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GABON: The government will spend 4,700 billion CFA in three years to boost the economy

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The coronavirus pandemic has further weakened, as it has throughout the world, and its impacts on the economies of African countries are disastrous. In order not to end up with economies in agony, each state implements a recovery plan. Gabon is not left out. In fact, the government plans to inject 4,700 billion CFA, in partnership with the private sector, to boost its economy.

Gabon wants to revive its economic growth caused by the coronavirus pandemic. The government wants to accelerate structural reforms and implement promising projects. It foresees an effort of more than 4700 billion CFA francs over the next three years, financed mainly by the private sector and public-private partnerships.

According to the Minister of Economy, Nicole Janine Lydie Roboty, the structural reforms will focus on the reorganization of the institutional framework of certain sectors such as infrastructure, agriculture, housing, energy and the wood sector. According to the minister, the government will spend “more than 4,700 billion CFA francs over the next three years, mostly financed by the private sector and P3s”. “The State’s effort will focus on accelerating growth-enhancing projects such as health, education and social,” she added.

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The energy sector will be at the heart of the stimulus package. Indeed, oil resources account for more than 80% of the country’s revenues, 45% of GDP (Gross Domestic Product) and 60% of budget revenues. With a growth rate of 3.4% in 2019, Gabon’s GDP fell by five percentage points to less than 2%. Due to the coronavirus pandemic, the country could see its growth rate fall to 0.5% in 2020.

       

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