EQUATORIAL GUINEA : Government reduces its 2026 budget by 8%

(LVDE) – Equatorial Guinea has adopted a cautious budgetary approach for 2026, with a revised budget of XAF 1,294.2 billion, marking an 8% decrease compared to 2025, in response to an uncertain economic outlook.

The government of Equatorial Guinea recently announced a significant reduction in its budget for the 2026 fiscal year, bringing it down to XAF 1,294.2 billion. This decision, representing an 8% drop from the previous year, reflects a prudent stance amid a troubled economic environment. The draft finance bill was presented, highlighting the challenges facing the country, notably the volatility of oil revenues, which remain the State’s main source of funding.

Given unpredictable fluctuations in oil prices and production, the budget adjustment appears necessary to maintain macroeconomic stability. The decision to revise both revenue projections — reduced by XAF 111.5 billion — and expenditures — cut by XAF 109.2 billion — aims to prepare the country for mounting economic pressures.

Despite this budget contraction, the government’s priorities remain unchanged. Key objectives include diversifying the economy to reduce excessive dependence on hydrocarbons, and improving the business climate to attract more private investment. The government also aims to strengthen good governance and ensure stricter management of public finances. At the same time, it is committed to supporting the development of non-oil sectors such as agriculture, services, and industry, while stabilizing the banking sector to enable effective financing of the real economy.

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This tightened budget is part of a broader set of structural reforms supported by institutions such as the African Development Bank (AfDB) and the International Monetary Fund (IMF). These international partners encourage Equatorial Guinea to increase public finance transparency, control deficits, and better prioritize spending. The country is thus adapting its budgetary strategy to a difficult economic context while continuing its pursuit of economic transformation and long-term financial stability.

The current situation in Equatorial Guinea underscores the importance of structural reforms during periods of economic turbulence. With oil revenues often volatile, the country must find ways to ensure sustainable development and improve living conditions for its population. This revised budget reflects an awareness of the challenges ahead and a commitment to building a more resilient economic future. By continuing efforts to diversify the economy and improve basic services, Equatorial Guinea aims for inclusive growth that benefits all its citizens, despite the significant obstacles that remain. In this light, rigorous resource management and commitment to reforms are essential to building a prosperous future for this Central African nation.

Sorelle Ninguem