Gabon

Only two autocratic presidents have ruled Gabon since independence from France in 1960. The current president of Gabon, El Hadj Omar BONGO Ondimba has dominated the country's political scene for nearly 40 years. President BONGO introduced a nominal multiparty system and new constitution in the early 1990s. However, allegations of electoral fraud during local elections in 2002-03 and the presidential elections in 2005 have exposed the weaknesses of Gabon’s formal political structures. Gabon's political opposition remains weak, divided, and financially dependent on the current regime. Despite political conditions, a small population, abundant natural resources, and considerable foreign support have helped make Gabon one of the more prosperous and stable African countries.

Main Airports

Libreville (LBV)

U.S. Embassy

Blvd. de la Mer, B.P. 4000, Libreville, Gabon
tel: 241-762-003/004

Statistics

GDP: purchasing power parity:

$9.535 billion (2005 est.)

GDP - real growth rate:

2.1% (2005 est.)

GDP - per capita: purchasing power parity:

6,800 (2005 est.)

Inflation rate (consumer prices):

-0.1% (2005 est.)

Labor force:

640,000 (2005 est.)

Exports:

$5.813 billion f.o.b. (2005 est.)

Exports - partners:

US 53.7%, France 6.4%, China 6.3%, Trinidad and Tobago 4.1% (2005)

Imports:

$1.533 billion f.o.b. (2005 est.)

Imports - partners:

France 41%, US 6.5%, Cameroon 4.2%, Belgium 4% (2005)

Population:

1,424,906

Population growth rate:

2.13% (2006 est.)

Population Below Poverty Line:

NA%

Major Industries:

petroleum extraction and refining; manganese, gold; chemicals, ship repair, food and beverages, textiles, lumbering and plywood, cement

Employing Workers: 159*

Registering Property: 149*

Enforcing Contracts: 77*

Closing a Business: 130*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Gabon	Region
Procedures (number)	10	11.1
Time (days)	60	61.8

Gabon Risk Assessment

Country Rating

Rating: B

Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable.

Risk Assessment

Economic growth soared in 2007 driven by the increase in oil production and the dynamism of the construction and services sectors. And it should slow slightly this year with oil production levelling off but with direct investment in mining — notably the Belinga iron mine — and the forestry sector showing renewed dynamism.

Gabon's fiscal position should grow even stronger in 2008 thanks to higher revenues from oil and manganese, whose prices have been trending up. Large fiscal surpluses have, however, masked a narrow tax base with broadening it being a continuing struggle despite efforts on reforms. External accounts have also benefited from the oil wealth. The surpluses, in conjunction with adherence to the IMF programme agreed for 2004 and 2005 have allowed Gabon to consolidate the macroeconomic framework and substantially reduce outstanding debt.

The December 2006 legislative elections bore out the pre-eminence of the Gabonese Democratic Party. President Omar Bongo Odimba, re-elected in November 2005 with 80 per cent of the votes cast, has been in office since 1967. His succession will nonetheless be unlikely to become an issue any time soon with the president apparently determined to complete his term in office, which extends until end 2012. And the efforts deployed to maintain an ethnic balance within the government should ensure the country's continued stability.

STRENGTHS

• Africa's third largest oil producer, Gabon also expects to become the world's leading manganese producer by 2010, and, endowed with still-underexploited forestry potential, is already the second largest wood producer.
• Gabon also enjoys extensive potential in mining (iron, niobium), hydroelectricity, and tourism.
• With structural reforms undertaken to diversify the productive fabric the government has won the support of international financial institutions.
• The international community backing resulted in 2004 in agreement with the Paris Club on foreign debt rescheduling while the country is not eligible for the HIPC programme reserved for highly indebted poor countries.
• Political stability has enhanced Gabon's attractiveness to investors.

• The economy is still too dependent on an oil sector representing 54 per cent of GDP, 80 per cent of exports, and 63 per cent of tax revenues.
• With gradual depletion of ultimately limited oil reserves production will ineluctably level off and then decline in the next decade.
• The high cost of factors of production associated with deficient infrastructure has undermined Gabon's competitiveness.
• A still-difficult business environment and inadequate institutional capacities have impeded economic development.
• High per capita income notwithstanding further improvement in poverty, education, and health indicators will depend on meeting substantial challenges

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