Gabon - Market OpportunitiesGabon - Market Opportunities
Oil
The petroleum sector continues to provide opportunities for U.S. companies. With the natural decline of mature oil fields, the government is developing its offshore, deep-water resources to achieve a target of doubling oil production to 500,000 barrels per day (bpd) by 2025—up from the current level of 198,000 bpd. Presently, offshore resources account for more than 70% of the less than 2 billion barrels (2012 estimate) in reserves. Gabon’s focus on offshore development should open up new opportunities for U.S. oil and gas technology and services. In addition, Gabon’s location in Central Africa gives U.S. companies good geographic proximity to other markets in the region.
On March 28, 2018 a panel of legal, economic and tax experts met in Gabon to look at ways of improving the existing Hydrocarbons Code law, which was put in place in 2014. Gabon is in the process of updating its hydrocarbons law in order to attract new investment to the cash-strapped OPEC member’s oil sector. The law should be implemented before the end of 2018.
Wood products
In order to jumpstart their wood products sector downstream, in 2009, the government prohibited the export of untreated wood and raw timber in support of local production of wood products to encourage a wood-based manufacturing sector.
Opportunities exist for timber processing companies. Gabon has an ambitious vision to expand exports in the forest-wood products sector which was highlighted in June 2018 by the first annual Gabon Wood Show. With the help of the Olam Corporation in Gabon, which runs the Special Economic Zone (SEZ), Gabon produced 270,000 cubic meters of tropical veneer, making Gabon the African leader (6th world producer of tropical veneer and 12th worldwide producer of all types of veneers). For sawn timber, Gabon was the fourth largest producer in Africa and the 26th worldwide for all types of sawn wood combined. Gabon’s SEZ, with its tax-free zone to attract new investors, is already producing steel rebar, furniture, veneer, plywood, and other wood products. The expansive acreage, modern port, and tax breaks of up to 25 years co-located with multiple international businesses should be attractive to U.S. investors.
The New Owendo International Port, a $300 Million Multipurpose terminal opened in October 2017. The terminal is meant to receive container vessels, general cargo and bulk cargo. The wharf length, draught, and equipment (two ship-to-shore gantry cranes and four container gantry cranes) bring the Owendo container terminal up to international port standards. It provides a competitive service to ship-owners, importers, and exporters. Vessels reaching 6,000 TEUs (Twenty-foot Equivalent Units) can be handled with high levels of productivity. Bolloré Corporation manages the port.
Gabon co-hosted the 2015 African Growth and Opportunity Act (AGOA) Forum in Libreville. The government is anxious to expand exports under AGOA’s trade preferences especially in wood products.
Mining
There are opportunities for U.S. mining support companies to provide cranes, draglines, trucks, and tractors. Manganese is the main mining activity, and in June 2015, Compagnie Minière de l’Ogooue (COMILOG), a subsidiary of the French company ERAMET, inaugurated a factory for domestic production of value-added manganese products. Firms have also obtained prospecting/exploration licenses for iron ore, copper, gold, diamonds, and other minerals. In the future, there may be opportunities for mining in the area surrounding the Belinga iron ore deposit, believed to be among the largest iron ore deposits in the world. Gabon is the number three manganese producer in the world and seeks to be number one by the end of 2019.
Agriculture and Tourism
Gabon imports the vast majority of foodstuffs including meat, poultry, cheese, and beverages. Much of it comes from Europe at high prices which results in a heavy trade imbalance and strain on the currency. In July 2018, the government reduced exemptions on imports and announced plans to encourage more domestic food production, especially in poultry as an initial target.
Around 86% of Gabonese live in major urban centers. The rural workforce is insufficient, but the the government is working to expand rural occupations. Since 2014, Gabon has been laying the foundations for agricultural development through a project entitled, “Gabonese Agricultural Achievement and Engaged National Initiatives” (the GRAINE Project). The project is funded by the Gabonese government through international loans provided by the African Development Bank and the World Bank; Olam has been awarded the implementation and management. The first fruit produce of the GRAINE program was harvested last year. The project, launched in the Haut-Ogooué Province, located in the southeast, is expected to cover the entire country by 2020. Olam Gabon contributed significantly to the increase in agricultural GDP, which rose from 3.9% to 6.1% between 2013 and 2017. To refocus national efforts on developing the sector, the Gabonese government announced in 2013 a new strategic roadmap for agricultural development, “The National Plan for Agricultural Investment and Food and Nutritional Security (Plan National d'Investissement Agricole de Sécurité Alimentaire et Nutritionnelle, PASAN).
Gabon has a large range of environmental biodiversity. It has the potential to attract tourists from around the world to experience the country’s remarkable wildlife, scenery, beaches, and favorable weather, allowing visitors to interact with nature, and to practice extreme sports and adventure. The country has been labeled “The Last Eden” (see National Geographic) for its diversity of untouched forests. However, there is a need for almost every type of tourism infrastructure. Roads are poor, cost of air transportation is high and “package” approaches to sightseeing are underdeveloped. The limited lodges in the parks do not have well developed tourist facilities.
As Gabon modernizes and improves existing infrastructure, there are opportunities for U.S. firms in housing, water and waste treatment, healthcare technology, aviation infrastructure and maintenance, road construction, and education. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The petroleum sector continues to provide opportunities for U.S. companies. With the natural decline of mature oil fields, the government is developing its offshore, deep-water resources to achieve a target of doubling oil production to 500,000 barrels per day (bpd) by 2025—up from the current level of 198,000 bpd. Presently, offshore resources account for more than 70% of the less than 2 billion barrels (2012 estimate) in reserves. Gabon’s focus on offshore development should open up new opportunities for U.S. oil and gas technology and services. In addition, Gabon’s location in Central Africa gives U.S. companies good geographic proximity to other markets in the region.
On March 28, 2018 a panel of legal, economic and tax experts met in Gabon to look at ways of improving the existing Hydrocarbons Code law, which was put in place in 2014. Gabon is in the process of updating its hydrocarbons law in order to attract new investment to the cash-strapped OPEC member’s oil sector. The law should be implemented before the end of 2018.
Wood products
In order to jumpstart their wood products sector downstream, in 2009, the government prohibited the export of untreated wood and raw timber in support of local production of wood products to encourage a wood-based manufacturing sector.
Opportunities exist for timber processing companies. Gabon has an ambitious vision to expand exports in the forest-wood products sector which was highlighted in June 2018 by the first annual Gabon Wood Show. With the help of the Olam Corporation in Gabon, which runs the Special Economic Zone (SEZ), Gabon produced 270,000 cubic meters of tropical veneer, making Gabon the African leader (6th world producer of tropical veneer and 12th worldwide producer of all types of veneers). For sawn timber, Gabon was the fourth largest producer in Africa and the 26th worldwide for all types of sawn wood combined. Gabon’s SEZ, with its tax-free zone to attract new investors, is already producing steel rebar, furniture, veneer, plywood, and other wood products. The expansive acreage, modern port, and tax breaks of up to 25 years co-located with multiple international businesses should be attractive to U.S. investors.
The New Owendo International Port, a $300 Million Multipurpose terminal opened in October 2017. The terminal is meant to receive container vessels, general cargo and bulk cargo. The wharf length, draught, and equipment (two ship-to-shore gantry cranes and four container gantry cranes) bring the Owendo container terminal up to international port standards. It provides a competitive service to ship-owners, importers, and exporters. Vessels reaching 6,000 TEUs (Twenty-foot Equivalent Units) can be handled with high levels of productivity. Bolloré Corporation manages the port.
Gabon co-hosted the 2015 African Growth and Opportunity Act (AGOA) Forum in Libreville. The government is anxious to expand exports under AGOA’s trade preferences especially in wood products.
Mining
There are opportunities for U.S. mining support companies to provide cranes, draglines, trucks, and tractors. Manganese is the main mining activity, and in June 2015, Compagnie Minière de l’Ogooue (COMILOG), a subsidiary of the French company ERAMET, inaugurated a factory for domestic production of value-added manganese products. Firms have also obtained prospecting/exploration licenses for iron ore, copper, gold, diamonds, and other minerals. In the future, there may be opportunities for mining in the area surrounding the Belinga iron ore deposit, believed to be among the largest iron ore deposits in the world. Gabon is the number three manganese producer in the world and seeks to be number one by the end of 2019.
Agriculture and Tourism
Gabon imports the vast majority of foodstuffs including meat, poultry, cheese, and beverages. Much of it comes from Europe at high prices which results in a heavy trade imbalance and strain on the currency. In July 2018, the government reduced exemptions on imports and announced plans to encourage more domestic food production, especially in poultry as an initial target.
Around 86% of Gabonese live in major urban centers. The rural workforce is insufficient, but the the government is working to expand rural occupations. Since 2014, Gabon has been laying the foundations for agricultural development through a project entitled, “Gabonese Agricultural Achievement and Engaged National Initiatives” (the GRAINE Project). The project is funded by the Gabonese government through international loans provided by the African Development Bank and the World Bank; Olam has been awarded the implementation and management. The first fruit produce of the GRAINE program was harvested last year. The project, launched in the Haut-Ogooué Province, located in the southeast, is expected to cover the entire country by 2020. Olam Gabon contributed significantly to the increase in agricultural GDP, which rose from 3.9% to 6.1% between 2013 and 2017. To refocus national efforts on developing the sector, the Gabonese government announced in 2013 a new strategic roadmap for agricultural development, “The National Plan for Agricultural Investment and Food and Nutritional Security (Plan National d'Investissement Agricole de Sécurité Alimentaire et Nutritionnelle, PASAN).
Gabon has a large range of environmental biodiversity. It has the potential to attract tourists from around the world to experience the country’s remarkable wildlife, scenery, beaches, and favorable weather, allowing visitors to interact with nature, and to practice extreme sports and adventure. The country has been labeled “The Last Eden” (see National Geographic) for its diversity of untouched forests. However, there is a need for almost every type of tourism infrastructure. Roads are poor, cost of air transportation is high and “package” approaches to sightseeing are underdeveloped. The limited lodges in the parks do not have well developed tourist facilities.
As Gabon modernizes and improves existing infrastructure, there are opportunities for U.S. firms in housing, water and waste treatment, healthcare technology, aviation infrastructure and maintenance, road construction, and education. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.