Washington, DC:
A team of IMF staff led by Mr. Boileau Loko visited Gabon from May 12 to
20, 2022, to hold discussions on the combined first and second reviews of
the arrangement under the EFF, approved in July 2021.
At the end of the mission, Mr. Loko made the following statement:
“The mission held productive discussions with the authorities on the
measures needed to improve program implementation and complete the first
and second reviews as well as on the economic policies and structural
reforms which could form the basis of the program for the rest of 2022.
These discussions will continue in the coming weeks.
“The economy is gradually recovering from the 2020 recession owing to the
efforts undertaken to limit the impact of the pandemic and the rise in oil
prices. Economic growth should accelerate in 2022, reaching 2.8 percent
compared to 1.5 percent in 2021 and -1.9 percent in 2020. However, the
intensification of the war in Ukraine and its effects on global growth, the
resurgence of the pandemic, and a reversal in oil price present risks for
economic recovery.
“Under the difficult circumstances resulting from the pandemic, performance
against quantitative program targets was mixed. Public finances in 2021
were marked by underperformance in non-oil revenues and some overspending
on subsidies given the price freeze on petroleum products at the pump. The
execution of public investment was overall below forecasts despite an
overrun in domestically financed capital spending. A significant fall in
externally financed capital spending has helped contain the deficit at 7.1
percent of non-oil GDP, as originally planned.
“The mission and the authorities agreed on the need to accelerate public
finance, governance, and structural reforms to strengthen domestic revenues
and public financial management. These efforts will support a return to
strong, inclusive growth and improve debt sustainability. In this context,
faced with the effects of the war in Ukraine and the surge in oil prices,
the draft revised 2022 budget must prioritize increasing fiscal space and
protecting the most vulnerable.
“In the extractive sector, governance efforts should continue to ensure
that all of the government’s oil resources are transferred to the Treasury
Single Account at the BEAC. Greater transparency in the oil sector is
needed for assessing the costs of oil production and cross debt between the
government, public enterprises, and oil companies, including offsetting of
VAT credits. The improvement of governance in the oil sector, including the
avoidance of pre-financing operations linked to future government revenues,
would greatly facilitate liquidity and public financial management.
“The mission was pleased to note the authorities’ determination to continue
to mobilize non-oil revenue and improve public financial management. The
authorities and the mission agreed on the urgency of reducing tax
exemptions and expenditures. The mission welcomed the authorities’ decision
to publish the report on the audit of spending related to the COVID-19
pandemic and finalize the decree on the publication of the names and
nationalities of beneficial owners of entities awarded public procurement
contracts. It encourages the authorities to step up efforts to avoid the
accumulation of domestic and external arrears.
“The authorities and the mission agreed on the need to protect the most
vulnerable from the increase in oil and food prices caused, in particular,
by the war in Ukraine. In this regard, IMF staff encourages the authorities
to continue subsidizing only the pump prices of kerosene and butane, the
two products most widely consumed by the most disadvantaged segments of the
population. In this context, strengthened social protection for the most
vulnerable is necessary.
“IMF staff encourage the authorities to accelerate reforms to strengthen
the banking sector and improve the business environment to promote private
sector development.
“The IMF team met with Ms. Nicole Jeanine Lydie Roboty Mbou, Minister of
Economy and Recovery; Ms. Édith Ekiri Mounombi Oyouomi, Minister of the
Budget and Public Accounts; Mr. Francis Nkea Ndzigue, Minister for the
Promotion of Good Governance and the Fight against Corruption; Mr. Guy
Patrick Obiang Ndong, Minister of Health and Social Affairs; and Mr.
Vincent de Paul Massassa, Minister of Oil and Gas. The team also met with
their partners as well as private sector leaders and the diplomatic
community. The mission would like to thank the Gabonese authorities for the
constructive discussions and for their warm hospitality.“
IMF COVID-19 Hub
Policy Tracker
Financial Assistance
Questions & Answers
