Interview with Nicole Jeanine Lydie Roboty, née Mbou, Minister of Economy and Recovery since July 2020. A graduate of Paris I University and the Center for Financial, Economic and Banking Studies (CEFEB), she previously served as Director of Negotiation and Monitoring of Fundraising. She is the first woman to hold this position in Gabon.
Do you think that, after the economic crisis of the last two years, structural reforms should be accelerated in Gabon?
The pandemic has highlighted the structural weaknesses of our economy. These particularly concern: the very high dependence on revenues from extractive industries and imports of certain products, especially foodstuffs; the vulnerability of small and medium-sized enterprises (SMEs) and very small enterprises (VSEs), already struggling due in particular to the limited size of the market; the significant level of public spending and the necessary adjustments to its trajectory in order to achieve sustainable public deficits; and the still high level of the economically vulnerable population, despite the efforts made in implementing the human investment strategy since 2015. Faced with this situation, the Government, following the directives of the President of the Republic, Head of State, His Excellency Ali Bongo Ondimba, initially took measures
To mitigate the socioeconomic effects of the health crisis, a recovery plan – the Transformation Acceleration Plan (PAT) – was adopted in 2021, structured around a broad program of structural reforms and structuring projects. This PAT served as the basis for discussions with the IMF, culminating in the conclusion of a three-year program (2021-2022) under the Extended Fund Facility in July 2021.
What does the second-generation program agreed with the IMF consist of?
The second-generation program supported by the agreement three-year (2021-2022) under the extended credit facility The (MEDC) agreement we concluded with the IMF is a set of structural reforms that the Government has committed to implementing over the three-year period. With regard to fiscal policy, the structural reforms adopted aim in particular to improve transparency in
the oil sector; streamline tax and customs exemptions; implement environmental taxation; modernize and deploy revenue information systems; strengthen our institutional capacity for tax revenue collection; strengthen expenditure control and improve the efficiency and effectiveness of public spending; ensure sound management of available public resources; improve
cash management; strengthening our public investment management framework to improve their execution and quality and to address significant infrastructure gaps.
Regarding public debt management and budgetary risks, the Government's commitments aim to strengthen debt management and ensure better monitoring of the State's equity portfolio. Concerning social protection, the Government has pledged to continue strengthening social protection through the definition of new eligibility criteria for economically vulnerable Gabonese citizens (GEF), the implementation of a survey, and the establishment of a new GEF database based on new poverty indicators. Financial sector reforms, for their part, will allow for the continuation of the liquidation process of the three public banks, the establishment of the institutional framework for financial inclusion, and the strengthening of the financial sector.Finally, in the area of macroeconomic statistics, the agreed structural reforms aim to strengthen and modernize the national statistical system. I would like to conclude
on this question of the objectives of the three-year program to indicate that said program is subject to semi-annual reviews.
How do you plan to attract innovative financing while simultaneously boosting green growth?
Reviving our economies has become a shared concern for all governments. However, implementing recovery strategies remains contingent on mobilizing significant financial resources commensurate with the challenges. This underscores the need to find innovative and appropriate financing solutions.
At the same time, these recovery plans adopted by our countries must be an opportunity to accelerate the ecological transition process that is essential for us. Our states must initiate a shift towards a new economic and social model that provides a comprehensive and sustainable solution to the major environmental challenges of our century and the threats facing our planet. The ecological transition concerns several sectors. Among these sectors is the energy sector, which involves reducing traditional energy production and consumption and increasing the share of renewable energies in production and consumption. This is what we are trying to do in Gabon by encouraging the development of hydroelectric power projects. The other sector to consider in the ecological transition is the industrial sector, a major emitter of greenhouse gases. It is a matter of rethinking these activities to reduce their carbon footprint and minimize their environmental impact. This requires high-quality local production through a sustainable approach. Finally, we must encourage the agri-food transition that will develop environmentally friendly agriculture, thereby contributing to strengthening the health resilience of populations. This also aims to reduce our dependence on food imports.
In reality, all these objectives are reflected in the Territorial Food Programme (PAT). Thus, green finance constitutes a means of mobilizing the resources necessary to implement these ambitions.
expressed by our highest authorities, foremost among them the President of the Republic, who never misses an opportunity around the world to reaffirm his commitment to environmental preservation.
Many private investors are now integrating the concept of sustainable development into their projects. We must seize this favorable context to align the interests of Private investors, the commitment of policymakers to development, and the achievement of the Sustainable Development Goals are all key factors. Indeed, since the issuance of the first "green bonds" in 2008, green finance has grown considerably. It falls within the framework of sustainable finance, its ambition being to contribute to the development of a sustainable economy. In this regard, green finance relies on several instruments and mechanisms, such as green bonds and green or environmental funds. Ultimately, for Gabon, the "green" dimension of our economy and its financing is sufficiently integrated into national socioeconomic programs.
What can the AfCFTA bring to Gabon?
The African Continental Free Trade Area (AfCFTA) aims for four main objectives: the progressive elimination of tariffs and non-tariff barriers; improved cooperation on technical barriers to trade and sanitary and phytosanitary measures; the development of value chains at the regional and continental levels; and the strengthening of Africa's development and industrialization. Given the numerous advantages offered by this economic space, the Gabonese authorities made our country a founding member of the AfCFTA trade agreement on March 21, 2018. Subsequently, Gabon deposited its instrument of ratification on July 7, 2019, in Niamey. As a result, the agreement is fully binding. While the AfCFTA has been operational since January 1, 2020, with the ratification of the treaty by 54 countries, negotiations on certain aspects of trade are ongoing.
That said, the AfCFTA, through trade in goods, will be able to offer our country, among other things: business opportunities; the opportunity to integrate into supply chains
regional values; the possibility of developing its agriculture; the opportunity to promote local products through our local SMEs; the opportunity to revisit our trade and cooperation agreements; the possibilities of strengthening these infrastructures in terms of trade facilitation for greater competitiveness.
In relation to trade in services, the AfCFTA can offer Gabon the opportunity to become a hub for the transit of goods, given its geographical location and the market for exporting its services, particularly engineering,
cinematography, culture, auditing, Ultimately, the AfCFTA is seen as an opportunity to accelerate the structural transformation of our economy insofar as it induces deep adaptation reforms of our economic fabric to make it more competitive.