Tensions have escalated with the World Bank. A memo dated July 1st announced that the financial institution had suspended disbursements to Gabon due to several months of accumulated debt arrears. The Gabonese government acknowledges the delayed payments but attributes them to technical issues that have since been resolved.
The announcement was made public in a written note from the World Bank’s Vice President for West and Central Africa, which leaked on social media on Wednesday, July 3rd. Ousmane Diagana, who visited Gabon in early May and met with key transition leaders, including President Brice Clotaire Oligui Nguema, authored the memo.
The document specifies that as of June 30th, Gabon had accrued arrears amounting to approximately 10 billion CFA francs, prompting the suspension. This decision threatens to impact several ongoing projects, including urban modernization through paved road construction, technical vocational training for youth, the expansion of fiber optic networks to neighboring countries, and the eGabon project aimed at digitizing Gabon’s administration.
In a statement released Wednesday evening, the government attributed the failure to pay the arrears to technical difficulties. The Ministry of Public Accounts stated that the Gabonese public treasury has since made these payments. The ministry also noted that the current administration inherited a significant debt burden, having paid off 136 billion CFA francs in debt over the past ten months.
The World Bank’s suspension of disbursements could hinder several critical development initiatives in Gabon. The urban modernization project, which includes constructing paved roads, is particularly at risk. Additionally, programs focused on technical training for young people, expanding fiber optic infrastructure to neighboring countries, and the ambitious eGabon project aimed at digitizing government services may also face setbacks.
The Gabonese government’s explanation centers on resolving technical issues and managing a heavy debt legacy. However, the suspension underscores the ongoing challenges the country faces in maintaining financial stability and meeting its international obligations.
As Gabon works to address these issues, the international community watches closely, concerned about the potential repercussions on the nation’s economic development and stability. The resolution of this financial impasse with the World Bank will be crucial for the continuation and success of the country’s development projects.