Gabon debt outlook improves as IMF audit suggests lower levels

Gabon is seeing a shift in investor perception regarding its national debt. An audit conducted with support from the International Monetary Fund (IMF) suggests that the country's debt levels may be lower than previously estimated. This development has reduced the likelihood of a debt restructuring being a prerequisite for an IMF program.

Market indicators reflect this optimism. The Gabonese sovereign spread, measured by the JPMorgan bond index, has dropped to approximately 608 basis points from nearly 1,000 at the start of the year, while dollar-denominated bonds have seen a cumulative performance increase of 19.5% since January. Despite this market movement, credit agencies like Fitch remain cautious, maintaining a CCC- rating for foreign currency debt.

On the domestic front, the government has announced a disbursement of 51 billion FCFA to support local small and medium-sized enterprises (SMEs). To bolster national competitiveness, President Brice Clotaire Oligui Nguema has encouraged local entrepreneurs to form larger consortiums to better compete for major public infrastructure projects and international markets. However, business leaders via the Fédération des entreprises du Gabon (FEG) continue to call for a rigorous and transparent schedule for settling domestic debt.