Gabon replaces finance minister as debt worries mount

LIBREVILLE, Jan 2 (Reuters) – Gabon’s President Brice Oligui Nguema has replaced his finance minister, Henri-Claude Oyima, according to a decree, as the oil-producing Central African country grapples with a liquidity squeeze and rising arrears.

Gabon has become increasingly reliant on regional capital markets to meet its financing needs, though appetite for its debt “has weakened substantially”, ratings agency Fitch said last month, when it downgraded the country’s long-term foreign-currency issuer default rating.

Oyima, a prominent banker and businessman, was named finance minister in May, after Nguema won the first presidential election since he took power in a coup in 2023.

A presidential decree released late on Thursday said technical adviser Thierry Minko would be taking over as “minister of economy, finance, debt and shareholdings, responsible for combating the high cost of living”.

The decree said another senior official, Marc Abeghe, would be in charge of the budget at the ministry.

Fitch’s decision to downgrade Gabon’s long-term foreign-currency issuer default rating cited a widening fiscal deficit and a dearth of official creditor financing.

The agency said it expected government debt to increase from 72.9% of gross domestic product in 2024 to 80.4% in 2025, 85.5% in 2026 and 86.7% in 2027.

Gabon’s presidency said in December it was planning to introduce a new housing tax in 2026 to improve public lighting, road maintenance and city cleanliness.

Reporting by Gerauds Wilfried Obangome; Writing by Anait Miridzhanian; Editing by Robbie Corey-Boulet and Gareth Jones

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