Gabon is a country with valuable natural resources like oil, timber and manganese. Yet, despite this wealth, more than one-third of its people live in poverty. High youth unemployment makes the situation worse. The political transition in August 2023, although challenging, has led to a stronger national focus on development. The National Development Plan of the Transition (PNDT) is at the heart of these efforts, aiming to reduce poverty in Gabon.

PNDT

The PNDT is Gabon’s main plan for solving economic and social challenges during the two-year transition that began on August 30, 2023. It focuses on five main goals: “political and institutional reforms, development of strategic infrastructure, intensification of economic diversification, development of human capital and social inclusion, and environmental sustainability.” All these goals connect directly to reducing poverty in Gabon.

A major goal is to invest in key infrastructure, like roads, energy, and health care. The PNDT wants to move Gabon away from depending only on raw materials and instead grow industries that add more value, like timber processing. This approach could create more jobs and reduce the country’s reliance on unstable resource prices.

Key Initiatives for Poverty Reduction in Gabon

One major effort to reduce poverty is the Emergency Community Development Program (PUDC). Launched with help from the UNDP, it aims to provide clean water, electricity, and better infrastructure in rural and peri-urban areas. It also encourages small businesses, youth employment and local planning. Gabon has invested 120 billion CFA francs into this program, with 66.7 billion already used.

Gabon is also improving health care through the National Health Insurance and Social Coverage Fund (CNAMGS). Started in 2008, CNAMGS first helped the poorest groups, students, and seniors, and now covers over half the population.

The transitional government is working to diversify the economy by focusing on industries beyond oil, such as forestry, mining, agriculture and tourism. These areas are seen as having strong potential for creating jobs and supporting rural development.

Addressing Governance and Fiscal Sustainability

Poverty reduction in Gabon is closely tied to better governance. This means improving transparency, accountability, and the use of public money, especially oil revenues. Poor management in the past has led to high debt and slow economic growth.

The PNDT also focuses on improving financial management. One step is the Treasury Single Account (TSA), which should be fully running by June 2024 to make public finances more efficient. The 2024 budget aims to raise more revenue, cut tax breaks, and modernize customs and tax systems. The IMF has stated that Gabon’s economic success depends on moving toward more transparent and inclusive governance.

Challenges and Future Outlook

Gabon is making strong efforts to fight poverty and inequality, but the success of these changes depends on fixing long-standing problems in governance, finances, and business conditions. Urban areas, where 90% of the population lives, still face concentrated poverty. To solve this, Gabon needs balanced development that supports both cities and rural areas.

– Cameron Jones

Cameron is based in Hendersonville, TN, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr