Gabon is one of the member nations of CEMAC, which was created to integrate regional economies and boost trade. While the bloc has successfully established the free movement of capital, a shared currency and a wide range of common regional institutions, a number of the other aspects of the proposed integration have proceeded sluggishly. This has slowed economic growth and trade, and helped sustain…
Gabon is home to the regional stock market of CEMAC, the Central African Stock Exchange (Bourse des Valeurs Mobilières d’Afrique Centrale, BVMAC). While the exchange has attracted many bond listings since it began operations eight years ago, equity listings and secondary trading activity remain limited. To address this, the regulator commissioned a study of the exchange’s development potential…
Lenders in commodity-dependent Gabon were hit by the macroeconomic slowdown, but the outlook has since brightened, and with several new players looking to flex their muscles, lending to the private sector and households is expected to rise significantly. Gabon’s banking sector is heavily concentrated – a trait of many of the continent’s financial service industries – with the only privately…
Interview:Claude Ayo-Iguendha; Abdelaziz Yaaqoubi What has been the impact of exogenous pressures on the banking sector? CLAUDE AYO-IGUENDHA: Despite a 5-6% drop in outstanding credits, Gabon has handled external pressures better than other CEMAC countries. The drop in outstanding credits is not due to liquidity pressures, but instead due to a lack of interesting opportunities in the market.…
Despite its small population, Gabon has a relatively large insurance market, thanks in part to its high per capita income. The industry contracted in 2015 on the back of the drop in oil prices, but the prospects for the sector’s long-term development, particularly the life and micro segments, are strong. Plans to raise mandatory capitalisation levels across the Inter-African Conference of Insurance…
Interview:Abdellah Abbad How can Morocco strengthen its role in sub-Saharan Africa and support integration efforts? ABDELLAH ABBAD: The volume of trade between the kingdom of Morocco and the rest of Africa increased by an average of 13% per year between 2003 and 2013, and by 12% when we look at the sub-Saharan region. Despite this progress, the economic potential of our relationship with the…
Interview:Jean Paul Camus What are the main challenges to production and distribution of water and electricity, and what is being done to overcome these issues? JEAN PAUL CAMUS: For several years now, the main challenge has been to keep up with the growth in demand. Except for in 2015, where we experienced a drop due to the impact of the oil crisis, demand has increased by around 6% per annum,…
Interview:Jean-Bernard Boumah What reforms can contribute to the development of small and medium-sized enterprises (SMEs)? JEAN-BERNARD BOUMAH: The “pact to maintain growth and preserve employment during a period of oil crisis”, signed in March 2016 between the government and the CPG, is a resolution taken to increase the effectiveness of mechanisms for the promotion of SMEs and very small…
Interview:Madeleine Berre How do special economic zones (SEZs) help support economic growth? MADELEINE BERRE: The main impact associated with SEZs is the diversification and development of a country’s offerings and products for export. In the forestry sector, which is now supported by the creation of a SEZ at Nkok, primary and secondary transformation generate real added value compared to…
Interview:Régis Immongault What has been the economic impact of the drop in oil prices in Gabon? REGIS IMMONGAULT: Similarly to other oil-producing countries, the drop in oil prices has affected both government finances and the activities of the oil and oil-related sectors. Growth is estimated at 3.9% in 2015, down 0.9 percentage points compared to our initial estimates. In this context, we…
