Gabon is suffering the consequences of the coup d’état that took place on August 30, 2023. Moody’s, a renowned rating agency, recently downgraded the country’s rating, changing its economic outlook from “stable” to “negative”. The move reflects concerns about political uncertainty in the country since the overthrow of President Ali Bongo Ondimba.
The American rating agency justifies its decision by highlighting Gabon’s suspension from the Central African Economic and Monetary Community (Cemac). This suspension, combined with potential regional sanctions, increases the risk of a lack of liquidity in the country, making the repayment of its debt more uncertain.
However, this downgrading of Gabon’s rating is not seen as a catastrophe for the country. According to some sources, this is rather a prudent measure on the part of Moody’s. Investors understand that despite the political change, economic activities continue as usual.
In response to this situation, the Committee for the Transition and Restoration of Institutions (CTRI), which led the coup, reactivated a “task force for controlling internal and external debt”. This initiative aims to reassure rating agencies by showing that the country remains responsible for its financial commitments.
The new Prime Minister, Raymond Ndong Sima, also wanted to reassure investors by affirming that Gabon will honor its debt obligations. Despite political uncertainties, he wants to get the country back on track and restore its economic stability.
The coup in Gabon and the downgrading of its rating by Moody’s demonstrate the difficulties the country is currently facing. However, it is important to note that the measures taken by the new authorities and the assurances given by the Prime Minister demonstrate a desire to maintain Gabon’s economic stability.
This subject remains to be closely monitored in the coming months, as it could have a significant impact on Gabon’s debt and its reputation on international financial markets.