remaining 21 billion will address outstanding payments for other businesses, with special focus on SMEs and mid-sized companies (MSMEs).

The announcement follows high-level discussions between the Head of State and representatives from the Federation of Gabonese Enterprises, alongside leaders of SMEs and MSMEs. These meetings, held at the Palais de la Rénovation in Libreville, addressed challenges faced by the private sector, employment preservation, and strategies to sustain economic activity.

First phase targets critical sectors

In this initial phase, the Treasury will mobilize 21 billion FCFA to honor 1,478 payment orders issued between 2022 and 2026. Affected companies operate in vital industries, including construction, maintenance, food supply, and fuel distribution.

Strategic move to strengthen Gabon’s economy

Government officials emphasize that this payment initiative aims to bolster business liquidity, sustain operations, and safeguard jobs. It forms part of a broader effort to reduce Gabon’s domestic debt, estimated at 4,652 billion FCFA.

The initiative signals a commitment to gradually eliminate state arrears to the private sector while enhancing operational conditions for businesses. The release of these funds marks a pivotal step in the national strategy to support local enterprises and maintain economic momentum.