IMF Staff Completes Review Mission to Gabon

November 16, 2018

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
  • The IMF team has reached staff-level agreement with the authorities on policies that could support Executive Board’s approval of the third review.
  • The economy is recovering, and important steps have been taken since the completion of the second review to keep the program on track.
  • The mission agreed with the authorities on policies and measures to pursue growth-friendly fiscal consolidation, preserve external stability and support inclusive growth. The authorities are committed to speed up reforms implementation.

An International Monetary Fund (IMF) mission led by Boileau Loko visited Libreville [1] during November 7–16 to conduct discussions on the third review of Gabon’s extended arrangement under the Extended Fund Facility (EFF). [2]

At the conclusion of the IMF mission, Mr. Loko issued the following statement:

“Economic activity is recovering, with growth estimated at about 1.2 percent in 2018 up from 0.5 percent in 2017, despite lower-than-expected oil production. Inflation increased to 3.4 percent (12-month average) in September 2018, reflecting higher food prices and the pass through of rising international oil prices. Fiscal performance at end-September was better than expected, thanks to higher than targeted non-oil revenue collection.

The recovery is expected to firm up in 2019 and the medium-term outlook is still promising, with GDP growth projected to reach 3.1 percent in 2019 and 5 percent in the medium term. Downside risks to the outlook include the failure to implement the planned fiscal consolidation, lower global growth and a marked tightening of global financial conditions.

Staff commended the authorities’ efforts to improve program implementation since the second review. Most end-September 2018 targets were met. Most program-supported structural reforms were implemented, albeit with some delays.

Fiscal consolidation remains a priority under the program. The mission took note of the authorities’ commitment to implement all critical measures in the 2018 supplementary budget to meet the end-year fiscal deficit target. Fiscal policy in 2019 aims at further enhancing non-oil revenue mobilization, containing the wage bill, and improving the composition of public spending to provide space for priority social and capital expenditure.

Improving budgetary execution, aligning expenditure commitments and cash flows plans, and fully operationalizing the Treasury Single Account will strengthen transparency, cash management, and budget monitoring. Continued efforts are also needed to enhance debt and cash management to prevent the accumulation of domestic and external arrears.

The mission highlighted the fiscal risks posed by public agencies. Despite some progress, the financial position of several public agencies and enterprises remains precarious, and unless improved, it could represent significant contingent liabilities for the government. The authorities have renewed their commitment to tighten controls on special accounts spending.

The mission underscored the need to speed up the liquidation of the three distressed banks and expeditiously tackle the NPL overhang to strengthen the banking sector and foster credit to the private sector. Further improving the business environment is also critical.

The mission welcomed the authorities’ commitment to implementing policies consistent with the stability of the region’s monetary arrangement. Continued fiscal consolidation and tangible actions to strengthen compliance with foreign exchange regulations, notably regarding the repatriation of export earnings, are critical to rebuild the BEAC’s foreign reserves.

The IMF Executive Board could consider the third review in December 2018.

The mission would like to thank the Gabonese authorities for the constructive discussions and warm hospitality.”


[1] The mission met with the Chief of Staff of the President, Mr. Brice Laccruche, Minister of Economy Ogandaga, Budget State Minister Otandault, National Education State Minister Ndzigue, Minister of Hydrocarbons Ambourouet, the National Director of BEAC, and other senior government officials, representatives of the private sector, civil society, and international development partners. A press-conference was held by the mission end.

[2] On June 19, 2017, the IMF Executive Board approved an SDR 464.4 million (about US$642 million) extended arrangement under the Extended Fund Facility for Gabon, or 215 percent of Gabon’s IMF quota, in support of Gabon’s medium-term economic recovery program(See Press Release 17/233). The second review of the program was concluded on August 1, 2018.

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