Author: OBG Admin

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

PNG promotes SME development

Posted OBG AdminPosted in Uncategorized

Small and medium-sized enterprises (SMEs) are to receive new incentives in Papua New Guinea, as the government aims for a 10-fold increase in the number of such businesses, from 50,000 to 500,000, and a fivefold increase in the segment’s contribution to GDP, from 10% to 50%. This builds on a 12-point stimulus package launched in 2012, which included financial support and subsidised lending for SMEs. New Government Body New legislation passed in February 2015 established the Small and Medium Enterprise Corporation (SMEC), which replaced the Small Business Development Corporation as the lead agency charged with developing and promoting SMEs. The SMEC has been placed under

George Richani-CEO-Al Ahli Bank of Kuwait

PNG’s agriculture programmes lead to growth

Posted OBG AdminPosted in Uncategorized

Papua New Guinea’s climate is characterised by fertile soil and abundant rainfall, enabling the country to grow a number of tropical crops such as palm oil, coffee and cocoa, which account for around 80% of all agricultural exports. Meanwhile, sweet potatoes, cassava, fruits and vegetables are all farmed to serve the local market. In total, agriculture contributes around a quarter of the country’s GDP and according to PwC, 85% of the population is involved in farming. While some value-added conversion is taking place, most commodities are exported in raw form, and the country’s agriculture sector faces the challenge of converting cash crops to commercial farms.

Amin Al Husseini-CEO-Oman Arab Bank

Solutions for rural power: Working towards the goal of universal access by 2035

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The government has fixed targets of providing electricity for 85% of rural areas by 2025 and achieving universal access to electricity for its population of around 1.7m by 2035. The objectives were set out in the Policy Letter for Universal Access for Basic Services in Rural Areas, which was approved by the Council of Ministers in September 2014, and which also noted that only 15% of rural areas had electricity as of 2014. Achieving these targets will be a tall order, taking into account that tropical forest covers 85% of Gabon, and that the country has a population density of seven inhabitants per sq km,

Pham Hong Hai-CEO-HSBC Vietnam

Well informed: Explorers are excited about pre-salt prospects

Posted OBG AdminPosted in Uncategorized

Gabon is banking on its deepwater resources to achieve its ambitious target of doubling oil production to 500,000 barrels per day (bpd) by 2025. The discoveries since mid-2013 by Total, Shell and Eni in its pre-salt formations and those by its neighbours in the Gulf of Guinea have raised hopes that its offshore resources mirror those of Brazil, and will enable it to reverse a trend of plateauing production. Gabon has the second-highest number of active oil blocks in sub-Saharan Africa to be licensed, as well as open blocks that have yet to be licensed. Exploration was under way at 52 blocks as of October

Mark Geilenkirchen-CEO-Port of Sohar

All together: Regional economic integration holds promise beyond the hurdles

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Although it has one of the region’s smallest populations, Gabon has long been a visible and effective diplomatic player in Central Africa, aided in part by strong ties to France – and more recently Asian economies – as well as by a comparatively high per-capita income and GDP. The clearest example of the country’s clout is within the Central African Economic and Monetary Community (Communauté Économique et Monétaire des Etats de l’Afrique Centrale, CEMAC), the regional economic body that counts Cameroon, Chad, Equatorial Guinea, the Republic of the Congo and the Central African Republic as members. CEMAC’s existence has allowed for a considerable level of

Amin Al Husseini-CEO-Oman Arab Bank

Continental links: Cooperation between and within African regions increases

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As evidenced by its participation in the Economic and Monetary Community of Central African States (Communauté Économique et Monétaire de l’Afrique Centrale, CEMAC), Gabon has long sought to cultivate strong business and trade ties within Africa (see analysis). As the continent’s GDP and economic clout have risen over the past decade, those efforts have intensified, yielding some notable success in terms of inbound investment and technical assistance. New Arrivals In recent years, Gabon has benefitted from the broader trend within Africa to strengthen intraregional ties, the result of not just African economies’ robust performance but also the slowdown in their traditional trade and investment partners,

Mohammed El Etreby-Chairman-Banque Misr

Balancing the books: The government reins in spending in light of lower oil prices

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A sharp drop in the price of oil has prompted Gabon to revise its expenditure plans. In light of decreasing revenues from its major export earner, authorities have started to take action. In early 2015, faced with oil prices of under $50 per barrel, the government organised a seminar to discuss the issue, announcing that a revision of the budget was in the works. The initial budget, published in October 2014, envisioned a total of CFA3.19trn (€4.78bn), an increase on the previous year’s budget of CFA2.95trn (€4.43bn). However, initial budgetary planning was based on oil prices of around $80 per barrel, which decreased significantly as

Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

Partners new and old: Broadening its diplomatic and economic ties

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Although it remains deeply influenced by its historical ties to Europe, Gabon has strived in recent years to broaden its economic and diplomatic partners. France remains one of the country’s closest trading partners and also one of its largest investors. With several emerging economic powers from elsewhere in Asia and Africa playing a bigger role in investment flows, Libreville has sought to adopt a more multifaceted approach to its economic diplomacy. Traditional Partners As the former colonial power, and a continuing important source of investment, France remains Gabon’s most high profile traditional partner. Officials from both countries regularly meet to discuss various issues, ranging from

Peter Wong-Deputy Chairman and Chief Executive-HSBC

Fostering cooperation: Efforts to achieve regional economic integration continue

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While the Economic Community of Central African States (Communauté Économique et Monétaire de l’Afrique Centrale, CEMAC) has a functioning monetary union as well as a range of regional financial institutions and bloc-wide economic policies in place, progress towards greater economic integration has faced a number of significant challenges. Authorities are working to find solutions to these challenges and taking steps towards integration, including boosting freedom of movement within the bloc, strengthening financial institutions and addressing trade barriers. Regional Achievements CEMAC, established in 1999 to replace the Central African Customs and Monetary Union, has already achieved major steps towards economic integration, most notably in the form

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Making it easier: Measures to improve the business climate are accelerating

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In a country where public investment programmes have been pivotal for economic growth over the past several years, authorities are nonetheless well aware of the value of stoking private sector growth. However, there are challenges ahead, as, according to the World Bank, Gabon was ranked 144th out of 189 countries in its 2015 “Doing Business” report, down six slots from the 2014 ranking. The country performed well against other major Francophone markets in sub-Saharan Africa, including heavyweights such as Côte d’Ivoire, Senegal and Cameroon, but there is a need for improvement. The reasons for the low ranking are understandable. It takes an average of 50