Released by the World Bank, the Gabon Economic Update 2024 outlines fiscal policy reforms aimed at optimizing fiscal revenues while advancing the green growth potential of Gabon's wood industry. The report, titled "Designing Fiscal Policies for Sustainable Forestry," begins with an analysis of recent developments and outlook for Gabon’s economy. It then explores how fiscal instruments can foster sustainable forest management and economic growth.
In 2023, Gabon experienced lower growth at 2.4% due to transport disruptions affecting wood and manganese production. Following contested election results in August and a subsequent coup leading to political transition, new authorities announced plans to strengthen institutions, improve governance, and enhance transparency in public finances to create jobs and improve living conditions.
The report notes a slight deterioration in Gabon's fiscal position in 2023. In response to high social needs and infrastructure gaps, authorities increased public spending through social support measures and expanded investments in public services. However, domestic revenue collection grew at a slower pace. Rising interest rates combined with spending pressures led to increased public debt. The report emphasizes the need for accelerated reforms and efficient public spending controls to continue improving living conditions without compromising financial sustainability.
This fourth edition of the Gabon Economic Update argues that while international support is essential for climate services provided by Gabon's forests, fiscal policies can complement economic and conservation goals.
"Thanks to strong conservation efforts, Gabon created an important local wood industry based on sustainable production and certification requirements, positioning itself as a source of inspiration for the region,” said Aissatou Diallo, World Bank Resident Representative for Gabon.
The report highlights strong potential for future growth in the forestry sector. The wood industry has become a major economic player as the first source of formal private jobs representing 3.2% of GDP and 6% of exports in 2023. It contributed 41.9 billion CFA francs to the national budget last year—equivalent to 0.3% of GDP—almost four times more than in 2016.
Ongoing reforms such as revising the forestry code and implementing a digital wood traceability system are significant steps toward combating illegal logging. Sonia Barbara Ondo Ndong, co-author of the report, stated that “These reforms could set the framework for fiscal policies to generate more public revenues while further promoting conservation goals.”
Erick Tjong, another co-author of the report noted that “Fiscal policies for forestry could be part of a broader strategy to align economic and environmental goals, raising more revenues for the state while promoting jobs and higher value added in a sustainable timber industry”.