Construction & Real Estate
From The Report: Gabon 2014
View in Online Reader

Gabon has concentrated funding on infrastructure in recent years, not only in advance of the Africa Cup of Nations, but also as part of the government’s broader push to diversify the economy through its primary development strategy, Emerging Gabon.

The construction sector – supported by the Infrastructure Master Plan, which includes 114 projects in education, housing and transport – is thus expected to see annual growth of 4.7% from 2013 to 2016, providing for a better long-term outlook. The state continues to play a central role, predominantly through the National Public Works Agency, and publicly funded developments account for a large percentage of ongoing construction activity. Looking ahead, Gabon’s construction sector has plenty of work to carry out. Following the initial slowdown after the Africa Cup of Nations, the sector’s focus has shifted towards infrastructure projects in transport, industry and housing. Despite the fact that Gabon is a middle-income country, inadequate housing in slums is not uncommon, particularly in the capital city, Libreville, where more than half of the population is concentrated. Extensive government reforms have sought to improve clarity on urban planning, access to land, zoning and procurement issues, as well as construction permits.

This chapter contains interviews with Mauricio Toledano, CEO, Eurofinsa; and Luis Castilla, CEO, ACCIONA Infrastructure, Water and Services.

Articles from this Chapter

Overview

The focus shifts from sporting facilities to infrastructure and future development
OBG
plus

For two years after the spate of frenzied construction in the run-up to the Africa Cup of Nations (Coupe d’Afrique des Nations, CAN), Gabon’s contractors and developers saw a comparative slowdown in activity, as focus shifted away from stadiums and tourism infrastructure to housing, roads and mixed-use developments. The construction sector – supported by the Infrastructure Master Plan, which includes 114 projects in education, housing and transport – is thus expected to see annual growth…

Interview

OBG talks to Mauricio Toledano, CEO, Eurofinsa
OBG
plus

Interview:Mauricio Toledano What are the constraints in financing large infrastructure projects in emerging markets? MAURICIO TOLEDANO: There should be no constraints when financing large infrastructure projects in emerging markets, as long as those countries are not under IMF strictures. However, budgetary considerations generally force operators to seek innovative solutions, which requires time and the involvement of many parties such as consortia of banks, export credit agencies and government…

Interview

OBG talks to Luis Castilla, CEO, ACCIONA Infrastructure, Water and Services
OBG
plus

Interview:Luis Castilla What is the main financial challenge for large-scale infrastructure projects in Gabon? LUSI CASTILLA: The main constraint is the limited size of local financial markets. Domestic banks have insufficient experience in financing infrastructure projects and do not often have the necessary conditions to provide long-term credit. Infrastructure projects are a challenge to finance because of their large size, long time-frame and complexity. Most of these projects require…

Analysis

Making an effort to support SMEs while carrying out national priority projects in infrastructure
OBG
plus

Launched in June 2012, the National Infrastructure Master Plan (Schéma Directeur National d’ Infrastructure, SDNI) has 21 priority projects to be carried out until 2025 in key sectors such as energy, transport, special economic zones, tourism, telecoms and urban development. Funding for these major projects would ideally come from multiple sources, including public and private investment. The government’s own contribution has been on the rise in recent years, with a year-on-year increase of…

Overview

High returns: Demand is driving growth in key segments like affordable housing
OBG
plus

In many ways, Gabon would seem like a natural fit for a high-turnover residential market, particularly in the middle- and upper-income segments, given that the country has one of the highest levels of GDP per capita based on purchasing power parity in sub-Saharan Africa. However, Gabon also grapples with a traditionally low saving rate, issues with credit transparency and limited financial inclusion, which in turn have dampened retail and mortgage lending, and thus slowed formal home purchases. However,…