Gabon’s Public Debt Climbs 23% as Government Turns to Regional Markets

Gabon’s outstanding public debt expanded by 23% year-on-year to reach 8,780.3 billion FCFA at the end of December 2025, according to figures reported by Daba Finance. The sharp increase reflects a deliberate shift in the country’s borrowing strategy, with the government increasingly turning to regional financial markets rather than relying on traditional external lenders.

A pivot toward domestic financing

The growth in Gabon’s debt stock has been propelled primarily by a significant expansion in domestic borrowing. By tapping into local and regional capital markets, the government has sought to diversify its funding sources and reduce dependence on external creditors. This shift marks a notable change in fiscal approach, particularly for a Central African economy that has historically relied on multilateral institutions and bilateral partners to finance budget shortfalls and development projects.

Regional markets in focus

The decision to lean more heavily on regional markets aligns Gabon’s borrowing practices with a broader trend across Central Africa, where countries have been exploring the potential of financial platforms within the Central African Economic and Monetary Community (CEMAC). Domestic and regional debt instruments can offer governments faster access to financing while also helping to develop local capital markets. However, they can also expose public finances to higher interest rates and shorter repayment cycles than concessional external loans.

Implications for fiscal sustainability

The 23% annual rise in total public debt underscores the scale of financing pressure facing the Gabonese government. While domestic borrowing can help bridge immediate funding gaps, sustained increases in the debt burden raise questions about long-term fiscal sustainability, particularly in economies sensitive to commodity price fluctuations. Managing the balance between domestic and external debt will remain a key challenge for policymakers, especially as governments across the region weigh development priorities against rising debt servicing obligations.

The figures reported by Daba Finance highlight how Gabon’s debt trajectory has accelerated over a relatively short period, signaling that recent fiscal decisions are reshaping the country’s financial landscape.

Source: AllAfrica — read the original report.