Gabon to roll out new housing tax to combat debt crisis

By: Chidozie Nwali

Faced with a looming “debt wall” and a national debt stock projected to hit 84% of GDP by 2026, the Gabonese government has officially unveiled a controversial new housing tax as a cornerstone of its fiscal recovery plan.

The Flat-Rate Housing Tax (Taxe Forfaitaire d’Habitation or TFH), which goes into effect on January 2, 2026, represents a high-stakes move by the transitional administration to diversify revenue away from volatile oil markets and satisfy international creditors like the International Monetary Fund (IMF).

The timing of the new tax is critical. According to recent World Bank data, Gabon faces a high concentration of debt maturities in 2026–2027, with nearly 60% of its total outstanding debt coming due in that short window.

To avoid a sovereign default, the government’s 2026 Finance Law introduces the TFH as a way to generate a reliable, non-oil revenue stream. Government estimates suggest the tax will bring in approximately 17.95 billion CFA francs ($32 million) in its first year.

According to special adviser to the president, Marie-Noelle Ada Meyo,The tax is an annual fee but is payable in monthly installments through SEEG (Gabon’s Water and Energy Company) utility bills.

For many households, this amounts to 1,000 CFA francs per month ($1.65), totaling 12,000 CFA ($20) per year. the most vulnerable households, schools and places of worship will be exempted.

As of the end of October 2025, Gabon’s outstanding public debt stood at 8.6 trillion CFA francs ($15.45 billion), a significant increase from 7.1 trillion ($12.68 billion)  for the same period last year.

Data from the Central African nation’s debt office shows the overall amount comprises 4.2 trillion CFA francs ($7.50 billion) of external debt and 4.4 trillion ($7.86 billion) of domestic debt, including 3.2 trillion ($5.72 billion)  issued on the regional financial market.