Guidance

Overseas Business Risk - Gabon

Published 6 November 2014

1. Government

Gabon is a multi-party democratic republic. Yet the party system has been dominated by the Gabonese Democratic Party (PDG, established in 1968).The President is elected by popular vote for a seven-year term. The President appoints a Council of Ministers equivalent to the UK Cabinet, and a Prime Minister heads the government.

Executive power is exercised by the government. Legislative power is vested in both the government and the two chambers of parliament.

National Assembly (Assemblée Nationale) members are elected by direct popular vote to serve a five-year term.

On 8 June 2009, the passing of Omar Bongo Ondimba ended a 41-year long rule. Disputed elections organized in August of the same year saw the victory of Ali Bongo Ondimba (son of the late president and former Defence Minister). He was sworn in on 16 October 2009 and has, since then, engaged in a series of sweeping reforms intended to diversify the economy and transform the country into an emerging economy following the example of the BRICS.

The next presidential elections are due in 2016. Beyond its mineral-rich soil, rich forestry and biodiversity, relative stability is the Gabon’s main asset, and key for future investment. It is pivotal that the current political developments remain under control and do not lead to a volatile situation that could be detrimental to the economy. It will be vital to monitor the socio-political situation in the lead up to elections in 2016.

2. Human Rights

Gabon was ranked 102 out of 176 countries surveyed in Transparency International’s 2013 Corruption Perceptions Index.

Freedom to form and join political parties is generally respected, but civil servants face harassment and discrimination if they are affiliated with opposition groups.

Corruption is widespread, and rampant graft prevents the country’s significant natural resource revenues from benefiting most citizens. Combating corruption is touted as a priority by the government, which has, among other things, audited government agencies to expunge ghost workers from payrolls.

Press freedom is guaranteed by law but restricted at times in practice. Conviction for libel can result in fines, publishing suspension or a prison sentence. State-controlled outlets dominate the media, but there are some private broadcasters, and foreign news sources and independent newspapers are available. The government, through the National Communication Council, frequently suspends news outlets following critical reporting.

Access to the internet is not restricted by the government.

Religious freedom is enshrined in the constitution and upheld by the authorities. The government does not restrict academic freedom.

The rights of assembly and association are legally guaranteed. Police occasionally use tear gas to disperse protesters. Due to the lack of strong opposition parties, nongovernmental organizations (NGOs) are important vehicles for scrutiny of the government. However, human rights activists are at times caught red-handed in actions of defaming the president and his cabinet chief. Virtually the entire private-sector workforce is unionized, and collective bargaining is allowed by industry, not by firm.

The judiciary is not independent. Judges may deliver summary verdicts in some cases, and prosecutions of former government officials appear to target opposition members. However, the right to legal counsel is generally respected. The authorities do not always observe prohibitions against arbitrary arrest and detention, and torture is sometimes used to extract confessions. Lengthy pre-trial detention is common, and prisons suffer from overcrowding and poor food, ventilation, and sanitation.

Discrimination against African immigrants is widespread, and security forces harass and solicit bribes from African expatriates working in the country. Though equal under the law, most of Gabon’s several thousand indigenous Baka live in extreme poverty in isolated forest communities and are often exploited as cheap labour.

The law provides for gender equality in education and employment, but women continue to face discrimination, particularly in rural areas. Several women hold high-level positions in the government, but men continue to dominate in numbers. Domestic violence legislation is rarely enforced, and the crime continues to be widespread. Rape and ritual crimes are seldom prosecuted.

3. International Relations

Gabon is a member of the UN and some of its specialized and related agencies. It is also a member of the World Bank; African Union; Central African Customs Union (CEMAC); EC association under Lomé Convention; Communauté Financiere Africaine (CFA); Organisation of the Islamic Conference (OIC); Non-Aligned Movement; withdrew from the Organization of Petroleum Exporting Countries (OPEC).

Commercial ties between Gabon and other member states of the Economic Community of Central African States (ECCAS) are weak. ECCAS is indeed the weakest sub-regional organisation in terms of trade and integration.

Gabon is also a member of the International Criminal Court.

3.1 Trade partnerships

In 2013 FDI was $856million. UK investors in Gabon include Shell, Tullow Oil, Ophir-Energy, Impact, Exprogulf, Integrated Petroleum Services, Aggreko, Riotinto, Toro Gold, SRK Exploration, G4S, LandRover, Price Waterhouse Cooper, GrantThornton, Bechtel (UK), Compass/ESS and Intertek.

The United States and the European Union are Gabon’s main trade partners. Other trade partners include China and Japan. Gabon was ranked UK’s 94th import partner in 2013 (versus 143rd in 2012) and 116th export partner in 2013 (versus 119th in 2012).

3.2 Bilateral Representation

There is currently no resident U.K. Ambassador to Gabon. Brian Olley is the non-resident Ambassador based in Yaoundé, Cameroon, with jurisdiction over 5 countries, including Equatorial Guinea, Chad and Central African Republic and Cameroon.

A UK Commercial Officer was appointed in Libreville Gabon to provide assistance to existing UK companies and prospective ones with regard to business opportunities as well as with commercial issues that may arise in the host country.

The Commercial Officer is Fiacre Boudoungou (cc Deputy High Commissioner Allison Marriott.

Gabon maintains an embassy in the UK at 27 Elvaston Pl, London SW7 5NL, United Kingdom. Tel: +44 20 7823 9986

More information on Gabon can be obtained by visiting official portals such as:

Official portal of the Gabonese Republic [Investment and Export Promotion Agency](www.apiex.ga (French)

4. Economic Overview

Gabon’s 2012 GDP was US$ 17.052 billion and per capita GNI estimated at US$ 3860. The economy is expected to grow at 7.5% in 2014 and average annual growth to reach 8.5% between 2015 and 2018.

Gabon is still strongly dependent upon oil which accounts for 80% of its exports and about 60% of its revenue. The next contributing sectors are: forestry (9%) and mines (6%). Agriculture contributes about 4% to the GDP.

After several years in preparation, the new hydrocarbons code was adopted in February with an aim to boost interest in the promising yet challenging offshore domain. It was passed by edict by the government during a parliamentary recess. However, a different version was published in the Official Gazette on 25 April and is likely to be amended by the Parliament. The last licensing round of pre-salt acreage held in June 2014 left aside major companies such as Shell and Total and saw the emergence of new comers such as Impact, Ophir Energy, Noble and Repsol.

Diversification has, thus, been identified as priority if Gabon is to become an emerging economy by 2025. The ban on raw timber export in 2010 was one measure to boost local transformation and add value to exports. The country also started in 2014 local processing of manganese in Moanda, in the province of Haut-Ogooue.

Extractive exports are primarily petroleum products, manganese and gold. The estimated 1 billion tons deposit of Belinga iron is likely to be auctioned by 2016 and be exploited thereafter. UK Company SRK Exploration is currently conducting a survey to assess the existing potential.

The financial sector remains vulnerable to government influence. The state owns or holds shares in several domestic financial institutions and continues to influence the allocation of credit.

Despite its will to attract foreign investment, the overall business and investment climate continues to be hampered by bureaucracy, corruption by civil servants and regulatory inefficiency (no single window for company registration, extended delay in granting work permits, etc.). The Government recently launched a probe against past and current officials who have presumably diverted public funds.

The World Bank ranks Gabon 144 out of 189 countries for ‘ease of doing business’ for 2014. The most problematic factors identified in the report are access to finance, corruption, tax rates, inefficient government bureaucracy, and an inadequately educated workforce.

5. Bribery and Corruption

Bribery is illegal. It is an offence for UK nationals and bodies incorporated under UK law to bribe anywhere in the world. [Transparency International‘s ‘Corruption Perception Index’[(http://www.transparency.org/cpi2013/results) ranked Gabon 102 out of 177 countries in 2013.

Officials frequently engage in corrupt practices with impunity (at least until recently). Tender offers are not regularly publicized. Contract terms are not transparent, and bribes are regularly solicited. However, the Government has recently taken steps toward holding to account Civil Servants managing government funds.

In this regard a number of incumbent and former high ranking officials have been presented before the judiciary for hearing.

6. Terrorism Threat and Protective Security

The risk of a terrorist attack is very low. However, the risk from crime means you should keep your personal security (especially passports, as there is no UK embassy in Gabon) under review and take professional security advice. Keep up to date with local developments through the local media and FCO Travel Advice.

For emergencies, contact:

6.1 Police

• 177 (Toll free) or +241 01 72 09 00
• Traffic Accident - +241 03 11 22 33
• Police secours - +241 01 72 00 37
• Police Judiciaire - +241 01 72 00 41
• Gendarmerie - +241 01 73 20 36 or +241 01 73 13 45

Gabon’s government does not provide political or financial support to any known international or transnational terrorist organizations. There are no known operational components of any international or transnational terrorist organizations.

7. Intellectual property

Although the Gabonese Civil Code protects intellectual property rights, this does not meet the standards established by the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). Weak law enforcement and inefficient custom checks at porous borders permit trade in counterfeit textiles, pharmaceutical products and vehicle parts.

The Centre de Propriété Industrielle du Gabon (CEPIG) is the national liaison structure for the African Intellectual Property Organisation (OAPI, in French). It serves as the focal point for applications for patents, utility models and property rights (trademarks, industrial designs and trade names) within Gabon. Artistic work is the leading copyright infringement.

UK companies planning to export to Gabon are advised to apply for trademark and patent protection before entering into business in Gabon. Companies should seek advice from local experts in Gabonese law and seek information with CEPIG. They can be contacted via the Ministry of Mines and Industry (Contact: +241 01 77 86 54).

The Bureau Gabonais du droit d’auteur (BUGADA), the Gabonese Copyright Office, is responsible for the collective management and protection of copyright and related rights in Gabon, yet it is far from being operational.

For more information on intellectual property fraud, see our Fraud and international trade page.

8. Organised Crime

Interpol’s Regional Bureau in Libreville focuses on arms and drug trafficking, human trafficking, forged travel documents, search for missing persons and stolen cars and international arrest warrants. Interpol Libreville (Direction Nationale Interpol –DNI) is located in the premises of the Police Headquarters and placed under the supervision of the Criminal Investigation Department.

See Interpol - Gabon (Contact: +241 01 72 00 41).

Read the information provided on our Organised crime page.

For advice on serious organised crime, visit the National Crime Agency.