Gabon Tax Breaks Cost $690 Million as Budget Stays Hidden

Gabon gave up 403 billion CFA francs, about US$690 million, through tax breaks in 2024. The 2027 budget bill still hadn’t been published by mid-October, according to the World Bank and reporting cited in the article. The tax relief equaled 3.2% of gross domestic product and 22% of public revenue. After the Council of Ministers adopted the bill, the Federation of Gabonese Enterprises said it hadn’t received a copy.

Where the tax relief went

Oil and mining firms received 31% of the revenue forgone through tax breaks. Local breweries received 8%, and banks received 6%. The World Bank said exemptions meant to reduce the cost of basic goods accounted for 5.8% in the report’s text. Its chart, though, put the share at 13% and didn’t explain the discrepancy.

Domestic value-added tax exemptions made up the largest category, totaling 206.9 billion CFA francs, about US$354 million. The oil refinery received 41% of that relief, banks received 25%, and telecommunications companies received 9%. Excise relief totaled 32.6 billion CFA francs, about US$56 million. Nearly all of it went to locally brewed beer.

Customs exemptions cost 155.9 billion CFA francs, about US$267 million. More than a quarter went to oil and mining, while 15% supported the cost-of-living programme. Corporate tax relief totaled 7.6 billion CFA francs, about US$13 million, with the timber industry receiving 62%. The report’s breakdown covers only taxes with available data, so the full cost may be higher.

Public revenue and oversight

The World Bank said tax breaks had continued to grow since 2022, despite a regional ban on discretionary exemptions. It also said companies’ commitments in return for the relief had never received a rigorous assessment. The Bank found that some mining and oil companies offset value-added tax refunds owed to them against other taxes, even though no legal provision allows it.

Gabonese government officials told the Bank that some double-taxation treaties may cost the country more revenue than they should. From 2014 to 2024, non-oil tax revenue averaged 10.5% of GDP, below the level for other upper-middle-income countries. The World Bank blamed tax breaks and weak compliance, not low tax rates. Oil generated about 40% of public revenue and 60% of export earnings in 2024, leaving the budget exposed to oil-price changes.

The Bank recommended removing exemptions that may lack a legal basis, limiting stability clauses in new agreements, and creating a joint body of tax, customs and other agencies to supervise incentives. It estimated that eliminating half the tax breaks outside the cost-of-living programme could raise up to 1.5% of GDP over the medium term. Public debt stood at more than 80% of GDP in the report’s 2025 estimate. Public spending was about 25% of GDP in 2023 and 2024.

Budget decisions and outside financing

On 18 September, the Council of Ministers adopted the 2027 budget bill as part of the 2026 to 2030 national growth and development plan. On 15 October, the Federation of Gabonese Enterprises, which says it has about 1,100 member companies, told the Economic, Social, Environmental and Cultural Council it hadn’t received a copy. The bill remained unpublished by mid-October, leaving it unclear whether it would reduce any exemptions. No government response to the World Bank’s tax recommendations was reported.

The World Bank published its review on 29 September. On 14 October, the finance ministry announced a US$580 million, eight-year bond with a 9.375% coupon. Gabon also relies on foreign bond buyers. The US State Department’s 2026 Fiscal Transparency Report said Gabon failed to meet minimum requirements and that only limited debt information was public, excluding state-owned company debt.

Gabon supplied 64% of US manganese ore imports between 2021 and 2024, according to the article. The US Geological Survey said the United States hadn’t produced manganese ore with 20% or more manganese content since 1970. The World Bank said some large producers in Gabon pay far less tax per unit of oil than others. It suggested more progressive oil and mining tax regimes and full publication of extractive contracts.