Africa economy
Gabon: soaring oil prices push the country to develop its economy
Audio 02:13
An oil platform off the coast of Port-Gentil in Gabon, in January 2017. © AFP / JUSTIN TALLIS
By: Yves-Laurent Goma Follow
2 mins
The war in Ukraine has caused oil prices to soar.
An outbreak that benefits black gold producing countries.
This is the case of Gabon, which has revised its 2022 budget upwards thanks to the rain of petrodollars.
What will the country do with its oil surplus?
There is a disagreement between the IMF and the government on the allocation of this oil bonus.
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Last week, the Gabonese government adopted an amending finance bill.
According to forecasts, Gabon will rack up 314 billion CFA francs in oil surplus in 2022.
At the end of an evaluation mission of the three-year program concluded with Gabon, Boileau Yeyinou Loko, head of the IMF delegation, strongly suggested that Gabon devote this windfall to investment.
“
Oil is not here to stay all the time.
At some point, the oil will leave.
And so it is important that these additional resources be used everywhere for subsidies.
Our recommendation is to use some of these resources to develop the economy
,” he said.
More transparency demanded in the oil sector
The government said it was receptive, but faced with the distress of the populations, the State is forced to make choices, retorts Alain Claude Bilie-By-Nze, government spokesperson.
“
It is in our interest to invest in infrastructure, as recommended by the IMF.
But at the same time, we have to take into account the global price spike that is causing most states in the world to subsidize,
he explains
.
In our 2022 amending finance law, Gabon effectively intends to support infrastructure.
But at the same time, we will continue to support a number of prices to relieve households.
This will be the case for oil, gasoline and diesel at the pump, but also for flour in order to control the price of bread on the national market.
»
The IMF also recommends more transparency in the oil sector.
A recommendation that pleases Guy René Mombo Lembomba, member of the Extractive Industries Transparency Initiative (EITI).
“
The IMF is a key partner for Gabon, which only reminds us of the commitments made by our country.
It should be recalled that Gabon rejoined the EITI on October 21, 2021. Extractive companies, oil and mines, are stakeholders.
But we do not yet perceive their full cooperation.
»
In Gabon, the good health of the economy depends on oil revenues, the production of which has continued to plummet since the end of the 1990s.
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