Economy
From The Report: Gabon 2015
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Gabon has seen stable growth over the past five years, aided in part by a government drive to promote diversification in line with its Emerging Gabon Strategic Plan. However, its continued dependence on oil has left the country vulnerable to external shocks, and the low-price environment of 2014 and 2015 will likely cause complications for the next two to three years, as the authorities grapple with lower budgets and greater debt challenges.
This chapter includes interviews with Régis Immongault, Minister of Economy; Madeleine Berre, President, Gabonese Employers’ Confederation, and Partner & General Manager, Deloitte Legal and Tax; and Nina Abouna, Director-General, National Investment Promotion Agency (ANPI).
Articles from this Chapter
Transition drive: A tight fiscal environment encourages the continued acceleration of reforms
OBG talks to Régis Immongault, Minister of Economy: InterviewOBGplus
Interview:Régis Immongault What have been the ministry’s main budget guidelines after the drop in oil prices? RÉGISIMMONGAULT: Oil has seen a sharp drop in prices, falling by about 56% since mid-June 2014. As an oil-exporting country, Gabon has been particularly affected by this, even though the contribution of oil to its wealth generation has shrunk in recent years. Today oil accounts for 20% of GDP, compared to 50% some years ago, but it still accounts for 80% of export earnings…
OBG talks to Madeleine Berre, President, Gabonese Employers’ Confederation; Partner & General Manager, Deloitte Legal and TaxOBGplus
Interview: Madeleine Berre Which niche markets do you think should be developed in Gabon to diversify its economy? MADELEINE BERRE: In a context of economic transformation, every sector except oil and gas has strong potential for growth. Internet services, new technologies, business services, agriculture, education and health are priorities. Gabon must adapt its development plan by taking into account the necessity to anticipate needs as well as create new value chains. How can qualifications…
Making it easier: Measures to improve the business climate are acceleratingOBGplus
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…
Balancing the books: The government reins in spending in light of lower oil pricesOBGplus
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…
OBG talks to Nina Abouna, Director-General, National Investment Promotion Agency (ANPI): InterviewOBGplus
Interview: Nina Abouna What steps can the government take to foster a more conducive business environment? NINA ABOUNA: Although Gabon is blessed with natural resources, the country needs to improve its business environment to further develop the private sector, which is central to economic diversification, growth and poverty reduction. Raw materials have encouraged many international firms to enter the market, bringing in a significant amount of foreign direct investment (FDI). As a result, Gabon’s…
Strategic funding: The nation’s sovereign wealth fund builds momentumOBGplus
Since the launch of the Emerging Gabon plan in 2009, the country has unveiled a number of measures to try to reduce its dependency on its flagship hydrocarbons sector – a process that has become all the more urgent as oil prices have fallen. The nation’s sovereign wealth fund, the Gabonese Strategic Investment Fund (Fond Gabonais d’ Investissements Stratégiques, FGIS), is one means by which the government is seeking to do that, while stimulating investment and expanding the state’s revenues.…
Fostering cooperation: Efforts to achieve regional economic integration continueOBGplus
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,…
Reviewing the plan: Progress towards the goal of reaching emerging market statusOBGplus
Gabon’s ambitious campaign to diversify its economy – now in its fifth year – may have gotten an unexpected boost from the manoeuvring of some of the world’s biggest oil producers. Following the OPEC meeting in November 2014, oil prices plunged. A push by OPEC member states to maintain high production levels in the face of growing US shale output resulted in a major drop in global prices. Brent fell from $95 per barrel in October 2014 to around $56 per barrel in April 2015, far below the…
