Panels & Furniture Asia July/August 2020

More documents

Recommendations

Info

50 | MATERIALS July / August 2020, Issue 4 | Panels & Furniture Asia Nkok SEZ has ISO 14001, ISO 9001 and ISO 18001 certified operation and maintenance for infrastructure and utilities. • Raw material supply chain As part of its business facilitation role, GSEZ operates a log supply chain for units in Nkok SEZ and offers a longterm contract to all wood processing units for an assured and unhindered supply of raw material (eg, logs). FURNITURE MANUFACTURING CLUSTER – AN INITIATIVE TO PROMOTE “MADE IN GABON” Nkok SEZ also has 60,000sqm of readyto-use sheds in a Furniture Manufacturing Cluster to promote manufacturing of finished products in Gabon. As of now, there are ten units working in this cluster. FISCAL INCENTIVES TO INVESTORS Investors in GSEZ enjoy the following fiscal incentives on their industrial investments: • No income tax for first 10 years and a preferential rate of 10% over the next five years • No customs duty on the import of equipment and machinery for the industry • No VAT • No property tax • 100% foreign ownership permitted • 100% exemption from capital gains tax • Other relaxations and waivers o Relaxed labour laws and flexibility in employing expatriates o Reduced export duty for products manufactured in the SEZ o 100% repatriation of profits o Up to 25% of domestic tariff area sales permitted FOREIGN INVESTMENT IN GABON Gabon is a good investment destination for all kinds of businesses as it has an investor-friendly environment. Since gaining its independence in 1960, Gabon is one of Africa’s most politically and socially stable countries and has a per capita gross domestic product of US$19,200. Gabon has the best assessment for country risk of the Central African sub-region with a B rating and is ranked second in Central Africa for good governance in the Ibrahim Index of African Governance. The country is ranked second in Sub-Saharan Africa as per the United Nations Development Programme’s 2018 Human Development Reports. In the World Bank’s 2017 “Ease of Doing Business” ranking, Gabon ranks above most of the African countries. Some benefits of doing business in Gabon include: • Safest and most stable country in Central and West Central Africa • No currency devaluation risk – currency is permanently pegged to the euro [655.957 CFA franc = 1 euro] • Easy application process for electronic visas and work permits • No natural calamity – earthquake-, cyclone- and tsunami-free zone • Foreign investors do not need a local partner and can own 100% of shares in a company, as well as own assets in the country • Among the least polluted countries of the world – also can be called the “oxygen cylinder” of the world GSEZ SA facilitates its investors in availing credit facilities for financing the initial investment and working capital from leading banking institutions like BGFIBank Group, Union Gabonaise de Banque(UGB), United Bank for Africa(UBA), Caisse des Depots et Consignations(CDC), African Export-Import Bank (Afriexim Bank), among others. SINGLE-WINDOW CLEARANCE – A DIFFERENTIATOR Through the single-window clearance office, GSEZ assists to obtain all necessary regulatory and statutory GSEZ SA, through its subsidiaries, has developed mineral and general cargo ports in Owendo, where Nkok SEZ industries have preferential tariff and services for inbound and outbound traffic. clearances required for setting up an industry in the SEZ from various government departments, simplifying the process in granting speedy approvals to all units. To ensure that the investors do not have to run from one office to another, all 23 concerned 23 departments and agencies from which approvals are required are housed in a special building within the SEZ. This has proved as a clear differentiator for entrepreneurs in choosing this location for establishing their units. SUSTAINABLE RAW MATERIAL AVAILABILITY Gabon follows a sustainable forest management (SFM) system – the best known system that will ensure the natural regeneration of trees and that the country’s wood stock does not deplete. Adhering to SFM rules, Gabon will never face situations similar to those of countries in South East Asia. Given the reckless degradation of forests, many countries in South East Asia have imposed several full, partial or temporary logging bans. Gabon’s neighbouring countries in the Congo Basin are also expected to impose bans on the export of round logs very soon (according to the International Tropical Timber Organization). With all these developments, combined with China’s decision to stop the harvesting of
July / August 2020, Issue 4 | Panels & Furniture Asia MATERIALS | 51 Since 2017, India’s Greenply has already been operating its unit in Nkok SEZ. Century Plyboard from India also started their construction of its veneer unit in 2019 and their plant is likely to be operational later this year. This plant will cater to both European and Asian markets. natural forests, it makes immense sense to invest in a manufacturing unit in a country that is rich in timber resources. Gabon is the best option available today. Another aspect is use of wood certified by the Forest Stewardship Council (FSC), and with proper traceability and legal certificates for furniture manufacturing. Most of the big buying houses in the United States and Europe have made a resolution to ensure that by 2020, at least 30% of furniture sourced are made with FSC-certified wood. FSC-certified wood in this quantity has limited availability but it is abundantly available in Gabon. To further ensure legality and traceability of logs entering Nkok SEZ, GSEZ SA created TRACER-Nkok, an agency independently run by two reputed entities, namely FRM and Brainforest. TRACER- Nkok ensures complete traceability of logs from their entry into the SEZ to delivery to the processing unit. TRACER- Nkok issues a due diligence certificate to log suppliers that authorises them to supply logs to Nkok SEZ. TRACER- Nkok aims to promote the progressive certification of the wood sector in Gabon. NKOK SEZ TODAY Nkok SEZ currently has 166 investors from 17 nations, and the expected foreign direct investment exceeds US$1.7 billion. Out of the 166 investors, 70 are from China, India and South East Asia. The industries making the SEZ their base are mainly in wood transformation (eg, sawmill, veneer and plywood); ferro-alloys; construction materials; pharmaceutical; food processing; telecom equipment; waste and metal recycling; and warehousing, among others. Currently, 77 companies are already under production and another 30 companies are in different stages of construction. It is expected that more than 100 companies will be under commercial production by mid 2021. In April 2016, Africa Finance Corporation (AFC) made an investment of US$140 million in GSEZ SA. Established in 2007, AFC is a pan-African multilateral financial institution aimed at being a catalyst for private sector infrastructure investment in Africa and in funding power, industry, transportation and telecoms infrastructure. This investment by AFC is the independent validation of GSEZ’s business model, its future prospects and the ability of its team to execute and deliver. P
Page 1 and 2: MICA (P) No: 079/05/2019 • ISSN:
Page 3: BIFA WOOD VIETNAM 2021 www.bifawood
Page 8: FROM THE EDITOR PANELS & FURNITURE
Page 11 and 12: July / August 2020, Issue 4 | Panel
Page 51: July / August 2020, Issue 4 | Panel
Page 59 and 60: DESIGN | 57 WINNER (OUTSTANDING CON
Page 71 and 72: NEWSLETTER THE MALAYSIAN MDF MANUFA
Page 73: ADVERTISERS’ INDEX July / August

Panels & Furniture Asia July/August 2020

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?