Gabon is implementing rigorous measures to optimize its public spending, targeting savings of 10 billion FCFA through salary reform in the public sector. This initiative comes in the context of persistent financial challenges and a governmental desire to strengthen transparency and budgetary discipline.
The Gabonese government, under the leadership of President Brice Clotaire Oligui Nguema, has introduced a series of decrees aimed at regulating the salaries of senior officials in public institutions, state-owned enterprises, and independent administrative authorities. These measures, adopted during a recent Council of Ministers meeting, are intended to streamline public spending and promote transparency in governance.
The decrees, which took effect following the Council of Ministers meeting on Thursday, affect the presidents and vice-presidents of administrative boards, regulatory councils, and directors general and their deputies. According to the Ministry of Economy, Finance, Debt, and Participation, which led the initiative, these officials' salaries will now be capped and subject to taxes and retirement contributions as per existing regulations.
In an effort to eliminate double remunerations, the decrees also prohibit public officials from receiving compensation from more than one source simultaneously. Additionally, a specific decree has been introduced to regulate the honoraria paid to members of administrative boards, setting a cap on these payments across all public institutions, state-owned enterprises, public companies, and independent administrative authorities.
This salary reform includes several main components, including capping remuneration, eliminating double payments, and strengthening income taxation. The goal is to clean up the state payroll file, which is the comprehensive list of civil servants and their remuneration. By optimizing this management, the government hopes to achieve substantial savings.
These measures come as Gabon faces a significant debt wall in 2026-2027, with more than 59.5% of its outstanding debt maturing during this period. The country is therefore forced to find solutions to avoid a budget crisis, including exploring measures to extend maturities and convert part of its debt into concessional debt.
In parallel with these cost-saving efforts, the Gabonese government is undertaking a digital transformation of its administration. The launch of the Integrated Public Finance Management System (SIGFIP) and the MADIGIPAIE project, which introduces electronic payments for public services, demonstrate this commitment to modernizing public finance management and improving administrative efficiency.
Achieving the target of 10 billion FCFA in savings will depend on the rigorous enforcement of these measures and the government's ability to control public spending. These efforts are crucial to ensuring Gabon's financial stability and supporting its long-term economic development.
The government also plans to introduce a housing tax in 2026, the revenues from which will be allocated to public lighting, roads and city maintenance.
