Gabon's economic situation over the years 2015 and 2016 proved difficult but was supported by numerous reforms enabling public procurement to be strengthened by the expected dynamism of sectors of the Gabonese economy that had hitherto been less participatory and profitable, such as agriculture, education and professional skills, entrepreneurship and infrastructure.
settingsOutlook for recent yearsInspired by the Gabon Emerging Strategic Plan (PSGE), the Gabonese State's firm commitment to diversifying the Gabonese economy was reflected in the Gabonese Economic Recovery Plan (PRE) in 2017. Through this Gabonese Economic Recovery Plan, 8 priority sectors and the 13 underlying development projects have been budgeted and retained in order to strengthen the recovery of growth indicators, and will make us forget the effects of the crisis that the fall in oil and other commodity prices have had as an impact on global economic trends. The inclusion of these priority projects in Gabon's 2017 State budget offers a solid guarantee of the potential business relations that will be established and developed between the various investors and Gabon, notably through the Agency.
By the end of 2017, the various motivations obtained from international donors (AFDB, IMF, World Bank, AFD), in particular the International Monetary Fund, IMF, give hope and constitute a solid support which will make it possible to address the ambitions of the Gabonese State in its three-year plan to revive its economy. Alex Segura-Ubiergo, Deputy Head of Division at the IMF's Africa Department, noted at a press conference in Libreville in November 2017: "Some flash projects should allow the economy to diversify. Structural measures to increase Gabon's competitiveness in certain key sectors should also attract new foreign investors.
settingsEvolution of FDI
According to a report by the United Nations Conference on Trade and Development (UNCTAD), the increase in FDI flows to Gabon is explained by the country's new policy of openness: numerous reforms, tax cuts in several sectors of activity, new opportunities on the domestic market, diversification of trading partners since 2010.
Thus, at the end of 2013, out of Gabon's top ten suppliers, several new countries had made their appearance: Turkey, South Africa and Spain were respectively ranked 7th, 8th and 10th in trade with Gabon. At the same time, Great Britain, Russia and Japan lost places.
From 2014, FDI increases (+100% between 2009 and 2014) to reach 5 billion XAF, but the impact of the decline in FDI in 2015 on African countries does not spare Gabon, which observes a decrease of 62%.
The downward trend in commodity prices from 2016 onwards, which accentuates the decline in FDI, particularly in sub-Saharan Africa, although Gabon is seeing a significant rise (mainly driven by Chinese and Moroccan FDI), means that data expectations for 2017 remain cautious.
FDI evolution since 2011 (in millions USD)
settingsValue of the Gabonese bond
On 10 January 2018, the General Directorate of Public Accounting and Treasury of the Gabonese Republic issued, by auction, 13-week Treasury Bonds in the form of dematerialised securities for an amount of XAF 12 billion. The announcement of the results being scheduled for Thursday, January 11, 2018, the Gabonese State says it is waiting for a rather conclusive answer from the various issuers.
At the end of 2017, the Gabonese State, via the Ministry of Sustainable Development, the Economy, Foresight and Planning, produced from the issue of the Public Bond "EOG 6.50% NET 2017-2022" on the financial market of the Member States of the Economic and Monetary Community of Central Africa (CEMAC).
The successful XAF 131 billion (USD 240 billion) issue will be dedicated to the implementation of the ERP, including the financing of projects in the Roads and Road Infrastructure, Education and Vocational Training, Sanitation, Security, Economy, Finance, Employment, Health and various other sectors, on the one hand, and the repayment of domestic debt, on the other.
According to Régis Immongault Tatagani, Minister of the Economy, Foresight and Programming for Sustainable Development,"the issue made it possible to partially clear the outstanding amount of domestic moratoria and to clean up the balance sheet of local banks via a compensation mechanism for an amount of FRF 64.468 billion and to free up resources, for an amount of FRF 66.92 billion, to finance the expenditure of the Economic Recovery Plan, entered in the budget for the current year".
The decline in Gabonese bond yields since October 2011 has been more pronounced than for other countries in the region; it is one of the best performances among emerging countries.