The Report: Gabon 2012
Located on the Atlantic coast of Central Africa, Gabon covers an area of 267,677 sq metres. The country has an equatorial climate, with rainforest cover in more than 80% of the country. Gabon has abundant natural resources, with significant iron ore deposits, as well as uranium and gold. It is Africa’s second-largest producer of manganese and the sixth-largest producer of oil in sub-Saharan Africa, at around 250,000 barrels per day. The population, which stands at some 1.5m, is largely urbanised, with the capital alone home to around a third of the country’s people. The populace comprises more than 40 ethnicities of predominately Bantu origin. A legacy of its colonial history, French is the official language and the most commonly used for business and daily affairs.
Country Profile
Gabon has long been lauded on the global stage for its relative stability in a region that has, at many times over the past several decades, experienced significant political unrest. A member of both global and regional political and economic organisations, Gabon’s global engagement is closely linked to France, given its status as a former French colony. The country has a multi-party political system with the executive branch composed of a president, who serves as head of state and a prime minister, who is head of government. Legislative power rests with the 120-seat bicameral parliament. The government has more recently turned its view to economic reforms that will promote sustainable growth. This section also provides a quick overview of the country, its history, geography, population, religion, natural resources, climate and languages. This chapter contains interviews with President Ali Bongo Ondimba, Prime Minister Raymond Ndong Sima; and Jim O’Neill, Chairman, Goldman Sachs Asset Management.
Explore chapterEconomy
Gabon’s status as the sixth-largest crude oil producer in sub-Saharan Africa has helped the country achieve the second-highest per capita GDP in the region. While the country’s resource-dependent economy took a hit when global demand dropped during the financial crisis of 2008-09, recovery has been strong and growth has remained robust. The government has in recent years put a greater focus on economic diversification to decrease the economy’s dependence on oil revenues, which represented 19.3% of GDP in 2011. These efforts include increasing value-added activities in other areas of the economy, including rubber processing and cocoa, coffee and palm oil production. As part of the Emerging Gabon strategy, the government is also seeking to create a more open economic environment for investors with the creation of special economic zones, which will offer significant incentives. This chapter contains interviews with Magloire Ngambia, Minister of Investment Promotion; Henri-Claude Oyima, Director and Chairman, BGFIBank; Shanta Devarajan, Chief Economist for Africa, World Bank; and Nina Abouna, Director-General, APIEX.
Explore chapterEnergy
Producing approximately 89m barrels in 2011, Gabon is currently the sixth-largest oil producer in sub-Saharan Africa. While oil production has been on a steady decline since peaking in the late 1990s, offshore and deepwater fields remain largely untapped. Given greater industrialisation, growth is expected to occur in electricity generation, with new generators and three new dams currently under construction. A number of challenges remain for the industry in the medium term. These include the country’s new hydrocarbons code, which has yet to be passed (and for which IOCs must wait before they can begin exploration on new fields) and the fact that deepwater exploration and production is an expensive and logistically difficult for the country. This chapter contains interviews with Etienne Ngoubou, Minister of Petroleum; Serge Toulekima, Managing Director, Gabon Oil Company; and Robert L Gerry, Chairman and CEO, VAALCO Energy.
Explore chapterAgriculture & Forestry
Stimulating investment in agriculture is considered a crucial part of diversifying Gabon’s economy and reducing dependency on food imports. The government is currently supporting a two-track investment programme that will encourage agro-industrial projects to increase the sector’s contribution to GDP and support small-scale farmers to boost production for local markets. Gabon has great potential for cash crops and recent increases in investment are likely to scale up production of rubber, palm oil, coffee, cocoa and sugar. The country has signed agreements with foreign companies to develop palm oil plantations, as well as a rubber plantation and processing plant. The timber market, which makes up 6% of non-hydrocarbons GDP, was dealt a blow with the raw timber export ban in 2010 – a ruling that bankrupted many small producers. However, the number of local processing facilities is rapidly rising and the government is focusing on increasing downstream activity in the segment. This chapter contains interviews with Julien Nkoghe Bekale, Minister of Agriculture; and Ernst A Brugger, Chairman, Precious Woods.
Explore chapterBanking
In spite of the country’s relatively small population, there are 14 financial institutions, nine of which are banks. Two of these are majority-controlled by the state and the other seven are privately owned. The largest three banks – BGFIBank, BICIG and UGB – are responsible for more than 80% of loans and deposits made in the country. While penetration remains relatively low, Gabon’s expected continued economic development means it will likely increase in the coming years. Given high oil prices, strong economic expansion and planned infrastructure developments under the Emerging Gabon strategy, which are expected to create opportunities for project finance, the future for the banking sector is promising. This chapter contains interviews with Denis Meporewa, National Director, BEAC; and Michaël Adande, President, BDEAC.
Explore chapterCapital Markets
Headquartered in Libreville, the Central African Stock Exchange (BMVAC) is one of only two regional bourses serving the Central African Republic, Cameroon, Chad, Congo, Equatorial Guinea and Gabon. Activity on BMVAC was relatively low in 2011, with just one public offering issued by Chad and limited secondary trading activity. However, the bourse has shown strong progress since its operations began five years ago and continued growth and aggressive outreach strategies by brokers and regulating authorities are likely to promote the expansion of the regional capital markets. This chapter contains an interview with Eric Paget-Blanc, Senior Director, Fitch France.
Explore chapterInsurance
There are currently eight insurance companies in Gabon, three of which specialise in life insurance. Most are subsidiaries of foreign firms, though locally owned Ogar is the country’s largest insurer. Capital investment of insurance companies has been on the rise, with a total of €142.5m having been invested in 2020, up 3.8% year-on-year. Net incomes in life insurance have also performed well, having increased by 34.5% between 2005 and 2010. Recent reforms should help stem problems with arrears that have traditionally plagued the sector. Insurers in the country are now focusing on strengthening their solvency, increasing penetration and bringing the country in line with regional best practices. This chapter features an interview with Jean-Claude Ngbwa, Secretary-General, Inter-African Conference on Insurance Markets (CIMA).
Explore chapterIndustry & Mining
Industrial activity in Gabon is still at an early stage, with the limited size of the local market and high costs of industrial activities posing major challenges to the development of the sector – indeed, industry accounted for just 7.7% of GDP in 2011. However, major strides have been made in recent years to promote investment and development in industry, including the Industrial Gabon programme, which aims to promote the local processing of raw materials into high-value-added exports. New special economic zones and public-private partnerships, as well as projects to increase palm oil, rubber and fertiliser production, are expected to contribute to the growth of the sector. The government is also eager to increase mining’s contribution to GDP. With production of manganese having reached record levels in 2011, accounting for 14% of global exports, and a number of investors expressing interest in the sector, mining revenues are expected to increase. This chapter contains interviews with Régis Immongault Tatagani, Minister of Industry and Mining; and Fabrice Nze-Bekale, CEO, Société Equatoriale des Mines.
Explore chapterTourism
The tourism sector is playing a key role in the government’s diversification strategy. With the Green Gabon programme promoting conservation and forestry, the country is aiming to attract high-spending visitors with an interest in ecotourism opportunities offered by Gabon’s lush rainforests and diverse wildlife. Initiatives are also under way to upgrade hotels and conference facilities for business tourists, who account for around 60% of visitors to the country. While the sector’s contribution to GDP was just 2.8% in 2011, it is expected to increase steadily with continued attention from the government, which is hoping to double the number of tourist arrivals by 2020. This chapter contains an interview with Alan Bernstein, Executive Chairman, Sustainable Forestry Management Africa.
Explore chapterConstruction & Real Estate
The construction industry has been a major driver of growth in recent years as Gabon has made moves to upgrade its infrastructure. These include major road projects, two new hydroelectric dams, port extensions and the construction of a new international terminal at Port-Gentil International Airport. Housing projects have also been important given the estimated deficit of 200,000 homes nationwide. In spite of this high demand – and, indeed, a need for affordable housing – the real estate market has been largely backed by luxury housing projects. The government has in recent years sought to eliminate bureaucratic obstacles in the real estate sector and created several new institutions to aid in the sector’s development. This chapter contains an interview with Yannick Mokanda, Director-General, National Agency for Urban Planning, Topographical Works and Land Registry (ANUTTC).
Explore chapterTransport
The government has acknowledged that transport upgrades urgently need to be made to promote growth in a number of other sectors, including tourism, agriculture and extractive industries. The National Infrastructure Master Plan, which was launched in June 2012, focuses on 21 priority projects in transport, energy and housing. Current transport projects include the expansion of the ports system, which saw a 20% increase in traffic between 2010 and 2011; a €30.5m renovation of Port-Gentil’s aiport; and the expansion and paving of the road network, particularly outside of towns and urban centres. This chapter contains interviews with Dominique Oyinamono, Director-General, National Civil Aviation Agency (ANAC); and Grégory Quérel, Chairman of the Management Board, Necotrans.
Explore chapterTelecoms & IT
The telecoms industry is being redefined by a move toward mobile technology. Mobile subscriptions reached 2.37m in 2011, an increase of 112% since 2007. The mobile market is highly competitive, with four competing operators. With the penetration rate currently reaching the saturation point, operators will have to begin offering new services such as mobile broadband at lower rates to maintain a competitive edge. While a 3G licence has already been awarded, no services have as yet been rolled out. If the eventual introduction of 3G services is successful and affordable for mobile customers, it is expected that these will contribute to the continued steady expansion of the sector. Major changes are under way in the IT sector, with significant investments taking place in digital infrastructure. The installation of a second fibre-optic cable is expected to reduce the cost of access to broadband internet – a move which should help solve the problem of low internet penetration, which currently stands at approximately 18%. The government is also planning for the creation of seven IT flagship zones, which are intended to serve as incubators for small businesses, and is also facilitating a switch toward e-government services. This chapter contains an interview with Alex Bernard Bongo Ondimba, President, National Agency for Digital Infrastructure and Frequencies (ANINF).
Explore chapterHealth & Education
Under the national health policy, adopted in 2010, Gabon is seeking to provide better quality care to its citizens. Plans to upgrade and build new health care facilities are under way, while a national health insurance scheme being rolled out will increase access to health care throughout the country, providing free care and access to medicine. The government hopes to offer universal health care by 2025. Under a new plan for education, the government will spend more than €2.5bn between 2010 and 2020 to construct and upgrade schools and educational facilities and train teachers. Goals for the sector include increasing enrolment rates and access to pre-school programmes. The government is also emphasising technical and vocational training to bring the education sector’s offerings in line with the country’s needs. This chapter contains a viewpoint by Dr Lachlan Forrow, President, International Foundation of the Albert Schweitzer Hospital, on improving health care.
Explore chapterMedia & Advertising
Though the domestic media landscape is relatively small, it is also quite diverse. Print media continues to play an important role, with a number of popular local newspapers and periodicals, along with a wide range of international offerings. Television is growing particularly quickly following the introduction of digital terrestrial TV, which currently reaches 80% of the population. The media are supported by a dynamic advertising sector, which is continuously expanding and utilising a wider variety of platforms. Television and radio have been essential for reaching rural and remote populations, which do not receive much of the print media released in the cities. Given Gabon’s increasingly international presence, particularly following the Cup of African Nations, and its growing economy, the advertising industry is well-placed to vie for international investment.
Explore chapterTax
In collaboration with Deloitte, OBG introduces different aspects of the taxation system, explaining Gabon’s investor-friendly policies. This chapter contains a dialogue on incentives with Madeleine Berre, Partner and GM, Deloitte Legal and Tax; and Nicolas Balesme, Partner and GM, Deloitte Touche Tohmatsu.
Explore chapterLegal Framework
OBG explores the Gabonese legal system, in partnership with Deloitte. This chapter contains an interview with Madeleine Berre, Partner and GM, Deloitte Legal and Tax; and Nicolas Balesme, Partner and GM, Deloitte Touche Tohmatsu.
Explore chapterThe Guide
This section contains a feature about Gabon’s wildlife attractions, in addition to listings for hotels, government offices and local services, as well as helpful tips for first-time visitors.
Explore chapterTable of Contents
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