Transcript Economic prospects and investment opportunities in Gabon

ECONOMIC PROSPECTS AND INVESTMENT
OPPORTUNITIES IN GABON
FIRST UK-GABON INVESTMENT FORUM 2012
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HE. LUC OYOUBI, MINISTER OF ECONOMY,
EMPLOYMENT, AND SUSTAINABLE DEVELOPMENT
London, 29th November 2012
INTRODUCTION
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
Gabon is a young economy which today fits in the
scheme of structural reforms in order to become an
emerging country by 2025.
These structural reforms have been initiated in order to
make the Gabonese growth more regular and inclusive,
and should help our country to emphasize its large
investment opportunities.
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TABLE OF CONTENTS

Economic prospects
-Short-term horizon
-Medium/long-term horizon

Investment opportunities
-Undeniable assets
-A strong sectorial attractiveness
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ECONOMIC PROSPECTS
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-Short-term horizon
-Medium/long-term horizon
SHORT-TERM HORIZON
SLIGHT DOWNTURN OF THE GROWTH RATE (1)

Since 2009, Gabon growth rate has been high and
stable (around 7%).
Table 1: Gabon GDP Growth rate
Source: Ministry of Economy
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SHORT-TERM HORIZON
SLIGHT DOWNTURN OF THE GROWTH RATE (2)
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The growth rate should according to our estimations
remain high in 2013 despite a slight downturn.
Our country’s 2013 growth rate is still high and even
higher than the one of many other regional peers.
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SHORT-TERM HORIZON
STRONG MACROECONOMIC CONDITIONS
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Macroeconomic conditions are still robust.
Table 2: Selected economic indicators
Source: Ministry of Economy
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SHORT-TERM HORIZON
A NEW DEVELOPMENT STRATEGY
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A new development strategy called “the Emerging
Gabon Strategic Plan”.
This strategy aims at diversifying our country’s
economy.
So, it is important to take the potential impact of this
strategy into account to analyze Gabon’s economic
prospects.
→ Analyze of economic prospects at the medium/longterm horizon.
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MEDIUM/LONG TERM HORIZON
THE DIVERSIFICATION OF THE ECONOMY (1)
The results of the diversification process are becoming
apparent.
 Gabon’s growth is now able to face potential reversal of
market conditions.
Graph 1: The diversification of the economy
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10
5
0
2009
2010
2011
2012
2013
2014
2015
-5
Total GDP
Oil GDP
Source: Ministry of Economy
Non oil GDP
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MEDIUM/LONG TERM HORIZON
A CAREFUL EXTERNAL DEBT MANAGEMENT STRATEGY
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Gabonese public finances are sustainable
Table 3: Evolution of Government indebtedness rate
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15
20
22.4
15.6
15.5
13.6
10
5
3.8
0
2012
2013
2016
2019
2020
2026
Indebtedness rate
Source: Ministry of Economy
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Reduction of public payment period from 120 days to 30 days.
MEDIUM/LONG TERM HORIZON
SOCIAL PEACE AND POLITICAL STABILITY
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The promotion of economy diversification would create
many jobs throughout the country → inclusive growth
and poverty reduction.
Many other measures have been taken in order to
promote social peace and political stability:
-Reform of the social insurance fund
-Modernization of health infrastructures
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MEDIUM/LONG TERM HORIZON
INCREASE OF LOCAL WORKERS EFFICIENCY
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Many investments have been done for both nonspecialized and vocational training/education.
Firms which want to settle in Gabon can expect to have
well trained local workers.
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INVESTMENT OPPORTUNITIES
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-Undeniable assets
-A strong sectorial attractiveness
UNDENIABLE ASSETS
GEOGRAPHICAL ASSETS
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Gabon is the hub of many destinations in the central
African region and can be a turntable for exchanges
with South Africa.
Gabon is member of two sub-regional groupings EMCCA and ECCAS - →represents a potential market of
more than 130 million consumers.
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UNDENIABLE ASSETS
A FAVOURABLE INSTITUTIONAL FRAMEWORK (1)
International governance asset:
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Liberal economic system open to foreign investors since
1989.
Gabon is member of several multilateral organizations
including:
-World Trade Organization;
-World Bank;
-Multilateral Investment Guarantee Agency.
Gabon has also ratified many other bilateral and
international conventions of the United Nations System.
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UNDENIABLE ASSETS
A FAVOURABLE INSTITUTIONAL FRAMEWORK (2)
Business environment:
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Gabon has ratified the Harmonization Treaty for Business Law in
Africa and The Treaty for the intra-Africa Conference for Social
Prevention (CIPRES).
Gabon has adopted a Law (law n°015/98) governing the
investment chart in the Gabonese Republic. This chart has
subsequently resulted in the adoption of specific investment codes
in the areas of Forestry, Mining, and Tourism.
Gabon has created two institutions devoted to the promotion of
investment and trade:
-The Center for the Development of Enterprises (CDE) in order to
facilitate the creation of companies in a relatively short period of
time.
-The Agency for the Promotion of Invetsments and Exports (APIEX).
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UNDENIABLE ASSETS
A ROBUST BANKING AND MONETARY SYSTEM
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Gabon is member of the Zone Franc so, its money is
linked to the euro→a cautious monetary policy.
Growing interest of big African banks for Gabon
(Ecobank, UBA…).
Banks contribute to open up the country through the
development of agencies all around the territory.
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UNDENIABLE ASSETS
THE PROMOTION OF FREE ECONOMIC ZONES
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Creation of free economic zones throughout Gabon to
encourage new growth areas by attracting investors,
and to bring industry closer to raw material sources.
The final objective is to give more value added to our
natural resources, to create employment, and to
increase revenues both for the government and the
population.
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UNDENIABLE ASSETS
DEVELOPMENT AND MODERNIZATION OF INFRASTRUCTURES (1)
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The President Ali BONGO ONDIMBA decided since his
election to raise the total amount of investment.
Table 4: Evolution of public investment
Source: Ministry of Economy,
Thanks to those additional financial funds, road
infrastructures have been improved.
 Modernization and expansion of ports in Owendo and PortGentil through the signature of an agreement in November
2010 with the Singapore Port Authority.
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 Construction of a multimodal dry port in Port-Gentil and of a
deepwater port in Mayumba for the exports.
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A STRONG SECTORIAL ATTRACTIVENESS
THE MINING SECTOR (1)
Prerequisites:
 In addition to reserves of oil and gas, Gabon has sizeable
mineral resources (iron, gold, diamonds, magnesium,
cobalt…).
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Recent explorations revealed more than 900 potential
mineral deposit sites in Gabon.
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A STRONG SECTORIAL ATTRACTIVENESS
THE MINING SECTOR (2)
Efforts realized by the Gabonese Government:
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Development of a national Mines and Hydrocarbons industry
by the creation of specialized firms ( “the Gabon Oil
Company”, the “Compagnie Equatoriale des Mines”, and
“Gabon Steel”).
By 2016 Gabon aims to have developed an institutional
framework that is attractive for private investments.
Several industrial projects are underway :
-In the manganese sector: creation of metallurgical plants in
Moanda.
-In the iron sector: the planned Belinga industrial complex.
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A STRONG SECTORIAL ATTRACTIVENESS
THE AGRICULTURAL INDUSTRY (1)
Prerequisites:
Gabon is made up of about one million hectares of
humid savannas perfectly suited to bio-fuel production.
 Currently, this sector only accounts for 5% of GDP.
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Efforts realized by the Gabonese Government:
Creation of a special agricultural economic zone which
will allow the development of agricultural production
and of food processing industry.
 Restructuration of the institutional and regulatory
framework, to develop agricultural land even in
outlying areas as well as related infrastructures.
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A STRONG SECTORIAL ATTRACTIVENESS
THE AGRICULTURAL INDUSTRY (2)
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Implementation of many projects in order to develop
some specific sectors:
-Intensive food-production industries;
-Agro-pastoral farms;
-Integrated poultry rearing.
The palm oil, the rubber, and the coffee/cocoa industries
will also be relaunched.
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A STRONG SECTORIAL ATTRACTIVENESS
FISHING RESOURCES
Prerequisites:
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800 kilometers of preserved coastline in Gabon.
Efforts realized by the Gabonese Government:
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Drafting laws in order to set up a national fishing
industry and to develop outlets for a valuable market.
The new laws pay attention to fishing stock and
resources and aim to develop fisheries and to review
fishing access rights.
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A STRONG SECTORIAL ATTRACTIVENESS
FORESTS (1)
Prerequisites:
Forests represent more than 80% of Gabon’s territory.
 The country enjoys from a mosaic of 6 ecosystems:
mangroves, forests, savannas, wet environments,
mountains and plateaus.
 Some of the regions are still totally prestine territory
 1000 species of plants have been listed in Gabon.
 This sector has besides been chosen by the President to
be the spearhead of our development strategy and
future growth.
 Positive externalities related to the environment field.
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A STRONG SECTORIAL ATTRACTIVENESS
FORESTS (2)
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Environment is considered as a promising sector all over the
world.
The objective is to put Gabon at the leading position in
certified tropical hardwood sector.
Efforts realized by the Gabonese Government:
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Special economic zones devoted mainly to the woodprocessing industry that offer various tax advantages have
been created.
The exploitation network is hardly touched in the wood
industry despite its huge potential.
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A STRONG SECTORIAL ATTRACTIVENESS
SOCIAL HOUSING
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The President Ali BONGO ONDIMBA decided to back
the building of 35.000 accommodations to meet the
local demand by 2016.
Local supply is insufficient to meet the demand.
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CONCLUSION (1)
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Thanks to the dynamism of the Gabonese President and
his government, growth is high and diversified, the
external debt management strategy is prudent, country
risk is reduced, social peace and political stability are
secured, and the quality of local workers is improved.
Our country benefits from undeniable assets to and
strong sectorial attractiveness with the promotion of the
mining sector, of agricultural and food processing
industries, of fishing resources, of wood and forest
economy, and of social housing.
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CONCLUSION (2)
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The association of those elements makes Gabon an
attractive market and destination for potential foreign
investors.
Foreign capital is consequently welcome to Gabon in
order to take advantage of the opportunities offered by
the ambitious reform agenda conducted by the
Authorities.
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Thank you!
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