International Trade in Gabon

News Related to International Trade in Gabon

Business outline for Gabon

Economic Overview

Due to its low degree of diversification, the Gabonese economy was badly hit by the contraction of demand and the decline in foreign trade in 2009, leading to negative growth (-1.4%). Thanks to an increase in public investment and a recovery in mining activities, growth has increased in 2010, reaching 4.5% and should strenghten in 2011.

Gabon obtains more than 70% of its income from oil. The authorities are trying to turn Gabon into an emerging market by diversify the economy, thus making it less dependent on oil, and by improving the business climate. The government has recently committed itself it to promote the development of eco-tourism and the improvement of transportation infrastructures. The IMF has emphasized the necessity to balance state finances, accelerate the country's economic growth in order to prepare the country to a post-oil period and to reform the financial sector.

With the per capita GDP being significantly above the region's average, Gabon is considered a middle-income country. However, the country's social indicaters do not correspond to its level of wealth. The rate of poverty is very high (35%), especially in the country side and unemployment affects 25% of the workforce.

FDI in Figures

Foreign investment into the country has been slowly increasing. After slowing down in 2008, FDI influx have dried out in 2009 due to the unfavorable international economic climate and should be recovering in the coming years. Limited market potential, bureaucracy. non-profitable projects, unskilled and expensive workforce as well as poor infrastructures all constitute barriers to FDI influx. Gabon's advantages are an easy access to raw materials, political stability and a relatively high purchasing power when compared to other Sub-Saharan African countries.  Oil is the main destination of FDI in the country, France is the main investing country.

Foreign Trade Overview

Foreign trade represents 85% of the country's GDP. Customs duties are relatively high, which limits economic diversification. Compared to non-agriculture products, agricultural products are subject to heavy taxes.  Some other non-tariff barriers also exist, aiming to protect the local industries. 

The lack of transparency in the legislative system, the market monopoly in most of the sectors and the poor quality of infrastructures constitute the main reasons hindering the development of foreign trade.

Gabon has a very rich subsoil and exports more than it imports, which creates a substantial trade surplus, a trend which should continue in the cominy years.

The main trading partners of the country are the United States, the European Union and the CEMAC (Monetary and Economic Community of Central Africa, website in French).